Latest EU Agreement on Global Tax: What Cross-Border Businesses Must Know The EU just agreed on key reforms—here’s how it will shift international tax rules and VAT systems across borders. Navigating post-BEPS tax rules feels like walking a minefield. But the EU’s latest agreement on Pillar Two and VAT reforms is finally giving direction. Cross-border businesses need to understand what’s changing before year-end—and fast. And to stay compliant, accurate tax calculations are essential. Tools like vatcalc.onl make it easier to calculate VAT across jurisdictions, ensuring businesses can quickly adapt to shifting rates and invoice requirements. 1. EU Pillar Two Provisions: Shifting the Burden The EU has agreed to implement the OECD’s 15% global minimum tax (Pillar Two) using rules like: Income Inclusion Rule (IIR) Undertaxed Profit Rule (UTPR) Qualified Domestic Minimum Top-Up Tax (QDMTT) These mechanisms apply to multinationals earning over €750 million , and will top-up tax...
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How the G20’s Tax Deal Could Reshape Profit Shifting Strategies
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How the G20’s Tax Deal Could Reshape Profit Shifting Strategies The global crackdown on base erosion is real — here’s what it means for multinationals in 2025 and beyond. For years, shifting profits to low-tax havens was a clever tax strategy. Now? It’s a compliance risk — and potentially a reputational landmine. Thanks to the G20’s sweeping tax deal, profit shifting as we know it is facing its final act. 1. The G20’s Global Tax Deal: What’s Actually in It? Formally adopted in 2021 and rolled out through 2024–2025, the G20-backed OECD global tax deal consists of: Pillar One: Reallocates taxing rights so large digital companies pay more where users are Pillar Two: Imposes a 15% global minimum tax on large multinationals' profits More than 140 countries have signed on — and many are enforcing it with top-up taxes and national legislation. Bottom line: It marks a shift from optional compliance to enforceable tax justice . The GST/HST: Creating an Integrated Sales Ta...
Post-BEPS Era: Navigating International Tax Reform for U.S. Corporations
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Post-BEPS Era: Navigating International Tax Reform for U.S. Corporations From GILTI to Pillar Two, here’s what American multinationals must do to survive the 2025 tax landscape. The Real Challenge Begins BEPS is no longer the battleground — implementation is. For U.S. corporations with global reach, the international tax game has changed dramatically. In 2025, the real question is: Can your structure survive Pillar Two, GILTI updates, and global reporting demands? 1. What the Post-BEPS Era Actually Means The OECD’s Base Erosion and Profit Shifting (BEPS) framework — once a warning shot — has become law in over 130 jurisdictions. Now we’re in the post-BEPS phase , where: Global minimum taxes (Pillar Two) are enforced Country-by-Country Reporting (CbCR) is mainstream Tax treaties are being rewritten with stronger anti-avoidance rules For U.S. multinationals, this means global alignment is no longer optional . Even domestic rules must now align with international norms. 2. ...