Global Minimum Tax: Implications and Recommendations for Multinational Corporations

Authors

  • Tirta Prasetya Dilaga Universitas Tarumanagara, Indonesia
  • Andreas Bambang Daryatno Universitas Tarumanagara, Indonesia

DOI:

https://doi.org/10.59141/jrssem.v5i4.1169

Keywords:

Global minimum tax, BEPS, OECD Pillar Two, multinational company, international tax

Abstract

The implementation of the global minimum tax under the OECD's Pillar Two framework marks a pivotal shift in international taxation, designed to curb profit shifting by multinational corporations (MNCs) to low-tax jurisdictions. This research aims to analyze the mechanism of this policy and its implications for MNCs, with a specific focus on Indonesia's adoption through Minister of Finance Regulation (PMK) No. 136 of 2024. Using a qualitative literature study method, this study examines the operational aspects of the Global Anti-Base Erosion (GloBE) Rules, including the Income Inclusion Rule (IIR), Undertaxed Payment Rule (UTPR), and Domestic Minimum Top-up Tax (DMTT). The findings indicate that the global minimum tax fundamentally alters the international tax competition landscape, rendering aggressive tax planning strategies less effective and significantly increasing compliance complexity for MNCs. Key implications include the need for MNCs to reassess their global tax strategies, optimize the use of Safe Harbour provisions, and strengthen tax governance frameworks. The study concludes with strategic recommendations for MNCs to navigate this new tax environment, emphasizing holistic impact assessments and the realignment of transfer pricing policies.

Downloads

Published

2025-11-14

How to Cite

Dilaga, T. P., & Daryatno, A. B. (2025). Global Minimum Tax: Implications and Recommendations for Multinational Corporations. Journal Research of Social Science, Economics, and Management, 5(4), 3968–3980. https://doi.org/10.59141/jrssem.v5i4.1169

Issue

Vol. 5 No. 4 (2025): Journal Research of Social Science, Economics, and Management

Section

Articles

License

Copyright (c) 2025 Tirta Prasetya Dilaga, Andreas Bambang Daryatno

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  • Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.