The government has launched a consultation on the framework for rolling out the 15% global minimum tax on profits which will be payable by the largest multinationals from 2023.
The tax rate will be applicable in over 130 countries and is designed to stop multinationals profit shifting to reduce their tax liability.
The rules are set to come into force from 1 April 2023 and groups will have a longer filing deadline in the first year of entering the regime. The filing deadline will be extended to 18 months from the end of the accounting period for a group's consolidated accounts.
The reform comes as part of a two-pillar package first agreed in principle by the G7 last June during talks chaired by Chancellor Rishi Sunak in London.
The rules will only apply to multinationals headquartered in the UK whose consolidated annual revenues are greater than £625 million in at least two of the previous four fiscal years. The government is consulting on whether payments should be made quarterly or annually.
The Chancellor said: 'Ensuring large multinational groups pay the right tax in the right place has been a long-standing priority for the UK.
'We reached an historic agreement last October following more than a decade of talks and negotiations.'