A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax
Many countries will be affected by the Pillar Two Global Anti-Base Erosion (GloBE) minimum tax proposal whether or not they participate actively in the OECD–G20 Inclusive Framework on base erosion and profit shifting. The GloBE initiative creates a pool of potential tax revenues on corporate multinationals’ incomes to be collected by GloBE participating countries whenever the effective tax rate of a multinational in the country falls below 15%. Some domestic tax measures intended to attract and keep foreign investment may lose their effectiveness as a result. Further, some of GloBE’s impact may be indirect, providing lawmakers with an opportunity to consider policy reforms whether or not they adopt GloBE itself. It is in the interest of each country to examine the potential applicability of GloBE to its taxpayers and the interplay of GloBE rules with its domestic tax system in order to make informed decisions about whether and in what manner to respond. This guide provides guidance for making such informed decisions.
You might also be interested in
Inclusive Framework Agreement on the Global Minimum Tax: Recommendations to address stabilized fiscal conditions
This brief provides recommendations on how the OECD could design model legislation for a global minimum tax to address stabilized tax incentives.
What Does the Global Minimum Tax Deal Mean for Developing Countries?
Just months after the global minimum tax was approved by over 130 countries, the agreement is quickly on its way to becoming a reality. What impact could this have for developing countries and how should they prepare?
EU exit from climate-killing energy treaty looms
Denmark joins a spate of EU nations including Germany, Spain, France and the Netherlands who are exiting the Energy Charter Treaty (ECT), an investment pact weaponized by big emitters to sue governments — most recently for phasing out fossil fuels.
A Quest for Legal Clarity: What the International Court of Justice's upcoming advisory opinion means for climate action
The United Nations General Assembly resolution comes at a pivotal moment for the international climate community, as governments, civil society, academia, and private actors all prepare for the UN Framework Convention on Climate Change's 28th Conference of the Parties (COP 28) this November.