We work with clients to help them understand the impact of tax policy on their businesses and communicate effectively with the policymakers and stakeholders that shape tax policy.
Tax policy is a complex and rapidly evolving topic. We help our clients by playing a broader role, bringing together a range of stakeholders — including individuals, companies and non-business organisations — to solve governmental challenges together. Our contributions, aimed at decoding developments, include:
Our aim is to build trust among these groups so that together, we can design tax policies that will support economic growth, lead to more broadly shared prosperity, and meet the societal goals that tax policies set out to achieve.
Will Morris, PwC’s Deputy Global Tax Policy Leader, briefs us on the status of Pillars 1 and 2 and shares his insights on potential developments around this important project over the next few months.
The OECD published an 11 July 2022 Pillar 1 Progress Report and other materials, inviting feedback on some new and adjusted Model Rules following reactions to the results of its series of building block consultations over the first half of the year. Read our Alerts and submissions as follows:
The Commentary on the December 2021 Model Rules for Pillar 2 of the digitalisation/globalisation project, agreed by the Inclusive Framework of 141 territories, will help:
Members of our Global Tax Policy team and subject specialists came together to discuss where we have reached in this process, what uncertainties remain, and what reactions we are seeing.
Webcast: Global minimum tax (Pillar 2) guidance
Read our alert and submission for insights on the Commentary and public consultation on the Implementation Framework.
The OECD published Model Rules for the Income Inclusion Rule (IIR) and Undertaxed Payments Rule (UTPR) - together known as the GloBE Rules - on 22 December 2021.
Read our alert
(see also our alert on the European Commission's draft Directive on implementing those Rules and our alert on ECOFIN's failure to adopt a compromise on 15 March 2022).
During our webcast, our panelists did a deep dive into the documents released by OECD, Inclusive Framework and G20 in the first half of October that set out the consensus and additional views on Pillar 1 and Pillar 2 in the project framework previously announced.
For more, you can also watch our perspective on China's position on the topic here.
Watch the replay
See how 140 countries have voted in reaching an agreement on Pillars 1 and 2, and the breadth of the consensus that has been announced 8 October 2021.
Our global Tax policy network helps individuals and organisations navigate the complexity of tax policy-making. Here are some of the ways we support our clients:
Tax is an environmental, social and governance (ESG) metric and a driver of sustainable growth. ESG is an umbrella term that covers the duties of businesses in relation to climate and society, and priorities such as purpose that go beyond value creation. Governments and supranational bodies also play a vital role in encouraging such thinking and the actions it can spur.
We can help:
The recommendations of the BEPS Project, led by the Organisation for Economic Cooperation and Development (OECD), are at the root of much of the recent coordinated governmental activity on perceived international tax avoidance techniques. The recommendations published in October 2015 have been, and are being, supplemented with additional standards and guidance.
We can help you:
The DAC6 directive has been in place since June 2018. It created new reporting obligations for affected intermediaries and taxpayers, depending on the nature of the arrangement and local law.
It applies to cross-border tax arrangements which meet one or more specified characteristics (hallmarks), and which concern either more than one EU country or an EU country and a non-EU country.
We can help you understand:
Tax policymakers, globally and domestically, are increasingly focusing on their contribution to environmental and green agendas. Energy taxation; schemes focused on reducing carbon emissions and neutralising the impact of foreign markets through border adjustment mechanisms; and credits and incentives for those making efficient investments go hand in hand with taxpayers own attempts to display environmental credentials to this stakeholders, whether they are investors, employees, regulators or others.
We can help:
Environmental and green taxes
European Comission releases a number of 'green taxation' measures
We all work in an increasingly globalised economy, with constantly evolving technological innovation. The interplay among these trends is having a significant impact on businesses, on governments and ultimately on tax systems. The pace and volume of indirect tax changes are unprecedented and create considerable challenges for businesses. We can expect this to continue for some time.
The PwC Global Indirect Tax Policy Team is proactively involved in helping shape sound future indirect tax policies aimed at:
We help business and governments stay up-to-date with global indirect tax policy trends and developments. We also help them stay part of the conversation through the full policy cycle, from thought to implementation.
We act as bridge-builders between business and government, bringing together tax policy stakeholders, including technology experts. Together, we work to shape sound tax policies for a better tomorrow.
COVID-19 will have medium- and longer-term implications for governments, tax administrations and businesses and how they move from crisis response into the recovery phase. They will have to consider their own resilience and whether they need to make any structural changes.
We can help you:
A number of supranational organisations are responsible for setting standards, providing guidance or committing to joint action on tax matters. Through these bodies, several territories' governments or tax authorities act together to determine international tax rules. Still other bodies contribute to the formulation of tax policy. Our Tax Policy Network regularly works with:
Tax policy developments worldwide change at an increasingly fast pace. Drawing on our experience of tax policy issues, as well as our relationships with supranational organisations and other stakeholders, we’ve designed our Tax Policy Bulletins to support you with analysis and insight on policy changes around the world. We also add Tax Policy Alerts to give you a timely update on important developments.
Our Bulletins and Alerts will help you:
More people than ever have a vested interest in tax matters, including tax transparency, reporting and the tax gap, all of which are in greater focus for governments supranational groups, and NGOs. This means a long-term, transparent tax strategy is more relevant than ever for corporate taxpayers — on that involves clear board tasks and responsibilities, board oversight, effective tax-risk management and auditable tax reporting.
We can help you:
Total Tax Contribution Framework
Corporate tax governance
Building Public Trust Through Tax Reporting
Globalisation and digitalisation are forcing policymakers around the globe to look at international tax frameworks, making changes to reflect the effects on their tax bases. These changes will apply to all large international businesses, not just highly digitalised businesses.
The G20/OECD Inclusive Framework has been reviewing the rules of the international corporate income tax system. Made up of nearly 140 countries operating on an ‘equal footing’, the project is expected to produce a consensus solution by the middle of 2021.
But enough countries are moving unilaterally — for either the short-term or longer — that a global consensus may not be reached. This could create distortions, uncertainty and complexity.
We can help you consider and understand the impact on:
Taxation of the globalisation and digitalisation of the economy