Global Minimum Tax
About this learning event
This workshop will address the global minimum tax, an agreement that more than 130 countries committed to implement in October 2021. The global minimum tax is intended to prevent companies from shifting profits to countries with lower tax rates by establishing a minimum corporate tax rate of 15% globally. The tax is designed as a two-pillar system. Pillar one involves profit allocation rules for large, profitable multinational companies and aims to redistribute excess profits to jurisdictions where consumers or users are located, regardless of the physical presence of the firms in those jurisdictions. This is very important for companies operating in the digital sector. On the other hand, pillar two requires that if a multinational company is paying a corporate tax below 15% because the country where it is located has a lower corporate tax rate, the company must pay a top-up tax to increase the rate to 15%. The implementation timeline for pillar one is set for mid-2023, and for pillar two, in 2024 at the earliest. Almost all economies in Southeast Europe currently have corporate tax rates below 15%, so the global minimum tax will have significant implications.
The workshop's primary goal is to enhance awareness of the global minimum tax's importance, clarify key issues regarding its implementation, and discuss its potential impact on Southeast European economies. Participants will with the help of faculty try to identify where their countries are in the process of implementing global minimum tax and what is needed in specific phases. In this respect, the following topics will be covered:
- Macroeconomic status of countries in Southeast Europe,
- Re-allocation of taxing rights,
- Global Anti-Base Erosion (GloBE) rules
- Subject to Tax Rule (STTR)
To maximize the learning results, participants will be asked to submit a short questionnaire before the workshop. They will be also involved in participatory learning methods during the activity.
Who should attend
We target high-level policymakers from ministries of finance, tax administrations, governments, and other public institutions involved with the global minimum tax. Applicants should have a basic understanding of the global minimum tax, although detailed knowledge of all aspects is not necessary. They should hold positions of influence within their institutions so that they can make an impact after attending the event. Suitable participants might include heads of tax departments, state secretaries, and advisors to ministers on tax matters, among others.
- Jasna Voje, The Organisation for Economic Co-operation and Development (OECD)
- Sara Shearmur, The Organisation for Economic Co-operation and Development (OECD)
- Branimir Jovanović, Economist, The Vienna Institute for International Economic Studies
- Mohamed Maâtoug, Ministry of Finance, the Netherlands
Travel and accommodation costs for up to two selected participants from Albania, Armenia, Bosnia and Herzegovina (up to three), Bulgaria, Croatia, Kosovo, Georgia, Moldova, Mongolia, Montenegro, North Macedonia, Romania, Serbia, Türkiye, and Ukraine will be covered by the Ministry of Finance of the Netherlands and the Ministry of Finance of the Slovak Republic. No fee will be charged for the officials working in the public sector. Coffee breaks and lunch during the workshop will be provided.
This learning initiative is supported by: