Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

May 19, 2023

Report on recent US international tax developments - 19 May 2023

The BEPS 2.0 Pillar One project is expected to follow a revised, three-step implementation program, according to Manal Corwin, the new director of the OECD Centre for Tax Policy and Administration, who addressed a 12 May tax conference in Washington, D.C. According to the OECD official, if there is agreement on the Multilateral Convention (MLC) text by the Inclusive Framework, the target will be to release it by the end of July. The second step will be an internal country process to determine whether domestic legislation along with the MLC is necessary and to determine politically whether the country can sign on to the convention. Step three, the OECD director said, is actual ratification by countries. Corwin also indicated there will be consideration of whether Model Rules should accompany the MLC text once it is shared.

Corwin, a former US Treasury official, suggested that 40 countries have indicated their intent to adopt Pillar Two through their own domestic legislation and praised the collaborative process with stakeholders that has influenced the drafting of the rules. No specific technical issues or other implementation issues were discussed, but it is understood that the OECD continues to work through priorities for additional implementation guidance and some additional rules could be released by late summer, with another set of new guidance to follow by year-end.

This next set of guidance will likely cover the rules for the qualified domestic minimum top-up tax safe harbor and how transferable tax credits, like those enacted as part of the Inflation Reduction Act, will be treated for purposes of the Model Rules.

Corwin added that other tax projects before the OECD include addressing rules to minimize compliance costs and recommendations on the increasing mobility of workers, crypto assets, and carbon mitigation.

The proposed US-Chile tax treaty may move forward after the Memorial Day recess, according to US Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ), with a resolution consenting to treaty ratification being added to the committee's calendar for markup. Senate Finance Committee and Foreign Relations Committee members and Treasury officials reportedly reached agreement last week to address concerns over changes made by the 2017 TCJA that could result in US companies' facing double taxation. The solution, according to the press, is a separate declaration that will be added to the ratification resolution, stating that the Senate and Treasury will continue to discuss and ensure that future tax treaties reflect current US law. Senate Foreign Relations Committee Ranking Member Jim Risch (R-ID) indicated the deal is complete, saying "We're going to get this done very quickly."


Contact Information
For additional information concerning this Alert, please contact:
Ernst & Young LLP (United States), International Tax and Transaction Services, Washington, DC
   • Arlene Fitzpatrick (
   • Joshua Ruland (

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor


The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more