Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the implications for his policies of the planned timetable for the implementation of OECD pillar two in (a) the US, (b) China, (c) India and (d) the EU.

The UK is implementing the G20/OECD Pillar 2 rules from 31 December 2023. A considerable number of countries join the UK in doing so. This includes EU Member States, where a Directive mandates all Member States except the very smallest must implement for 31 December 2023.

I understand that China and India have not yet announced their plans on Pillar 2. The US administration have committed to align their policy with Pillar 2. These countries are all members of the ‘Inclusive Framework’ of countries and jurisdictions that meet, discuss and agree the rules and who must accept the rules as they are applied by those that have introduced them.

Pillar 2 is a global approach to disincentivising multinational profit shifting and levelling the playing field on tax competition, and the rules mean that not every jurisdiction is required to implement them to achieve this.