The Pillar 2 initiative (GloBE and QDMTT) has been seen as the end of using low effective corporate income tax rates (either by virtue of low nominal corporate income tax rates and/or through the use of tax incentives) as a means to attract foreign investors. Sacrifices made by the host country in terms of lower…
Introduction Throughout my professional life, I have worked with international tax law. Consequently, I have witnessed various trends and tendencies for more than a quarter of a century. The period during which I’ve been involved in tax law in my view represents a golden age for the discipline. Significant developments have occurred. During my student…
Issues involving controversy surrounding the operation of the newly devised Pillar Two rules in company taxation seem to have moved strikingly up business agendas and political agendas recently. On an informal meeting of tax practitioners from business and consultancy in Amsterdam, the Netherlands, on 30 May 2023, the author of the current blog was invited…
Maarten de Wilde[1] Summary On 19 February 2024 the Inclusive Framework on BEPS published its report on Amount B of Pillar One. The report adds to the discourse a standardised return-on-sales-oriented comparability analysis for the transfer pricing of low-risk distributors. The thing is called Simplified and Streamlined Approach (S&S Approach). Reading the report as it…
Introduction In Fall 2021, almost 140 members of the Organisation for Economic Cooperation and Development (OECD) / Group of Twenty (G20) Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS) — a framework for tackling tax planning strategies — agreed on a two-pillar solution, Pillar One and Pillar Two, to address the challenges arising…
Welcome to the latest tax podcast in the International Law Talk series. During a series of podcasts, Wolters Kluwer will bring you the latest news and industry insights from thought leaders and experts in the field of International Arbitration, IP Law, International Tax Law and Competition Law. Here at Kluwer International Tax Blog, we will…
The GloBE Model Rules have introduced the Qualified Domestic Minimum Top-Up Tax (QDMTT) into the ruleset of the international compromise on an effective minimum tax (“Pillar 2”). A QDMTT is defined as a domestic minimum tax that applies to local constituent entities of in-scope MNEs and produces outcomes that are consistent with the GloBE rules….
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Tsilly Dagan, GLoBE: The Potential Costs of Cooperation This article argues that the fact that the 2021 global tax deal (focusing on Pillar 2) is cooperative is not in itself proof of the deal…
Summary Vietnam reportedly considers granting subsidies to large multinationals with direct investments in the country, to compensate them for the higher taxes they may have to face there following the country’s introduction of Pillar Two domestic minimum top-up taxation rules per 2024. The OECD warned Vietnamese government officials that if subsidies to multinationals were found…
“[I]n this world, with great power comes great responsibility!” – Uncle Ben advice to the young Peter Parker, the 1962 Amazing Fantasy #15, by Stan Lee 1 Introduction Explainable artificial intelligence (XAI) systems in tax law are needed to comply with principles of law such as legality, proportionality and non-discrimination. A sufficient degree of explainability…
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Reuven Avi-Yonah, Do Intangibles Fit BEFIT? This article argues that the BEFIT formula should not include intangibles because they are subject to manipulation and their value is reflected by other factors in the existing…
Mees Vergouwen[1] On 21 June 2023, the Netherlands and Belgium signed a new tax treaty.[2] Part of (the protocol to) this tax treaty is a subordination clause[3] that provides that “nothing in this treaty shall prevent the application (…) of Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of…
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Jeroen Lammers & Błażej Kuźniacki, The EU Solidarity Contribution and a More Proportional Alternative: A Study Under EU and International Investment Law This paper reviews the EU Solidarity Contribution that was recently introduced by…
We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Stefan Greil, Michael Overesch, Anna Rohlfing-Bastian, Ulrich Schreiber & Caren Sureth-Sloane, Towards an Amended Arm’s Length Principle: Tackling Complexity and Implementing Destination Rules in Transfer Pricing The arm’s length principle (ALP) is the…
