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Timelime on beps5/21/2023 ![]() Pillar 2 would apply where income is not subject to a minimum effective tax rate in each country in which a business operates of at least 15%. Pillar 1 would still entail the reallocation of a share of the global residual profit of certain businesses to market countries, but this would only apply to very large global businesses. On 5 June 2021, the G7 finance ministers discussed the Pillar 1 and Pillar 2 proposals and reached an agreement on key elements of the global tax reform. The revenues in scope generally include those from online advertising, the sale of customer data, and subscriptions or other fees from online marketplaces and other intermediation platforms. These digital services taxes (DSTs) generally apply to gross revenue that is derived from “users” in those countries. In the absence of an international agreement on the taxation of the digitalised economy, some countries have either proposed or introduced an interim unilateral tax on certain digital services. This work is intended to address remaining issues identified by the OECD/G20 BEPS initiative by providing countries with new tools to prevent their tax base from being shifted to jurisdictions that tax profits at less than the minimum rate.
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