As previously announced as part of its ongoing implementation work for pillar one, the OECD has launched its consultation on the ‘extractives exclusion’ which will exclude profits from extractive industries from the scope of amount A.
The exclusion will include two elements: (1) a product test, and (2) an activities test. The consultation document explains ‘this means that the exclusion will apply where the group derives revenue from the sale of extractive products and the group has carried out the relevant exploration, development or extraction’.
The document also helpfully clarifies the definition of ‘extractive product’ for the purposes of the exclusion. The consultation closes on 29 April 2022.
As previously announced as part of its ongoing implementation work for pillar one, the OECD has launched its consultation on the ‘extractives exclusion’ which will exclude profits from extractive industries from the scope of amount A.
The exclusion will include two elements: (1) a product test, and (2) an activities test. The consultation document explains ‘this means that the exclusion will apply where the group derives revenue from the sale of extractive products and the group has carried out the relevant exploration, development or extraction’.
The document also helpfully clarifies the definition of ‘extractive product’ for the purposes of the exclusion. The consultation closes on 29 April 2022.
