GMT Compliance
The calm before the storm

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

In response to the rules & guidelines issued by the OECD, governments of various countries including the UK, Japan, South Korea and many EU countries have formally enacted GMT related laws. Many more countries are announcing their intent to implement GMT. With 138 members of the OECD/G20 Inclusive Framework on BEPS having agreed an Outcome Statement, these rules will still apply on multinationals headquartered in Hong Kong with a presence in those countries where the rules are or being implemented. For affected companies, the time to prepare for Global Minimum Tax is now.

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 evolving nature of GMT guidelines issued by OECD affects the guidelines issued by governments to ensure compliance and readiness. 

To be future ready, multinationals and foreign multinationals operating 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.