Global minimum tax – the largest tax reform in history

The globalization and the digitalization of the economy turned out to be an enormous challenge when taxation multinational companies. Significant part of these companies found an alternative way for reducing their tax bases in their jurisdictions and shifting their profits to jurisdictions with no or low tax rates. In an attempt to reduce these practices, the Organization for Economic Co-operation and Development (OECD) is developing rules to fight tax base erosion (the so-called GloBE rules), which provide for a coordinated taxation system designed to ensure that large multinational enterprises (MNEs) pay a minimum level of income tax whenever the effective tax rate of a multinational enterprise in a given jurisdiction is below 15%.