ATO_Practical Experience of Pillar Two Implementation

The Australian government announced in the May 2023 Commonwealth Budget the implementation of the global and domestic minimum tax measure, with the Income Inclusion Rule (IIR) and Domestic Minimum Tax (DMT) commencing on 1 January 2024, and the UTPR commencing on 1 January 2025.

The Implementation Team oversees the ATO’s implementation and administration of the global and domestic minimum tax measure, including:

• Developing necessary systems and data analytics capabilities

• Designing client engagement, verification, and assurance processes

• Developing public advice and guidance products

• Raising awareness and obtaining feedback through targeted communication and consultation

• Supporting the Australian Treasury with law design and passage of legislation.

This session will cover the ATO’s implementation experiences to date and provide an overview of the operation of the GloBE model rules.

The Pillars Knowledge Sharing Network

The PSKN is an initiative of the OECD’s Capacity Building network aimed at bringing together members of the OECD/G20 Inclusive Framework who are committed to supporting the Two-Pillar Solution to address tax challenges arising from the digitalisation of the economy. Since the PSKN was set up in May 2023, it has offered support through various channels including virtual presentations with experts, hosting online discussion forums and one-to-one conversations with counterparts in early-implementer jurisdictions.