The OECD released guidance on the 15 percent global minimum tax rate agreed as part of the OECD’s two-pillar plan to address the tax challenges from the digitisation of the economy. The guidance covers the Global Anti-Base Erosion (GloBE) Rules and provides multinational enterprises (MNEs) and tax administrations with technical guidance on the operation and intended outcomes under the rules and also clarifies the meaning of certain terms. The GloBE Rules provide a co-ordinated system to ensure that MNEs with annual revenues over €750 million, pay a minimum effective tax rate of 15 percent on the income arising in each of the jurisdictions in which they operate.
The next step in the OECD’s work on the GloBE Rules is to develop the Implementation Framework. A public consultation has been launched to inform the development of the Implementation Framework set out in the October Statement, the deadline for which is 11 April 2022.
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