João Velez de Lima, Teresa Teixeira Mota and Francisca de Landerset signed the article ‘US pillar two stance: tax competitiveness challenges for Portugal and the EU’, published by the International Tax Review.

This article analyses the consequences of the United States' decision to not implement the OECD's “Pillar II” measures. The transposition of this directive introduces a Global Minimum Tax Regime (GMTRS), establishing a minimum tax rate of 15 per cent for multinational companies, with the aim of combating the erosion of the tax base and the transfer of profits to lower tax jurisdictions.

The US refusal to adopt these measures represents a challenge for countries like Portugal, which are committed to adopting them. The VdA lawyers explain that this decision could impact the competitiveness of Portuguese companies and create distortions in international taxation, making it difficult to apply the rules uniformly and increasing the risk of double taxation, especially for US-based multinationals operating in Portugal.

• This article is available here.