OECD Says Pillar Two Raised $90 Billion-$125 Billion in 2024 as US Carve-out Cuts Take
Updated
Updated · POLITICO · Jul 20
OECD Says Pillar Two Raised $90 Billion-$125 Billion in 2024 as US Carve-out Cuts Take
2 articles · Updated · POLITICO · Jul 20
Summary
$90 billion to $125 billion — about a 3% rise in global corporate tax revenues — is what the OECD says Pillar Two generated in 2024, its first year, below earlier expectations.
The shortfall reflects a lower starting estimate and now a U.S. carve-out plus side-by-side agreement that the OECD says will further reduce collections from the global minimum tax.
Earlier OECD projections had topped $200 billion annually, and even its 2024 first-year estimate was $155 billion to $192 billion.
Business groups say the weaker revenue case undermines a compliance-heavy regime that could require up to 250 forms, while backers argue the main goal is curbing profit shifting.
The OECD said affected multinationals' effective tax rates rose by 1 to 2 percentage points, with no evident drop in investment or staffing — a sign supporters say the system is still working.