IASB Exposure Draft on International Tax Reform: Pillar Two Model Rules – Join the UKEB roundtable on 13 February 2023

This year, countries around the world – including the UK – are set to bring in legislation to introduce the OECD Pillar Two Model Rules, “topping up” the corporation tax rate to 15% for multinational companies with over €750m turnover.

In response to concerns about the complexity of deferred tax accounting in relation to Pillar Two, the IASB has proposed a temporary exception from deferred tax accounting for Pillar Two top up tax and a new set of disclosures. Given the urgent need for clarity, the IASB’s ED has an accelerated timetable with comments due by 10 March 2023. 

The UKEB will be considering a draft comment letter to the IASB at its 23 February Board meeting. To ensure that it reflects UK stakeholder views, the UKEB is holding a roundtable on 13 February at 12:00hrs for preparers and investors to share their views on the IASB’s proposals, including the exception and the proposed additional disclosures. Register here if you would like to attend.

For further detail of the IASB’s proposals see the IASB website and for the UKEB’s project see the UKEB project page.