The OECD/G20 Inclusive Framework on BEPS announced new technical guidelines today on the 15% global minimum tax, which was agreed in October 2021 as a strategy to overcome the tax issues posed by the digitization of the economy. The Commentary delves deeper into the application and operation of the Global Anti-Base Erosion (GloBe). The GloBE Rules establish a coordinated mechanism to enable that Multinational Enterprises (MNEs) with revenues over EUR 750 million pay an average of 15% tax on income generated in each of the nations where there is a place of effective management.
The GloBE Rules Commentary delivers MNEs and tax administrations with thorough and complete technical assistance on the rules' operation and intended effects, as well as clarifying the meaning of certain terminology. The Commentary's goal is to encourage uniform interpretation of the GloBE Rules, which will make it easier for tax authorities and MNE Groups to work together.
The OECD/G20 Inclusive Framework on BEPS will now establish an Implementation Framework to assist tax authorities in putting the GloBE Rules into effect and administering them. The Inclusive Framework will conduct a consultation process as the first step in this process to gather input from stakeholders on the issues.
Visit here for the complete text of the GloBE Rules and its Commentary.