In July 2021, Hong Kong adopted the OECD's international tax reform framework under the BEPS 2.0 initiative, which addresses cross-border tax evasion, especially in the digital economy. This framework introduces a global minimum tax for multinational enterprises (MNEs) to ensure a fairer taxation system. The Hong Kong Government announced in its 2024-25 Budget that it would implement this global minimum tax along with a Hong Kong Minimum Top-Up Tax (HKMTT), effective from 2025, to comply with OECD standards and tackle base erosion and profit shifting risks.