Monaco has submitted a bill to its National Council to implement Pillar Two of the OECD’s BEPS Action 1 project, formally adopting the global minimum corporate tax regime.
The legislation marks a decisive shift for the principality, which has long operated as a zero-tax jurisdiction for domestic companies, by subjecting large multinational enterprises to a 15% minimum effective tax rate.
The move is designed to safeguard fiscal revenues and ensure compliance with international tax norms, reducing the risk of secondary taxes imposed by other jurisdictions on companies headquartered in Monaco.
By aligning with the OECD framework, the Prince's Government aims to protect the country’s financial sovereignty while maintaining its attractiveness to high-net-worth individuals and businesses.
This development follows a broader trend of jurisdictions overhauling their tax frameworks to meet global standards.
The Philippines recently commenced drafting legislation for its own global minimum tax implementation, while Montenegro has linked penalty interest rates on unpaid taxes to the European Central Bank’s key rate.