The Implementation of the Global Minimum Corporate Tax

Why this Book?

The Global Minimum Corporate Tax has been enacted in multiple jurisdictions globally and, following the adoption of the Pillar Two Directive, is now implemented across all EU Member States. The Global Minimum Corporate Tax has its roots in the work of the OECD/G20, highlighting the importance of publications of the OECD, such as the publication of the Model Rules in October 2021. The implementation of the Global Minimum Corporate Tax also creates new issues for the key actors involved. This book addresses these issues. It starts by discussing the implementation of the core rules of the Global Minimum Corporate Tax, the Income Inclusion Rule and the Undertaxed Profits Rule, in domestic and EU law. It then highlights the challenges this creates for the different actors involved: tax legislators, tax administrations, intermediaries and in-scope taxpayers. Next, it looks at the domestic responses to the Global Minimum Corporate Tax, in the form of the Qualified Domestic Minimum Top-up Tax and the consequences for tax incentives in the different jurisdictions. Subsequently, it examines issues concerning dispute resolution and those arising from the interaction between the Global Minimum Corporate Tax and EU law, tax treaties, investment treaties and constitutional law. Lastly, the subject-to-tax-rule is discussed as a measure to protect the taxing rights of developing Inclusive Framework members. The book thus attempts to cover as wide a range of issues as possible, highlighting in particular the different responses of individual countries in their respective implementation of the rules, as well as addressing possible problems and suggesting solutions.

The book comprises 35 national reports as well as a special report from the European Commission and is the outcome of a conference on “The Implementation of the Global Minimum Corporate Tax: Tax Law and Policy” that took place from 4 July 2023 to 6 July 2024 in Rust, Austria. More than 100 experts, including the authors of the national reports, were brought together to discuss the newly introduced Global Minimum Corporate Tax. The general report highlights the most important findings of the conference.