Japan's Global Minimum Tax Plans

As previously reported, the Japanese government's ruling coalition approved annual tax reform proposals on 16 December 2022, including tax increases to fund defense spending. The tax reform proposals also include the introduction of new global minimum tax (GloBE) rules that are generally in line with pillar 2 of the OECD two-pillar solution. This includes an income inclusion rule (IIR) that would apply for members of MNE groups meeting a consolidated group revenue threshold of EUR 750 million…