News 24 Jun. 2021
Curtis successfully defends foreign states' procedural privileges in the UK Supreme Court
News 23 Jun. 2021
Ibrahim Elsadig joins Curtis as Partner in Dubai
News 09 Aug. 2021
Curtis, Mallet-Prevost, Colt & Mosle enters into association with Chevalier Law in Singapore.
Event 23 Apr. 2021
Partner Borzu Sabahi to speak on Damages, Enforcement and Annulment of Arbitral Awards at Executive Training Program hosted by the Government of India and the Indian Institute of Foreign Trade
Event 07 Sep. 2021
Simon Batifort and Andrew Larkin Speak at the European Society of International Law’s 2021 Annual Conference
Client Alert 06 Sep. 2021
Disclosure of Beneficial Ownership in 2021 – Luxembourg Perspectives – Alert 5 of the Series
Partner Elisa Botero Speaks on Panel within Framework of Colombia's 4th National Arbitration Competition
News 30 Aug. 2021
Curtis Returns to SCOTUS in Historic Sequel on the Rights of Citizens in Puerto Rico
News 16 Aug. 2021
Curtis Establishes Presence in Saudi Arabia
News 26 Jul. 2021
Curtis' Private Client Group and Attorneys Recognized in the 2021 Chambers High-Net-Worth Guide.
Client Alert 24 Jun. 2021
U.S. Insight: Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021)
U.S. Insight: Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021)
Client Alert 18 Aug. 2021
The alert is available for download here.
On July 10, 2021, the G20 Finance Ministers announced that they have endorsed the key components of the revised two pillar approach to address the tax challenges arising from the digitalization of the economy contained in the Statement by the OECD Inclusive Framework (“IF”) issued on July 1, 2021. The Statement provides that 132 of the 139 IF members had agreed on this approach. As of today, the only members of the IF that have not signed up to both pillars are Barbados, Estonia, Hungary, Ireland, Kenya, Nigeria and Sri Lanka.
Pillar One introduces measures to allocate certain taxing rights over profits of multinational entities (“MNEs”) above a 10% “net profit margin” threshold to end-market jurisdictions (i.e. jurisdictions where end users and consumers of digital services are located). As originally conceived in the October 2020 Blueprint (“Blueprint”), Pillar One was intended to apply to MNEs operating in the Automated Digital Services (“ADS”) and Consumer Facing Businesses (“CFB”) industries. The Statement revises this approach so that Pillar One would instead apply to MNEs with a global revenue of at least EUR 20 billion (approximately $ 23 billion) and a net profit margin above 10%. According to the Statement, after seven years, the scope could be further widened to apply to MNEs with a global revenue of at least EUR 10 billion (approximately $ 12 billion), pending successful implementation of Pillar One. Certain businesses including regulated financial services businesses are excluded from the scope of Pillar One.
Pillar Two introduces a global minimum effective tax rate of at least 15% through the implementation of the so-called Global Anti-Base Erosion (“GloBE”) rules to ensure that MNEs are adequately taxed on their profits. The GloBE rules would function as a top-up tax on a parent entity of the MNE, where its affiliates are taxed in local jurisdictions below the minimum rate (certain other rules denying deductions for payments to such affiliates would also apply). Pillar Two would apply to all MNEs with a global turnover in excess of EUR 750 million (approximately $ 880 million). The international shipping industry is excluded from the scope of Pillar Two.
Discussions with respect to the design elements of the agreed upon two pillar approach will continue, with the IF intending to finalize such issues and put forth a detailed implementation plan by October 2021. Pillar One will be implemented through a multilateral instrument, which will be developed and open for signature in October 2022, and become effective in 2023. IF members will not be required to adopt the GloBE rules, but if they do, they would do so consistently with the approach of Pillar Two. Pillar Two is intended to be brought into law in 2022, and effective in 2023. The Pillar Two implementation plan would include mechanisms for coordinating GloBE rules implemented by the IF members.
Marco A. Blanco
Olga R. Beloded
Eduardo A. Cukier
+1 212 696 6000
+41 22 718 3500
+33 1 42 68 72 00