What is the Global Minimum Tax?
The Global Minimum Corporate Income Tax (abbreviated as the Global Minimum Tax) is one of the two main pillars of the Base Erosion and Profit Shifting (BEPS) Action Plan initiated by the Organization for Economic Cooperation and Development (OECD) in June 2013.
The global minimum tax rate is set at 15%, applicable to multinational companies with total global consolidated revenue of EUR 750 million (USD 800 million) in at least two of the four most recent years.
Some Southeast Asian countries such as Malaysia, Indonesia, Thailand, etc. have also made moves to change their tax policies to continue to retain foreign investors if the new mechanism officially takes effect.