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December 12, 2023

Key ways BEPS 2.0 Pillar Two may impact US multinational entities' M&A transactions

As more jurisdictions implement the Organisation for Economic Co-operation and Development (OECD)/G20 project on addressing the tax challenges of the digitization of the economy (BEPS 2.0) Pillar Two proposal, US multinational entities (MNEs) are paying closer attention. In fact, 90% of respondents to our 2023 Tax and Finance Operations survey say that they expect "moderate to significant" changes to their business operations from Pillar Two implementation. As a result, many have begun to analyze the potential Pillar Two impacts on their effective tax rate (ETR), operations and overall approach to tax data management. What has received less focus, however, is how Pillar Two and its global anti-base erosion model (GloBE) rules may affect US MNEs' M&A transactions. Learn more in this EY article.