Is your company ready to meet the PillarTwo requirements?
Is your company ready to meet the PillarTwo requirements?
The Organisation for Economic Co-operation and Development (OECD) has developed the Pillar Two framework, which sets a minimum effective corporate income tax rate of 15% for multinational groups with consolidated revenues exceeding EUR 750 million in all jurisdictions where they operate.
Although in Latvia the regulation will be fully implemented only from 2030, certain corporate structures are already required to comply with specific obligations:
▪️ Provide information to the foreign parent company or prepare informational returns;
▪️ Consider potential penalties for failing to provide data to the responsible Group entity;
▪️ Monitor upcoming changes that will prepare for full implementation in the coming years.
The diagram illustrates how the Pillar Two mechanism works in cases where the effective tax rate in a given country is lower than the required 15%.
🔗 Learn more: https://lnkd.in/dH9dkEgu
Although in Latvia the regulation will be fully implemented only from 2030, certain corporate structures are already required to comply with specific obligations:
▪️ Provide information to the foreign parent company or prepare informational returns;
▪️ Consider potential penalties for failing to provide data to the responsible Group entity;
▪️ Monitor upcoming changes that will prepare for full implementation in the coming years.
The diagram illustrates how the Pillar Two mechanism works in cases where the effective tax rate in a given country is lower than the required 15%.
🔗 Learn more: https://lnkd.in/dH9dkEgu