The Global Minimum Corporate Tax Rate: Framework, Implications and Policy Recommendations
DOI:
https://doi.org/10.54097/pbzd5p24Keywords:
Global Minimum Tax, OECD/G20, Pillar One, Pillar Two, Tax Competition, International Tax Governance, Fiscal Policy.Abstract
The global minimum corporate tax marks a milestone in international tax reform under the Organization for Economic Co-operation and Development (OECD) / Group of Twenty (G20) Inclusive Framework. Pillar One reallocates profits to market jurisdictions, while Pillar Two introduces a 15% minimum effective tax rate for large multinational enterprises (MNEs). This paper compares the OECD framework with the United States (U.S.) Tax Cuts and Jobs Act (TCJA) and the Corporate Alternative Minimum Tax (CAMT), analyzing their impacts on capital neutrality and global tax coordination. Results show that the multilateral approach curbs harmful tax competition but raises compliance costs. For China, proactive participation in global rule-making and strengthening innovation-based competitiveness are key to safeguarding fiscal sovereignty and promoting fair global tax governance.
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