Geopolitical Strategic Perspectives of the Global Minimum Tax

Global Tax
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In 2022-23, the Model Rules of Pillar Two have been approved by the OECD and at EU level through a Directive, introducing a 15% global minimum tax (GMT). 

Pillar Two is now fully operative and binding in the EU through the Directive and introduces an international tax regime based on a coalition of countries cast in a minilateralist compact against profit shifting and base erosion constituted by the EU bloc and the jurisdictions that have implemented Pillar Two rules. 

In this context, the OECD has recently released a paper (The Global Minimum Tax and the taxation of MNE profit) that addresses the impact of the GMT indicating that the GMT not only reduces tax rates differentials and the incentives to shift profits, but also the amount low-taxed profit worldwide, thereby increasing corporate tax revenues. 

The distribution of these gains across jurisdictions strongly depends on the implementation choices of governments. It is therefore now essential to understand from a strategic perspective how the global minimum tax is evolving and what are its distributive effects. The workshop will address these geopolitical tax issues from a global perspective. 


Reuven Avi-Yonah, University of Michigan Law School 

Ana Cinta González Cabral, OECD Centre for Tax Policy and Administration 

Carlo Garbarino, Bocconi and IEP@BU 


IEP@BU does not express opinions of its own. The opinions expressed in this publication are those of the authors. Any errors or omissions are the responsibility of the authors.

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