As part of its project on the taxation of the digital economy, the Organisation for Economic Cooperation and Development (OECD) published the consultation document on the introduction of a global minimum tax on profits ("Global anti-Base Erosion" or "GloBE") on 8 November 2019.
The global minimum tax is the second pillar of the work programme published on 31 May 2019 to address the challenges of taxation in the digital economy (on the first pillar see our article of 12 October 2019).
The OECD proposal provides for the introduction of a global approach to avoid erosion of the tax substrate. In other words, to ensure that all international companies are subject to a minimum tax rate throughout the world.
The consultation document will be open to public consultation until 2 December 2019. The comments received should then provide the basis for a final taxation solution to be published in the OECD Final Report 2020.
The consultation document is available here.
