Introduction of the new multinational top-up tax
In line with the agreement on a 2 Pillar solution to reform the international tax system, this measure will help to ensure multinational enterprises operating within the UK pay a global minimum level of tax.
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The measure will introduce a new tax on UK parent members within a multinational enterprise group. A top-up tax will be charged on UK parent members when a subsidiary is located in a non-UK jurisdiction, and the group鈥檚 profits arising in that jurisdiction are taxed at below the minimum rate of 15%.
This is in accordance with the agreement to reform the international tax framework made by the G20 鈥� Organisation for Economic Co-operation and Development Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on 8 October 2021.