Treasury consults on global minimum tax for multinationals

11 Jan 2022

The Treasury is consulting on the framework for rolling out the 15% global minimum tax on profits which will be payable by the largest multinationals from 2023

The tax rate will be applicable in over 130 countries and is designed to stop multinationals profit shifting to reduce their tax liability. The rules are set to come into force from 1 April 2023 and groups will have a longer filing deadline in the first year of entering the regime. The filing deadline will be extended to 18 months from the end of the accounting period for the group’s consolidated accounts.

The reform comes as part of a two-pillar package first agreed in principle by the G7 last June during talks chaired by the Chancellor in London.