Global Minimum Tax: Global Response to the Issue of Double Non-Taxation?

Abstract

Globalization and digitalization have profoundly changed and shaped the international tax law and the rapid changes of the last decades have often jeopardized its effectiveness and competitiveness. Double non-taxation has become an increasingly topical issue since the beginning of the 21st century: large multinational enterprises have exploited loopholes in the corporate tax regimes in order to lower their tax burden, while undermining fair competition between countries. Over the years, international organizations updated the models and conventions in order to adjust the international tax regime to this new scenario. To date, more than 140 countries, as part of the OECD/G20 Inclusive Framework on BEPS Project, agreed on adopting the Global Anti-Base Erosion Rules (GloBE), which consist of a two-Pillar scheme aimed at ensuring that multinational enterprises are subject to a minimum tax rate in each country they operate in. This work aims at outlining a broad picture on the topic of corporate taxation, with the view to understand if the new “Global Minimum Tax” may also represent a solution to the old issue of double non-taxation and to the harmful tax competition between jurisdictions.