Reported 11 months ago
Grant Thornton Taiwan's Senior Manager, Chia-Yi Lai, points out that the 'Global Minimum Taxation System' is a new tax issue that multinational corporations will face in the coming years. This system is a response to aggressive tax avoidance by corporations and countries offering tax incentives, leading to significant tax base erosion worldwide. The system aims to prevent profit shifting to low-tax jurisdictions and tax rate competition among nations. Under this system, large multinational groups with consolidated revenues exceeding 7.5 billion euros in two out of four years will face a minimum effective tax rate of 15% in each tax jurisdiction. Failure to meet this rate will result in top-up taxes under the Global Anti-Base Erosion Rules. While facing challenges in calculating effective tax rates and evaluating tax incentives, multinational corporations are advised to prepare early for this new global tax mechanism to navigate the evolving international tax landscape successfully.
Source: YAHOO