Quick Summary
India is preparing to align with the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) by adopting Pillar 2, which mandates a global minimum corporate tax rate of 15% for multinational corporations (MNCs). According to official sources, the government is set to include enabling
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FAQ :
India is proposing to implement a global minimum corporate tax rate of 15% for multinational corporations.
India is aligning with the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) by adopting Pillar 2.
The rule will apply to multinational corporations (MNCs) with a global turnover exceeding 750 million euros.
The changes are expected to be introduced in the FY26 Budget.
The primary goal of Pillar 2 is to prevent MNCs from shifting profits to low-tax jurisdictions by ensuring a minimum Effective Tax Rate (ETR) of 15%.
India will be able to collect 'top-up tax' from MNCs that underreport profits in low-tax jurisdictions through mechanisms like the Qualified Domestic Minimum Top-up Tax (QDMTT) and Income Inclusion Rule (IIR).
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