BEPS 2.0

BEPS 2.0 (Base Erosion and Profit Shifting 2.0) is an international effort, led by the OECD, to update rules so large multinational companies pay fair taxes where they operate and earn profits. It focuses on addressing tax avoidance strategies that shift profits to low-tax jurisdictions, ensuring countries can collect appropriate tax revenue. BEPS 2.0 introduces two main pillars: Pillar One reallocates some taxing rights to the countries where customers are located, and Pillar Two establishes a global minimum corporate tax rate to prevent unfairly low-tax practices. This framework aims to promote fairness and transparency in international taxation.