As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS to implement the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy, the OECD is seeking public comments on the Regulated Financial Services Exclusion under Amount A of Pillar One.

The Regulated Financial Services Exclusion will exclude from the scope of Amount A the revenues and profits from regulated financial institutions. The defining character of this sector is that it is subject to a unique form of regulation, in the form of capital adequacy requirements, that reflect the risks taken on and borne by the firm. The scope of the exclusion derives from that requirement, meaning that entities that are subject to specific capital measures (and only those) are excluded from Amount A.

A public consultation document (également disponible en français) has been released to obtain public commentst. The stakeholder input received on the Regulated Financial Services Exclusion will assist members of the Inclusive Framework on BEPS in further refining and finalising the relevant rules.

Interested parties are invited to send their written comments no later than 20 May 2022. Instructions for submitting comments can be found in the consultation document.


(Source: OECD Tax)

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