OECD Pillar II Side-by-Side Package: Analysis and Implications

Abstract

On January 5, 2026, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) published a comprehensive package of measures related to the global Pillar Two minimum tax, commonly known as the «Side- by-Side Package». This package represents the culmination of intense negotiations that lasted until 31 December 2025, overcoming the objections of countries such as China, Estonia, the Czech Republic and Poland, and is a direct response to the concerns expressed by the United States following the Executive Order of January 2025 that formally withdrew the United States from the OECD project of the two pillars. The purpose of this article is to analyze the content, operation and implications of this regulatory package, which has led to an important change in the minimum taxation of Pillar Two and which opens the door to future modifications and additional simplifications, which are absolutely necessary.