Pillar 2 and global minimum tax

Following on from the agreement reached in October 2021 by the 137 member countries of the OECD Inclusive Framework, the model GloBE rules (Global Anti-Base Erosion Rules) were published on 20 December 2021.

In the wake of the OECD model rules, the European Commission has published a draft directive that draws heavily on them and aims to give them a legal framework within the European Union.

In concrete terms, the Pillar 2 reform will take shape at European level from 2024.


The aim of the GloBE rules is to subject certain groups to a supplementary tax when the effective tax rate (ETR) of a jurisdiction in which they are established is less than 15%.

The minimum annual tax applies to multinational groups of companies with consolidated annual sales of €750m or more in at least two of the previous four financial years, as well as French groups meeting the same sales threshold.

The main purpose of the scheme is to charge the parent entity of the group with an additional tax when the effective tax rate of the entities making up the group located in the same State or territory, taken together, is lower than the minimum tax rate of 15%.

The effective tax rate is determined, for each State or territory in which the group operates and for a given financial year, by the ratio between:

– the amount of ‘covered’ tax, which includes income tax and equivalent taxes borne by the constituent entities (companies, permanent establishments, etc.) established in that State or territory, including deferred tax ;

– and the income earned by these same entities (« GloBE income »). The results of the constituent entities taken into account for the purposes of this calculation are derived from the financial statements drawn up for the purposes of consolidating the group’s accounts, before any adjustments relating to transactions between group entities.


The constituent entity of a group is responsible for filing an information return in respect of the additional tax, as well as for filing a statement of settlement of the additional tax due.


The minimum taxation rules will apply to financial years beginning on or after 31 December 2023, with the exception of the rule on insufficiently taxed profits, which will in principle apply to financial years beginning on or after 31 December 2024.


– Transposition of the Pillar 2 Directive – Finance Act 2024 (add the link to the Finance Act 2024)


– COUNCIL DIRECTIVE (EU) 2022/2523 of 14 December 2022 to ensure a worldwide minimum level of taxation for multinational enterprise groups and large domestic groups within the European Union

– COUNCIL DIRECTIVE (EU) 2022/2523 of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union