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Navigate the complexities of tax policy
Tax policy is a complex and rapidly evolving topic. We help our clients to understand developments in this area, build trust and deliver sustained outcomes. Our global community of solvers engages with a range of stakeholders—including individuals, companies and non-business organisations—to find solutions to tax policy and governmental challenges together.
Tax Policy webcasts and videos
Join us for Global Tax Talk—a PwC on-demand video series that brings you the global tax policy news you need to know in a format that you can access on the go.
Our aim is to build trust
Together, we can design tax policies that will support economic growth, lead to more broadly shared prosperity, and meet the societal goals that tax policies set out to achieve.
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Will Pillars One and Two agreements affect your business?
In July 2023, the OECD/G20 Inclusive Framework on BEPS (IF) of around 140 countries released further documents relating to Pillar One and Pillar Two of the long-running project on the globalisation and digitalisation of the economy.
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Pillar One tax policy resources
Pillar 1 aims to provide for various multinational groups with consolidated revenue over €20bn and profitability above 10%:
- a more formulaic way of allocating profit to market countries regardless of where the business’ physical activities are located (Amount A),
- modified transfer pricing principles to standardise and simplify returns allocated to “routine” marketing and distribution functions (Amount B), and
- new dispute prevention and resolution mechanisms.
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Pillar Two tax policy resources
Pillar 2 aims to introduce for multinational groups with consolidated revenue over €750m:
- a global minimum Effective Tax Rate (ETR) via a system where such groups are subject to a minimum ETR of 15% on income arising in a low-tax jurisdiction, and
- a subject to tax rule (STTR) applying a minimum rate of 9% to interest, royalties and a defined set of other payments.
Pillar Two Readiness
Are you #PillarTwoReady?
PwC’s Data Input Catalog is at the centre of PwC’s end-to-end process for Pillar Two. Acting as the foundation to develop an extensive data strategy, assess operational preparedness, or determine a modelling approach, PwC’s Data Input Catalog is the core to Pillar Two readiness.
Pillar Two Country Tracker Online
Check the status of the implementation of the Pillar Two rules by country in our PwC’s Pillar Two Country Tracker Online.
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How we can support you
Our Tax policy network simplifies the complexity of tax policy-making for individuals and organisations. We help clients understand the impact of tax policies on their businesses, plan for future changes, and promote productive dialogues between stakeholders.
- Environmental, social and governance (ESG) approach
- Base Erosion and Profit Shifting (BEPS) Action Plan
- DAC6: The new EU directive on reporting cross-border tax arrangements
- Environmental / green taxes and incentives
- Global Indirect Tax Policy Group
- Supranationals and other stakeholders
- Tax transparency
- Tax in a globalised and digital economy
Environmental, social and governance (ESG) approach
Tax is an environmental, social and governance (ESG) metric and a driver of sustainable growth. ESG is an umbrella term that covers the duties of businesses in relation to climate and society, and priorities such as purpose that go beyond value creation. Governments and supranational bodies also play a vital role in encouraging such thinking and the actions it can spur.
We can help:
- assess your control framework needs to facilitate good tax governance
- consider tax risk-management approaches to ensure material items are elevated to the board for consideration
- prepare strategies for reporting on tax as part of a wider business strategy
- determine businesses Total Tax Contribution and how that is perceived in a country-by-country analysis.
- design holistic approaches considering broader sustainability and governance criteria, preventing a silo mentality.
Base Erosion and Profit Shifting (BEPS) Action Plan
The recommendations of the BEPS Project, led by the Organisation for Economic Cooperation and Development (OECD), are at the root of much of the recent coordinated governmental activity on perceived international tax avoidance techniques. The recommendations published in October 2015 have been, and are being, supplemented with additional standards and guidance.
We can help you:
- understand the impact of BEPS Project standards or best practices and identify significant risk areas
- plan for variations between jurisdictions in terms of timing, methods and the extent of implementation
- follow remaining BEPS work, consultations and areas of potential focus — through our people, information services and insights.
DAC6: The new EU directive on reporting cross-border tax arrangements
The DAC6 directive has been in place since June 2018. It created new reporting obligations for affected intermediaries and taxpayers, depending on the nature of the arrangement and local law.
It applies to cross-border tax arrangements which meet one or more specified characteristics (hallmarks), and which concern either more than one EU country or an EU country and a non-EU country.
We can help you understand:
- whether DAC6 is relevant to your business
- what you need to do to stay compliant.
Environmental / green taxes and incentives
Tax policymakers, globally and domestically, are increasingly focusing on their contribution to environmental and green agendas. Energy taxation; schemes focused on reducing carbon emissions and neutralising the impact of foreign markets through border adjustment mechanisms; and credits and incentives for those making efficient investments go hand in hand with taxpayers own attempts to display environmental credentials to this stakeholders, whether they are investors, employees, regulators or others.
We can help:
- share economic analysis for use by or with policymakers
- monitor developments and alert stakeholders with impact assessments
- connect stakeholders such as by joining communities, roundtables or study groups (e.g., our carbon tax study group)
- prepare briefings for taxpayers to share with stakeholders
- prepare strategies for reporting on tax as part of a wider business strategy, including as part of an environmental, social and governance (ESG) approach.
Environmental and green taxes
European Comission releases a number of 'green taxation' measures
Global Indirect Tax Policy Group
We all work in an increasingly globalised economy, with constantly evolving technological innovation. The interplay among these trends is having a significant impact on businesses, on governments and ultimately on tax systems. The pace and volume of indirect tax changes are unprecedented and create considerable challenges for businesses. We can expect this to continue for some time.
The PwC Global Indirect Tax Policy Team is proactively involved in helping shape sound future indirect tax policies aimed at:
- eliminating trade barriers and creating a business-friendly environment
- encouraging growth and investment
- safeguarding tax revenues for governments
- improving legal certainty, efficiency and reducing costs for all stakeholders.
We help business and governments stay up-to-date with global indirect tax policy trends and developments. We also help them stay part of the conversation through the full policy cycle, from thought to implementation.
We act as bridge-builders between business and government, bringing together tax policy stakeholders, including technology experts. Together, we work to shape sound tax policies for a better tomorrow.
Supranationals and other stakeholders
A number of supranational organisations are responsible for setting standards, providing guidance or committing to joint action on tax matters. Through these bodies, several territories' governments or tax authorities act together to determine international tax rules. Still other bodies contribute to the formulation of tax policy. Our Tax Policy Network regularly works with:
- the Organisation for Economic Cooperation and Development (OECD, including through Business at OECD, formerly BIAC), and related forums
- the Platform for Collaboration on Tax and/or its other members: the United Nations (UN), International Monetary Fund (IMF) and World Bank Group (WBG)
- the Group of 20 (G20, T20 and B20) as well as the G7/G8 major countries and G24 Intergovernmental Group on International Monetary Affairs and Development
- the European Union (EU), the Gulf Cooperation Council (GCC), the Association of Southeast Asian Nations (ASEAT) and other regional alliances
- the African Tax Administration Forum (ATAF), the Inter-American Center of Tax Administrations (CIAT), the Intra-European Organisation of Tax Administrations (IOTA) and other associations of tax administrations
- bodies of professional tax practitioners (and tax committees of wider trade bodies), NGOs and the public, speaking through various channels including the media.
Tax transparency
More people than ever have a vested interest in tax matters, including tax transparency, reporting and the tax gap, all of which are in greater focus for governments supranational groups, and NGOs. This means a long-term, transparent tax strategy is more relevant than ever for corporate taxpayers — on that involves clear board tasks and responsibilities, board oversight, effective tax-risk management and auditable tax reporting.
We can help you:
- design and implement a tax governance framework
- build trust and enhance your reputation
- consider your Total Tax Contribution
- promote tax transparency with country-by-country reporting
- benefit from the findings in PwC's annual Paying Taxes study
- put in place effective tax-rate benchmarking.
Total Tax Contribution Framework
Sustainable Tax
Corporate tax governance
Building Public Trust Through Tax Reporting
Tax in a globalised and digital economy
Globalisation and digitalisation are forcing policymakers around the globe to look at international tax frameworks, making changes to reflect the effects on their tax bases. These changes will apply to all large international businesses, not just highly digitalised businesses.
The G20/OECD Inclusive Framework has been reviewing the rules of the international corporate income tax system. Made up of nearly 140 countries operating on an ‘equal footing’, the project is expected to produce a consensus solution by the middle of 2021.
But enough countries are moving unilaterally — for either the short-term or longer — that a global consensus may not be reached. This could create distortions, uncertainty and complexity.
We can help you consider and understand the impact on:
- the effective tax rates your business is subject to
- supply chains and business structures
- compliance burdens
- deal capacity
- communications and reputation.
Taxation of the globalisation and digitalisation of the economy
"Tax is complicated and interconnected. Balancing competition and consensus is hard. And governments have significant incentives to undertake short-term actions that are driven by local demands at the expense of international collaboration. Nonetheless, the spectre of years of wrangling over tax should serve to bring people together."
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Related Insights
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Contact us
Deputy Global Tax Policy Leader, EMEA Tax Policy Leader, PwC Netherlands
Tel: +31 88 792 3611
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