Global Minimum Tax – Purpose and scope
The Global Minimum Tax forms part of international initiatives aimed at combating tax base erosion and harmful tax competition. In summary, the legislation provides for the introduction of an effective minimum tax rate of 15% on the profits of multinational groups across different jurisdictions. If, in a given country, the effective tax rate falls below this threshold, supplementary taxes (so-called ‘top-up taxes’) may be levied on other entities within the group, in accordance with specific criteria.
The rules will apply, for the first time, to the 2024 tax year, with the first reporting and disclosure obligations due by 30 June 2026. For the first three financial years of application (2024–2026), simplified transitional regimes (Safe Harbour) are to be adopted, allowing the avoidance of complex standard calculations in cases where the tax risk is limited. Access to these regimes is subject to the exercise of an option within the Relevant Communication (GIR), valid for one year and renewable.
The rules generally apply to domestic and multinational groups with consolidated revenues of €750 million or more, provided that this threshold was exceeded in at least two of the four financial years preceding the year of first application (i.e. the period 2020–2023 for entities whose financial year coincides with the calendar year). In such cases, the group falls within the scope of the GloBE rules from the 2024 financial year onwards.
Global Minimum Tax – Tax obligations due on 30 June 2026
Relevant Return(GIR)
With regard to obligations in Italy, the first requirement is the submission of the Relevant Return (GloBE Information Return – GIR), which must be filed by each Italian entity belonging to the group for each tax period from 2024 onwards.
This return contains the qualitative and quantitative information necessary to determine the effective tax rate (ETR) and any additional tax, as well as an indication of whether the entity has opted for simplified schemes.
For the first year of application, i.e. 2024, the submission deadline is set at 30 June 2026.
In the event of failure to submit the report or a delay of more than three months, a penalty of €100,000 applies, whilst in the event of a shorter delay or incomplete or incorrect data, the penalty is €50,000. These amounts are reduced by half for the first three financial years.
Notification of the designated entity responsible forsubmittingthe GIR
The group is also permitted to designate a single entity to submit the GIR on behalf of all other companies, in the same way as for Country-by-Country Reporting. In this case, the details of the designated company must be communicated to the Italian tax authorities; this company must be resident in a country with which a Qualified Bilateral or Multilateral Agreement is in force for the 2024 tax year. This notification must also be made by 30 June 2026.
Annual return relating to the supplementary tax due
Finally, a national annual return must be filed for the purpose of determining and settling any minimum tax due in Italy. This return, which must also be submitted by 30 June 2026 for the 2024 tax year, must include information relating to the group and the schedules necessary for calculating the tax. Any breaches relating to payment are subject to the standard penalties applicable to income tax; however, for the first three periods of application of the legislation, no penalties will be imposed, except in cases of wilful misconduct or gross negligence.
To complete the verification process, your Tax contact will send you a self-assessment questionnaire, which must be completed and returned to enable an initial assessment of whether the group is subject to the Global Minimum Tax rules and related obligations.