Hello everyone, welcome to PWC Taxbyte podcast series.

My name is Peter and I'm very happy that I can welcome you to this next episode.

It's been a little bit since the last episode that we recorded, but we are back here because a lot is moving in the international tech space.

And today I particularly want to talk about Pillar 2, G7 and US tax policy.

And for that I have with me, Evie Geertz, a partner in our group here in Belgium,

focusing on the US pillar 2 international tax, so the right person to have in this recording studio.

And also Maxima L.R., director in our team, focusing on Pillar 2, connecting that with the complexities of the compliance around Pillar 2.

So I would say the right people in the room to have a discussion on this.

And the reason I wanted to issue this podcast is basically the G7 statement.

As many of you have probably heard, there was a statement of the G7 on Pillar 2.

And this is going back to the enactment of President Trump, the statements, the withdrawal from Pillar 2 by the US.

And then in the past months, the discussions around imposing Section 899, a kind of huge pressure

in the US legislation to come to an agreement with US and the European Union

to solve the tensions on Pillar 2 and the uncertainties around that

and that ended then in this statement of the G7

initially announced on social media formally published on the 28th of June

and this G7 statements basically puts forward an agreement to

come to a side-by-side system on Pillar 2. And in this podcast, I would like to explore a little bit

what this all means and what the impact is for Pillar 2. First of all, a side-by-side system,

what does it mean? Well, it means that U.S. mult of all, a side-by-side system. What does it mean? Well, it means that US multinationals

will be exempt from the Pillar 2 income inclusion rule. So the rule that basically, from a

headquarter perspective, taxes the entire group under the minimum taxation and the UTPR.

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