Global tax. A public consultation opened by the Organization for Economic Cooperation and Development (OECD) to advance in the implementation of the 15% global tax on large multinationals ended on April 18. On the occasion, the draft of the model rules for national legislations on the application and scope of the tax was opened for comments, which included clarifications and guidelines on how to define the entities that will be covered by the new tax. The organization expects to present the complete guide for the national implementation of the tax by the end of 2022, with a view to allowing it to be applied by 2023 in those countries that so wish. In Latin America, both Mexico and Panama have expressed interest in promoting the levy.
The objective of the standard under consultation was to determine whether a corporate group falls within the scope of the global tax. The guidelines are designed to ensure that the levy only applies to large and highly profitable groups and have been drafted to be applied quantitatively, so that they are easily administered and provide certainty as to whether a taxpayer is within the scope of application.
Thus, the text establishes that entities or groups that meet the following requirements will be covered. On the one hand, the total income of the group must be greater than 20 billion euros at a global level. On the other hand, the pre-tax profit margin must be greater than 10% of the group’s revenues. The document also includes definitions of what will be understood as business groups, excluded entities (including governmental entities, international organizations, non-profit organizations, among others), among other points.
The OECD anticipated that it will continue to publish drafts of the guidance to incorporate comments from interested parties before issuing the final documents that will guide the implementation of the global tax rate for large multinationals. The goal will be to have these drafts drafted by the end of 2022 with a view to having them implemented in jurisdictions that wish to do so by 2023.
The tax will reach any global organization that meets the above requirements. Thus, McDonald’s could potentially be included among the obligated parties. In view of this, the OECD opens, along with each part of the future implementation guide of the tax, a space for the private sector to give their opinion. The deadlines and means to participate, when they are open, can be found at the following site.