IAS 12 — OECD pillar two model rules



In March 2022, the OECD released technical guidance on its 15% global minimum tax agreed as the second ‘pillar’ of a project to address the tax challenges arising from digitalisation of the economy. This guidance elaborates on the application and operation of the Global Anti-Base Erosion (GloBE) Rules agreed and released in December 2021 which lay out a co-ordinated system to ensure that multinational enterprises with revenues above €750 million pay tax of at least 15% on the income arising in each of the jurisdictions in which they operate. This project responds to stakeholders’ concerns about the potential implications of the imminent implementation of these rules on the accounting for income taxes.


Current status of the project

This project has been completed. The IASB issued International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) on 23 May 2023.


Project milestones

Date Development Comments
November 2022 Issue first discussed by the IASB
10 January 2022 IASB/ED/2023/1 International Tax Reform — Pillar Two Model Rules (Proposed amendments to IAS 12) published Comments requested by 10 March 2023
23 May 2023 International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) issued An entity applies the exception and the requirement to disclose that it has applied the exception immediately upon issuance of the amendments; the remaining disclosure requirements are required for annual reporting periods beginning on or after 1 January 2023.


Correction list for hyphenation

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