 |
| The Ministry of Strategy and Finance of South Korea has just released information on the global minimum tax rate. (Source: Korea Herald) |
South Korea sets a global minimum tax rate of 15 percent for multinational companies with annual revenue of 750 million euros ($800 million) or more, the Ministry of Strategy and Finance said on December 31.
South Korea plans to implement a plan to impose a 15% global minimum tax on multinational companies next year.
This is considered a step in line with the international community's efforts to reduce tax competition between countries and prevent tax evasion by large multinational corporations.
This provision is consistent with Pillar 2 of the Framework for Cooperation on Countering Corruption and Profit Shifting (BEPS) adopted by 143 countries of the Organisation for Economic Co-operation and Development (OECD).
It is expected that about 200 multinational companies operating in Korea will be affected by this global agreement. Earlier in 2021, the international community agreed on a landmark agreement on the “Two-Pillar Framework for Addressing Challenges Arising from the Digital Economy and Economic Globalization.”
Under another rule, known as Pillar 1, for multinationals with global turnover of more than €20 billion and a pre-tax profit margin of more than 10%, 25% of the excess profit above 10% will be taxed using a new formula based on the geographic location of the business's customers.
Source
Comment (0)