What led to Global Minimum Tax (GMT)? To plug the tax leakages and end the race to the bottom in terms of tax rates, Global Minimum Tax (GMT) was mooted several years ago and has gained momentum ever since. Will Malaysia implement Global Minimum Tax? The government will introduce a “global minimum effective tax rate” as recommended under Pillar Two of the Base Erosion and Profit Shifting Project, and plans to implement a Qualified Domestic Minimum Top-up Tax (QDMTT) in 2024. GMT comprises the following tax-collection mechanisms:• QDMTT, which imposes GMT top-up tax on local entities and applies in priority.
