Union budget 2024-2025: draft tax law likely to introduce minimum tax on MNEs

India is preparing a bill on a global minimum tax for multinational companies. This could be proposed in the Union Budget, scheduled for presentation on July 23, and pave the way for changes to the country’s tax laws, two people with direct knowledge of the matter said.

The global minimum tax, also known as the Pillar 2 regime, is designed to prevent multinationals from shifting their profits to low-tax jurisdictions by ensuring that they have an effective tax rate of 15 percent in all jurisdictions where they operate.

This is in accordance with the multilateral treaty