OECD Pillar Two: What Global Entrepreneurs Must Know in 2025

In 2025, the OECD’s Pillar Two takes effect, introducing a global minimum corporate tax rate of 15% for large multinational companies. The initiative aims to end the “race to the bottom,” where countries lower taxes to attract corporations, leading to unfair tax competition.

In practice, large business groups will need to reassess their international tax planning structures. Countries with tax rates below the minimum may lose some of their appeal as corporate hubs.

For entrepreneurs and investors, understanding this shift is critical. The new framework requires adjustments in expansion strategies, compliance policies, and even operational cost management.

Beyond compliance, this reform may also be an opportunity. Companies that adapt early will gain credibility and recognition for transparency and responsibility — values increasingly demanded by global markets.