New: Global Minimum Tax Monitor - stay on top of all developments concerning Pillar Two

The Global Minimum Tax Monitor is a powerful resource that offers an in-depth overview of global minimum taxation and allows users to easily compare implementation measures by country.

This cutting-edge table and tool includes detailed comments on the essential aspects of the Global Anti-Base Erosion (GloBE) rules, domestic minimum top-up taxes and the Subject to Tax Rule. It highlights any deviations from the OECD Pillar Two Model Rules and the respective EU Directive 2022/2523 of 14 December 2022. The status of Global Minimum Tax measures will be covered for some 140 countries.

 

How The New Rules Will Impact You?

The OECD global tax deal is taking shape and it is only a matter of time before multinational companies worldwide have to pay an effective minimum tax of 15% on their profits. After months of negotiations, the European Union (EU) has unanimously agreed to implement Pillar Two with the EU Directive needing to be imposed into each country's national law by the end of 2023. 

The first countries have already adopted global minimum tax rules while many others have submitted draft legislation for parliamentary debate. In contrast, the US has not made much progress in this direction since the Inflation Reduction Act was passed in August 2022. This Act introduced not only a large variety of green tax credits in order to attract international investments, but also introduced a corporate alternative minimum tax rate of 15%. The two global minimum taxes show certain similarities, but also differ substantially in some key aspects, which may result in double taxation or higher taxes unless adjustments are made to either tax system.

The introduction of the new rules will definitely have a significant impact on the taxable income of the world’s multinationals and tax revenues and therefore also on the future investments of in-scope companies. The OECD's administrative guidance aims to clarify lingering details so that governments adopt tax codes in a consistent and coordinated manner to limit compliance costs for companies and the potential for conflicts.

In a world where tax systems are becoming increasingly complex and tax competition is at the forefront, we have taken a significant step forward, simplifying the process for businesses and tax professionals. We are proud to announce the launch of our Global Minimum Tax Monitor, an indispensable tax tool designed to provide comprehensive insights into the global landscape of minimum taxation and Pillar Two global minimum tax rules.

The monitor is a powerful resource that offers an in-depth overview of global minimum taxation and allows users to easily compare implementation measures by country. This cutting-edge tax tool includes detailed comments on the essential aspects of the Global Anti-Base Erosion (GloBE) rules, domestic minimum top-up taxes and the Subject to Tax Rule . It highlights any deviations from the OECD Pillar Two Model Rules and the respective EU Directive 2022/2523 of 14 December 2022.

 

Key Features of the Global Minimum Tax Monitor

 

1. Comprehensive Coverage

The Global Minimum Tax Monitor covers the following crucial aspects of what global minimum tax represents:

  • Income Inclusion Rule: Understand how global minimum tax is calculated in different countries ensuring compliance with global standards and tax policy.Undertaxed Profits Rule: 
  • Gain insights into the undertaxed profits rule and low tax jurisdictions, which ensures that businesses pay a global minimum tax on their profits.
  • Domestic Minimum Top-up Taxes: Explore potential domestic minimum top-up taxes that may apply in foreign countries and national laws.
  • Subject to Tax Rule: Learn about the Subject to Tax Rule and how it impacts cross-border transactions. The Monitor also includes an EU and OECD table listing developments on multilateral level.

2. Comparative Analysis

The monitor allows you to easily compare the implementation measures taken by different countries, helping you to identify variations and deviations in tax policies from the standardized rules and assess the impact on your investments and the availability of previously enjoyed tax incentives. Whether you're a multinational corporation or a tax advisor, this feature will prove invaluable in ensuring compliance and making informed decisions.

3. Safe Harbour Rules

Get insights into safe harbour rules, which can offer a degree of certainty and predictability in international tax planning. Understand how these rules are applied in various jurisdictions and assess their impact on your business operations.

4. Filing Obligations and Penalties

Stay on top of your compliance obligations with information on filing requirements and potential penalties for non-compliance. This section ensures that you are well-prepared and can avoid costly mistakes.

5. Access to Additional Resources

The monitor doesn't just stop at providing an overview. It aggregates all information in one place. The table is kept up-to-date with the latest news and also offers links to country and topical analyses, relevant laws and journal articles, giving you access to further information on specific jurisdictions, including developments related to the introduction of the global minimum tax rulings such as changes to the local corporate tax rate or existing tax incentives in a jurisdiction. This wealth of resources supports your research and helps you make well-informed business decisions. The monitor and map can be downloaded to PDF and Excel, so you can print or save your comparisons and selections.

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Why Global Minimum Tax Matters

 

With the global tax landscape evolving rapidly, staying informed and compliant is more critical than ever. The introduction of these new rules and the push for minimum taxation through international agreements necessitate a deep understanding of these complex issues. Our cutting-edge monitor is a game-changer, simplifying the process and ensuring that businesses and tax professionals have access to accurate and up-to-date information.

Whether you're assessing the tax implications of expanding into a new jurisdiction or ensuring compliance with international tax standards, the monitor is your go-to resource. It streamlines the complexities of global minimum taxation, empowering you to make informed decisions and navigate the ever-changing world of international taxation with confidence. Our monitor marks a significant milestone in the field of international taxation. With its comprehensive coverage, comparative analysis, and access to additional resources, it is poised to become an essential tool for businesses, tax professionals, and policymakers alike.

 

Stay ahead of the curve and make well-informed decisions, speak to your Account Manager today for more information or get a free demo.

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