Global Minimum Corporate Tax Regime (Pillar II)

Key aspects

• Law 41/2024 of November 8 transposed Council Directive (EU) 2022/2523 of December 15, 2022, into national law.
• The directive, commonly referred to as the Pillar II Directive, establishes a global minimum level of taxation for multinational enterprise groups and large-scale national groups in the European Union.
• The Global Minimum Corporate Tax Regime (“GMCTR”) introduces a new top-up tax when the effective tax rate of a covered group is below 15% in a given jurisdiction.
  
• Law 41/2024 includes (i) the income inclusion rule (IIR), (ii) the undertaxed profits rule (UTPR), and (iii) the qualified domestic minimum top-up tax (QDMTT).
• Transitional provisions and safe harbor rules for these enterprises are also included, enabling a gradual adaptation to the new requirements.
  
•  The GMCTR takes effect for tax years starting on or after January 1, 2024, except for the UTPR rule, which will only apply from January 1, 2025.