Global Minimum Top-Up Tax Implementation Guide In Türkiye

The regulations developed by the OECD regarding the Global and Domestic Minimum Top-up Tax (“Pillar 2”) introduce a 15% global minimum effective tax for in-scope large multinational enterprise (MNE) groups. Türkiye is among the countries that adopted this system at an early stage and has comprehensively integrated it into its domestic legislation.

Within this framework, Turkish subsidiaries of MNE groups whose consolidated revenue exceeds EUR 750 million in two out of the last four fiscal years are directly affected by these regulations. The Turkish implementation is particularly significant for groups whose Ultimate Parent Entity (UPE) will start applying Pillar 2 rules as of 2025.

1. What is the Global Minimum Top-up Tax?

The Global Minimum Corporate Tax (Pillar 2) is a regulation developed under the OECD/G20 BEPS 2.0 project, aiming to ensure that multinational enterprise groups are subject to a minimum effective tax rate of 15% in each jurisdiction where they operate.

In Türkiye, this regulation was incorporated into domestic law through Law No. 7524 and entered into force as of the 2024 fiscal year via amendment to the Corporate Tax Law.

Under this regulation, the following provisions were added to the Corporate Tax Law:

• Global Minimum Top-up Tax (GloBE Top-up Tax)
• Qualified Domestic Minimum Top-up Tax (QDMTT)
• Income Inclusion Rule (IIR)
• Undertaxed Payments Rule (UTPR)

2. GloBE Information Return (GIR) and Filing Requirements in Türkiye

The GloBE Information Return is a standardized report that includes the global and jurisdictional top-up tax calculations of the MNE group. Filing responsibility depends on the country of residence of the Ultimate Parent Entity (UPE) and the existence of information exchange mechanisms.

2.1. Scenario 1: MNE Groups headquartered in Türkiye (UPE Resident in Türkiye)

If the Ultimate Parent Entity (UPE) of the MNE group is resident in Türkiye, the GIR must be submitted in Türkiye on behalf of the Group. Accordingly, the filing obligations of the Turkish UPE are as follows:

• GIR on behalf of the MNE Group: within 15 months following the end of the fiscal year (18 months for the 2024 fiscal year)
• Global Minimum Top-up Tax Return (together with the GIR attached): within 15 months following the end of the fiscal year (18 months for the 2024 fiscal year)

2.2. Scenario 2: Foreign MNE Groups

Where the UPE is located abroad, the obligations vary depending on whether the UPE’s jurisdiction has implemented Pillar 2 and whether an effective information exchange mechanism exists between that jurisdiction and Türkiye.

1. If Pillar 2 is not implemented in the UPE’s jurisdiction (e.g., the United States, Russia):

For groups whose UPE is resident in a country where Pillar 2 regulations has not been enacted or implemented, an alternative reporting mechanism must be established to fulfill Global Minimum Top-up Tax obligations.

In this case, the MNE group must appoint one group entity resident in a jurisdiction that applies Pillar 2 as a “Designated Entity”. The Designated Entity assumes the Global Minimum Top-up Tax filing obligations on behalf of the UPE, including the preparation and submission of the GIR. If no Designated Entity is appointed within the group to submit the GIR, Turkish resident group entities may be held jointly and severally liable for its submission.

1. If Pillar 2 is implemented in the UPE’s jurisdiction and there is effective information exchange with Türkiye:

The fact that the UPE or the Designated Entity is resident in a jurisdiction applying Pillar 2 and has submitted the GIR in that jurisdiction does not automatically relieve Turkish subsidiaries from local obligations.

Whether a local filing obligation arises in Türkiye depends on the existence of an effective automatic information exchange mechanism such as the Multilateral Competent Authority Agreement (MCAA) between Türkiye and the reporting jurisdiction

If the UPE is resident abroad, its jurisdiction requires GIR filling, and an effective information exchange mechanism exists between that jurisdiction and Türkiye;

• GIR is submitted in the UPE’s jurisdiction;
• Turkish subsidiaries must notify, within 15 months following the end of the fiscal year (18 months for 2024), through the Global Minimum Top-up Tax Return, the identity of the reporting entity and its jurisdiction of residence.

1. If Pillar 2 is implemented in the UPE’s jurisdiction but there is no effective information exchange with Türkiye:

If the UPE is resident abroad and its jurisdiction requires GIR filing, but no effective information exchange mechanism exists with Türkiye, GIR must be submitted in Türkiye within 15 months following the end of the fiscal year (18 months for 2024).