Key Points
Large Indian corporations such as Reliance Industries, Tata Group and Adani Group are assessing their data readiness and analysing how the Organisation for Economic Co-operation and Development's (OECD's) Pillar Two model rules could impact merger and acquisition transactions and investment decisions, people aware of the development said...
The Pillar Two model rules under Global Anti-Base Erosion Regulation have been crafted to ensure that large multinationals pay a minimum level of tax..
They apply to companies that are members of a multinational group and have had annual sales of 750 million or more in the ultimate parent entity's consolidated financial statements for at least two of the four fiscal years before the tested year...
For the countries where safe harbour is not met, Indian multinationals would need to put processes in place for quarterly tax provisioning and annual computation for FY25..
"Even if a single jurisdiction implements GloBE Rules, then the MNE group must follow them irrespective of whether the ultimate parent entity jurisdiction has implemented such rules or not," said Naveen Aggarwal, partner, tax, at KPMG...
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