Australia’s Stance on U.S. Minimum Tax May Hike Company Costs

Oct. 26, 2021, 11:59 PM

U.S. multinationals that have already paid a minimum tax on their foreign incomes might soon face added tax payments because of complaints from an unexpected source: Australia.

The Australian tax authorities are expected to finalize guidance soon that treats the U.S. corporate minimum tax—known as global intangible low-taxed income, or GILTI—as inconsistent with their own tax rules.

A minimum tax like GILTI has “no equivalent in Australia,” the Australian Tax Office said in 2019 draft guidance—even though nations including Australia have since agreed to a global minimum tax of 15% that is slated to take effect in 2023. The office ...

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