Titus, Afton
Pillar two and African countries what should their response be? / Afton Titus
Resumen.
Apéndice.
As the OECD’s efforts to implement Pillar Two become more concrete, it becomes more important to understand the implications of this instrument for African developing countries. This article considers the possible responses available to a grouping of African countries in a bid to ensure that their corporate income tax policies are not undermined. In doing so, this article analyses the feasibility of these countries imposing a domestic minimum tax, adapting their tax incentives to non-tax incentives and whether African countries should support the proposal for a United Nations international tax forum. The author argues that it may be feasible for African countries to introduce a targeted domestic minimum tax that would apply to in-scope multinational enterprises (MNEs). Moreover, it may be possible for African countries to adapt their tax incentives to non-tax subsidies although this would involve some costs. According to the author, the Pillar Two has far-reaching implications for developing countries and it is important that African countries consider adopting regional responses to it.
SEGUNDO PILAR (OCDE)
EMPRESAS MULTINACIONALES
IMPUESTOS
TIPO MÍNIMO GLOBAL
RECAUDACION
APLICACION
ÁFRICA
Intertax 0165-2826 v. 50, n. 10, October 2022, p. 711-720
Pillar two and African countries what should their response be? / Afton Titus
Resumen.
Apéndice.
As the OECD’s efforts to implement Pillar Two become more concrete, it becomes more important to understand the implications of this instrument for African developing countries. This article considers the possible responses available to a grouping of African countries in a bid to ensure that their corporate income tax policies are not undermined. In doing so, this article analyses the feasibility of these countries imposing a domestic minimum tax, adapting their tax incentives to non-tax incentives and whether African countries should support the proposal for a United Nations international tax forum. The author argues that it may be feasible for African countries to introduce a targeted domestic minimum tax that would apply to in-scope multinational enterprises (MNEs). Moreover, it may be possible for African countries to adapt their tax incentives to non-tax subsidies although this would involve some costs. According to the author, the Pillar Two has far-reaching implications for developing countries and it is important that African countries consider adopting regional responses to it.
SEGUNDO PILAR (OCDE)
EMPRESAS MULTINACIONALES
IMPUESTOS
TIPO MÍNIMO GLOBAL
RECAUDACION
APLICACION
ÁFRICA
Intertax 0165-2826 v. 50, n. 10, October 2022, p. 711-720