Twenty-Two EU States Enforce OECD Global Minimum Tax Rules

Twenty-two of the 27 European Union member states have implemented both the income inclusion rule and the qualified domestic minimum top-up tax in 2026, the Tax Foundation reported. The tax measures align with the Pillar Two framework established by international negotiators to reform how multinational companies face taxation globally. [1]

The Pillar Two initiative establishes a global minimum effective tax rate of 15 percent for large corporations. According to the Tax Foundation, estimates indicate that the framework will increase global tax revenues by 91 billion dollars to 192 billion dollars annually. [1]

The OECD and G20 Inclusive Framework developed the agreement to ensure that major multinational enterprises pay taxes in the jurisdictions where they conduct business operations rather than solely where they choose to declare their profits. More than 130 member jurisdictions agreed to the outline for the new tax rules in October 2021 after extensive negotiations at the OECD, the Tax Foundation reported. [1][2]