Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330317 
Year of Publication: 
2025
Series/Report no.: 
ZEW Discussion Papers No. 25-053
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
This study examines the compliance costs of OECD Pillar Two, i.e., the "Global Minimum Tax," for multinational enterprises headquartered in the European Union. Collecting data from chief financial officers and heads of finance or tax departments, we estimate compliance cost determinants and subsequently predict the overall compliance burden. Results indicate total one-off costs of about EUR 1.2 billion (up to EUR 2.0 billion) and total recurring costs of EUR 517 million EUR p.a. (up to EUR 865 million EUR p.a.). Our findings inform the public discourse by mitigating information asymmetries between policymakers and corporations. Moreover, we contribute by establishing a cost benchmark to facilitate a systematic cost-benefit evaluation of this policy.
Subjects: 
Global Minimum Tax
Corporate Taxation
Tax Compliance Costs
Tax Complexity
Council Directive (EU) 2022/2523
JEL: 
H25
H32
H87
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.