UK consultation on implementation of global minimum Corporation tax

The UK Government has published a consultation which is looking for views on how a worldwide 15% minimum corporation tax should be implemented in the UK (11 January 2022).

In October 2021, there have already been over 130 countries signing up to this new global minimum. This followed G7 talks chaired by the Chancellor in London and agreement in principle.

This new agreement will set a framework to help ensure that large international firms pay at least 15% tax rate on profits in each country they operate in.

The aim is to tackle avoidance and ensure a more level playing field for UK businesses.

Chancellor of the Exchequer Rishi Sunak 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, and today marks another important milestone on how this will work in practice.”

Changes are due to come into effect from 2023.

This consultation will be open for 12 weeks and is seeking views on the global minimum corporation tax in the UK, who the rules apply to, transition and how firms would need to report and pay. More here on the consultation on domestic implementation of global minimum tax for large multinational groups.