Pillar 2

Pillar 2 is part of an international tax framework aimed at ensuring companies pay a fair amount of tax everywhere they operate, especially in jurisdictions where they generate profits but might shift profits elsewhere to reduce taxes. It establishes a minimum global tax rate, preventing profit-shifting strategies that erode tax bases in some countries. Essentially, Pillar 2 helps make the global tax system fairer by making large multinational corporations pay a minimum level of tax, reducing tax avoidance and promoting equity among countries.