A European Formula For Global Tax Reform
31 October 2021
Global tax reform is a politically fraught process, not only in the EU but also globally. The current corporate tax system, which assumes that each entity within a multinational group is a separate firm, creates significant imbalances among EU member states as well as among developing countries.
Political momentum has built up to replace the current regime with a system known as formula apportionment, which treats the profits of multinationals in a unified way and then allocates those profits to jurisdictions on the basis of a formula.
On top of this, the introduction of a global minimum tax rate to curb the so-called race to the bottom is also under discussion.
This Policy Study by Robert Sweeney, published in partnership with the Friedrich Ebert Stiftung and TASC, examines the opportunity for the reform of international corporate taxation by implementing a formula apportionment approach to taxing rights.
Watch the first video of this series on #TaxJustice with MEP Aurore Lalucq (S&D Group) and David Rinaldi (FEPS). This is a joint project by the Foundation for European Progressive Studies, the Friedrich-Ebert-Stiftung and TASC.
Watch the SECOND video of this series on #TaxJustice with MEP Paul TANG (S&D Group) and Petra VÖLKERER (Head of office, AK Brussels). This is a joint project by the Foundation for European Progressive Studies, the Friedrich-Ebert-Stiftung and TASC.