IMF Concludes OECD's Two-Pillar Solution Makes the International Tax System More Robust to Tax Spillovers, Better Equipped to Address Digitalization, and Modestly Raises Global Tax Revenues

On 6 February 2023, the International Monetary Fund (IMF) published a policy paper on the BEPS Inclusive Framework agreement for the OECD's two-pillar solution to the challenges of the digitalization of the economy through a new allocation of taxing rights to market economies (Pillar 1) and tax competition through a global minimum corporate tax (Pillar 2). The paper concludes that the agreement will make the international tax system more robust to tax spillovers, better equipped to address d…