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December 31, 2024: Curacao
On December 20, 2024, Curacao’s Global Minimum Tax Ordinance was approved by Parliament and it was published on December 27, 2024. This includes an IIR and a QDMTT from January 1, 2025:
https://oecdpillars.com/wp-content/uploads/2024/12/Curacao_GMT.pdf
December 31, 2024: Kuwait
On December 30, 2024, Kuwait published Decree-Law 157 of 2024 for the introduction of a QDMTT from January 1, 2025.
December 30, 2024: Thailand
On December 26, 2024, Thailand published the Emergency Decree on Top-up Tax, B.E. 2567 (2024) in its Official Gazette to implement the GloBE provisions from January 1, 2025.
December 30, 2024: South Africa
On December 24, 2024, South Africa published the Global Minimum Tax Act in its Official Gazette. This applies an IIR and QDMTT from January 1, 2024:
South Africa Government Gazette dated 2024-12-24 number 51830 – Gazettes.Africa
December 30, 2024: Spain
On December 21, 2024, Spain published law 7/2024 in its Official Gazette to transpose the EU Minimum Tax Directive. This includes an IIR and QDMTT from December 31, 2023 and the UTPR from December 31, 2024.
December 30, 2024: Japan
On December 20, 2024, Japan announced in its 2025 Tax Reform that the UTPR and a QDMTT will be applied from April 1, 2026.
https://storage2.jimin.jp/pdf/news/policy/zeisi_2025.pdf
December 30, 2024: Hong Kong
On December 27, 2024, the Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024 was published in the Official Gazette. This is to introduce an IIR and QDMTT from January 1, 2025, and the UTPR from a future date to be specified. The Bill will be introduced into the Legislative Council for first reading on January 8, 2025.
December 30, 2024: The Netherlands
The Dutch Minimum Tax Executive Decree 2024 was published in the Government Gazette on December 23, 2024. This Executive Decree incorporates various parts of the OECD Administrative Guidance into Dutch law, and provides additional detail where the main Minimum Tax Act stated that further detailed rules would be provided (eg for Blended CFC regimes and substitute loss carry forwards). The Decree enters into force on January 1, 2025 and has retroactive effect to December 31, 2023.
December 23, 2024: Australia
On December 23, 2024, Australia issued the Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024 to provide for the detailed application of the Pillar 2 GloBE rules in Australia:
December 20, 2024: Spain
On December 19, 2024, Spain’s Parliament approved the draft law to implement the EU Minimum Tax Directive. This applies an IIR and QDMTT from December 31, 2023 and the UTPR from December 31, 2024.
Draft laws – Congress of Deputies
December 20, 2024: Ireland
On December 17, 2024, the Irish Revenue Commissioner issued Revenue eBrief No.322/24 which updates the Global Minimum Tax Manual
December 19, 2024: Luxembourg
On December 19, 2024, the Luxembourg Parliament approved the draft GMT amendment law which includes a number of amendments for the December 2023 and June 2024 OECD Administrative Guidance.
December 19, 2024: UK
On December 19, 2024, the UK issued amendments to the Finance Bill 2024/2025 which includes amendments for the June 2024 OECD Administrative Guidance:
Finance Bill 2024-25: Public Bill Committee – GOV.UK
December 18, 2024: Brazil
On December 17, 2024, the Chamber of Deputies approved Bill 3817/24 that repeats the provisional measure and implements the DMT. On December 18, 2024, it was approved by the Senate and will now be sent to the President for enactment.
On October 3, 2024, Brazil issued Provisional Measure No. 1,262, of October 3, 2024, to introduce a Domestic Minimum Tax from January 1, 2025. Whilst Brazilian Provisional Measures are equivalent to Federal Law, they need to be ratified by the Brazilian Congress within 60 days, (extendable for an additional 60 days). If the Provisional Measure is not ratified by Congress, it will become ineffective.
December 18, 2024: The Netherlands
On December 17, 2024, the Dutch Parliament approved a draft law to amend the GMT Law. This includes a number of amendments to implement further aspects of the February 2023 and July 2023 OECD Administrative Guidance and some aspects of the December 2023 OECD Administrative Guidance.
December 18, 2024: Isle of Man
The Isle of Man has issued a domestic top up tax cessation form for entities that are located in the Isle of Man that are intending to enter liquidation, dissolution or any other form of winding up, or otherwise cease to be located in the Isle of Man for DTUT purposes:
Form P4A – DTUT Cessation Form
December 16, 2024: Cyprus
On 12 December 2024, the Cyprus House of Representatives voted to approve local legislation to implement Pillar 2. The Law will come into effect once it is published in the official Government Gazette.
23.01.065.184-2024_Ο περί Εξασφάλισης Παγκοσμίου.pdf
December 16, 2024: Malaysia
The Malaysian Inland Revenue Board (MIRB) issued guidance on the interpretation and administration of the Pillar Two global minimum tax applicable from January 1, 2025.
guidelines-on-the-implementation-of-global-minimum-tax-in-malaysia_2122024.pdf
December 16, 2024: Bahrain
On December 15, 2024, Bahrain issued Decision no. (172) of 2024 to provide for the Executive Regulations for the DMTT law. This provides the detailed rules for the operation of the DMTT.
National Bureau For Revenue – DMTT Executive Regulations
December 12, 2024: Australia
On December 10, 2024, Australia published its key GloBE legislation in the Official Gazette. This includes:
Federal Register of Legislation – Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024
The detailed rules in the subsidiary legislation have not yet been published in their final version.
December 12, 2024: Indonesia
It has been reported that the Ministry of Finance has confirmed Indonesia will implement an IIR and DMTT from 2025 and the UTPR from 2026.
December 11, 2024: Gibraltar
On December 10, 2024, Gibraltar published draft legislation to implement a DMTT for fiscal years starting from December 31, 2023 as well as an IIR for fiscal years starting from December 31, 2024.
December 10, 2024: France
On December 5, 2024, Decree No. 2024-1126 was published in the French Official Gazette. This provides additional details on the reporting requirements for Pillar 2 purposes:
December 10, 2024: Germany
On December 6, 2024, the Federal Ministry of Finance issued a Second Discussion Draft on amendments to the Minimum Tax Act.
This follows the First Discussion Draft, issued on August 20, 2024 focused on the implementation of the December 2023 OECD Administrative Guidance, particularly with regard to amendments to the Transitional CbCR Safe Harbour.
The updated Second Discussion Draft includes amendments for the June 2024 OECD Administrative Guidance.
December 9, 2024: Kuwait
On December 9, 2024, the Kuwaiti Ministry of Finance issued a draft law that includes a 15% DMTT as part of its overhaul of the Business Profits Tax Regime. The detailed rules for calculation of the top-up tax are to be provided by Executive Regulations.
December 9, 2024: UAE
On December 9, 2024, the UAE Ministry of Finance confirmed it will implement a 15% DMTT (that will align with the GloBE rules) from January 1, 2025. The legislation has not yet been issued:
UAE Ministry of Finance announcement
December 9, 2024: Bahrain
On December 8, 2024, Bahrain updated its registration portal to include a form for QDMTT registration. The functionality can be accessed after logging into the NBR portal on the taxpayer home page.
https://eservices.nbr.gov.bh/sap/bc/ui5_ui5/sap/z_mcf_fmca/index.html#/Logon
December 6, 2024: Spain
On December 4, 2024, Spain issued a draft decree which includes Regulations for the application of the Global Minimum Tax Law. This is subject to a public consultation:
December 6, 2024: Guernsey
On November 26, 2024, Guernsey issued the Income Tax (Approved International Agreements) (Implementation) (OECD Pillar Two GloBE Model Rules) Regulations, 2024 (‘the Regulations’) to transpose the OECD Model Rules (and accompanying guidance) into domestic Regulations.
Section 1 of the Regulations states that its purpose is to give legal effect in Guernsey to the GloBE Rules from January 1, 2025 to implement:
• an income inclusion rule (IIR) (referred to in the Regulations as a Multinational Top-up Tax or ‘MTT’) that is intended to be a Qualified IIR;
• a minimum tax that is intended to be a Qualified Domestic Minimum Top-up Tax (QDMTT) (referred to in the Regulations as a Domestic Top-up Tax or DTT).
Guernsey GloBE Regulations 2024
December 5, 2024: Bulgaria
On December 2, 2024, Bulgarian Ministry of Finance submitted to Parliament draft legislation to amend the Bulgarian minimum taxation rules, including the introduction of the Transitional UTPR Safe Harbour.
https://www.parliament.bg/bg/bills/ID/165821
December 4, 2024: Qatar
On December 4, 2024, the Council of Ministers approved a draft law to implement the IIR and a QDMTT. This is now being passed to the Shura Council for approval.
Cabinet approves draft law amending some provisions of Income Tax Law
November 29, 2024: Slovakia
On November 28, 2024, Slovakia’s Parliament approved a draft law to amend its GMT Law. This provides for amendments to implement aspects of the OECD Administrative Guidance, as well as the NMCE Simplified Calculations Safe Harbour.
November 29, 2024: Hungary
On November 15, 2024, the Hungarian Tax Authority issued draft forms for the registration notification under Article 44(1) of the Minimum Tax Act, and the appointment of a domestic filing entity under Article 3(47).
Elérhető a GLOBE-adatlap tervezete – Nemzeti Adó- és Vámhivatal
November 27, 2024: Singapore
On November 27, 2024, the Multinational Enterprise (Minimum Tax) Act 2024 was published in Singapore’s Official Gazette.
Singapore Global Minimum Tax Law has been Published in the Official Gazette – oecdpillars.com
November 27, 2024: Hungary
The Hungarian Autumn Tax Package (Bill T/9724 on Amendments to Certain Tax Laws) has been approved by Parliament and was sent to the President for signature on November 27, 2024.
Sections 30-36 include amendments to the Global Minimum Tax Law (Act LXXXIV of 2023).
Most notably these amendments expand on the registration and QDMTT declaration/payment requirements.
Folyamatban levő törvényjavaslatok – Országgyűlés
November 26, 2024: Australia
On November 26, 2024, the bills to implement the Pillar 2 GMT in Australia has been passed by the Senate. They now await Royal Assent for enactment.
ParlInfo – Taxation (Multinational—Global and Domestic Minimum Tax) Imposition Bill 2024
November 26, 2024: UK
On November 20, 2024, the UK issued guidance on how to replace a filing member for Pillar 2 purposes. This is submitted via an online service and the new filing member will need to provide the group’s Pillar Two top-up taxes ID, the date the group first registered to report Pillar Two top up taxes in the UK, contact details and preferences, for one or two individuals or teams in the group and a contact postal address for the group.
Replace the filing member for a Pillar 2 top-up taxes account – GOV.UK
November 25, 2024: Germany
On November 22, 2024, the Annual Tax Act was passed by the Upper House of Parliament. This includes two technical changes relating to the Global Minimum Tax
-It includes a provision from the Second Set of OECD Administrative Guidance to provide that payroll costs for the purposes of the SBIE will be taken into account proportionately if the employee does not perform more than 50
percent of his working time in the financial year in the tax jurisdiction of the constituent entity.
-A single constituent entity in Germany can be considered a group parent for the purposes of the German minimum tax group provisions (Section 3(1) of the German GMT Law provides that German resident constituent entities of corporate groups form a Minimum Tax Group. The Group Parent is liable to file and account for top-up tax under the IIR, UTPR and DMTT on behalf of the Minimum Tax Group).
November 25, 2024: UK
On November 20, 2024, the UK issued guidance on how and when to pay Pillar 2 top-up tax:
Pay Pillar 2 top-up taxes (Domestic Top-up Tax and Multinational Top-up Tax) – GOV.UK
November 24, 2024: Isle of Man
On November 21, 2024, the Isle of Man Parliament passed the Global Minimum Tax (Pillar Two) Order 2024. This implements the IIR and a QDMTT into domestic law from January 1,2025.
The approach taken in the law is to incorporate by reference the OECD Model Rules and accompanying Commentary/Guidance to effectively transpose the OECD Rules into domestic law (subject to specified amendments).
November 21, 2024: Switzerland
On November 20, 2024, the Swiss Federal Council issued the amended Minimum Tax Ordinance to apply the IIR from January 1, 2025:
Regulation on the implementation of the OECD minimum taxation to be amended
November 20, 2024: Poland
On November 19, 2024, the Global Minimum Tax Law was published in the Official Gazette.
Journal of Laws 2024, item 1685
November 18, 2024:Poland
On November 15, 2024, Poland’s President approved the Global Minimum Tax Law.
November 15, 2024: Vietnam
On November 12, 2024, the Vietnamese Ministry of Finance released a Draft Decree on the implementation of Resolution No. 107/2023/QH15 on the Global Minimum Tax. The draft decree provides for the detailed application of the GloBE rules in Vietnam. It is open for public consultation until December 6, 2024.
https://oecdpillars.com/wp-content/uploads/2024/11/Vietnam-draft-decree.pdf
Vietnam Issues a Draft Decree for Detailed GloBE Provisions
November 14, 2024: Poland
On November 7, 2024 the draft law implementing the EU Minimum Tax Directive in Poland was passed by the upper house of Parliament (with no amendments) and has been passed to the President’s for enactment.
Paper no. 674 – Sejm of the Republic of Poland
November 13, 2024: Curacao
On November 6, 2024, Curacao’s Council of Ministers reportedly approved a draft ordinance for the implementation of Pillar 2 global minimum tax rules with effect from January 1, 2025. This includes the introduction of a domestic minimum top-up tax and an income inclusion rule to ensure a minimum tax rate of 15% for in-scope groups. The draft legislation is not yet released.
November 12, 2024: UK
On November 7, 2024, the Finance Bill 2024-2025 was introduced to Parliament. This includes provisions to enact the UTPR (and associated rules such as the Transitional UTPR Safe Harbour and Initial Phase of International Activity Exemption), and other Pillar 2 amendments.
Review of the Pillar 2 Provisions in the UK Finance Bill 2024-2025
November 11, 2024: Portugal
On November 8, 2024, the law to transpose the EU Minimum Tax Directive was published in the Official Gazette.
November 11, 2024: Kenya
On 4 November 2024, the Tax Laws (Amendment) Bill 2024 was introduced to the lower house of Parliament. The Bill includes a proposal for a minimum top-up tax of 15%.
November 11, 2024: Luxembourg
On October 31, 2024 additional amendments were made to the draft law amending the law of 22 December 2023 on the minimum effective taxation for multinational enterprise groups and large domestic groups to incorporate elements from the OECD June 2024 Administrative Guidance
November 11, 2024: South Africa
On October 30, 2024 the Global Minimum Tax Bill and the Global Minimum Tax Administration Bill were sent to the National Assembly.
November 7, 2024: Hungary
On October 29, 2024, Hungary issued its Autumn Tax Package proposal. This included minor changes to the Pillar Two law. Most notably it expanded on the registration requirements.
Section 44(1) of the law provides that a Hungarian entity within the scope of the GloBE rules (or a designated domestic entity acting on its behalf) is required to notify the tax authority within 12 months from the beginning of the tax year concerned.
The Autumn Tax Package proposal on October 29, 2024 provides that the information to be provided will be:
-the identification information of the group members, including their value added tax number, intra-community VAT number (if any), the State in which they are resident and their classification under the Pillar 2 law
– information on the overall corporate structure of the multinational group or large domestic group, including the controlling stakes held by each group member in other group members.
https://cdn.kormany.hu/uploads/document/8/86/862/8629d2f707bf81640315edf5855470ee3995edde.pdf
November 7, 2024: Portugal
On October 30, 2024, the Portuguese President promulgated the law enacting the EU Minimum Tax Directive:
President of the Republic promulgates decree of the Assembly of the Republic
November 4, 2024: Hong Kong
On October 30, 2024, the Hong Kong government released the outcome statement following the previous consultation into the introduction of the GloBE rules.
It determines that they intend to:
a) implement the IIR and the Hong Kong Multinational Top-up Tax (a QDMTT) from 2025, while the UTPR will be implemented later subject to further studies, having regard to the implementation timelines of other jurisdictions;
(b) introduce a definition for “Hong Kong resident entity” for the general purposes of the Inland Revenue Ordinance (IRO) to determine whether an entity is located in Hong Kong for the purpose of collecting top-up tax;
(c) exclude investment entities and insurance investment entities from the scope of HKMTT to preserve tax neutrality for these entities;
(d) allow annual designation of one or more than one paying entity for top-up tax under the UTPR and HKMTT regimes to provide flexibility to in-scope MNE groups; and
(e) extend the payment due date of the top-up tax and the objection period of the top-up tax assessment so as to ease compliance burden. The payment due date of the top-up tax is to be extended from two weeks to one month after the expiry of the return filing deadline or the date of the notice of assessment, whichever is the later.
The government plans to introduce an amendment bill into the Legislative Council by January 2025 for implementing the global minimum tax and the HKMTT.
October 31, 2024: UK
In yesterdays UK 2024 budget it was announced/confirmed that:
-The UTPR is to apply from 2025
-The transitional CbCR anti-arbitrage rules are to be implemented
Other amendments are also to be made to the MTT and DTT regime for technical changes and to provide for the AG4 guidance. These amendments include:
-technical adjustments to the definition of joint ventures
-technical adjustments to the application of Part 3 to joint venture groups
-technical adjustments to the application of Part 4 to joint venture groups
-an adjustment to include minority-owned subgroups in the de minimis election
-the categories and calculation of recaptured deferred tax liability
-adjustments to the filing and payment dates
-technical adjustments to the calculation of substance-based income exclusion amounts
-provisions for divergences between GloBE and accounting carrying values
-changes to the allocation of profits and covered taxes in cases involving follow-through entities
-adjustments to the application of jurisdictional effective tax rates to the blended controlled foreign company regime
-technical adjustments to the inclusion ratio computation
-extension of qualifying foreign tax credits to foreign source income arising from controlled foreign companies, permanent establishments, hybrid entities and reverse hybrid entities
-adjustments to the cross-border allocation of deferred taxes
-a five-year election to disregard deferred tax
-the inclusion of a transitional Country-by-Country Reporting Safe Harbour Anti-arbitrage Rule in Schedule 16 to Finance (No.2) Act 2023
-adjustments to the allocation of Domestic Top-up Tax between members of a multinational group
-adjustments to allow HMRC to specify qualified taxes and safe harbour accreditation by notice
-adjustment to the rule requiring tax symmetry on an asset transfer within a reorganisation
-adjustment to the definition of excluded dividends
-adjustment to the additional top-up amounts rules
-adjustment to treat qualifying asset holding companies which are not members of multinational groups as excluded entities for Domestic Top-up Tax purposes
-a provision for certain overseas Income Inclusion Rules and Domestic Minimum Top-up Tax to have qualifying status, prior to the making of UK regulations, ahead of the outcomes of the ongoing process for international agreement on qualification.
Pillar 2: Multinational Top-up Tax and Domestic Top-up Tax amendments – GOV.UK
October 30, 2024: Isle of Man
On October 24, 2024, the Isle of Man income tax division published an update on the implementation of the GloBE rules in a letter sent to all Isle of Man entities likely to be within the scope of the new rules.
The draft legislation is now available and will be considered by the Parliament in November 2024.
The Isle of Man is applying an IIR and a QDMTT. The legislation transposes the GloBE model rules and commentary/AG into domestic law with some modifications.
Global Minimum Tax (Pillar Two) Order 2024
October 29, 2024: EU
On October 28, 2024, the EU Commission adopted a proposal to amend the Directive on administrative cooperation in the field of taxation (Directive 2011/16/EU – DAC) (DAC 9). The goal is to make it easier for companies to fulfil their filing obligations under the Pillar 2 Directive.
Without the DAC9 proposal, each company that forms part of an MNE will have to file a GIR in the country where it is based.
Under DAC9, MNEs would only have to file one top-up tax information return, at central level, for the entire group. This reflects the OECD guidance and Art 44 of the EU Minimum Tax Directive which requires filing by the UPE or designated filing entity (subject to certain requirements). This information is then automatically exchanged with other jurisdictions depending on the scope of tax under Pillar 2 in that jurisdiction.
The DAC 9 proposal also transposes the GIR into EU law by making it the Top-up tax information return envisaged in Article 44 of the Pillar Two Directive.
Once adopted by the EU Council, EU governments will have until 31 December 2025 to put DAC9 into practice.
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2024:497:FIN&qid=1730111254533
October 24, 2024: Italy
On October 15, 2024, Italy issued Decree 11 of October 2024 on the calculation of the Substance-based Income Exclusion under Pillar 2.
This includes all of the OECD Administrative Guidance on the SBIE. This includes:
-Foreign rules for employees and tangible assets (including the deemed 50% requirement where employees perform work outside the employer’s jurisdiction for the SBIE)
-Excluding adjustments under the stock-based income exclusion election for calculating the SBIE
-Rules for impairment losses
-Rules for operating leases
It also confirms that the SBIE is based on amounts in the consolidated financial statements of the parent company or, in the case of the QDMTT on the basis of local accounting standards where applicable. The Explanatory Notes also reiterate that the June 2024 Administrative Guidance provides that in the case of divergences between GloBE and accounting carrying values, the adjustments to the accounting values required for GloBE purposes, to determine the relevant income or loss and/or relevant taxes are not to be considered in the calculation of the SBIE.
Decree of October 11, 2024 on the calculation of the Substance-based Income Exclusion
October 24, 2024: Germany
On October 17, 2024, Germany released the template for its Group Parent Notification Form:
Section 3(1) of the German GMT Law provides that German resident constituent entities of corporate groups form a Minimum Tax Group. The Group Parent is liable to file and account for top-up tax under the IIR, UTPR and DMTT on behalf of the Minimum Tax Group.
Section 3(3) of the GMT Law provides that the UPE is the Group Parent if it is located in Germany. If this does not apply the German parent entity of the German resident constituent entities is the Group Parent. In all other cases, a designated German Constituent Entity is treated as the Group Parent. If not, the economically most relevant German resident constituent entity is deemed to be the Group Parent.
These tests apply based on the circumstances at the end of the tax period.
Section 3(4) stated that the Group Parent is required to electronically notify the Federal Central Tax Office of its status as a Group Parent within two months after the end of the tax period (ie February 28, 2025 for the 2024 fiscal year).
Changes to the status of the Group Parent, must be notified immediately by the previous Group Parent.
As the Group Parent pays top-up tax on behalf of the minimum tax group, members of the members of the minimum tax group whose top-up tax is attributed to the Group Parent obliged to compensate the Group Parent for their share of the top-up tax.
October 23, 2024: Jersey
Yesterday, Jersey enacted the Multinational Corporate Income Tax (Jersey) Law 202 and the Multinational Taxation (Global Anti-Base Erosion – IIR Tax) (Jersey) Law 202 to provide for the IIR and MCIT from January 1, 2025.
October 22, 2024: Portugal
On October 22, 2024, Decree No. 13/XVI of the Portuguese Parliament was issued to publish the law to introduce the EU Minimum Tax Directive into domestic law. It now needs to be enacted by the President.
October 21, 2024: Belgium
On October 18, 2024, Belgium issued a draft QDMTT Return for consultation. The consultation lasts until November 8, 2024:
Pillar 2 | FPS Finance (belgium.be)
October 21, 2024: Portugal
On October 18, 2024, the Portuguese Parliament approved a draft law to implement an Income Inclusion Rule (IIR) and an Undertaxed Profits Rule (UTPR), as well as a Qualified Domestic Minimum Top-up Tax (QDMTT), which allows Portugal to collect top-up taxes on low-taxed Portuguese entities of both foreign and domestic groups.
The law applies for tax years beginning on or after 1 January 2024 for the IIR and QDMTT, and tax years beginning on or after 1 January 2025 for the UTPR.
DetailInitiative (parlamento.pt)
VOTAÇÕES A EFECTUAR EM 2003- – (parlamento.pt)
October 21, 2024: The Bahamas
On October 16, 2024, the government tabled in Parliament the Domestic Minimum Top-Up Tax Bill 2024, which seeks to introduce an effective tax rate of 15 percent via a QDMTT for in-scope multinational enterprises operating in The Bahamas that have an annual consolidated revenue of or above 750 million euros, or approximately $818 million.
https://opm.gov.bs/wp-content/uploads/2024/08/Domestic-Minimum-Top-Up-Tax-Bill-2024.pdf
October 21, 2024: Cyprus
On October 18, 2024, a bill was tabled in Parliament to introduce the mandatory Income Inclusion Rule (IIR) for fiscal years beginning from December 31, 2023, and the Undertaxed Profits Rule (UTPR) for fiscal years starting from December 31, 2024.
A national supplementary tax will be implemented for fiscal years beginning December 31, 2024.
The IIR, which should have been approved by the end of 2023, will apply retroactively from December 31, 2023.
Officials believe this retroactive application, along with specific provisions in the bill, may help Cyprus avoid fines from the EU court.
October 21, 2024: Malaysia
The government will implement the global minimum tax (GMT) on multinational enterprises (MNEs) from January 2025 as part of efforts to strengthen the country’s tax base, according to the Ministry of Finance (MOF) in its Fiscal Outlook and Federal Government Revenue Estimates Report.
fiscal_outlook_2025.pdf (mof.gov.my)
October 16, 2024: France
On 10 October 2024, the French Government presented the draft Finance Bill for 2025 to Parliament. This includes amendments to its GMT law to reflect the OECD Administrative Guidance, including the December 2023 OECD amendments to the Safe Harbours.
October 16, 2024: Singapore
On October 15, 2024, Singapore’s Parliament passed the Multinational Enterprise (Minimum Tax) Bill which includes a multinational top-up tax (MTT) and a domestic top-up tax (DTT). This now needs to be assented to by the President.
70af0b78-18a5-4025-b2fb-ed563b92b91f 1..148 (parliament.gov.sg)
October 16, 2024: Sweden
On October 15, 2024, the Swedish government approved a bill amending the country’s global minimum tax legislation. This includes aspects of the OECD Administrative Guidance, including the December 2023 Safe Harbour amendments. It now needs to be approved by Parliament.
Supplements to the provisions on additional tax – Regeringen.se
October 16, 2024: Ireland
On October 10, 2024, Ireland published its 2024 Finance Bill. In the Bill, a number of amendments are made to the Global Minimum Tax provisions.
Some of the amendments are designed to incorporate concepts included in the Administrative Guidance issued by the Inclusive Framework in December 2023 and July 2024, while other changes clarify other aspects of the Irish rules.
Of particular note, the Bill legislates for the anti-avoidance provisions applicable to the CbCR Safe Harbour with respect to hybrid arbitrage arrangements included in the Inclusive Framework’s December 2023 Administrative Guidance. An effort had been made to incorporate that guidance into Irish law by way of Ministerial Order on 20 December 2023. However, given their nature, it was unclear whether the Ministerial Order was sufficient to effect implementation of the anti-avoidance provisions. The anti-avoidance provisions will be implemented under the Bill which provides that the changes will apply to hybrid arbitrage arrangements entered into after 15 December 2022.
The July 2024 Administrative Guidance issued by the Inclusive Framework included commentary to ensure tax neutral treatment of securitisation entities. The Bill provides that the qualified domestic top-up tax will not apply to a securitisation entity if there are other constituent entities within the group on which the charge can be applied. The charge will be imposed on the securitisation entity if the top-up tax cannot otherwise be collected.
A number of changes are made to implement the July 2024 Administrative Guidance on the application of the recapture rule applicable to deferred tax liabilities, cross-border allocation of current and deferred taxes and allocation of profits and taxes in certain structures involving flow-through entities. Clarifications are also made to confirm how to identify the owner of a flow-through entity that is itself owned by a flow-through entity.
Another change is an amendment to ensure that a standalone investment undertaking is not chargeable to the domestic top-up tax.
Finance Bill 2024 – No. 84 of 2024 – Houses of the Oireachtas
October 10, 2024: Norway
On October 7, 2024, the Norwegian government issued a proposal to introduce the UTPR from 2025.
October 8, 2024: Singapore
On October 4, 2024, Singapore issued a Consultation document on the GloBE Safe Harbours (Transitional Country-by-Country Reporting (“CbCR”) Safe Harbour, QDMTT Safe Harbour and the Simplified Calculations Safe Harbour), as well as on deferred tax transition rules and for the transition year to be refreshed when a QDMT applies and the GloBE rules subsequently come into effect.
The draft Transitional CbCR Legislation includes a limited number of adjustments from the December 2023 OECD Administrative Guidance, including Purchase Accounting Adjustments(consistent reporting condition, goodwill impairment adjustment) and the treatment of hybrid arbitrage arrangements.
iras-public-consultation-paper.pdf
October 5, 2024: Netherlands
On October 3, 2024, a further amendment to the draft law was published. This includes a provision to reset tax attributes for an updated transition year.
October 4, 2024: Brazil
Yesterday, Brazil issued Provisional Measure No. 1,262, of October 3, 2024, to introduce a Domestic Minimum Tax from January 1, 2025. It is designed to meet the requirements of the OECD Model Rules and Administrative Guidance and qualify as a Qualified Domestic Minimum Top-Up Tax for GloBE purposes.
Normative Instruction No. 2,228, of October 3, 2024 was also issued to regulate the application of the QDMTT.
Brazil’s QDMTT provisional law needs to be ratified by Congress.
GloBE Country Guide: Brazil – oecdpillars.com
October 4, 2024: EU
Yesterday, the European Commission announced it has referred Spain, Cyprus, Poland, and Portugal to the Court of Justice of the European Union for failing to transpose the EU Minimum Tax Directive into domestic law.
All four jurisdictions have issued draft laws to transpose the directive but have not yet enacted them.
SPAIN, CYPRUS, POLAND and PORTUGAL to the Court of Justice (europa.eu)
October 1, 2024: Poland
On September 25, 2024, the Polish draft GMT Bill was sent to the polish Parliament:
Druk nr 674 – Sejm Rzeczypospolitej Polskiej
September 26, 2024: Bulgaria
On September 18, 2024, the Bulgarian Ministry of Finance published for public consultation draft legislation to amend the Bulgarian minimum taxation rules, including the introduction of the Transitional UTPR Safe Harbour:
https://www.minfin.bg/upload/59539/ZID+ZKPO+2025.pdf
September 25, 2024: Puerto Rico
Yesterday, the Puerto Rico Treasury Department launched a public consultation on its plans for implementing the GloBE rules, including a QDMTT:
September 25, 2024: Slovakia
On September 11, 2024, the government of Slovakia approved a draft bill on amendments to the law to reflect various aspects of the OECD Administrative Guidance
Legislatívny proces – SLOV-LEX
See our updated GloBE Guide at: GloBE Country Guide: Slovakia – oecdpillars.com
September 24, 2019: Finland
On September 19, 2024, the draft law to amend the Minimum Tax Act was sent to Parliament. This includes a number of amendments to implement the OECD Administrative Guidance.
Hallituksen esitys eduskunnalle (eduskunta.fi)
See our updated GloBE Country Guide:
GloBE Country Guide: Finland – oecdpillars.com
September 24, 2019: The Netherlands
On September 17, 2024, a draft law to amend the Minimum Tax Act was published. This includes a number of amendments to implement the OECD Administrative Guidance.
Wetsvoorstel-wet-aanpassing-wet-minimumbelasting-2024.pdf (rijksfinancien.nl)
September 19, 2024: OECD
The OECD held the signing ceremony today for the Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule.
9 jurisdictions have signed with a further 10 stating an intention to sign:
Signatories and Parties (STTR MLI Positions) (oecd.org)
See more analysis of the STTR at:
Pillar Two: Subject-to-Tax Rule (STTR) – oecdpillars.com
September 16, 2024: UK
On September 12, 2024, the UK issued further draft guidance on the Multinational Top-up Tax and Domestic Top-up Tax. The issued draft guidance now runs to over 300 pages.
Multinational Top-up Tax and Domestic Top-up Tax – further draft guidance – GOV.UK (www.gov.uk)
September 16, 2024: Portugal
On September 11, 2024, the Portuguese Council of Ministers approved a law to implement the EU Minimum Tax Directive into domestic law.
August 22, 2024: Sweden
August 21, 2024: The Bahamas
On August 12, 2024, the Government of the Bahamas issued a consultation paper including draft legislation (the ‘Domestic Minimum Top-Up Tax Bill, 2024’ (the ‘draft law’)) on a domestic minimum top-up tax (‘DMTT’), intended to be a Qualified Domestic Minimum Top-Up Tax (‘QDMTT’).
DOMESTIC MINIMUM TOP-UP TAX BILL, 2024 (opm.gov.bs)
GloBE Country Guide: The Bahamas – oecdpillars.com
August 19, 2024: Israel
On August 14, 2024, the Israel Tax Agency provided public guidance on the application of the STTR to Israeli companies. This follows the general OECD guidance on the STTR.
החלת כללי ה– Subject to Tax Rule (Pillar Two)”STTR” על חברות ישראליות (www.gov.il)
August 19, 2024: Jersey
On August 14, 2024, the Jersey Assembly accepted for consideration a draft Pillar 2 law ‘Draft Multinational Taxation (Global Anti-Base Erosion – IIR Tax) (Jersey) Law 202’ to implement an IIR as well as ‘Draft Multinational Corporate Income Tax (Jersey) Law 202’ to implement a new multinational corporate income tax. Both align with the OECD Model Rules.
See our GloBE Country Guide at:
GloBE Country Guide: Jersey – oecdpillars.com
August 15, 2024: Canada
On August 12, 2024, the Canadian Government issued draft legislative proposals that include the application of the UTPR for fiscal years beginning on or after December 31, 2024. This also includes the implementation of the Transitional UTPR Safe Harbour.
Limited aspects of the Fourth Set of OECD Administrative Guidance are included in the 2024 Draft law. This relates to the top-up tax/QDMTT exclusion for Securitization Entities as well as the flow through entity provisions that include rules relating to non-group owners and minority ownership.
See our updated GloBE Guide at:
August 15, 2024: Finland
On August 12, 2024, the Finnish government issued draft legislation to amend its Global Minimum Tax Act to reflect aspects of the 2023 OECD Administrative Guidance. The draft law is subject to a consultation until September 6, 2024.
See our updated GloBE Guide at:
GloBE Country Guide: Finland – oecdpillars.com
August 12, 2024: Bermuda
On August 8, 2024, the Bermuda Ministry of Finance issued a consultation on the administrative provisions for the new corporate income tax that is to apply from 2025
In particular it proposes:
-Existing In-scope entities to register with the tax authority on or about March 31, 2025. New in-scope entities will be required to register within 60 to 90 days;
-CIT returns will be due on or before the 15th day of the 10th month following the end of the relevant fiscal year;
-The CIT is to be paid in instalments. The first instalment is to be paid by the 15th day of the 8th month after the beginning of the fiscal year in the amount of 50% of the expected tax liability for the year or a safe harbour backstop. The second instalment is to be paid by the 15th day of the 12th month after the beginning of the fiscal year to bring combined total instalments to 90% of the expected tax liability for the year or the safe harbour backstop.
Introduction of Corporate Income Tax Administrative Provisions | Government of Bermuda (www.gov.bm)
August 2, 2024: Turkey
The “Law on the Amendment of Tax Laws and Certain Laws” was published in the Turkish Official Gazette on August 2, 2024. Articles 37 – 50 of the Law include provisions to implement the GloBE rules in domestic law from January 1, 2024. This includes the IIR, UTPR (from 2025) and a domestic minimum top-up tax.
August 1, 2024: South Korea
On July 25, 2024, the Ministry of Economy and Finance issued the 2024 Tax Law Amendment Bill. This includes a number of amendments to the South Korean global minimum tax law to implement aspects of the OECD Administrative Guidance.
Many of the revisions are minor technical changes (eg slight amendments to the definitions of a Group, PEs and Constituent Entities). However, other relevant changes include:
-Providing that the method of calculating consolidated revenue will be provided in a Presidential Decree (to implement a provision in the Third Set of OECD Administrative Guidance (‘AG3)).
-Providing for an exception to the de minimis exemption where post-filing adjustments effect eligibility.
-Providing that a Presidential decree is to be issued to provide further rules on when an entity is classed as a tax transparent entity. This could potentially include aspects of the Fourth Set of OECD Administrative Guidance (eg determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity).
– Clarifying that for the purpose of the taxable distribution method election, distribution includes a deemed distribution.
-Inclusion of AG3 guidance on JVs for the Transitional CbCR Safe Harbour
– Implementing the Transitional UTPR Safe Harbour
-Reflecting the AG3 guidance and fixing the GIR filing deadline as not before June 30, 2026.
July 31, 2024: UK
On July 29, 2024, the UK government issued draft legislation for the implementation of the Pillar Two anti-avoidance rules targeting Hybrid Arbitrage Arrangements.
The December 2023 OECD Administrative Guidance provides that where a Constituent Entity has entered into a hybrid arbitrage arrangement, the Transitional CbCR Safe Harbour is not available to the MNE Group where the hybrid arbitrage arrangement results in a jurisdiction qualifying for the safe harbour.
The draft legislation is subject to a consultation until September 15, 2024
In line with a previous statement of the Exchequer Secretary to the Treasury the Government intends to apply these provisions from March 14, 2024
July 30, 2024: Israel
On July 29, 2024, the Israeli Ministry of Finance announced it will implement a QDMTT from January 1, 2026. The IIR and UTPR will not be introduced at that point and further consideration will be given to their implementation after a review of the effectiveness of the QDMTT.
July 30, 2024: Cyprus
On July 24, 2024, the Ministry of Finance announced the domestic application of all OECD Safe Harbours as provided in the Safe Harbours & Penalty Relief Guidance and other Administrative Guidance.
July 29, 2024: Turkey
On July 28, 2024, the draft law to implement the GloBE rules in Turkey was approved by the Turkish Parliament. It now awaits Presidential approval and publication in the Official Gazette.
cdn.tbmm.gov.tr/KKBSPublicFile/D28/Y2/KanunMetni/885b55a7-4db6-48c3-88b8-5c1653298048.htm
July 25, 2024: OECD
In the OECD Secretary-General Tax Report to G20 Finance Ministers, it was announced that the first high-level ceremony for the Multilateral Convention to facilitate the implementation of the STTR will take place in Paris on September 19, 2024.
July 24, 2024: Belgium
On 16 July 2024, Belgium published the Royal Decree of 7 July 2024 in the Official Gazette, which establishes the rules for companies to make advance payments of the minimum tax under Pillar 2.
Belgian Official Gazette (fgov.be)
July 18, 2024: Portugal
On July 10, 2024, the Portuguese government issued a draft law to transpose the EU Minimum Tax Directive into domestic law. The public consultation is open until July 31, 2024.
July 17, 2024: Turkey
The “Draft Law on the Amendment of Tax Laws and Certain Laws” was submitted to the Grand National Assembly of Turkey on July 16, 2024. Articles 37 – 50 of the Draft Law include provisions to implement the GloBE rules in domestic law from January 1, 2024. This includes the IIR, UTPR and a domestic minimum top-up tax.
75ed27bb-edb9-4375-835e-30c626ab6507.pdf (tbmm.gov.tr)
July 11, 2024: Austria
On July 11, 2024, Austria’s Federal Council approved the Tax Amendment Act 2024 (AbgÄG 2024), which includes various amendments to the Minimum Tax Act arising from the OECD Administrative Guidance, including currency provisions, extending the Transitional CbCR Safe Harbour to cases where an MNE is not required to prepare CbC Reports, and MTTCs.
https://www.parlament.gv.at/gegenstand/XXVII/I/2610
July 11, 2024: OECD
On July 10, 2024, the OECD released the draft XML schema for the GloBE Information Return (GIR). This provides a method of structuring the data reporting for the GIR. As such the main GloBE section closely ties into the GIR and includes main sections of:
-Filing Info, which corresponds to Sections 1.1 and 1.2 of the GIR and contains information identifying the Filing Constituent Entity and MNE Group;
-General Section which corresponds to Section 1.3 of the GIR and contains information on the corporate structure of the MNE Group;
-Summary, which corresponds to Section 1.4 of the GIR and contains the high-level summary of GloBE information;
-Jurisdiction Section, which contains the information for the GloBE ETR and top-up tax calculations in Sections 2 and 3 of the GIR (excluding Sections 3.4.3) including information on the relevant safe harbours/exclusions and the allocation of Top-up Tax; and
– UTPR Attribution, which corresponds to Section 3.4.3 of the GIR and contains information on the attribution of Top-Up Tax amongst relevant jurisdictions in case the UTPR is applicable.
In general it pretty much tracks the structure of the GIR.
The GIR XML Schema is designed to be used for the exchange of information reported under the GIR between competent authorities that have activated exchange relationships under the Multilateral Competent Authority Agreement on the Exchange of GloBE Information Returns (“GIR MCAA”), or another Qualifying Competent Authority Agreement.
However, jurisdictions can also consider using the schema domestically for the purpose of gathering the required information from their respective Filing Constituent Entities.
It is subject to a consultation until August 19, 2024.
July 4, 2024: Italy
On July 3, 2024, the Italian Ministry of Economy & Finance issued a Decree which contains the procedures for the implementation of the Qualified Domestic Minimum Top-up Tax (QDMTT).
July 4, 2024: Gibraltar
In the 2024 Budget address, the Gibraltar government confirmed that draft legislation for the introduction of a QDMTT is expected in September 2024, with it being introduced by the end of 2024. The IIR is to be introduced in 2025.
THE BUDGET 2024 – THE HON MINISTER FEETHAM’S ADDRESS – 481/2024 (gibraltar.gov.gi)
July 4, 2024: Australia
On July 4, 2024, the Australian Government introduced three Bills into the House of Parliament.
The Bills form part of a set of legislation required to implement a global and domestic minimum tax in Australia:
Taxation (Multinational-Global and Domestic Minimum Tax) Bill 2024
Taxation (Multinational-Global and Domestic Minimum Tax) Imposition Bill 2024
Treasury Laws Amendment (Multinational-Global and Domestic Minimum Tax) (Consequential) Bill 2024
The Assessment Bill implements the framework for imposition of top-up tax for the IIR, UTPR and the DMT consistent with the GloBE Rules.
The Imposition Bill imposes top-up tax, namely Australian DMT tax, Australian IIR tax and Australian UTPR tax.
The Consequential Bill contains consequential and miscellaneous provisions necessary for the administration of top-up tax, consistent with the existing administrative framework under Australian tax law and the GloBE Rules.
Australian DMT tax and Australian IIR tax apply for Fiscal Years beginning on or after January 1, 2024. Australian UTPR tax applies for Fiscal Years beginning on or after January 1, 2025.
July 2, 2024: Belgium
On July 2, 2024, the Belgian Tax Authority extended the notification deadline to September 16, 2024 (from July 13, 2024) for groups that are not making advance payments in 2024 for the QDMTT or the IIR.
On June 5, 2024, the German Federal Ministry of Finance published the government draft for an Annual Tax Act 2024. Article 32 includes an amendment to the minimum tax act to implement the provision relating to mobile employees in the Second Set of OECD Administrative Guidance.
This provides that for the purposes of the substance-based income exclusion all of the payroll carve-out can be retained by the Constituent Entity where an Eligible Employee is located within the jurisdiction of the Constituent Entity employer more than 50% of their working time.
On June 20, 2024, the Global Minimum Tax Act (included in the Budget Implementation Act 2024, No. 1) received royal assent. This includes provisions to implement an IIR and a QDMTT from December 31, 2023:
June 20, 2024: Norway
On June 19, 2024, Norway opened a consultation on the implementation of the UTPR. The consultation closes on September 2, 2024.
Consultation – supplementary tax under the tax distribution rule – regjeringen.no
June 20, 2024: Latvia
On June 20, 2024, the Latvian global minimum tax law was published in the Official Gazette. This implements the Article 50 deferral of the EU Minimum Tax Directive.
Global minimum tax for large groups of companies… – Latvijas Vēstnesis (vestnesis.lv)
On June 14, 2024, the Official Gazette of the Spanish Parliament published the text of the Bill for the transposition of the EU Directive on global minimum taxation.
The “Bill establishing a Top-up Tax to guarantee a global minimum level of taxation for multinational groups and large national groups”, was approved by the Council of Ministers on June 4.
The updated bill includes a number of changes from the draft bill published by the Ministry of Finance in December 2023.
June 10, 2024: Luxembourg
June 3, 2024: Germany
On May 17, 2024, the Germany Finance Ministry issued a draft Global Minimum Tax Return to specialist publishers, software providers and associations for feedback. This includes draft explanatory guidance.
The draft Guidance states:
June 3, 2024: Canada
On May 24, 2024, the Canadian government issued the Explanatory Notes Relating to the Global Minimum Tax Act.
May 30, 2024: Belgium
On May 29, 2024, the Royal Decree of 15 May 2024 was published in the Belgian Official Gazette.
MNE Groups or the large domestic groups are required to submit a notification form to register with the Belgian Trade Register, no later than 30 days after the start of the reporting year for which the group falls within the scope of the GloBE rules in Belgium.
However, in order to give those who have already started or are about to start their first reporting year sufficient time to collect the requested information, the notification deadline is extended to 45 days after the publication of the Royal Decree of 15 May 2024 in the Belgian Official Gazette. This means the notification form must be submitted by July 13, 2024 at the latest.
Belgian Official Gazette (fgov.be)
May 24, 2024: Spain, Cyprus, Latvia, Lithuania, Poland and Portugal
On May 23, 2024, the EU Commission has issued a reasoned opinion to Spain, Cyprus, Latvia, Lithuania, Poland and Portugal as result of them not yet enacting domestic Pillar Two legislation. They now have two months to respond and take the necessary measures:
The European Commission decided to send a reasoned opinion to Spain (INFR(2024)0049), Cyprus (INFR(2024)0020), Latvia (INFR(2024)0094), Lithuania (INFR(2024)0080), Poland (INFR(2024)0113), and Portugal (INFR(2024)0119) for failing to notify measures for the transposition into national law of Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Pillar 2 Directive). The Commission considers the two-pillar solution which requires that all major multinational corporations must pay a minimum effective tax rate of 15%, as top priority. All EU Member States were required to bring into force the laws necessary to comply with the Pillar 2 Directive by 31 December 2023. To date, most of the EU Member States have met these obligations. However, Spain, Cyprus, Latvia, Lithuania, Poland and Portugal have still not notified their national implementing measures Therefore, the Commission has decided to issue a reasoned opinion to these Member States who now have two months to respond and take the necessary measures. Otherwise, the Commission may decide to refer the case to the Court of Justice of the European Union.
May infringements package: key decisions (europa.eu)
May 24, 2024: Italy
On May 21, 2024, the Italian Ministry of Economy and Finance issued a Decree providing further details on the application of the Transitional Safe Harbours.
Article 39 of Legislative Decree No. 209 of December 27, 2023 which implemented the EU Minimum Tax Directive provided that a further decree would be issued to provide the detailed rules for the implementation of the Safe Harbours.
The decree only addresses the transitional safe harbours. As such it provides for the Transitional CbCR Safe Harbour and the Transitional UTPR Safe Harbour. The QDMTT and Simplified Calculations Safe Harbours are not included.
Most of the decree addresses the Transitional CbCR Safe Harbour. It includes most of the additional rules from the December 2023 OECD Administrative Guidance, including:
-Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment)
-Same Financial Statements/Local Financial Statements for Statutory Reporting
-Using different accounting standards
-Adjustments to Qualified Financial Statements/Dividend Mismatches
-MNEs not required to file CbC Reports
-Qualified Financial Statements for PEs
-Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities
-Treatment of hybrid arbitrage arrangements
May 24, 2024: Guernsey
On May 21, 2024, Guernsey announced it will be implementing
-An Income Inclusion Rule (IIR); and
-A QDMTT
for accounting periods beginning on or after 1 January 2025. They will apply to multinational groups of companies with global annual turnover of more than 750 million Euros.
The UTPR will not be implemented yet.
Guernsey takes next steps in implementing OECD Pillar Two Framework – States of Guernsey (gov.gg)
May 23, 2024: Belgium
On May 21, 2024, the Belgian Tax Authority issued further details on the notification requirements for in-scope MNE groups.
The notification of a group of MNEs or a large national group must be made no later than 30 days after the beginning of the tax year for which the group of MNEs or the large national group falls within the scope of the Law of 19 December 2023.
However, in order to give those who have already started or will soon start their first tax year sufficient time to collect the requested information, the notification period will in any case be granted until 45 days after the publication in the Belgian Official Gazette of a Royal Decree of 15 May 2024 (not yet published). The notification form (only available in Dutch or French) includes a significant amount of information for registration.
The notification must be made:
May 23, 2024: Jersey
On May 22, 2024, Jersey announced it will be implementing
-An Income Inclusion Rule (IIR); and
-A new standalone multinational corporate income tax (MCIT)
for accounting periods beginning on or after 1 January 2025. They will apply to multinational groups of companies with global annual turnover of more than 750 million Euros.
The UTPR will not be implemented yet.
Statement on Pillar 2 implementation (gov.je)
May 22, 2024: The UK
On May 20, 2024, the UK issued a Pillar 2 top-up taxes registration notice, that explains how to register for Pillar 2 top-up taxes in the UK, the information required and how to notify HMRC of any reporting related changes.
Pillar 2 top-up taxes registration (notice 1) – GOV.UK (www.gov.uk)
May 22, 2024: Isle of Man
On May 20, 2024, the Isle of Man Government issued a press release stating it intends to introduce a Qualified Domestic Minimum Top-Up Tax (QDMTT) with effect from 1 January 2025.
As the Isle of Man has a low number of MNEs that have their ultimate parent entity located there, a final decision on whether to implement the IIR will be taken later in 2024.
It is intended to pass the necessary legislation to Parliament in the autumn of 2024.
May 22, 2024: Isle of Man, Jersey, Guernsey
On 17 May 2024, the Isle of Man government issued a joint news release with Guernsey and Jersey stating they would shortly be commencing their respective legislative procedures to a common timeline with the introduction of Pillar Two provisions for accounting periods commencing on or after 1 January 2025.
Isle of Man Government – Joint three Crown Dependencies statement
May 21, 2024: Denmark
On April 30, 2024, the Danish Tax Ministry submitted a legislative proposal to amend the Danish Minimum Taxation Act. The purpose of the draft law is to update the Danish Minimum Taxation Act for the OECD’s Administrative Guidance.
May 17, 2024: Kenya
On May 13, 2024 the Finance Bill, 2024 was sent to the Kenyan parliament. It includes provisions to introduce a 15% domestic minimum top-up tax from January 1, 2025.
Whilst it is generally based on the GloBE rules, the legislation is very high-level. It is expected that further regulations will be issued to ensure that the domestic minimum tax operates in accordance with the GloBE rules and is a QDMTT.
Finance Bill, 2024.pdf (parliament.go.ke)
May 10, 2024: Belgium
On May 2, 2024, the Belgium Parliament approved a draft law to amend its Pillar Two to implement aspects of the OECD Administrative Guidance.
The Belgian Chamber of Representatives (dekamer.be)
Belgium Issues Draft Law to Implement the OECD Administrative Guidance » (oecdpillars.com)
May 8, 2024: Singapore
On May 8, 2024, Singapore’s IRAS released an overview of the application of the GloBE rules:
updates-on-globe-rules-and-dtt.pdf (iras.gov.sg)
May 2, 2024: Estonia
On May 2, 2024, the Estonian Official Gazette enacted the ‘Act supplementing the Tax Information Exchange Act, the Tax Administration Act and the Income Tax Act’ to implement the EU Global Minimum Tax Directive.
As Estonia is delaying the application of the GloBE rules under Article 50 of the EU directive, the law is not comprehensive and only covers limited aspects of the GloBE rules (as required for the application of Article 50).
https://www.riigiteataja.ee/akt/102052024001
May 2, 2024: Canada
On April 30, 2024, the Canadian government issued the Budget Implementation Bill, 2024, No. 1. This includes an IIR & DMTT for fiscal years beginning on or after 31 December 2023. The UTPR is not included:
nwmm-amvm-0424-bil.pdf (canada.ca)
April 26, 2024: Poland
On April 25, 2024, the Polish Ministry of Finance issued a draft law to implement the EU Minimum Tax Directive from January 1, 2025 (with an option to apply the regulations retrospectively from 2024). It also includes a QDMTT.
Akt prawny (legislacja.gov.pl)
April 25, 2024: OECD
On April 25, 2024, the OECD issued consolidated commentary to the GloBE rules. This includes the amendments and additions to the commentary as provided in the 2023 Administrative Guidance:
April 22, 2024: Estonia
On April 10, 2024, the ‘Act supplementing the Tax Information Exchange Act, the Taxation Act and the Income Tax Act’ to transpose the EU Minimum Tax Directive into domestic law, was approved by the Estonian Parliament. It is now awaiting promulgation by the President.
April 22, 2024: Japan
On April 12, 2024, the “Ministerial Ordinance to Partially Amend the Enforcement Regulations of the Corporation Tax Law” was published in the Official Gazette. This includes tax return forms (in Japanese) for reporting top-up tax under Japan’s Income Inclusion Rule.
April 16, 2023: Iceland
In the Icelandic Fiscal Strategy Plan for 2025-2029 published on April 16, 2024, the Icelandic government announced its intention to implement the Pillar Two GloBE rules with a planned entry into force in 2025.
April 12, 2024: South Korea
On March 22, 2024, the Enforcement Regulations to the International Tax Adjustment Act were amended for GloBE adjustments. This includes attachments for a number of Pillar Two form, including:
Form 55 – Notification a Foreign Group Member is Submitting the GIR
Form 56 – Top-Up Tax Payment Form
The information required for the Korean GIR ties into the data points as required by the OECD July GIR guidance.
April 8, 2024: Greece
On April 5, 2024, Law 5100/2024 was published in the Official Gazette. This implements the EU Minimum Tax Directive in Greece from December 31, 2023 (with the UTPR applying from December 31, 2024).
https://oecdpillars.com/wp-content/uploads/2024/04/FEK-2024-Tefxos-A-00049_5100.pdf
April 3, 2024: New Zealand
The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act, 2024 has been enacted, receiving Royal assent, Thursday 28 March 2024:
April 3, 2024: Liechtenstein
On March 28, 2024, the Decree on the minimum taxation of large groups of undertakings (the ‘GloBE Regulation’) was published in the Official Gazette. This regulates the details of:
(a) the GloBE Commentary and the Administrative Guidelines for the Interpretation of the GloBE Model Regulations;
(b) simplified determination of supplementary taxes;
(c) the recognition of supplementary foreign taxes;
d) the tax return for the levying of the Liechtenstein supplementary tax and the IIR supplementary tax;
e) the GloBE supplementary tax return.
gesetze.li/konso/html/2024129000?version=1&search_text=&search_loc=
A Review of the Liechtenstein GloBE Regulation
March 28, 2024: New Zealand
On March 27, 2024, New Zealand’s parliament approved the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill in its Third sitting. This introduces the global minimum tax, via an income inclusion rule and an undertaxed profits rule.
The bill requires Royal Assent and is expected to become law before April 1, 2024 according to a statement from New Zealand Finance Minister Nicola Willis and Revenue Minister Simon Watts.
March 25, 2024: Luxembourg
On March 25, 2024, the Luxembourg Government issued a FAQ document on its Pillar 2 law:
March 22, 2024: Sweden
On March 19, 2024, the Swedish Ministry of Finance published proposals, including draft legislation, to amend its GloBE law to include further aspects of the OECD Administrative Guidance:
Kompletteringar till bestämmelserna om tilläggsskatt för företag i stora koncerner (regeringen.se)
Sweden Issues Proposed Draft Legislation to Implement OECD Administrative Guidance
March 21, 2024: Australia
Today, Australian Treasury released exposure draft legislation as part of a consultation to implement the Pillar Two GloBE Rules. This includes an IIR, UTPR and a domestic minimum tax.
Domestic top-up tax and IIR top-up tax apply for Fiscal Years beginning after 1 January 2024. UTPR top-up tax applies for Fiscal Years beginning after 1 January 2025. Public comments are requested by April 16, 2024.
https://treasury.gov.au/consultation/c2024-503150-primary
March 20, 2024: Lithuania
As Lithuania intends to delay the application of the GloBE rules under Article 50 of the EU Minimum Tax Directive, the draft law is not comprehensive and only covers limited aspects of the GloBE rules (as required for the application of Article 50).
Article 50 of the EU Minimum Tax Directive provides that EU Member States in which no more than 12 UPEs of in-scope MNEs are located may elect not to apply the IIR and the UTPR for up to six consecutive fiscal years beginning from December 31, 2023 (ie until December 31, 2029).
Member states that have postponed the application of these rules must incorporate part of the provisions of the EU Minimum Tax Directive into national law in such a way as to ensure the operation of the GloBE rules in the EU, as established by the EU Minimum Tax Directive.
The Lithuanian draft law, therefore, only transposes the necessary aspects of the EU Minimum Tax Directive.
March 18, 2024: UK
On March 14, 2024, the Exchequer Secretary to the Treasury confirmed that the UK is to apply the anti-avoidance rules targeting Hybrid Arbitrage Arrangements.
The December 2023 OECD Administrative Guidance provides that where a Constituent Entity has entered into a hybrid arbitrage arrangement, the Transitional CbCR Safe Harbour is not available to the MNE Group where the hybrid arbitrage arrangement results in a jurisdiction qualifying for the safe harbour.
These are transactions that exploit differences between tax and financial accounting treatment, to allow a Constituent Entity to qualify for the safe harbour and thereby avoid GloBE Top-up Tax.
The OECD Administrative Guidance defines them as:
– a deduction/non-inclusion arrangement;
– a duplicate loss arrangement; or
– a duplicate tax recognition arrangement.
You can see more on Hybrid Arbitrage Arrangements at:
Transitional CbCR Safe Harbour » oecdpillars.com
The Government intends to apply these provisions from March 14, 2024 and will legislate in a future Finance Bill (after a consultation on how the provisions are legislated).
Pillar Two: Addition of an Anti-abuse Rule – Hansard – UK Parliament
March 15, 2024: New Zealand
On March 11, 2024, the Finance and Expenditure Committee of the New Zealand Parliament made a number of amendments to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill (which includes proposed legislation to transpose the OECD GloBE Rules).
In particular, it is proposed that the GloBE rules are to apply in New Zealand for fiscal years, starting on or after January 1, 2025.
March 15, 2024: UAE
On March 15, 2024, the UAE launched a public consultation on the implementation of the GloBE rules in the UAE. The consultation is open until April 10, 2024.
The consultation includes GloBE implementation, the design of a potential UAE domestic minimum top-up tax and administration matters.
Global Minimum Tax Public Consultation – Ministry of Finance – United Arab Emirates (mof.gov.ae)
March 15, 2024: Netherlands
On December 31, 2023, the Dutch Minimum Tax Act 2024, came into effect.
In-scope companies must file a GIR return for each reporting year (unless the exchange of information provisions apply).
Dutch companies that are subject to the Dutch Minimum Tax Act 2024 will receive a letter from the Dutch Tax and Customs Administration:
https://www.taxlive.nl/media/zfjbcy0v/anoniem_al780_wmb_2024_servicebericht_2024q1_20240309.pdf
March 13, 2024: Belgium
On March 6, 2024, the Belgian Government submitted a draft law to Parliament which includes provisions to amend the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ (the ‘GloBE Law).
The purpose of the draft law is to implement various aspects of the February 2023, July 2023 and December 2023 OECD Administrative Guidance.
Belgium Issues Draft Law to Implement the OECD Administrative Guidance
March 11, 2024: Australia
On March 7, 2024, the Australian Taxation Office provided an update on the implementation of Pillar Two. It still intends to implement an IIR and QDMTT for years beginning on or after January 1, 2024, and a UTPR for years beginning on or after January 1, 2025.
The ATO is in the process of undertaking consultations with MNEs, industry groups, advisors and Digital Service Providers.
Australia Issues Update on Global Minimum Tax » (oecdpillars.com)
March 4, 2024: Thailand
On March 1, 2024, the Thai Revenue Department published an 18-page consultation paper on the implementation of Pillar Two. This includes draft legislation which includes, an IIR, UTPR and a domestic minimum tax.
The consultation period lasts until March 15, 2024.
Hearing010367-150167.pdf (rd.go.th)
See: GloBE Country Guide: Thailand
March 1, 2024: Malta
On February 28, 2024, the Maltese Tax Authorities issued a guidance note on the implementation of the EU Minimum tax Directive in Malta.
In particular, it addresses the postponement under Article 50 and filing obligations on impacted MNEs.
February 29, 2024: South Korea
On February 29, 2024, the Enforcement Decree to the International Tax Adjustment Act was amended to reflect aspects of the GloBE rules.
February 28, 2024: Poland
On February 26, 2024, the Polish Ministry of Finance announced a draft law to implement the EU Minimum Tax Directive in the list of legislative and programme works for the Council of Ministers.
It states that the Draft Law is expected to be adopted in the third quarter of 2024. The Draft Law is expected to be published during March 2024.
February 26, 2024: Greece
On February 22, 2024, the Ministry of National Economy and Finance issued a draft law to implement the EU Global Minimum Tax Directive. The draft law is subject to consultation until March 6, 2024.
The draft law includes an IIR and QDMTT from December 31, 2023 and a UTPR from December 31, 2024 (see: A Review of Greece’s Draft Pillar Two Law).
February 26, 2024: UK
On February 22, 2024, the UK Finance Act 2024 received Royal Assent.
Finance Act 2024 Stages – Parliamentary Bills – UK Parliament
This includes a number of amendments to implement aspects of the OECD AG. See:
UK Enacts 2024 Finance Act to Implement the OECD Administrative Guidance
February 21, 2024: South Africa
Today, the National Treasury and the South African Revenue Service (SARS) have called for comments on the Draft Global Minimum Tax Bill, and the Draft Global Minimum Tax Administration Bill.
It is proposed to apply an Income Inclusion Rule and QDMTT from January 1, 2024.
The consultation is open until March 31, 2024.
Draft Global Minimum Tax Bill 21 Feb 2024.pdf (treasury.gov.za)
Global Minimum Tax Administration Bill.pdf (treasury.gov.za)
South Africa Issues a Draft Law to Transpose the OECD GloBE Rules & Adopts an ‘Ambulatory’ Approach
February 21, 2024: Malta
On February 20, 2024, the Government issued legal notice 32 of 2024 which includes regulations to enact Article 50 of the EU Minimum Tax Directive.
This provides that EU Member States in which no more than 12 UPEs of in-scope MNEs are located may elect not to apply the IIR and the UTPR for up to six consecutive fiscal years beginning from 31 December 2023 (ie up until January 1, 2030).
The rules are deemed to come into force on December 31, 2023 but are restricted to the transposition of Chapters I, VIII, IX and of Council Directive 2022/2523 (to ensure the operation of the GloBE rules in the EU, as established by the EU Minimum Tax Directive.)
Malta is not implementing a QDMTT in the meantime.
February 19, 2024: Singapore
In the Singapore 2024 Budget on February 16, 2024, it was confirmed that Singapore will introduce an IIR and a domestic minimum tax (intended to be a QDMTT) for financial years starting on or after January 1, 2025. The UTPR is not to be implemented yet.
https://www.mof.gov.sg/docs/librariesprovider3/budget2024/download/pdf/annexh1.pdf
February 16. 2024: Germany
At the 25th meeting of the German Financial Reporting Body (the DRSC) on 16.2.2024, a draft amendment to DRS 18 Deferred Taxes due to the German Minimum Tax Law is to be adopted.
February 8, 2024: Estonia
On February 8, 2024, the Government approved the ‘Act supplementing the Tax Information Exchange Act, the Tax Organisation Act and the Income Tax Act’ which includes provisions to implement Article 50 of the EU Minimum Tax Directive.
This provides that EU Member States in which no more than 12 UPEs of in-scope MNEs are located may elect not to apply the IIR and the UTPR for up to six consecutive fiscal years beginning from 31 December 2023 (ie up until January 1, 2030).
Estonia is not implementing a QDMTT in the meantime.
The Bill has been submitted to the Estonian Parliament.
Seaduseelnõu algtamine – EIS (valitsus.ee)
January 31, 2024: Latvia
On January 30, 2024, the Latvian Cabinet of ministers approved draft legislation to implement Article 50 of the EU Minimum Tax Directive. This provides that EU Member States in which no more than 12 UPEs of in-scope MNEs are located may elect not to apply the IIR and the UTPR for up to six consecutive fiscal years beginning from 31 December 2023 (ie up until January 1, 2030).
Whilst the full GloBE rules (as reflected in the EU Minimum Tax Directive) are not transposed, jurisdictions applying the Article 50 derogation are still required to incorporate part of the provisions of the EU Minimum Tax Directive into national law in such a way as to ensure the operation of the GloBE rules in the EU, as established by the EU Minimum Tax Directive.
Latvia Issues Draft Pillar Two Law & Confirms Postponement
The Law on Ensuring a Global Minimum Tax Level for Large Enterprise Groups (mk.gov.lv)
January 25, 2024: EU
Today, the EU Commission announced infringement decisions against EU member states that have not enacted domestic law to implement Pillar 2.
This includes:
-Estonia,
-Greece,
-Spain,
-Cyprus,
-Latvia,
-Lithuania,
-Malta,
-Poland and
-Portugal.
These Member States now have two months to reply to the letters of formal notice and complete their transposition, or the Commission may decide to issue a reasoned opinion.
Also see:
https://oecdpillars.com/status-of-pillar-two-implementation-in-the-eu/
January 19, 2024: Poland
It is being reported that the Polish Ministry of Finance has stated that Poland will begin the legislative process to implement Pillar 2 in the first quarter of 2024, with the rules to be effective from January 1, 2025. Poland is one of the EU jurisdictions that has not yet implemented the GloBE rules (others include Greece, Spain, Cyprus and Portugal).
January 12, 2024: Norway
Today, the Norwegian Council of State ratified the Norwegian Parliaments enactment of the Supplementary Tax Act in Legislative Decision 37 (2023-2024) Act No. 1
The Pillar Two GloBE rules are therefore in force in Norway from January 1, 2024.
January 10, 2024: Brazil
On January 2, 2024, the Brazilan Accounting Pronouncements Committee published Revision 24, to CPC Pronouncement 32. This incorporates the changes made by the IASB to IAS 12 and reflects disclosure requirements in the 2023 financial statements, for Brazilian multinationals present in jurisdictions with enacted Pillar Two legislation.
627_RevisaoPronunciamentos24_final.pdf (amazonaws.com)
January 10, 2024: Greece
Yesterday a Bill to implement the EU Minimum Tax Directive was considered by the Greek Council of Ministers. This includes an IIR and QDMTT from December 31, 2023 and a UTPR from December 31, 2024.
It is estimated that 19 Greek business groups and between 900-950 subsidiaries of foreign groups will be within the scope of the new rules, generating additional tax revenue of up to 80 million euros.
January 10, 2024: Vietnam
The Vietnamese government has instructed the Ministry of Finance to issue a Decree by October 31, 2024, providing further details of the application of the Pillar Two rules in Vietnam. This follows Resolution No. 107/2023/QH15 of December 8, 2023 which provides for the implementation of the GloBE rules in Vietnam from January 1, 2024.
Submit a Decree on the application of the global minimum tax by October 31, 2024 (vietnambiz.vn)
January 9, 2024: Malaysia
On December 29, 2023, the Finance Act (No. 2) 2023 was published in the Official Gazette. This implements the Pillar Two GloBE rules in Malaysia from 2025:
Federal Legislation of Malaysia (agc.gov.my)
January 5, 2024: Japan
On December 25, 2023, Japan’s National Tax Agency issued Frequently Asked Questions on the Japanese Income Inclusion Rule to apply from April 1, 2024. This includes:
-Corporate Groups
-Multinational Corporate Groups
-Currency issues
-Ownership Interests
-Calculation of GloBE Income
-Calculation of Covered Taxes
-Top-Up Tax Calculation
-Transitional CbCR Safe Harbour
January 3, 2024: Liechtenstein
On December 22, 2023, the Minimum Tax Act (to implement the EU Minimum Tax Directive), was published in the Official Gazette of Liechtenstein, No. 2023/484:
2023,484 | Lilex – Law database of the Principality of Liechtenstein (gesetze.li)
January 2, 2024: Czech Republic
On December 29, 2023, Law 416/2023, to implement the EU Minimum Tax Directive, was published in the Czech Official Gazette.
https://aplikace.mvcr.cz/sbirka-zakonu/ViewFile.aspx?type=c&id=39765
January 2, 2024: Romania
On December 29, 2023, Law No. 431/2023 to implement the EU Minimum Tax Directive was published in the Official Gazette.
January 2, 2024: Austria
On December 30, 2023, the Austrian Federal Law Gazette No. 187/2023 published the Minimum Taxation Reform Act to implement the EU Minimum Tax Directive from January 1, 2024.
January 2, 2024: Belgium
On December 28, 2023, the Belgian Official Gazette published the ‘Act on the introduction of a minimum tax for multinational enterprise groups and large domestic groups’ to implement the EU Minimum Tax Directive from January 1, 2024.
Moniteur Belge – Belgisch Staatsblad (fgov.be)
January 2, 2023: South Korea
On December 31, 2023, Law 19928 was issued to amend the International Tax Adjustment Act to (1) take account of a number of OECD amendments issued in their Administrative Guidance, and (2) delay the implementation of the UTPR until January 1, 2025.
Most notably, this law provides for:
– The QDMTT Safe Harbour (Article 70(5) with the details left to a Presidential Decree);
– Excess negative tax expense carry-forwards (Article 69(4));
– Regulation of the transition period for the CbCR Safe Harbour (Article 80);
– Excluding Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity (Article 61(1));
– Excluding sovereign wealth funds from the definition of Ultimate Parent Entity (Article 61(1)(6)); and
– Transitional Penalty Relief (Article 84, Paragraph 5 and Article 87, Paragraph 4).
January 2, 2024: Bulgaria
On December 22, 2023, the Law Amending the Corporate Income Tax Act (to implement the EU Minimum Tax Directive), was published in Issue 106 of the Official Gazette.
January 1, 2024: Slovenia
On December 22, 2023, the Minimum Tax Act (to implement the EU Minimum Tax Directive), was published in the Official Gazette of the Republic of Slovenia, No. 131/23:
Vsebina Uradnega lista | Uradni list (uradni-list.si)
January 1, 2024: Slovakia
On December 23, 2023, Act No. 507/2023 was published in the Official Gazette, to implement the EU Minimum Tax Directive from January 1, 2024.
https://www.epi.sk/zz/2023-507
January 1, 2024: Croatia
On December 22, 2023, Law No 155/23, to implement the EU Minimum Tax Directive, was published in the Official Gazette:
https://www.zakon.hr/z/3652/Zakon-o-minimalnom-globalnom-porezu-na-dobit
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