Domestic Implementation of the GloBE Rules: Differing Approaches

A number of jurisdictions have issued legislation (either draft or enacted) to implement the Pillar Two GloBE Rules, however, the approach taken differs significantly. Currently, legislation has been issued by:

Country GloBE Country GuideLegislationSubstantive EnactmentOther Analysis
AustriaAustria: GloBE Country Guide 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.

On December 14, 2023, the Austrian National Council passed the Draft Pillar Two Law.

On October 3, 2023, the Austrian Federal Ministry of Finance issued the ‘Federal law enacting the Federal Act to Ensure a Global Minimum Taxation for Groups of Companies’ to implement the Pillar Two GloBE rules/EU Minimum Tax Directive.

See our English Translation
Yes A Review of Austria’s Draft Pillar Two Law
Belgium Belgium: GloBE Country GuideOn 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.

On December 14, 2023, the Belgian parliament adopted the draft law to implement the EU Minimum Tax Directive.

On November 30, 2023, the Belgian House of Representatives adopted the draft law No. 55K3678 to implement the EU Minimum Tax Directive. The law will be enacted after it has been promulgated by the King and published in the official journal.
The draft law was passed with no amendments.

On November 13, 2023, draft law No. 55K3678 to implement the EU Minimum Tax Directive was sent to the Belgian Parliament.
Yes A Review of Belgium’s Draft Pillar Two Law
BermudaOn December 28, 2023, the Corporate Income Tax Act, 2023 (Act No. 35/2023) was published in the Official Gazette.

On December 8, 2023, the Corporate Income Tax Act 2023 was tabled in the House of Assembly.
NABermuda Issues Draft Corporate Income Tax Law
BulgariaBulgaria: GloBE Country Guide 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.

On December 13, 2023, the Bulgarian Parliament approved the amendments to the Corporate Income Tax Act to implement the Pillar 2 GloBE rules.

The law needs to be signed by the President to be enacted.

On September 26, 2023, the Bulgarian Ministry of Finance issued a draft law for the implementation of the EU Global Minimum Tax Directive.

See our English Translation
YesA Review of Bulgaria’s Draft Pillar Two Law
CanadaCanada: GloBE Country GuideOn August 4, 2023, Canada issued the draft Global Minimum Tax Act for consultation.No (When tabled for first reading if there is a majority government, otherwise after the third reading)A Review of Canada’s Draft GloBE Law
CroatiaCroatia: GloBE Country GuideOn December 22, 2023, Law No 155/23, to implement the EU Minimum Tax Directive, was published in the Official Gazette.

On November 30, 2023, the Croatian government sent a draft bill to implement the Pillar Two GloBE rules to Parliament.
Yes
CyprusCyprus: GloBE Country GuideOn October 3, 2023, the Cyprus Ministry of Finance issued the ‘Ensuring a Global Minimum Level of Taxation of Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union Law of 2023’ to implement the Pillar Two GloBE rules/EU Minimum Tax Directive.

See our English Translation
No (After approval by Parliament)A Review of Cyprus’s Draft Pillar Two Law
Czech RepublicCzech Republic: GloBE Country GuideOn December 29, 2023, Law 416/2023, to implement the EU Minimum Tax Directive, was published in the Czech Official Gazette.

On August 16, 2023, the Czech Cabinet approved the draft top-up tax act.

On December 1, 2023, the Czech Senate approved the draft top-up tax act.

See our English Translation
YesA Review of the Czech Draft Top-Up Tax Act
Denmark Denmark: GloBE Country GuideThe Danish Minimum Taxation Act was enacted as Law No. 1535 of December 12, 2023. 

On June 23, 2023, the Danish Ministry of Taxation issued the draft Minimum Tax Act (the ‘Bill’) to give effect to the GloBE rules.
YesA Review of the Danish Draft Minimum Tax Act
EstoniaEstonia: GloBE Country GuideOn February 8, 2024, 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 was approved by the Estonian Government and sent to Parliament.

However, as Estonia intends to delay the application of the GloBE rules under Article 50 of the EU directive, the draft law is not comprehensive and only covers limited aspects of the GloBE rules (as required for the application of Article 50).
No (After approval by Parliament)Estonia Issues Draft Pillar 2 Law Including Art. 50 Postponement
EUOn December 22, 2023, the EU issued a FAQ document covering key Q&A’s on the EU Minimum Tax Directive.

On December 12, 2023 the EU Commission published the Commission Notice to Elect to delay application of the IIR and UTPR under Article 50 of the Pillar Two Directive.

The European Commission released a proposed directive based on the model GloBE rules on December 22, 2021.

On December 15, 2022, the Council of the European Union formally adopted the EU Pillar Two directive. Member states will have to transpose the directive into national law by the end of 2023.

On December 22, 2022 the EU Global Minimum Tax Directive was published in the EU official journal as Council Directive (EU) 2022/2523 of 14 December 2022. Date of entry into force: 23 December 2022. 
EU Issues Commission Notice For Jurisdictions Delaying the IIR/UTPR

Full Steam Ahead For EU Pillar Two Implementation

Review of the Draft EU Pillar Two Directive

Poland Withdraws its Veto and the EU Pillar Two Directive is Adopted
FinlandFinland: GloBE Country GuideOn December 28, 2023, the Finnish President approved the ‘Law on the Minimum Taxation for Corporations’,  which implements the EU Minimum Tax Directive.

On August 15, 2023, the Finnish Ministry of Finance issued a draft law for the implementation of the EU Global Minimum Tax Directive.

See our English Translation
Yes Key Aspects of Finland’s Draft GloBE Law
FranceFrance: GloBE Country GuideOn December 30, 2023, the French Official Gazette published the 2024 Finance Act. This includes provisions to enact the EU Minimum Tax Directive. 

On 21 December 2023, the French Parliament approved the Finance Bill for 2024.

Article 4 of the French 2024 Finance Bill (published on September 27, 2023) includes provisions to implement the EU Global Minimum Tax Directive.

See our English Translation
Yes A Review of France’s Draft Pillar Two Law
GermanyGermany: GloBE Country GuideOn December 27, 2023, Germany’s law to implement the Pillar 2 GloBE Rules/EU Minimum Tax Directive was published in the Federal Law Gazette 2023.

The Bundesrat (Germany’s Upper House of parliament) passed the ‘Act on the implementation of Council Directive (EU) 2022/2523 to ensure a global minimum level of taxation and further accompanying measures’ . It requires Presidential approval for enactment.

On November 10, 2023, the Bundestag (lower house) approved the German draft law to implement the EU Minimum Tax Directive.

On August 16, 2023, the Federal Cabinet adopted the government draft for the implementation of the Pillar Two GloBE Rules.

On July 10, 2023, the German Ministry of Finance issued an updated draft law for the implementation of the EU Global Minimum Tax Directive.

On March 20, 2023, the German Federal Ministry of Finance published a consultation, including a draft law (the Minimum Taxation Directive Implementation Act), to implement the EU Global Minimum Tax Directive.

See our English Translation
YesGermany Approves and Updates its GloBE Law

Amendments to Germany’s Pillar 2 Regime in the Updated Draft Law

Germany Publishes Draft Global Minimum Tax Legislation
GreeceOn January 9, 2024, 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. No (Approval by Parliament)
HungaryHungary: GloBE Country GuideOn November 30, 2023, Act LXXXIV of 2023 on ‘Additional taxes ensuring a global minimum tax level and amending certain tax laws in connection with this’ was published in issue 171/2023 of the Hungarian Gazette.

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Yes Hungary Approves and Updates its GloBE Law

A Review of Hungary’s Draft Pillar Two Law
IndonesiaOn December 20, 2022, Indonesia issued Government Regulation No. 55/2022 on the Adjustment of Regulations in the Field of Income Tax. This included reference to the implementation of a global minimum tax in Indonesia as well a a desire to implement Pillar One.No (Approval by the President and Parliament given but awaiting detailed regulations)Indonesian Regulation Signals Global Minimum Tax Implementation
IrelandIreland: GloBE Country GuideOn December 18, 2023, the Irish President enacted the Finance (No. 2) Act 2023 (Act 39 of 2023) to implement the EU Minimum Tax Directive.

On October 19, 2023, the Irish Ministry of Finance released the Finance (No. 2) Bill 2023. This inserts a new Part 4A into the Taxes Consolidation Act, 1997 to implement the Pillar Two GloBE rules/EU Minimum Tax Directive.

On July 27, 2023, Ireland issued its Second Feedback Statement on Pillar Two.

On March 31, 2023, the Irish government issued a Feedback Statement on the Pillar Two Global Minimum Tax.

It includes draft legislation and outlines possible draft legislative approaches to key elements of the GloBE Rules.
Yes A Review of Ireland’s Draft Pillar Two Law

A Review of Ireland’s Draft Pillar Two Law
Ireland Issues Second Feedback Statement on Pillar Two

Ireland Issues Draft Global Minimum Tax Law For Feedback
ItalyItaly: GloBE Country GuideOn December 28, 2023, the Italian Official Gazette published Legislative Decree No. 209 of December 27, 2023 which implements the EU Minimum Tax Directive.

On September 11, 2023, the Italian Ministry of Finance issued a draft law for the implementation of the EU Global Minimum Tax Directive (the ‘EU Directive’).

See our English Translation
YesA Review of Italy’s Draft Pillar Two Law
JapanJapan: GloBE Country GuideOn December 25, 2023, Japan’s National Tax Agency issued Frequently Asked Questions on the Japanese Income Inclusion Rule to apply from April 1, 2024.

On October 20, 2023, the Japanese Ministry of Finance released its technical explanation of the Japanese Global Minimum Tax Laws and Regulations.

On March 28, 2023, Japan enacted a domestic law to give effect to the Pillar Two GloBE rules from April 1, 2024.

On June 30, 2023, Japan’s Ministry of Finance issued Ministry of Finance Ordinance No. 47 of 2023 Amending the Enforcement Regulations of the Corporation Tax Act.

On June 16, 2023, a Cabinet Order to Partially Amend the Enforcement Order of the Corporation Tax Law was published in the Official Gazette.

On September 29, 2023, the National Tax Agency published the “Partial Revision of the Basic Circular on Corporate Tax” which provides some administrative guidance on various aspects of Japan’s GloBE law.

On February 3 and 6, 2023, the Ministry of Finance published the “Bill for the Partial Revision of the Income Tax Act”. This includes the implementation of the Pillar Two GloBE rules from April 2024.

See our English Translation
Yes (Approved by the Diet)Japan Issues Circular for Additional GloBE Guidance

What Japan’s Cabinet Order on Pillar 2 Includes & Doesn’t Include

Overview of Japan’s Latest Ministerial Ordinance on Pillar 2

Overview of Japan’s Cabinet Order on the Global Minimum Tax

Japan’s Global Minimum Tax Law Is Enacted

GloBE Country Guide: Japan
LatviaLatvia: GloBE Country GuideOn January 30, 2024, a draft law to implement the EU Global Minimum Tax Directive was approved by the Cabinet of Ministers.

However, as Latvia intends to delay the application of the GloBE rules under Article 50 of the EU directive, the draft law is not comprehensive and only covers limited aspects of the GloBE rules (as required for the application of Article 50).
No (Approval by President required)Latvia Issues Draft Pillar Two Law & Confirms Postponement
LiechtensteinLiechtenstein: GloBE Country GuideOn December 22, 2023, the Minimum Tax Act (to implement the GloBE Rules), was published in the Official Gazette of Liechtenstein, No. 2023/484.

On March 29, 2023, Liechtenstein published draft legislation for the implementation of the Pillar Two Globe Rules.

See our English Translation
YesLiechtenstein Publishes Draft Global Minimum Tax Law
LithuaniaOn October 27, 2023, Lithuania’s Ministry of Finance issued a draft law to implement the EU Global Minimum Tax Directive.

However, as Lithuania intends to delay the application of the GloBE rules under Article 50 of the EU directive, the draft law is not comprehensive and only covers limited aspects of the GloBE rules (as required for the application of Article 50).

See our English Translation
No (Approval by President required)Lithuania Issues Draft Pillar Two Law & Confirms Postponement
LuxembourgLuxembourg: GloBE Country GuideOn December 22, 2023, the Luxembourg Official Gazette published Law A864 to transpose the EU Minimum Tax Directive.

On 20 December 2023, the Luxembourg Parliament voted to approve the draft law n°8292 transposing the EU Minimum Tax Directive.

On November 13, 2023, the Luxembourg Government issued amendments to update its draft law implementing the EU Minimum Tax Directive.

On 4 August 2023, the Luxembourg government issued Draft Law No. 8292 to implement the EU Minimum Tax Directive.

See our English Translations
Yes (Ratfication by the Grand-Duc required)Luxembourg Updates its Draft GloBE Law for OECD Administrative Guidance
Key Aspects of Luxembourg’s Draft GloBE Law
MalaysiaMalaysia: GloBE Country Guide 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.

On December 13, 2023, the Malaysian Parliament approved the Finance Bill (No.2) 2023.
Yes (Announcement by the Minister during the Budget Speech and the issue of the Bill)A Review of Malaysia’s Draft Pillar Two Law
MaltaMalta: GloBE Country GuideOn February 20, 2024, the Government issued Legal Notice 32 of 2024 which includes Regulations to implement Article 50 of the EU Minimum Tax Directive.

However, as Malta intends to delay 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).
YesMalta Enacts EU Minimum Tax Directive With Art. 50 Postponement
MauritiusThe Finance (Miscellaneous Provisions) Act 2022 which implements provisions of the 2022 Budget in Mauritius includes mention of a qualified domestic minimum tax for Pillar Two purposes. No (Presidential assent given but detailed regulations required)Mauritius 2022 Finance Act includes Pillar Two Top-Up Tax
New ZealandNew Zealand: GloBE Country GuideOn May 18, 2023, New Zealand published a draft law (the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill) to implement the Pillar Two Global Minimum Tax. No (After the Third reading in Parliament)New Zealand Issues Draft Global Minimum Tax Law

Direct Transposition of the GloBE Rules: Different Approaches By Switzerland & New Zealand
NorwayNorway: GloBE Country GuideOn January 12, 2024, the Norwegian Council of State ratified the Norwegian Parliaments enactment of the Supplementary Tax Act in Legislative Decision 37 (2023-2024) Act No. 1. (see Law-2024-01-12-1 )

On November 24, 2023, the draft law to implement the GloBE rules in Norwegian law from 2024 was submitted to Parliament.

On June 6, 2023, the Norwegian Ministry of Finance launched a consultation (including draft legislation) on the implementation of the Pillar Two GloBE Rules in Norway.

See our English Translation
Yes (Approved by Parliament )Norway Sends its Updated GloBE Law to Parliament

Norway Issues Consultation and Draft Law For Pillar 2 Rules
RomaniaGloBE Country Guide: RomaniaOn December 29, 2023, Law No. 431/2023 to implement the EU Minimum Tax Directive was published in the Official Gazette.

On December 19, 2023, the Romanian Parliament approved the ‘Draft Law on ensuring a global minimum level of taxation for MNE Groups and Large National Groups’.

On October 4, 2023, the Romanian Ministry of Finance issued a draft law to implement the Pillar Two GloBE rules/EU Minimum Tax Directive.

See our English Translation
Yes A Review of Romania’s Draft Pillar Two Law
SlovakiaSlovakia: GloBE Country GuideOn December 23, 2023, Act No. 507/2023 to implement relevant provisions of the EU Minimum Tax Directive, was published in the Official Gazette.

On December 4, 2023, the Slovakian Government approved the ‘Draft Act on the Equalization Tax to ensure a minimum level of taxation for multinational enterprise groups and large national groups’. The draft law was passed by the Legislative Council on December 8, 2023.
YesSlovakia’s GloBE Law Applies the EU’s IIR/UTPR Postponement Provision
Slovenia Slovenia: GloBE Country Guide 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.Yes
South AfricaSouth Africa: GloBE Country Guide On February 21, 2024, the National Treasury and the South African Revenue Service issued the Draft Global Minimum Tax Bill, and the Draft Global Minimum Tax Administration Bill for consultation.No (Presidential Signature required)South Africa Issues a Draft Law to Transpose the OECD GloBE Rules & Adopts an ‘Ambulatory’ Approach
South KoreaSouth Korea: GloBE Country GuideOn December 31, 2023, Law 19928 was issued to amend the International Tax Adjustment Act. 

On November 9, 2023, South Korea issued the Preliminary Legislative Notice of Partial Amendment to the Enforcement Decree of the International Tax Mediation Act.

On December 31, 2022, South Korea passed Law 19191 to amend the International Tax Adjustment Act to provide for the Pillar Two Global Minimum Tax from January 1, 2024.

On July 28, 2023, the South Korean government published the Partial Amendment Proposal for the International Tax Adjustment Act, to amend their Pillar Two law 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.

On July 22, 2022, South Korea released a draft law to implement Pillar Two.

See our English Translations
Yes (Presidential promulgation)A Review of South Korea’s Latest GloBE Amendments

South Korea Issues Draft Pillar 2 Amendment Law

First Domestic Pillar Two Global Minimum Tax Law Enacted

Analysis of South Korea’s Draft Pillar Two Law

English Translation of South Korean Pillar Two Law
SpainSpain: GloBE Country GuideOn December 19, 2023, Spain’s Council of Ministers approved a draft law to implement the EU Minimum Tax Directive. It is to be subject to a consultation and then sent to Parliament.

The draft law was published on December 20, 2023
No (Approval by Parliament)
SwedenSweden: GloBE Country GuideOn December 16, 2023, the Swedish Official Gazette published Law No. SFS 2023:875, implementing the EU Minimum Tax Directive.

See our English Translation
Yes (Approval of both Houses of Parliament required)See our Review of the Draft Swedish Global Minimum Tax Law
SwitzerlandSwitzerland: GloBE Country GuideOn December 22, 2023, the Swiss Federal Council issued an Ordinance and announced Switzerland is to apply a QDMTT from December 31, 2023. The IIR and UTPR are to be delayed.

On August 17, 2022, the Swiss Federal Council issued a draft decree for the implementation of Pillar Two.

On May 24, 2023, Switzerland issued an updated Draft Decree for the Pillar Two Global Minimum Tax.

See our English Translation
Yes (Approval by Parliament required)Analysis of Switzerlands Draft Pillar Two Decree

Direct Transposition of the GloBE Rules: Different Approaches By Switzerland & New Zealand

Switzerland Issues Second Consultation on the GloBE Rules
The NetherlandsNetherlands: GloBE Country GuideOn December 27, 2023, the Dutch Official Gazette published the 2024 Tax Plan which includes the Minimum Tax Act to implement the EU Minimum Tax Directive.

On December 19, 2023, the Dutch Senate approved the 2024 Tax Plan which includes the Minimum Tax Act to implement the EU Minimum Tax Directive.

On 13 October 2023, the Dutch State-Secretary of Finance issued a Bill to amend the Dutch Draft Minimum Tax Bill.

The Netherlands presented the Minimum Tax Bill, 2024 to Parliament on May 31, 2023.

See our English Translation
Yes (Approval of both Houses of Parliament required)The Netherlands Issues GloBE Amendments for OECD Administrative Guidance

The Netherlands Sends GloBE Minimum Tax Act to Parliament

Key Takeaways From the Dutch Draft Pillar Two Legislation
The United KingdomUnited Kingdom: GloBE Country GuideOn December 21, 2023, the UK issued detailed draft guidance on various aspects of the UK’s multinational top-up tax, including how to calculate the ETR.

Finance (No. 2) Act for the ‘Multinational Top-Up Tax‘ enacted on July 11, 2023.

On June 15, 2023, the UK issued draft guidance on the application of the multinational top-up tax.

On July 18, 2023, the UK issued draft legislation for the UTPR.

On September 27, 2023, the UK amended the draft legislation to be included in the 2023 Autumn Finance Bill.
Yes (after the Third Reading in the House of Commons)UK Amends 2024 Draft Finance Bill For OECD Administrative Guidance

Review of the UK Draft UTPR Law

UK Enacts New Multinational Top-Up Tax From December 31, 2023

UK Issues First Tranche of Draft Guidance on Global Minimum Tax

Review of the UK Global Minimum Tax in Yesterday’s 2023 Spring Finance Bill

UK Proposes Amendments to Global Minimum Tax Rules
VietnamVietnam: GloBE Country GuideOn December 8, 2023, Resolution No: 107/2023/QH15 was issued to enact the Pillar Two GloBE rules. It was published in the Vietnamese Official Gazette on December 21, 2023Yes (Approval of the Government)

In this article we look at domestic differences not only from the OECD Model Rules, but differences in the implementation of the rules between jurisdictions.

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