Global Minimum Tax & Tax Incentive Regimes – ATI Workshop series with OECD - 2nd Meeting
2nd meeting of the virtual two-part webinar series on Global Minimum Tax & Tax Incentive Regimes, organised jointly by the ATI and the Organisation for Economic Co-operation and Development’s (OECD).
Pillar 2 of the OECD’s global tax deal, effective January 2024, aims to curb tax competition by setting a 15% global minimum tax (GMT) on profits of large multinational corporations. This ensures that multinationals pay at least 15% effective tax rate (ETR) in each jurisdiction they operate. If a multinational's ETR is below this threshold, a top-up tax is applied to meet the minimum rate. Implementing a Qualified Domestic Minimum Top-Up Tax (QDMTT) allows jurisdictions to collect this tax domestically, which otherwise would have been collected by by other jurisdictions implementing the GMT. While some jurisdictions began implementing GMT in 2024, many low- and middle-income countries have requested support adopting these rules, especially regarding QDMTT and existing tax incentives.
ATI Commitment 3 states that ATI members commit to apply coherent and coordinated policies that foster DRM and combat tax-related illicit financial flows (IFFs). The commitment further states that members commit to enhance tax expenditure transparency and efficiency as well as taking actions to combat tax motivated IFFs by implementing multilateral initiatives and facilitating international cooperation.
Thus, this workshop series is directly linked to ATI Commitment 3 and the various activities relating to tax expenditures which were carried out by the ATI in recent years and aims to supporting ATI partner countries with the adoption of the global minimum tax.
The workshops will take place on 28 November and 5 December at 1pm CET. The events aim to achieve the following objectives:
Part I (November 28):
- Outlining how to understand the economic impact of GMT and how to assess tax incentives that might lead to top-up taxation under the rules of the agreement.
- Discussing how to carry out quantitative assessments of revenue gains from GMT using taxpayer data.
Part II (December 5)
- Conducting in-depth technical discussion on quantitative estimates of QDMTT.
- Providing countries with a methodology to carry out QDMTT revenue estimates, using hands-on sample exercises.
Kindly note that this event is restricted to ATI members. For questions around the programme and participation, kindly reach out to markus.paffhausen@taxcompact.net.