Arbeitspapier
The Economics of the Global Minimum Tax
This paper shows that the OECD inclusive framework of Pillar Two fails to implement the claimed 15% minimum corporate tax for subsidiaries of multinational corporations. The reason is that the Substance-based Income Exclusion of Pillar Two allows to tax-deduct payroll costs and user costs of intangible assets twice from the tax base of the top-up tax. Employing a standard multinational firm model, we show that Pillar Two dampens tax motivated transfer pricing, but changes the employment, investment and import incentives. For a sufficiently large cost share of labor and/or capital, the Substance-based Income Exclusion is equivalent to a production subsidy.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 10319
- Klassifikation
-
Wirtschaft
Multinational Firms; International Business
International Institutional Arrangements
Business Taxes and Subsidies including sales and value-added (VAT)
State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects
- Thema
-
corporate taxation
BEPS
Pillar Two
minimum tax
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Schjelderup, Guttorm
Stähler, Frank
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2023
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Schjelderup, Guttorm
- Stähler, Frank
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2023
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