International Tax Reform - Pillar Two Model Rules
The amending standard International Tax Reform – Pillar Two Model Rules gives entities a temporary mandatory exception to the requirements to recognise and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes, i.e., taxes arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax reform.
Commencement and Application
Except for paragraphs 4A and 88A, application of the amendments is required for accounting periods which begin on or after 1 January 2023 but have not ended or do not end before 10 August 2023.
Application of paragraphs 4A and 88A (which relates to the temporary exception) is required from 10 August 2023 onwards.
What do the amendments require:
- A temporary exception to the requirement to recognise deferred tax assets and liabilities arising from the implementation of the Pillar Two model rules
- Disclosures about an entity's exposure to income taxes arising from the implementation of the Pillar Two model rules