In a strategic move to safeguard its tax revenue while aligning with international fiscal standards, the Princely Government of Monaco has submitted a draft bill to the National Council (Conseil National) establishing a global minimum corporate tax.
The proposed legislation implements Pillar Two of the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project. Specifically, the bill introduces a Qualified Domestic Minimum Top-up Tax (QDMTT), establishing a 15 percent effective minimum tax rate on multinational enterprise groups operating within the Principality that report consolidated annual revenues exceeding €750 million.
Far from imposing an additive tax burden, the government underscored that the reform protects Monegasque financial sovereignty. Under the OECD’s interconnected rules, if Monaco refrains from collecting the top-up tax on low-taxed domestic earnings, foreign jurisdictions where parent or subsidiary companies reside would hold the legal right to collect those revenues instead. By codifying the QDMTT into Monegasque law, the Principality ensures that tax revenues generated by commercial activity on its territory remain strictly within its sovereign treasury.
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