Samil PwC, Pillar 2 Digital Tax Seminar... "Companies Must Prepare for Full Adoption of International Tax System"

[Asia Economy Reporter Jihwan Park] Companies need to quickly prepare and respond to the unprecedented full-scale introduction of the international tax system, according to a recent recommendation.

On the 10th, Samil Accounting Corporation announced that it successfully held an online seminar on the "Analysis and Response to the Digital Pillar 2 Global Minimum Tax Model Rules" on the 7th.

About 400 officials in charge of international tax affairs from domestic companies attended the webinar, which took place following the release of the Digital Pillar 2 Model Rules on December 20 last year. The seminar provided a comprehensive yet easy-to-understand analysis of the model rules, application examples, and impact assessments upon implementation, receiving positive responses from participants.

In the first session, Partner Jooduk Kim explained the background of the introduction of the digital tax and introduced the key milestones. He described recent trends in changes to the international tax system due to the expansion and development of the digital economy, as well as the progress of the introduction of Digital Tax Pillar 2.

In the second session, Partner Dongyeol Lee systematically explained the scope of multinational enterprises subject to the model rules, the taxation rules, and the calculation method of GloBE (Global anti-Base Erosion) income.

Following this, Partner Honghyun Kim explained the Covered Tax for calculating the effective tax rate, additional considerations related to corporate restructuring, tax neutrality, distribution systems, and administrative matters.

Partner Indae Park explained the effective tax rate and the additional tax amount (Top-Up Tax), while emphasizing the expected schedule and key considerations for domestic legislation.

Partner Jooduk Kim introduced the impact of the model rules on Korean companies and provided detailed explanations on the necessary preparations at the corporate level and the related roadmap. Transfer pricing expert Partner Wonyup Jeon explained the ripple effects of Pillar 1 on Pillar 2 and their interconnection.

Partner Junghyun Lee stated, "The OECD regards the global minimum tax model rules, which emerged after more than ten years of intense multilateral negotiations, as a revolutionary transformation of the international tax system," and emphasized, "Domestic companies, which are already inseparable from the global economy, need to swiftly prepare for changes in international taxation."

This content was produced with the assistance of AI translation services.