Implementing The Global Minimum Tax: Challenges And Prospects For Africa

Global minimum tax also known as Global Anti-Base Erosion (GloBE) Model, provides for a coordinated and comprehensive system of minimum taxation, aimed at ensuring that large multinational enterprise groups (MNE Groups) pay a minimum level of tax on their income in respect of every jurisdiction in which they operate.

The GloBE Model Rules were released by the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) in December 2021 and are supported by a Commentary, released in March 2022. The Commentary is intended to promote a consistent and common interpretation of the GloBE Model Rules, facilitating coordinated outcomes for both tax administrations and MNE Groups.