BUSINESS

Global minimum tax. On March 14, the Organization for Economic Cooperation and Development (OECD) published Comments on the Global Base Erosion Rules (GloBE) where it presents specific details on the operation of the new global minimum tax that will apply to all multinational companies earning at least 750 million euros per year, including those operating in Latin America. In this regard, it is worth mentioning that both the Mexican and Panamanian governments have expressed their support for the implementation of the tax in the short term. Likewise, the entity opened a public consultation for the private sector to answer a series of questions on the implementation of these rules. Interested parties may send their opinions until April 11 via email to [email protected].

The document presented is not directly related to the open public consultation. In that sense, this text seeks to clarify the technical and specific details that should guide the governments that have signed the global tax agreement when applying the 15% minimum rate. The new public consultation is part of the next step in the development of the Globe rules. In this sense, work will now begin to develop the implementation mechanism of the agreement. The international organization explains that with the contributions of the interested parties it will seek to improve the proposal in order to implement the rules in a coherent and coordinated manner, while minimizing compliance costs.

Thus the OECD is asking private parties to send their views on the following questions: Do you consider it necessary to provide more administrative guidance to implement the tax? Do you have any suggestions on measures to reduce compliance costs for multinational companies, including through simplification and the use of safety margins? Do you have any views on mechanisms to maximize the coordination of the rules, increase tax certainty and avoid the risk of double taxation?

Next steps

Regarding the public consultation, OECD asks that comments be sent in Word format and before the deadline of April 11. Likewise, it has announced that in the same month it will carry out a virtual public consultation in which interested parties will be able to participate in order to make their opinions on the matter known. However, it has not yet disclosed the date for this. 

Engagement opportunities

Regarding the development of the proposal for the implementation of the GloBE Rules, McDonald’s will be able to participate in the public consultation by sending to [email protected], their opinions to modify and improve the original text. McDonald’s will also be able to participate in the virtual public consultation to be held by the OECD in order to make known its position on the bill and exchange positions with other stakeholders present at the event.