Digital reporting and the global minimum tax: OECD Pillar Two implementation

The OECD’s BEPS 2.0 Pillar Two framework introduces the global minimum tax (GMT) as a cornerstone of contemporary international tax reform. This systematic literature review examines how digital reporting systems—such as XBRL, Country-by-Country Reporting (CbCR), and the IFRS Taxonomy—operate as compliance infrastructures enabling the implementation and enforcement of GMT. Drawing on 54 peer-reviewed studies (2016–2025) and guided by the PRISMA methodology, the review integrates legitimacy theory and global regulatory governance to develop a dual-lens analytical framework that explains both why jurisdictions adopt digital reporting norms and how governance capacity shapes their operationalization. Four thematic domains emerge: the role of digital tools in enhancing transparency and compliance; the consolidation of global tax standards; regulatory, technological, and institutional barriers to deployment; and the distributional implications of digital capacity disparities. The analysis reveals that digital reporting’s effectiveness depends on the alignment between transparency mechanisms, legitimacy incentives, and governance capabilities—an alignment unevenly distributed, particularly in low- and middle-income countries. The study concludes that bridging global digital divides is essential not only for technical implementation but also for advancing fiscal equity and legitimacy within the evolving architecture of international tax governance.