OECD Pillar 2 consultation launched

Public consultation opened today on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Also known as the GloBE rules, the measure would impose a minimum 15% tax on the excess income of multinational enterprises in every country in which they operate. Excess income is income in excess of a routine return on tangible investment and employee costs.

An officials' issues paper, OECD Pillar Two: GloBE rules for New Zealand, discusses the rules and areas officials would like feedback on.

The closing date for submissions is 1 July 2022.