As geopolitical tensions reshape economies and governments compete for investment, one message came through clearly at MHA’s International Tax Summit: international tax reform is not going away, but its direction is changing. Hosted in London, the event brought together senior tax leaders, multinational businesses and specialists from across the Baker Tilly International network to discuss the future of global taxation, compliance and cross-border growth.
A new era for international tax?
Our keynote speaker, Pascal Saint-Amans, former OECD Director of the Centre for Tax Policy and Administration and one of the architects of Pillar Two, challenged the audience to look beyond headlines and focus on what is actually changing. While political rhetoric may suggest a shift away from international cooperation, the global tax infrastructure built over the last two decades remains firmly in place. Pillar Two has already been implemented across multiple jurisdictions and continues to move from policy into operational reality.
The real shift is not the abandonment of international tax reform, but a growing focus on competitiveness, simplification and tax certainty. Governments are increasingly asking how tax systems can support growth, attract investment and reduce unnecessary compliance burdens, while maintaining transparency and protecting tax revenues.
Three themes business leaders should watch
- Pillar Two is here to stay
Despite ongoing political debate, businesses should not assume Pillar Two will disappear. The discussion has evolved from implementation to execution, with organisations now focused on governance, data quality, reporting obligations and long-term compliance frameworks. The challenge for many groups is no longer understanding the rules, but embedding them into day-to-day operations.
- Competitiveness is on the agenda
A recurring theme throughout the summit was the growing focus on economic competitiveness. From the United States to Europe, policymakers are evaluating how tax systems can encourage investment, support innovation and improve business certainty. Speakers highlighted increasing pressure to simplify overlapping reporting requirements, reduce administrative burdens and create clearer frameworks for international businesses operating across multiple jurisdictions.
- Uncertainty remains, but so do opportunities
While Pillar One appears increasingly unlikely to progress in its original form, broader debates around the taxation of multinational profits, AI-driven economies and the role of the United Nations in shaping future tax standards continue to evolve. Businesses should expect ongoing developments and remain agile as international frameworks continue to mature. The overall outlook was not one of disruption, but of adaptation.
International perspectives: local developments, global implications
Bringing together expertise from across the Baker Tilly International network, the International Perspectives Panel explored how governments are responding to increasing pressure to balance competitiveness, investment and tax transparency. Delegates heard practical insights from Ian Halligan, Brendan Murphy, Gijs Fibbe and Andreas Papagavriel on the developments shaping key international markets and what they mean for multinational organisations navigating an increasingly complex tax environment.
Ian Halligan, Baker Tilly US, examined how the US tax environment has evolved over the last decade and what UK-owned businesses with US operations should be watching next.
His session highlighted growing interaction between tax policy, trade policy and investment strategy. While the US remains focused on protecting its tax base, it is simultaneously using tax policy to support economic growth and attract investment. Ian emphasised that businesses should focus on understanding the practical implications of emerging international tax rules without introducing unnecessary complexity.
Brendan Murphy, Baker Tilly Ireland, highlighted why Ireland continues to attract international investment despite increasing global scrutiny of corporate taxation.
Key themes included Ireland’s competitive corporate tax regime, enhanced R&D incentives, participation exemption rules and its continued attractiveness for multinational businesses seeking stability and access to European markets. Brendan also explored how Ireland is balancing competitiveness with the implementation of global tax reforms, including Pillar Two.
Gijs Fibbe, Baker Tilly Netherlands, focused on the transition of Pillar Two from implementation to operational compliance.
His message was that businesses should now view Pillar Two as a recurring tax process rather than a one-off project. The focus has shifted towards data quality, governance, reporting consistency and ownership of compliance responsibilities across international groups. Gijs also discussed the European Commission’s growing emphasis on tax simplification and improving competitiveness across the EU.
Andreas Papagavriel, Baker Tilly Cyprus, provided a South East European perspective, outlining how jurisdictions such as Cyprus continue to compete for international investment.
His session demonstrated how attractive local tax regimes, innovation incentives and internationally aligned transfer pricing frameworks remain important tools for governments seeking to attract businesses and talent.
Topical tax matters: practical priorities for business
Chaired by Chris Danes, the summit concluded with a panel discussion examining some of the most pressing issues facing internationally active businesses. Drawing on specialist expertise across transfer pricing, global mobility, VAT and customs, the panel explored the practical challenges organisations are navigating today and the actions they should be taking to prepare for tomorrow.
Transfer Pricing
Chris Liu, MHA Partner, discussed the increasing focus on transfer pricing governance and compliance, including the introduction of the UK’s International Controlled Transactions Schedule and increased scrutiny from tax authorities, businesses must ensure documentation, governance and transfer pricing policies can withstand growing regulatory expectations.
Global Mobility
James Smith, MHA Partner, explored how international workforces continue to evolve. Traditional long-term assignments are declining, while short-term business visitors, remote workers and cross-border commuters are becoming increasingly common. James highlighted how advances in AI, analytics and workforce technology are helping businesses manage compliance risks, improve employee experience and maintain control over costs in an increasingly complex global mobility environment.
Indirect Tax
Alison Horner, MHA Partner, addressed two areas receiving increasing attention from tax authorities and businesses alike: e-invoicing and customs compliance.
While mandatory e-invoicing requirements continue to develop globally, Alison encouraged businesses not to take a ‘wait and see’ approach. Organisations should begin assessing the impact now, particularly as governments increasingly look to digitalise tax systems. The discussion also highlighted the need for businesses trading internationally to remain vigilant regarding customs obligations and supply chain changes.
Looking ahead
The global tax landscape remains complex, but one message resonated throughout the event, businesses that focus on preparedness, flexibility and strategic planning will be best positioned to respond to future change. While the international tax agenda continues to evolve, the direction of travel points towards greater certainty, smarter compliance and a stronger link between tax policy and economic growth.
For businesses operating internationally, the challenge is not simply keeping pace with regulatory change. It is understanding how these developments create both risks and opportunities. Those organisations that invest now in governance, compliance and strategic planning will be best placed to navigate what comes next.
