Recent DCL and Pillar 2 Guidance: Comments and Recommendations

This article addresses the interaction of the U.S. dual consolidated loss (“DCL”) rules and “Global Anti-Base Erosion Model Rules (Pillar Two)” (the “Pillar 2 rules”), issued by the Organization of Economic Coordination and Development (“OECD”) and enacted into law by several foreign countries. This article discusses specifically the “Transitional CbCR Safe Harbour” guidance that was issued by the OECD on December 15, 2023, and Notice 2023-80, which was published by the U.S. Treasury Department (“Treasury”) on December 26, 2023 (See 2023-52 I.R.B 1583). Although the official comment period to Notice 2023-80 expired on February 9, 2024, ...