Daňové pobídky po zavedení Pilíře 2 Iniciativy BEPS 2.0

Tax incentives after the introduction of Pillar 2 of BEPS 2.0

We regularly keep you informed about the discussions on revolutionary changes to international taxation taking place at both OECD and EU level. One of these proposed changes is the implementation of Pillar 2 of the BEPS 2.0 Initiative.

Simplistically, Pillar 2 aims to introduce a global minimum effective tax rate of 15% for multinational groups of companies with worldwide annual revenues exceeding EUR 750 million. This would have a significant impact on the effectiveness of the tax incentives offered by individual jurisdictions. For example, if a company that is part of a qualifying multinational group in the Czech Republic were to achieve a lower effective tax rate due to investment incentives or R&D deductions, additional tax would still be levied up to 15%.

Although a consensus on the proposed EU Directive implementing Pillar 2 of the BEPS 2.0 Initiative has not yet been found (as we have also informed you HERE), the OECD is continuing its work and published a report on 6 October 2022 to serve as a basis for individual jurisdictions to potentially adjust the tax incentives offered to continue to fulfil their purpose of attracting investment. This report is available for download HERE.

We will continue to monitor this initiative and everything related to it.

If you have any questions, please contact the author of this article or the EY tax team with whom you regularly work.

Author:

Martina Máleková