GLOBAL MINIMUM TAX: A SUSTAINABLE MODEL FOR REVENUE ADMINISTRATION

The Organisation for Economic Co-operations and Development (OECD) introduced the Global Minimum Tax (GMT) as a means to prevent or reduce revenue loss resultingfrom profit shifting activities, a practice commonly engaged by firms to move profits to lower tax regimes in order to reduce or eliminate tax liabilities. This article seeks to provide a comprehensive understanding of the GMT system which is planned for full implementation in 2024, and the impact it would have on both developed and developing countries. This article also provides a discussion on how multinational corporations may respond to this new tax system. In many perspectives, the GMT could be viewed in the context of supporting the United Nations ' Sustainable Development Goals, including those on reducing inequalities, economic growth and international partnerships.