The interactive tool to quantify and visualise the potential impact of the OECD’s Unified Approach proposal on your business
The Organisation for Economic Co-operation and Development (OECD)’s project to address the tax challenges arising from the digitisation of the economy is likely to mean fundamental, unprecedented changes to long-standing principles of the international tax system. The Unified Approach proposal under Pillar I will also affect traditional business models, as the overarching aim is to increase taxation in market jurisdictions by re-allocating taxable profits to market countries.
While these changes could lead to uncertainty, increased tax disputes and disproportionate compliance burdens, they also have the potential to impact the way you do business and require you to realign your tax model accordingly.
Have you assessed the impact of Pillar I to prepare for the coming changes?
PwC’s Market Taxation Analyser uses variables that can be modified to map different scenarios illustrating the potential impact of Pillar I.
Our PwC tax specialists have developed a user-friendly, interactive dashboarding tool to quantify and visualise the potential impact of the OECD’s Unified Approach on your business: the Market Taxation Analyser. We’ll use the tool to run an impact assessment so you can estimate the profit reallocation per jurisdiction, compare scenarios and see the potential effects of this profit reallocation on your ETR. Modelling these scenarios will help you foresee any operational and structural changes to implement, so you can prepare accordingly.
The tool will also be ready to assess the impact of Pillar II, the OECD’s proposal for a global minimum tax in response to the challenges of the increasing digitisation of the economy on a global scale. Stay tuned.