The Ministry of Finance in Taiwan has announced draft changes to the alternative minimum tax (AMT) rate as part of its alignment with the Pillar Two global minimum tax framework on 28 August 2024.
Under the proposed revisions, set to take effect in 2025, the AMT rate for Taiwanese companies within multinational enterprise (MNE) groups that fall under the Pillar Two rules will rise from 12% to 15%. This applies to MNE groups with a consolidated annual revenue surpassing EUR 750 million in at least two of the past four years.
Companies outside these MNE groups will continue to be taxed at the current 12% rate.
The rate hike is designed to minimise the likelihood of Taiwanese firms facing additional global minimum tax liabilities in other jurisdictions.
