Taxing Multinational Enterprises: A Theory-Based Approach to Reform

Wolfram Richter

No 10119, CESifo Working Paper Series from CESifo

Abstract: Almost 140 countries have agreed to reallocate the rights to tax international corporate profits and to introduce minimum tax rates. The agreed plan is the product of pragmatism and a search for consensus, but ambitious. It includes steps towards unitary taxation to be established by a multilateral convention that the world has not yet seen in comparable format. This paper argues for a reform that retains separate entity accounting and addresses the flaws in the current system of corporate taxation at their root rather than merely fixing symptoms. To this end, a reform aimed specifically at the rules governing the taxation of intangible assets is recommended.

Keywords: OECD/G20 BEPS Project; formula apportionment; separate entity accounting; Shapley assignment of taxing rights; residual profit allocation/splitting (search for similar items in EconPapers)
JEL-codes: F23 H25 M48 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-acc, nep-pbe, nep-pke and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10119

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