🌍 A New Era in Global Taxation – OECD’s Global Minimum Tax Explained! 🌍

In October 2021, the OECD/G20 Inclusive Framework made a landmark decision that will reshape the global tax landscape: the Global Minimum Tax (GloBE). This groundbreaking tax reform, agreed upon by over 130 countries, aims to ensure that multinational enterprises (MNEs) with revenues over EUR 750 million pay their fair share of taxes, no matter where they operate.

The Global Minimum Tax changes that by introducing two key mechanisms:

👉 Income Inclusion Rule (IIR): Requires parent companies to pay a top-up tax if their subsidiaries are taxed below the agreed 15% minimum rate.
👉 Undertaxed Profits Rule (UTPR): Acts as a backstop, imposing additional tax if entities haven't been sufficiently taxed under the IIR.
🔔 Stay tuned for our next video, where we'll break down how Hong Kong is preparing to implement its own version of the Global Minimum Tax – the Hong Kong Minimum Top-Up Tax (HKMTT). Don’t miss it!