OECD Pillar Two (GloBE) — 15% global minimum tax
OECD Pillar Two (GloBE) — also known as BEPS 2.0 or the GloBE Rules — establishes a 15% global minimum effective tax rate for multinational groups with consolidated global revenue above EUR 750 million. Internalized into Brazilian law by Law 15,079/2024 (an additional CSLL operating as a QDMTT), effective from 2025. Brief for international tax practitioners and CFOs of in-scope groups operating in Brazil.
Mechanics of the GloBE Rules
Three rules make up the Pillar Two framework:
- QDMTT (Qualified Domestic Minimum Top-Up Tax): an additional tax charged by the source country to ensure a 15% minimum effective rate on local operations. Brazil adopted it through an additional CSLL — the federal social contribution on net profit (Law 15,079/2024).
- IIR (Income Inclusion Rule): the parent jurisdiction charges a top-up to ensure 15% across all global subsidiaries.
- UTPR (Undertaxed Payments Rule): a residual rule — other countries where the multinational operates charge the top-up if neither the IIR nor the QDMTT captures it.
For multinationals with a presence in Brazil, the Brazilian QDMTT takes priority — the group pays the additional CSLL directly to Brazil, avoiding extraterritorial collection via a foreign IIR.
Application in Brazil
In-scope taxpayers: multinational groups with consolidated global revenue above EUR 750 million in at least 2 of the 4 prior fiscal years. An estimated 800-1,500 groups in Brazil fall within scope.
Calculation: the effective tax rate (ETR) is computed per jurisdiction, summing all taxes on profit (IRPJ — corporate income tax + CSLL + others) divided by the GloBE accounting profit. If ETR is below 15%, a "top-up tax" equal to the difference to reach 15% is due.
Effective date: fiscal years beginning on or after January 1, 2025. A dedicated annual return is required (GIR — GloBE Information Return).
Sensitive cases: tax incentives (SUDAM and SUDENE regional development incentives, the Lei do Bem R&D incentive, the "lucro da exploração" exploitation-profit exemption) can push the ETR below 15%, triggering a top-up. Analyzing incentives ahead of Pillar Two is a strategic step.
Frequently asked questions about OECD Pillar Two in Brazil
Does a standalone domestic company outside a multinational group need to worry about Pillar Two?
No, if the economic group has consolidated revenue below EUR 750M. Isolated domestic companies are out of scope. But if a domestic company is a subsidiary of a multinational above the threshold, it is subject to the top-up in Brazil even if the foreign parent has no local presence.
How do regional tax incentives (SUDAM/SUDENE) interact with Pillar Two?
Incentives that reduce the ETR can generate a top-up — a company benefiting from SUDAM with IRPJ reduced by 75% may have an ETR below 15%, requiring an additional payment. The practical effect is a partial loss of the benefit. A technical discussion on whether incentives qualify as "qualified refundable credits" may neutralize part of the effect, but requires specific modeling.
Is Law 14,789/2024 (10% withholding tax on dividends) related to Pillar Two?
Indirectly. The 10% withholding tax on dividends paid to non-residents (effective from 2026) is part of Brazil's effort to modernize international taxation, aligned with the BEPS framework. But it is an autonomous rule — it does not derive directly from Pillar Two — though it does add to the total tax burden on multinationals headquartered abroad.
Is a small Brazilian multinational operating abroad within scope?
It depends. A multinational with global revenue below EUR 750M is out — that is the objective threshold. Foreign subsidiaries of groups below that limit do not generate a top-up. Brazilian groups expanding internationally should monitor their approach to the threshold and anticipate the tax adjustment.