
A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax
Public Consultation Draft
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.
This version is for public consultation. Interested parties from government, academia, industry, and civil society are invited to review the document and submit written feedback to [email protected] with the subject line “IISD ISLP Guide on Global Minimum Tax - comments” by January 29, 2023.
Funded by
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?
Legal expert: ECT withdrawal 'is the only possible course of action'
Following the decision by several EU member states to leave the controversial Energy Charter Treaty (ECT), the European Commission must now put proposals on the table for the EU to withdraw collectively, says Lukas Schaugg.
In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty
In a notable U-turn, the European Commission has proposed a collective and coordinated exit of all 27 member states from the controversial Energy Charter Treaty (ECT), an obscure international agreement that protects energy investors from unexpected circumstances that might hurt their profit expectations.