Further to the responses received as part of its 'OECD Pillar 2: Consultation on implementation' on setting a global minimum tax rate, the Government notes that companies have expressed key concerns centred around early implementation. It indicates that the global minimum tax rate will not be introduced until 31 December 2023.

The responses focussed on:

As a result of this, the government has announced that the implementation of the rules has been postponed from April 2023. The rules will now apply for businesses with accounting periods starting on or after 31 December 2023.

A full update will also be published later in the summer.

Useful guides on this topic

OECD publishes 15% global minimum tax rate details that will raise $150 billion 

BEPS & Diverted Profits Tax (for SME owners)
What is BEPS? What is Diverted Profits Tax? Will either of these affect me or my SME clients? 

Diverted Profits Tax
Large multinational enterprises (MNEs) that use arrangements between connected parties to divert profits away from the UK and avoid UK tax, will be subject to the Diverted Profits Tax (DPT). Who does it apply to? What are the rules?

External links

OECD Pillar 2: Consultation on implementation

Letter from the Financial Secretary to respondents of the OECD Pillar 2 implementation consultation

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