Dr Leopoldo Parada interviewed by TBS eFM Radio program "This Morning" from South Korea

The interview covered the Organisation for Economic Cooperation and Development’s two-pillar approach to address tax challenges posed by digitalisation.

In the interview, School of Law Tax Law expert Dr Leopoldo Parada explains the implications of the Organisation for Economic Cooperation and Development (OECD) Pillars 1 and 2 scheme (Global Tax Agreement) and its implications for the South Korean market, particularly for multinational companies such as Samsung Electronics.  

Dr Parada said, “Pillars 1 and 2 constitute a package of reforms elaborated by the OECD with the purpose of facing the challenges related to the digitalisation of the economy and the allocation of profits among multinationals worldwide.  

“Whilst Pillar 1 establishes a new nexus that allows countries to tax business profits of a company in places where there is no physical presence, Pillar 2 aims to eliminate the incentives for countries to use their corporate income tax systems to compete for direct investment, establishing a minimum threshold of effective corporate income taxation of 15%. Both Pillars of work are still under development, although Pillar 2 is more advanced, and we could expect an implementation worldwide by the end of 2023”.  

Listen to the interview in full.