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Australia Says US Minimum Tax Doesn’t Correspond to Its Rules

June 30, 2022, 4:31 PM

The US’s minimum tax on foreign income isn’t consistent with Australian tax rules, the country’s tax authority said Wednesday, in a move that could lead to added tax payments for some US multinationals.

The US minimum tax rules—known as global intangible low-taxed income, or GILTI—don’t “correspond” to Australian rules on taxing controlled foreign corporations, the Australian Taxation Office said in guidance issued Wednesday. The guidance confirms and finalizes draft guidance that the ATO issued in 2019.

That could mean that some US companies with Australian subsidiaries, like mining and energy firms, will have to pay taxes to both the US ...