Assessing the global minimum corporate tax as an economic instrument against inequality

Pi Vicente, Natàlia; Rexach Ripoll, Jordi; Sánchez Muñoz, David; Torres Arias, Ingrid

Assessing the global minimum corporate tax as an economic instrument against inequality

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Pi Vicente, N, Rexach Ripoll, J, Sánchez Muñoz, D, Torres Arias, I. Assessing the global minimum corporate tax as an economic instrument against inequality. 2025. handle: https://hdl.handle.net/10230/72181

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Abstract

The present paper assesses the implementation of the 15% Global Minimum Tax (GMT) proposed by the OECD. Its Section 1 outlines the problem regarding profit shifting and the limitations that a globalised tax system faces in a globalised economy. Section 2 analyses the structure of the Spanish corporate tax and highlights that a significant gap has been found between nominal and effective tax rates. Section 3 studies the GMT with a broader look, examining the issue from a global perspective. In the 4th section of the paper, the main arguments in favour of the measure are presented, including an increase in the fairness of taxation, the reduction of fiscal asymmetries, the loss of appeal of tax havens and the protection of public revenues. In Section 5, a critical examination of the limitations of the policy is conducted showcasing some of its limitations, such as its limited scope, its low rate, the complexity of enforcing it and the possible negative impacts that the measure could entail for developing countries. Finally, Section 6 concludes that the analysed reform has been a meaningful step leading to a more equitable tax system, but its long term effectiveness depends on certain refinements and international cooperation.

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Treball de Fi de Grau en Economia. Curs 2024-2025
Treball de Fi de Grau en Administració i Direcció d'Empreses. Curs 2024-2025
Tutor: Walter García Fontes