Global minimum tax of 15 per cent will come into effect from next year and by 2025 almost 90 per cent of MNCs having revenues of more 750 million euros will be subject to the levy in every country of operation, said OECD in its report to G20.
"The implementation of the global minimum tax is now well underway and will come into effect from the beginning of next year," the Organisation for Economic Cooperation and Development (OECD) said in a report to G20 finance ministers and central bank governors.
The OECD said that till date, around 50 jurisdictions have taken steps to implement the global minimum tax. This figure includes half the members of the G20 and all the member states of the European Union.
"The implementation of the global minimum tax continues to gather speed and we estimate that by 2025 almost 90 per cent of global multinational enterprises (MNEs) with revenues above EUR 750 million will be subject to a minimum effective tax rate of 15 per cent in every jurisdiction where they operate," it added.
"The efficient application of consistent and co-ordinated rules will be supported through agreed guidance and an administrative framework. Importantly this framework will include a common filing and exchange network based on a standardised GloBE (Global Anti-Base Erosion) Information Return," the OECD said.
Under the proposed two-pillar solution for taxation of MNCs -- Pillar One is about reallocation of additional share of profit to the market jurisdictions and Pillar Two consists of minimum tax and subject to tax rules.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 17 2023 | 9:06 PM IST