• The introduction of the Global Minimum Tax (GMT) is expected to trigger a broad restructuring among multinational corporations. As companies search for the most tax-efficient jurisdictions to report profits, governments with traditionally low corporate tax rates may adjust upward to minimize the need for GMT “top-up” payments. At the same time, countries are likely to design new incentive packages to maintain competitiveness and attract foreign investment.
• Before the OECD’s GMT initiative, many jurisdictions experimented with Digital Services Taxes (DST), which are applied on revenues rather than profits. As GMT becomes effective, adjustments to DST regimes may also follow to avoid overlap and ensure alignment with global standards. While GMT primarily targets large multinational groups, smaller businesses and subsidiaries may feel a ripple effect through supply chains, compliance obligations, and investment policies.
• Because GMT reshapes multiple dimensions of tax practice — from rules and reporting frameworks to compliance requirements — tax professionals face significant challenges. With implementation expected in 2024 and beyond, companies must develop proactive strategies to meet documentation requirements, minimize risks, and optimize their global tax position. Alarmingly, 57% of tax departments report insufficient resources to manage GMT obligations, underscoring the need for expert advisory support.
• GMT represents the first truly coordinated international effort to address profit shifting and global tax equity under the OECD’s Base Erosion and Profit Shifting (BEPS) framework. For advisors and tax professionals, this transition is not only a compliance challenge but also an opportunity to invest in stronger systems, advanced tools, and cross-border expertise — ultimately helping businesses adapt and thrive in a new era of international taxation.

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