Ministry of Economy and Finance: "'At Least 15%' Global Corporate Tax to Be Reflected in This Year's Tax Reform Bill"

[Asia Economy Sejong=Reporter Son Seon-hee] The '15%' global minimum tax applied to global conglomerates with annual sales exceeding 1 trillion won will be reflected in this year's domestic tax law amendment. Approximately 245 domestic companies are expected to be subject to this.

The Ministry of Economy and Finance announced on the 16th through a press release titled "Disclosure of Digital Tax Pillar 2 Model Rules Commentary and Announcement of OECD Public Hearing Plan" that "legislative work is underway to introduce the Global Anti-Base Erosion (GloBE) rules domestically, and it plans to reflect this in this year's tax law amendment."

The OECD/G20 Inclusive Framework (IF), a comprehensive body discussing international base erosion issues with participation from 141 countries worldwide, publicly released the commentary for the implementation of the digital tax Pillar 2 global minimum tax on the 14th (local time). The core content is to apply a 15% minimum tax rate on multinational enterprise group income and tax the shortfall amount accordingly.

The released commentary concretizes the GloBE model rules announced last December, including interpretations and application examples for each article. Each country within the IF plans to legislate and implement the global minimum tax system regulations into their domestic tax laws in accordance with the model rules and commentary.

Additionally, the OECD announced plans to hold a "GloBE Implementation Framework Public Hearing" via video conference around the end of next month. This procedure aims to supplement the commentary and assist companies' compliance and tax authorities' smooth administrative processes. It will specify detailed matters for consistent introduction and implementation of the global minimum tax system across countries, including specific reporting forms, information exchange methods, safe harbors, multilateral review procedures, and other technical details delegated in the commentary.

Prior to the public hearing, the OECD plans to collect related questions and stakeholders' opinions in writing. Written opinions can be submitted via email to the OECD by the 11th of next month.

This content was produced with the assistance of AI translation services.