In October 2021, the G20 Leaders Declaration welcomed the historic Two-Pillar international tax package, agreed by more than 135 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting. Pillar Two of this package involves a global minimum effective corporate tax rate of 15% for large MNEs, which seeks to respond to continued concerns regarding profit shifting, harmful tax competition, and a damaging ‘race-to-the-bottom’ on corporate tax rates. This report, which has been prepared at the request of the Indonesian G20 Presidency, considers the impact of Pillar Two on the use and design of tax incentives, with a particular focus on developing countries.