OECD Pillar Two Compliance Costs: A Quantitative Assessment for EU-Headquartered Groups

This study examines the compliance costs of OECD Pillar Two, i.e., the “Global Minimum Tax,” for multinational enterprises headquartered in the European Union. Collecting data from chief financial officers and heads of finance or tax departments, we estimate compliance cost determinants and subsequently predict the overall compliance burden. Results indicate total one-off costs of about EUR 1.2 billion (up to EUR 2.0 billion) and total recurring costs of EUR 517 million EUR p.a. (up to EUR 865 million EUR p.a.). Our findings inform the public discourse by mitigating information asymmetries between policymakers and corporations. Moreover, we contribute by establishing a cost benchmark to facilitate a systematic cost-benefit evaluation of this policy.

Bray, Sean, Bunn Daniel, Johannes Gaul und Christoph Spengel (2025), OECD Pillar Two Compliance Costs: A Quantitative Assessment for EU-Headquartered Groups, ZEW Discussion Paper Nr. 25-053, Mannheim.