UK government delays implementation of OECD pillar 2 framework

Draft legislation will be published in the summer to implement the Organisation for Economic Co-operation and Development’s (OECD’s) pillar 2 framework in the UK the financial secretary to the Treasury has confirmed. But the commencement date will be pushed back from 1 April 2023 to 31 December 2023.

The government said it continues to support the efforts underway through the G20/OECD inclusive framework to address the tax challenges arising from globalisation and the digitalisation of the economy and to adopt a global minimum tax.

It has received more than 50 responses to the consultation – which is now closed - on how the pillar 2 rules will be implemented in domestic legislation. The responses will be published with the draft legislation in the summer.

One of the points raised most consistently in the responses was the need for adequate lead-in time before the rules are implemented in...