[Ask The Tax Whiz] FAQs on the global minimum tax

What is the global minimum tax (GMT), and how will it affect Philippine businesses? 

The global minimum tax is an international tax reform initiative developed by the Organization for Economic Co-operation and Development (OECD) and the G20 to ensure multinational corporations with revenues exceeding €750 million pay a minimum effective corporate tax rate of 15%. This aims to curb tax avoidance and ensure fair taxation, particularly in jurisdictions with lower taxes than the MNC’s home country.