The impact of the international tax reforms under Pillar One and Pillar Two on MNE’s investment costs

Hanappi, Tibor; Cabral, Ana Cinta González

doi:10.1007/s10797-022-09750-0

Cited by 7 publications

(1 citation statement)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Empirically, however, the weight of evidence suggests that statutory corporate tax rates-the most 12 See for example Hanappi and Cabral (2020), which suggests the effects to be modest. 13 Real investment effects can mean, for instance, that the spillover effect of a tax increase elsewhere is adverse.…”

Section: Preliminariesmentioning

confidence: 99%

Pareto-improving minimum corporate taxation

Hebous

Keen

2023

Journal of Public Economics

View full text Add to dashboard Cite

Section: Preliminariesmentioning

confidence: 99%

Pareto-improving minimum corporate taxation

Hebous

Keen

2023

Journal of Public Economics

View full text Add to dashboard Cite

Public finance in the era of the COVID-19 crisis

Agrawal

Bütikofer

2022

Int Tax Public Finance

View full text Add to dashboard Cite

The COVID-19 crisis poses new policy challenges and has spurred new research agendas in public economics. In this article, we selectively reflect on how the field of public economics has been shaped by the COVID-19 pandemic and discuss several areas where more research is necessary. We highlight major changes and inequalities in the labor market and K-12 education, in addition to discussing how technological change creates new challenges for the taxation of income and consumption. We discuss various policy responses to these challenges and the role of fiscal federalism in the context of worldwide crises. Finally, we summarize the key issues discussed at the 2021 International Institute of Public Finance Congress and the papers published in this special issue.

show abstract

The Impact of the Global Minimum Tax Reform on China and Its Countermeasures

Liang

2024

Economics

View full text Add to dashboard Cite

Significant corporate tax reform was agreed upon by more than 140 nations in 2021, with implementation set for 2023 and beyond. Many people throughout the globe are discussing the possible effects of the Organization for Economic Cooperation and Development (OECD) planned adjustment to the global minimum tax (GMT) on their respective economies. The OECD has formulated a “two-pillar” scheme for international tax rules for 137 countries and regions within the overall framework. Pillar 2 is to set the tax rate at 15%, the world’s lowest corporate tax. The GMT is a reclassification of the taxing authority mechanism for the profits of multinational corporations, which has made significant adjustments to the global tax coordination and governance mechanism. People living in China and earning money from China must pay university fees, which are all of a nationality. Progressive rates ranging from 3 to 45% apply to the complete income. Therefore, taking the initiative in policy is crucial to address this challenge actively. This article makes an in-depth assessment and prediction of the impact of the GMT reform on China’s tax system and enterprises and proposes countermeasures. However, approximately 20% of the earnings can be exposed to the 15% tax rate that governments can apply. If the entire process is mixed in tandem, the tax rate equals 0.2%. Hence, an important amount of tax revenue can proceed down the drain. From the numerical outcomes, the minimum tax with jurisdictional blending was set at 12.5% under Pillar 2; the disparity between the sample’s top and lowest EATRs would decrease by 2.8% points.

show abstract

The impact of the international tax reforms under Pillar One and Pillar Two on MNE’s investment costs

Cited by 7 publications

References 30 publications

Pareto-improving minimum corporate taxation

Pareto-improving minimum corporate taxation

Public finance in the era of the COVID-19 crisis

The Impact of the Global Minimum Tax Reform on China and Its Countermeasures

Contact Info

Product

Resources

About