Global Minimum Levy Won’t Stop EU Tax Competition, Report Says

Introduction of the 15% global minimum tax will lead jurisdictions to seek new ways of offering tax breaks to attract companies, according to a report on launch of the tax in the European Union.

Jurisdictions would “still compete on corporation tax rates” by retaining low or zero statutory rates and collecting the top-up tax only for multinationals covered by the minimum tax, which applies to companies with global revenues above 750 million euros, the report by two think tanks said.

Governments may also shift tax breaks to other forms of taxation, such as energy taxes, and will ...