Inclusive Framework Agreement on the Global Minimum Tax: Recommendations to address stabilized fiscal conditions
A global minimum corporate tax will require many states to review their policies that may include tax incentives that are locked in by fiscal stabilization clauses.
Organisation for Economic Co-operation and Development/G20 Inclusive Framework members that agree to adopt the global minimum corporate tax will be required to implement and administer the rules in a way that is consistent with model legislation and a commentary approved by the Inclusive Framework.
This note provides recommendations on how the OECD could design the model legislation and commentary to effectively address the issue of stabilized tax incentives. It builds on IISD’s recent guidance to developing country governments on how to amend their tax incentives regimes to benefit from the minimum tax, as well as contributions from the Intergovernmental Forum on Mining, Minerals, Metals, and Sustainable Development on specific implementation issues of the global minimum tax in the mining sector.
You might also be interested in
What Drives Investment Policy-makers in Developing Countries to Use Tax Incentives?
The article explores the reasons behind the use of tax incentives in developing countries to attract investment, examining the pressures, challenges, and alternative strategies that exist.
Responsible Agricultural Practices of a Cocoa Buying Company in Ghana
This case study analyzes the extent to which a small cocoa trader in Ghana complies with international standards for responsible investment in agriculture.
LIMBUA Group Limited
This case study analyzes the extent to which a small agribusiness in Kenya complies with international standards for responsible investment in agriculture.
Mahembe Coffee
This case study analyzes the extent to which a small agribusiness in Rwanda complies with international standards for responsible investment in agriculture.