Preparing for the Multinational Top-up Tax and the Domestic Top-up Tax
Guidance on helping you prepare for the 2 new taxes introduced in the UK as part of the international response to the challenges of digitalisation.
Documents
Details
The UK and more than 135 other countries agreed, as part of the OECD Inclusive Framework, to a two-pillar solution to reform the international corporate tax framework in response to the challenges of digitalisation.
Pillar 2 of this solution, known as the Global Base Erosion (GloBE) rules, requires a group with consolidated annual revenues of more than €750 million to pay a minimum 15% tax on its profits in each jurisdiction it operates in.
As part of the UK adoption of these rules, the government announced 2 new taxes that will apply to accounting periods starting on or after 31 December 2023:
- the Multinational Top-up Tax (MTT)
- Domestic Top-up Tax (DTT)
This information will help you prepare for the new rules.