In this alert:
International Tax: Global Minimum Tax - “Pillar Two”
- The Organisation for Economic Cooperation and Development (OECD) and G20 Inclusive Framework continue to deliberate on the Two Pillar Solution to address the challenges associated with taxation of the digital economy, namely:
- Pillar One: Reallocation of profits to market jurisdictions
- Pillar Two: Global minimum corporate income tax
- The anticipated rapid progress on the adoption of Pillar Two by many countries raises questions as to implications for Tanzania’s corporate income tax incentive framework, in particular as regards export processing zones and and special economic zones.