International Effective Minimum Taxation – The GLOBE Proposal

50 Pages Posted: 9 May 2019 Last revised: 7 Jun 2019

See all articles by Joachim Englisch

Joachim Englisch

University of Muenster - Faculty of Law

Johannes Becker

University of Muenster - Institute of Public Economics

Date Written: April 11, 2019

Abstract

In its Public Consultation Document, the OECD discusses the introduction of effective minimum taxes on multinational firm profits (the so-called GLOBE: "global anti-base erosion" proposal). In this paper, we make three distinct contributions. First, we discuss the policy rationale for the minimum tax, its advantages and potential problems. Second, we analyse important features of tax design, i.e. the technical dimension of the tax. Third, we examine the proposal in the legal and economic context of the complementary proposals that are currently under discussion (the "Pillar 1" proposals for a reallocation of taxing rights) and its compatibility with tax treaty law and EU treaty law.

Keywords: Minimum Taxation, Multinational Firms, GLOBE

JEL Classification: H25, F23

Suggested Citation

Englisch, Joachim and Becker, Johannes, International Effective Minimum Taxation – The GLOBE Proposal (April 11, 2019). Available at SSRN: https://ssrn.com/abstract=3370532 or http://dx.doi.org/10.2139/ssrn.3370532

Joachim Englisch

University of Muenster - Faculty of Law ( email )

Universitaetsstr. 14-16
Muenster, 48149
Germany

Johannes Becker (Contact Author)

University of Muenster - Institute of Public Economics ( email )

Wilmergasse 6-8
Muenster, 48143
Germany

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