Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the tax that will be owed in the UK under Pillar 2 of the OECD/G20 Inclusive Framework in the first full year of Pillar 2 implementation by (a) all companies within the scope of Pillar 2, (b) those companies within the scope of Pillar 2 that are currently headquartered in the UK and (c) those companies within the scope of Pillar 2 that are currently not headquartered in the UK.

The Office for Budget Responsibility (OBR) published its revenue forecast for the Digital Services Tax (DST) today. The DST will be repealed once the new globally agreed solution is in place.

Reaching a Two-Pillar Solution on global tax reform which reallocates taxing rights and introduces a global minimum tax has been a long-standing priority for the UK.

With overwhelming support from across the international spectrum, the Government is delighted that final political agreement on a Two-Pillar Solution has now been reached amongst 136 countries of the OECD Inclusive Framework.

These proposals represent a major reform of the international tax framework and will help to ensure multinational businesses pay their fair share, with the right companies paying the right amount of tax in the right place. The Government looks forward to continuing discussions with its global partners in the coming months as we look towards implementation.

Both pillars will be subject to the standard tax policymaking process, with their impacts formally assessed through the OBR forecast process.