Pillar Two – Gauging the Impact on the Banking Landscape

Pillar Two, the regime introducing a globally consistent 15% minimum tax, is due to come into force from 1 January 2024 across a number of jurisdictions. Despite this only being a matter of weeks away, certain areas of the rules are still subject to discussion, thus creating complexity for groups. As more jurisdictions release draft rules and enact their legislation, further complexities are arising which could have material impacts for all groups subject to Pillar Two. In this article, the authors consider some of the key challenges that the banking sector faces in complying with Pillar Two and the actions that should be taken.