Global Minimum Tax Act, 2024

The text provided is not a court judgment but a South African statute published in the Government Gazette. It records that the President assented on 20 December 2024 to the Global Minimum Tax Act, 2024, which was published on 24 December 2024. The Act introduces the OECD/G20 Inclusive Framework Global Anti-Base Erosion (GloBE) Rules into South African law. It creates a system for imposing Top-up Tax on in-scope multinational enterprise groups, including an Income Inclusion Rule and a Domestic Minimum Top-up Tax applicable to domestic constituent entities, domestic joint ventures and related subsidiaries. The Act defines key terms, identifies inapplicable GloBE provisions for South African purposes, provides computational and transition rules, empowers the Minister to adopt later OECD/Inclusive Framework guidance by Gazette notice, and states that the Act is deemed to have commenced on 1 January 2024 for fiscal years beginning on or after that date.

• No judicial legal issues can be identified because the supplied text is legislation rather than a litigated case or court judgment.
• From a statutory perspective, the Act addresses how South Africa implements the OECD Pillar Two GloBE Rules, including the imposition of Top-up Tax, the operation of the Income Inclusion Rule, the Domestic Minimum Top-up Tax, exclusions from certain UTPR-related provisions, transition-year rules, and ministerial power to incorporate international guidance.

The President assented to the Global Minimum Tax Act, 2024. The Act was published as Act No. 46 of 2024 in Government Gazette 51830 on 24 December 2024, and is deemed to have come into operation on 1 January 2024, applying to fiscal years beginning on or after that date.

Not available because there is no court decision. As legislation, the document lays down binding statutory rules rather than a judicial ratio decidendi. The core legal rule enacted is that in-scope multinational enterprise groups with domestic constituent entities, domestic joint ventures, or related subsidiaries may be liable for Top-up Tax in South Africa under the GloBE-based Income Inclusion Rule and Domestic Minimum Top-up Tax regime, with effect from 1 January 2024 for relevant fiscal years.

Not available because the supplied text is not a judgment and contains no non-binding judicial observations.

The Act is significant because it formally incorporates the OECD/G20 Inclusive Framework Pillar Two global minimum tax architecture into South African law. It establishes South Africa's domestic legal framework for taxing low-taxed profits of large multinational enterprise groups through Top-up Tax, including a Domestic Minimum Top-up Tax designed to preserve South Africa's taxing rights over domestic low-taxed income. It also aligns South African tax law with evolving international anti-base-erosion standards and creates a mechanism for updating applicable OECD guidance through ministerial notice.