Designing Domestic Minimum Taxes in Response to the Global Minimum Tax

50 Intertax 678 (2022)

11 Pages Posted: 14 Mar 2023

See all articles by Noam Noked

Noam Noked

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: May 1, 2022

Abstract

Countries may soon adopt domestic minimum taxes in response to the global minimum tax under the Global Anti-Base Erosion (GloBE) regime. These taxes, which will have priority over the global minimum tax under GloBE, could become the primary measure of ensuring that multinational enterprises (MNEs) pay a minimum level of tax. Despite their expected importance, the GloBE Model Rules and Commentary provide little guidance on several important design and policy issues concerning domestic minimum taxes. This article analyses the relevant rules in the Model Rules and the guidance in the Commentary. It also explores several questions that the OECD and the GloBE Implementation Framework should consider regarding the design of domestic minimum taxes and related issues such as collateral benefits.

Note: Reprinted from Intertax, Vol. 50, Iss. 10, May 1 2022, 678-688, with permission of Kluwer Law International.

Keywords: Domestic Minimum Tax, QDMTT, GloBE, Pillar 2, International Tax Reform, Taxing Rights, Subsidies

JEL Classification: K34

Suggested Citation

Noked, Noam, Designing Domestic Minimum Taxes in Response to the Global Minimum Tax (May 1, 2022). 50 Intertax 678 (2022), Available at SSRN: https://ssrn.com/abstract=4219348

Noam Noked (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Hong Kong, Sha Tin
Hong Kong

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-noam-noked/

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