Tax
Pillar Two
Also known as global minimum tax, GloBE rules, domestic minimum top-up tax
Pillar Two is the OECD-coordinated global minimum tax, under which large multinational groups above a consolidated revenue threshold pay an effective rate of at least 15% in every jurisdiction, with any shortfall collected as a top-up tax either locally or by another group jurisdiction.
In plain terms: Big groups pay at least 15% everywhere, so parking profit in a zero-tax country stops working for them.
Why it matters
It applies only to groups above a high revenue threshold, so it does not reach founder-scale companies directly. It matters indirectly: it is why several low-tax jurisdictions have introduced domestic top-up taxes, and why the long-run direction of travel for zero-rate regimes is upward.
Common misunderstanding
Assuming it applies to a small company because its jurisdiction introduced a top-up tax. The revenue threshold is the gate, and almost every reader of this glossary sits well below it.