PM · 10-Q · 2026Q2 · Full report

Pillar Two Global Minimum Tax

Philip Morris International Inc. · 2026-07-24 · Importance 40 · Surprise 42

PMI is subject to U.S. and foreign income-tax laws, with potential changes arising from the OECD base-erosion and profit-shifting framework. Many countries have enacted or taken actions to implement the OECD Pillar Two global minimum tax for taxable years beginning after December 31, 2023. Changes in tax laws, administrative interpretations, earnings mix, or geopolitical responses to Russia could materially increase PMI’s effective tax rate and reduce net earnings.

Key facts

• Currently, many countries have enacted or taken actions to align with the OECD’s framework on a global minimum tax (referred to as “Pillar Two”), effective for taxable years beginning after December 31, 2023. source
• Governmental proposals in response to Russia’s invasion of Ukraine include punitive tax legislation applicable to companies doing business in Russia, which could have a material adverse impact on our effective tax rate if enacted. source