Major Step in Global Tax Reform 

On 10 December 2024, the Pillar Two rules received royal assent in Australia. This marks a pivotal moment in the Australia’s commitment to the OECD's global tax reform framework. Broadly, these new rules seek to impose a global minimum tax of 15% on large multinational enterprises with revenue over €750 million.

The Domestic Minimum Tax (DMT) and Income Inclusion Rule (IIR) apply to income years starting on or after 1 January 2024. The Undertaxed Profits Rule will apply to income years starting on or after 1 January 2025. In-scope taxpayers will be required to file a GloBE Information Return (GIR), Australian IIR/UTPR Tax Return and Australian DMT Tax Return.

For a deeper dive into how these changes may impact you, check out our previous blog ‘Are Tax Haven’s Nearing Extinction?’ for more information on Pillar Two and its potential implications.

If you’d like to understand how these changes may impact your business, get in touch with Hall Chadwick’s Corporate Tax experts today.