A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax

This guide explains the OECD's Pillar Two GloBE rules, which aim for a 15% global minimum tax on large multinationals. It outlines how developing countries can respond via domestic minimum taxes or incentive reviews to prevent tax revenues from flowing to other jurisdictions. The document also analyzes legal risks associated with investment treaties and stabilization clauses.

• The GloBE initiative establishes a global minimum tax rate of 15% for large multinational enterprises (MNEs), generally those with consolidated revenues of EUR 750 million or more. It does not require countries to raise their general corporate tax rates, but instead allows other jurisdictions to impose a 'top-up tax' when an MNE's effective tax rate (ETR) in a specific country falls below 15%.

APA

Christians, A., Lassourd, T., Mataba, K., Ogbebor, E., Readhead, A., Shay, S., & Tinhaga, Z. P. (2023). A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-06/guide-developing-countries-adapt-global-minimum-tax-final_0.pdf

Chicago

Christians, Allison, Thomas Lassourd, Kudzai Mataba, Eniye Ogbebor, Alexandra Readhead, Stephen Shay, and Zach Pouga Tinhaga. A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-06/guide-developing-countries-adapt-global-minimum-tax-final_0.pdf.

Wikipedia

{{cite report |last1=Christians |first1=Allison |last2=Lassourd |first2=Thomas |last3=Mataba |first3=Kudzai |last4=Ogbebor |first4=Eniye |last5=Readhead |first5=Alexandra |last6=Shay |first6=Stephen |last7=Tinhaga |first7=Zach Pouga |title=A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax |publisher=International Institute for Sustainable Development |date=April 2023 |url=https://www.iisd.org/system/files/2023-06/guide-developing-countries-adapt-global-minimum-tax-final_0.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{christians2023guide, author = {Christians, Allison and Lassourd, Thomas and Mataba, Kudzai and Ogbebor, Eniye and Readhead, Alexandra and Shay, Stephen and Tinhaga, Zach Pouga}, title = {{A Guide for Developing Countries on How to Understand and Adapt to the Global Minimum Tax}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = apr, url = {https://www.iisd.org/system/files/2023-06/guide-developing-countries-adapt-global-minimum-tax-final_0.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }