Monaco has taken another step towards aligning its corporate tax framework with international standards, tabling legislation that would introduce a domestic minimum tax for the world’s largest multinational companies while ensuring the resulting tax revenue remains within the Principality. Protecting Monaco’s tax sovereigntyThe government said the reform is primarily aimed at protecting Monaco’s tax revenues rather than increasing the tax burden on affected businesses. Under the OECD’s global minimum tax framework, if Monaco does not collect the top-up tax itself, other participating jurisdictions where a multinational group has subsidiaries or a parent company could claim those revenues instead. By introducing the domestic tax, Monaco ensures that tax generated by economic activity within the Principality remains in Monaco rather than being transferred to foreign tax authorities. Supporting competitivenessThe government also argues that adopting an OECD-recognised framework will strengthen Monaco’s attractiveness for multinational businesses.