The GMT (Global Minimum Tax) is designed to ensure that large MNEs (enterprises with annual revenues greater than EUR 750 million) pay a minimum effective tax of 15 percent. By standardizing the rate globally, the GMT aims to limit the so-called “race to the bottom” on corporate tax rates. As discussed by Marcello Estevão, Global Director, Macroeconomics, Trade & Investment, World Bank Group, the role of tax incentives is crucial, and there are several policy options for countries including the evaluation and reform of tax incentives to align them with the GMT as well as broader corporate income tax reforms.
Read the article published in ‘International Banker’.