Effective Minimum Tax Rate Implementation in the EU: Why and How

Описание: After years of negotiations, close to 140 countries could agree on the OECD’s blueprint for a global minimum effective tax rate in July 2021. This agreement could change global tax rules fundamentally. It would not only reduce the profit shifting by multinational enterprises but also curb excessive tax competition.

For EU member states, however, the challenge of implementation does not stop with the international agreement, but extends to the overall EU legal framework and policy initiatives for corporate taxation. Besides the unanimity requirement for tax policy decisions, there are several legal hurdles, most notably the ECJ jurisdiction on the freedom of establishment that could prevent the minimum tax from being implemented or render it meaningless.

A new study by Prof. Johannes Becker and Prof. Joachim Englisch (University of Münster) addresses these issues and shows why the EU should and how it could implement the OECD’s proposal. The study covers not only the history and functioning of the OECD´s Global Anti-Base Erosion Proposal (GloBE) and the economic rationales behind it, but also the legal requirements for effective EU implementation and how to deal with existing legislation like the Anti Tax Avoidance Directive.


Programme:

Presentation of the study
„Effective Minimum Tax Rate Implementation in the EU: Why and how”

Prof. Johannes Becker and Prof. Joachim Englisch (University of Münster)



Comment from perspective of the EU Parliament

Johan Langerock (Greens/EFA in the European Parliament)