The Financial Times reports that long-time corporate tax havens Guernsey, Jersey, and Bermuda anticipate substantial corporate tax windfalls under the OECD’s global minimum tax, notwithstanding earlier concerns that higher taxes would encourage multinationals to decamp the jurisdictions.
But does this result show that Pillar 2 is working as intended, or will Pillar 2 facilitate another round of competition for multinationals through a regulatory race to the bottom (including in terms of tax incentives)? The world’s not just about taxes, and the real question may be about the lesser of evils. Links and excerpts, below the fold.
Jamie John, Guernsey, Jersey and Other Havens Rake in Revenues from Global Minimum Tax, Fin. Times (Oct. 25, 2026):
Charles Parkinson, Guernsey’s Treasury lead, told the FT that fewer than 10 per cent of multinational companies were relocating out of the British Crown dependency as a result of the increases to corporation tax. . . .
Ireland is another country profiting from Pillar Two. . . .
The longer-term impacts of the rules would only become apparent over the next few years, said John Vella, a director at Oxford university’s Centre for Business Taxation. “Companies will want to wait a bit longer to see how the rules bed in.”
Andrew Leahey (Drexel), Week in Insights: Tax Havens’ Pillar Two Windfall Is a Good Sign, Bloomberg Tax (Nov. 1, 2026):
Pillar Two’s success shouldn’t turn on whether offshore financial centers disappear as economic entities or how much additional revenue they collect. Policymakers instead should examine whether multinationals themselves are paying more tax overall—and whether incentives to shift profits into low-tax jurisdictions have diminished.
Related TaxProf Blog coverage:
- Ireland’s Tax Cuts, Financed by a Corporate-Tax Windfall (Oct. 17, 2026)
- Bloomberg: Ireland Plans More Changes to R&D Tax Credit, IP Incentives (Oct. 8, 2026)
- OECD: MNE Responses to the Global Minimum Tax (Sept. 19, 2026)
- SSRN Review & Roundup: Elkins Reviews Li’s Pillar 2 as a New International Fiscal Law (June 19, 2026)
- OECD Press Release and Webinar: 147 Countries Agree on Key Elements of a “Side-by-Side” Global Minimum Tax Arrangement (Jan. 9, 2026)
- Kern: Does the U.S. Exception Threaten Pillar Two? (Aug. 1, 2025)
- What’s the Problem That Prompted Pillar 2 and Is There a Better Solution? (June 12, 2024)
- Wells: The Enigma of BEPS, the United States, and Global Tax Cooperation (Sept. 6, 2023)
- Clausing: The Revenue Consequences of Pillar 2 (Aug. 2, 2023)
- Devereux Presents Business Location Decisions With a Global Minimum Tax and Pillar 2 Today at Toronto (Jan. 26, 2022)
