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UK commits to global minimum tax rate

November 21, 2022

Via: JD Supra

The UK government has used the opportunity of its Autumn Statement 2022, delivered on 17 November, to confirm that the Finance Bill 2022 will include legislation introducing a 15% global minimum corporation tax rate, to have effect for accounting periods ending on and after 31 December 2023.

This will implement in the UK the “income inclusion rule” (IIR) part of Pillar Two of the OECD’s two-pillar reforms to international taxation. Broadly, the Pillar Two reforms, also referred to as the Global Anti-Base Erosion (GloBE) proposal, contemplate a framework of complex and interlocking rules to ensure that large multinationals pay a minimum tax rate of 15% in each of the jurisdictions in which they operate. In the UK, this will be referred to as the Multinational Top-Up Tax.

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