Insurance Europe has today published its views on the Organisation for Economic Co-operation and Development’s (OECD) proposals for the so-called “pillar one” of its programme of work to develop a consensus solution to the taxation challenges arising from the digitalisation of the economy.
Pillar one deals with the allocation of taxing rights and will review profit allocation and nexus rules. A second pillar will focus on a global anti-base erosion (GloBE) proposal, which aims to ensure that multinationals pay a minimum amount of tax independent of how they organise their business geographically.
As part of its pillar one work, the OECD aims to define the scope of its proposals, including whether some sectors of the economy should be carved out. In this context, the OECD mentions financial services specifically.
In its response, Insurance Europe explained why the particularities of the insurance business model mean that pillar one proposals are not relevant for the sector and why insurers must be excluded from its scope. The insurance industry will continue to assess the possible implications of pillar two proposals and will respond during the OECD consultation process.
Full position paper on Insurance Europe
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