Global Minimum Tax €750 Million Threshold: Long-Term Contracts Challenge the Concept of Revenue

The article examines the practical issues raised by the €750 million Global Minimum Tax threshold for groups operating under long-term contracts. Different accounting treatments of work in progress may shift or concentrate revenue across financial years, distorting the threshold calculation. The authors therefore call for a broader review of the concept of “revenue” for GMT purposes.

Author

IPG, Cristiano Lenti, Marco Palestro

Activity area

Tax Law

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IPG Journal

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IPG Journal