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UK Plans Two-Phase Approach to Implementing Minimum Tax (1)

July 20, 2022, 2:52 PMUpdated: July 20, 2022, 6:38 PM

The UK’s Treasury has taken the first step in implementing a minimum corporate tax, with the release of draft rules Wednesday.

In October, over 130 jurisdictions signed up to a two-pillar agreement that will change where and how much tax multinational companies pay. Pillar Two of these rules sets a 15% floor on how much tax these large companies pay globally.

The Organization for Economic Cooperation and Development released model rules for the global minimum tax in December.

The UK plans to apply the rules in a phased approach, saving part of the rules for a later date. They would ...