GMT Compliance
The calm before the storm

Introduction of Global Minimum Tax (GMT) as a key ingredient of OECD’s BEPS Pillar Two framework signals a transformative era in international taxation. It demands immediate and strategic responses from multinational enterprises to reduce the risk of non-compliance. 

In response to the GMT rules & guidelines issued by OECD, governments of various countries like UK, Japan, South Korea and many EU countries have formally enacted GMT related laws. Many other countries have announced their interest in implementing GMT effective 2024 and 2025. Singapore announced in its Budget 2023 that it will implement GloBE rules and a QDMTT (referred to as the DTT) for fiscal years starting on or after 1 January 2025. Malaysia also confirmed that they will enact the Pillar Two GloBE rules from 2025. Vietnam passed a resolution to implement the Pillar Two Global Minimum Tax in Vietnam with effect from January 1, 2024.

Considering that multinationals need to collate data from 150+ sources to ensure GMT compliance, end-to-end automation in tax processes is essential. Additionally, effective knowledge management for adherence to evolving BEPS Pillar Two standards is critical.

Surprisingly, many businesses feel they have enough time to start working towards GMT implementation due to the Transitional Safe Harbor provisions. What they fail to register is that it is applicable only till December 2026, a deadline merely 3 years away. A duration insufficient for businesses to integrate complexities of GMT implementation in their tax technology, unless they start NOW.

This whitepaper – Embracing the Corporate Global Minimum Tax: A Call to Action for Finance Leaders – highlights how the GMT rules & guidelines issued by OECD affect the laws being framed by each country and call for compliance and readiness now. 

To be future ready, multinationals enterprises need to start understanding and adhering to these requirements diligently. 

Businesses need a combination of the right technology and expert advisory to optimise data quality, provide real-time insights and create efficient tax processes.

Delaying GMT preparation is a high-risk strategy. Early action not only mitigates risks but also positions businesses as leaders in a globally compliant and transparent business landscape. Take the much-needed step towards navigating the complexities of GMT with confidence.