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Global minimum tax is a tax policy proposal that would require large multinational corporations to pay a minimum tax rate on their profits, regardless of where they are located. Essentially, the idea is to ensure that multinational companies pay a minimum amount of tax in all countries in which they operate, thus preventing them from shifting profits to no tax or low-tax jurisdictions.
What is the key impact of global minimum tax?
1. Increased Tax Revenue: A global minimum tax would raise the effective tax rate of multinational companies that have been able to reduce their tax bills by shifting profits to low-tax jurisdictions.
What is the impact of global minimum tax on transfer pricing?
Multinational companies will have to re consider the current transfer pricing policies and models to factor the global minimum tax
initiatives.
We'd love to chat further. Please get in touch to discuss how Transfer Pricing Solutions Asia can assist.
The Introduction to Transfer Pricing workshop is designed to arm participants with an understanding of transfer pricing as well as transfer pricing compliance in various Asia Pacific countries. In addition, a discussion of the various transfer pricing methods and their application, as well as the transfer pricing regime in Singapore will be presented.
Starting May 2026, in-scope multinational enterprise (MNE) groups must register for Singapore’s Multinational Enterprise Top-up Tax (MTT), Domestic Top-up Tax (DTT), and the GloBE Information Return (GIR) under the Multinational Enterprise (Minimum Tax) Act 2024.
