Learn how Canada’s new global minimum tax affects your business in 2025 and what steps to take now for compliance and smooth cash flow.
Canada’s new global minimum tax (also called GMT Pillar Two) is coming in 2025, and businesses need to prepare now. This change affects companies with international operations or revenues over €750 million, but even smaller businesses should understand how it could impact their taxes and cash flow. Here’s what you need to know.
Why Pillar Two Matters for Canadian Businesses
The global minimum tax is part of an international agreement to ensure large corporations pay a fair share of taxes, no matter where they operate. For Canadian businesses, this means:
- New reporting requirements
- Potential changes to tax liabilities
- Adjustments to cross-border transactions
Even if your business isn’t directly impacted yet, staying informed helps you avoid surprises down the road.
How GMT Could Impact Your Cash Flow
Tax planning will be key in 2025. The GMT Pillar Two rules may affect how much tax your business owes, especially if you have subsidiaries overseas. This could influence:
- Your budgeting and financial forecasts
- Where you choose to expand or invest
- How you structure international deals
Working with a tax advisor now can help you plan ahead and avoid last-minute cash flow crunches.
Getting Ready for 2025 Implementation
Don’t wait until the last minute. Here’s how to prepare:
- Review your current tax structure
- Assess whether your business meets the revenue threshold
- Stay updated on Canada’s final GMT rules (expected late 2024)
Proactive planning ensures a smoother transition and helps you avoid penalties.
Start Preparing Now
The global minimum tax is a big shift, but with the right guidance, your business can stay compliant and financially secure. At IDM Professional Accounting, we specialize in corporate and cross-border tax planning, helping Canadian SMEs navigate complex regulations.
Contact us today to book a consultation and prepare for GMT Pillar Two with confidence.
