Strategizing Multinational Tax Risks

On May 19, the Members of European Parliament (MEPs) approved a EU Commission proposal to adopt a 15% corporate minimum tax, to be effective as of 1/1/2023.

The next step for effective passage is the unanimous approval by the EU Council.

The timing is interesting, as the US is in a political quagmire re: Pillar 2 and any GILTI changes. However, the EU and other countries are unilaterally proposing domestic minimum top-up taxes to retain revenue that otherwise may be allocated/shared by other jurisdictions.