Significant costs, limited benefits: A global minimum tax in Germany
In order to curb tax-motivated profit shifting and limit international tax competition, 137 signatory coun- tries to the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) agreed in 2021 to introduce a global minimum tax on multinational corporations. At first glance, the introduction of the minimum tax would effectively limit international tax competition to a rate of 15%. However, this would require the global implementation of the scheme, as well as the harmonization of tax-base calculation methods. Ful- filment of these conditions is unrealistic, however, due to non-cooperative countries as well as current political tensions. In addition, high administrative and compliance costs would result. Our estimates show that the additional tax declaration costs for affected German corporations would amount to around 319 million euros for implementation and to around 100 million euros annually for ongoing compliance. In September 2022, the German government announced that, if necessary, Germany will unilaterally intro- duce the global minimum tax scheme. This is not advisable, however, since a unilateral move would not reduce tax-motivated profit shifting or international tax competition. At the same time, it would lead to high one-sided costs and a reduction in Germany's attractiveness as a location for business and invest- ment, while also generating little in the way of new revenues.
Year of publication: |
2022
|
---|---|
Authors: | Gaul, Johannes ; Klein, Daniel ; Müller, Jessica M. ; Pfrang, Alina ; Schulz, Inga ; Spengel, Christoph ; Weck, Stefan ; Wickel, Sophia ; Winter, Sarah |
Publisher: |
Mannheim : ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung |
Saved in:
freely available
Series: | ZEW policy brief ; 7/2022e |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Research Report |
Language: | English |
Other identifiers: | 1826431829 [GVK] hdl:10419/266558 [Handle] RePEc:zbw:zewpbs:72022e [RePEc] |
Source: |
Persistent link: https://www.econbiz.de/10013462167
Saved in favorites
Similar items by person
-
Die Kosten der globalen Mindeststeuer in Deutschland
Gaul, Johannes, (2022)
-
Die globale Mindeststeuer : Kosten und Nutzen aus deutscher Sicht
Spengel, Christoph, (2023)
-
Significant costs, limited benefits : a global minimum tax in Germany
Gaul, Johannes, (2022)
- More ...