Union Budget 2024-25: Draft tax law likely for minimum levy on MNEs

India is preparing a draft legislation on the global minimum tax for multinational enterprises (MNEs) which could be proposed in the Union Budget, to be presented on July 23, and pave the way for changes to the country’s tax laws, said two people with direct knowledge of the matter. 

The global minimum tax, also known as the Pillar Two regime, aims to prevent MNEs from shifting their profits to low-tax nations by ensuring that they maintain an effective tax rate of 15 per cent across all jurisdictions where they operate. 
 

This is in line with the multilateral convention