Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of recent exemptions or carve-outs granted to large United States multinational enterprises under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting on (a) the effectiveness of the global minimum tax, (b) UK tax revenues, and (c) the principle of equal treatment between multinational enterprises operating in the UK.

The UK, with more than 140 members of the G20/OECD Inclusive Framework have reached agreement on a package of reforms to the Pillar 2 Global Minimum Tax system to address how it should interact with US minimum tax rules.

As set out in my written statement to the House on 7^th January, these changes bring stability and clarity for business, as well as protection from retaliatory measures. At the same time, the largest multinationals will continue to pay their fair share of tax through comprehensive systems of global minimum taxation.

This agreement underlines the continued commitment of the UK and others to tackle aggressive tax planning by multinational enterprises and preserve the level playing field.

All multinationals are subject to the 25% Corporation Tax rate on profits they make in the UK, and they remain subject to the UK’s domestic minimum tax rate of 15%.

The changes will be fully costed with the OBR in in the usual way as the UK brings forward legislation in the next Finance Bill.