Global Minimum Tax and the Future of International Taxation
Knowledge • Global Minimum Tax and the Future of International Taxation
Knowledge • Global Minimum Tax and the Future of International Taxation
This article will speculate on the future of international taxation in light of global minimum tax policies, including potential trends
and challenges that may arise.
The recent OECD/G20 agreement on global minimum tax rules has marked a significant milestone in international taxation. The agreement, which
aims to ensure that multinational corporations (MNCs) pay their fair share of taxes, has far-reaching implications for the future of
international taxation.
In this article, we will speculate on the future of international taxation in light of global minimum tax policies, including potential
trends and challenges that may arise.
Conclusion:
In conclusion, the future of international taxation is likely to be shaped by global minimum tax policies. While these policies represent a major step towards creating a more fair and transparent tax system, there are still many challenges ahead. It will be important for governments, businesses, and international organizations to work together to address these challenges and ensure that the global tax system is fit for purpose in the 21st century.
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The ATO has tightened CbC reporting rules for MNEs, effective January 1, 2025, significantly increasing compliance costs and obligations. Key changes include the elimination of most self-assessed exemptions, requiring formal requests with detailed evidence, and reduced administrative relief for local file reporting.
Global Minimum Tax (GMT) is one of the largest tax reformations as part of the initiative under Pillar 2 of the Base Erosion Profit-Shifting (BEPS) 2.0 project.