Hello everyone, welcome to this next episode of the PWC TaxBite podcast series.

My name is Peter Drey, a global tax director in Brussels, and I'm with me today.

I have two experienced people, Tom Patton and Evijerz, who will talk about the developments

around the global minimum taxation. Tom, well known from previous podcast, but Tom is an

international tax partner on second in the UK and working with various multinationals.

And Avi Geertz is an experienced international tax director here in our team

in Brussels, focusing a little bit more, perhaps on the European side, where Tom, of course,

we'll be able to bring the US side in this podcast.

We will talk about the introduction of a global minimum taxation.

Not a new topic.

We talked about this in previous podcast before. We had a

podcast specifically on the US reform, on the pillar one, pillar two, and on the proposal for

a business taxation for the 21st century. So we will build on that in this podcast. And perhaps

as an intro, my first question, Evius, for you.

Can you recap a little bit what happened in the past days?

Absolutely, Peter.

So last Thursday, the OECD, inclusive framework, announced agreement with most of its members on a couple of items related to Pillar 1, but we're not going to focus on that now, but also to pillars two.

So the following items are either confirmed or clarified in that announcement and are worthwhile noting.

The first one is the confirmation of the minimum effective tax rate of the income inclusion or the undertaxed payment rule, and that is 15% no surprises there, because that is in line with the G7 agreement of a couple of weeks ago.

Then it was also confirmed that international shipping income, as defined under the OECD model tax

convention will be out.

So companies that were doubtful in that industry and were doubtful of whether they would be in

...