Introduction of the Global Minimum Tax System: Focusing on IIR and GloBE Information Reporting

This newsletter explains key considerations for foreign-affiliated Japanese subsidiaries and Japanese branches of foreign corporations regarding compliance with Japan’s Global Minimum Tax regime, focusing on reporting under the Income Inclusion Rule (IIR) and GloBE information reporting.

Contents

1. Background and Overview of the System
2. The Relationship Among the Three Rules of Global Minimum Taxation
3. Income Inclusion Rule (IIR)
4. Information Reporting System (GIR: GloBE Information Return)
5. Necessary Actions Going Forward