The Princely Government has introduced Bill No. 1129, which aims to implement the OECD Pillar Two rules into Monaco law. The proposed legislation introduces a 15% global minimum effective tax rate for multinational enterprise groups with consolidated annual revenue exceeding EUR 750 million.
This reform forms part of the ongoing alignment of Monaco’s tax framework with international standards. Rather than creating a new tax burden, its primary objective is to ensure that Monaco retains its taxing rights over profits generated within its territory, thereby preventing any top-up tax from being collected by other jurisdictions.
The Government has also highlighted that the new framework will strengthen legal certainty for businesses while preserving the Principality’s attractiveness as an international business centre through compliance with the OECD’s global tax standards.
The bill is particularly comprehensive, comprising nearly 100 pages and more than 100 articles. It is expected to be reviewed by the National Council in the coming months, with entry into force envisaged for fiscal years beginning on or after 31 December 2026.
This represents a significant development in the international tax landscape for affected multinational groups.
Our tax team is closely monitoring the legislative process and remains available to assess the practical implications of the proposed rules and assist businesses in preparing for their implementation.