The Resource The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates

The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates

Label
The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates
Title
The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates
Creator
Subject
Language
eng
Summary
This working paper presents the analytical framework used by the Secretariat to estimate the direct effects of the Pillar One and Pillar Two proposals on MNE's investment costs. The analysis builds on the standard effective tax rate (ETR) framework and extends it in two important respects. First, ETRs are calculated for an investment performed by an entity belonging to an MNE group and account for the possibility that MNEs use their organisational structure to shift profits to low tax jurisdictions. Second, the model incorporates a stylised version of the tax provisions introduced under Pillar One and Pillar Two. The results, covering over 70 jurisdictions, account for differences in tax bases and rates, and are empirically calibrated to map MNE activities, i.e., the location of their profits, turnover and assets as well as the impact of the proposals. Overall, the results suggest that the Pillar One and Pillar Two proposals would lead to modest increases on global weighted ETRs. This paper feeds into the broader analysis of the investment impacts of the Pillar One and Pillar Two proposals
http://library.link/vocab/creatorName
  • Hanappi, T
  • González Cabral, A.C
Geographic coverage
  • European Union
  • International
Index
no index present
Language note
English
Literary form
non fiction
Series statement
OECD Taxation Working Papers
Series volume
no. 50
http://library.link/vocab/subjectName
  • Pillar 1 (OECD)
  • Pillar 2 (OECD)
  • MNE
  • profit shifting
  • investment
  • expenses
  • effective tax rate
Label
The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates
Instantiates
Publication
Extent
42 p.
Label
The impact of the Pillar One and Pillar Two proposals on MNE's investment costs : an analysis using forward-looking effective tax rates
Publication
Extent
42 p.

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