Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301273 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11147
Publisher: 
CESifo GmbH, Munich
Abstract: 
The international agreement on a corporate minimum tax is a milestone in global corporate tax arrangements. The minimum tax disturbs the equivalence between otherwise equivalent forms of efficient economic rent taxation: cash-flow tax and allowance for corporate equity. The marginal effective tax rate initially declines as the statutory tax rate rises, reaching zero where the minimum tax is inapplicable, and increases thereafter. This kink occurs at a lower statutory rate under cash-flow taxation. We relax the assumption of full loss offset; provide a routine for computing effective rates under different designs; and discuss policy implications of the minimum tax.
Subjects: 
investment
minimum taxation
corporate tax reform
international taxation
rent tax
JEL: 
H21
H25
F23
Document Type: 
Working Paper
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