UK delays implementation of Pillar 2 global tax rules to Dec. 2023

LONDON (Reuters) – The British government said on Tuesday it planned to delay until December 2023 the implementation of Pillar 2 legislation designed to ensure large multinational enterprises pay a global minimum level of tax.

In a letter to those who responded to a government consultation, the government said many had flagged that bringing in the new measures from spring 2023, likely ahead of other countries, would put UK businesses at a competitive and administrative disadvantage.

“UK Pillar 2 legislation will first apply to accounting periods beginning on or after 31 December 2023,” junior treasury minister Lucy Frazer wrote.

“This will give businesses an appropriate lead-in time before implementation and allow the policy to benefit from progress on the international process.”

(Reporting by Kylie MacLellan; editing by William James)