The Global Minimum Tax (GMT), a landmark initiative under the OECD/G20 Inclusive Framework on BEPS, introduces a 15% minimum tax on corporate income, targeting multinational companies with revenues exceeding EUR 750 million. This policy aims to address profit-shifting practices and ensure a fairer global tax system. GMT will reshape the corporate landscape, particularly for M&A activities, by increasing tax obligations and introducing heightened regulatory scrutiny. Exemptions for specific entities, such as government bodies and pension funds, ensure the framework remains balanced.

In Indonesia, GMT implementation is guided by the OECD’s GLOBE regime and supported by Government Regulation No. 55 of 2022. The country is revising tax regulations and investment incentives to align with international standards while maintaining its appeal to investors. Businesses that proactively adapt through strategic tax planning and restructuring will be better equipped to navigate the complexities of GMT and thrive in Indonesia’s evolving tax and investment landscape. Read more about Indonesia’s approach to the Global Minimum Tax here.