Publication: The Global Minimum Tax: From Agreement to Implementation - Policy Considerations, Implementation Options, and Next Steps
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Date
2022
ISSN
Published
2022
Author(s)
O’Sullivan, David
Cebreiro Gómez, Ana
Abstract
In October 2021, a historic
two-pillar international agreement was reached among 137
countries of the OECD/G20 Inclusive Framework on BEPS to
address the twin challenges of globalization and
digitalization. Pillar One will reallocate tax revenues to
the country of the consumer. Pillar Two introduces a global
minimum effective tax for MNEs (GMT). This paper focuses on
implementation of the GMT. It provides an overview of the
core GMT rules, examines implementation by countries thus
far, evaluates the key policy considerations (including the
impact on tax incentives), and provides a framework for
evaluation of the implementation options. The paper also
makes recommendations on practical steps in the
implementation process, including administrative issues and
consultation with key stakeholders. These discussions are
expected to be particularly relevant for developing countries.
Citation
“O’Sullivan, David; Cebreiro Gómez, Ana. 2022. The Global Minimum Tax: From Agreement to Implementation - Policy Considerations, Implementation Options, and Next Steps. Equitable Growth, Finance & Institutions Insight;. © World Bank, Washington, DC. http://hdl.handle.net/10986/38099 License: CC BY 3.0 IGO.”