Phone: 01242 260066 | Email accountants@mitchells.org

Government launches consultation on global minimum tax for multinationals

14 Jan 2022

The government has launched a consultation on the framework for rolling out the 15% global minimum tax on profits which will be payable by the largest multinationals from 2023.

The tax rate will be applicable in over 130 countries and is designed to stop multinationals profit shifting to reduce their tax liability.

The rules are set to come into force from 1 April 2023 and groups will have a longer filing deadline in the first year of entering the regime. The filing deadline will be extended to 18 months from the end of the accounting period for a group's consolidated accounts.

The reform comes as part of a two-pillar package first agreed in principle by the G7 last June during talks chaired by Chancellor Rishi Sunak in London.

The rules will only apply to multinationals headquartered in the UK whose consolidated annual revenues are greater than £625 million in at least two of the previous four fiscal years. The government is consulting on whether payments should be made quarterly or annually.

The Chancellor said: 'Ensuring large multinational groups pay the right tax in the right place has been a long-standing priority for the UK.

'We reached an historic agreement last October following more than a decade of talks and negotiations.'

Try a site search Tax returns, budget, pension, rates and allowances...

Contact details

Office: 01242 260066

Company Registration No: 4161638
Company Registered in England and Wales.
Company details
Mitchell Glanville Limited
Registered Address: 41 Rodney Road, Cheltenham, Gloucestershire GL50 1HX

Mitchell Glanville Limited regulated by the Institute of Chartered Accountants in England and Wales If, during the provision of professional services to you, you need advice on investments, we may have to refer you to someone who is authorised by the Financial Conduct Authority, as we are not. However, as we are licensed by the Institute of Chartered Accountants in England and Wales, we may be able to provide certain investment services where these are complementary to or arise out of the professional services we are already providing to you.

© 2022 Mitchells Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.