The Economic and Legal Implications of the Global Minimum Tax: Balancing Tax Sovereignty and Economic Efficiency | ||
| مجلة البحوث القانونية والاقتصادية | ||
| Volume 37, Issue 1, March 2025, Pages 1-206 PDF (1.18 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/lsej.2025.439066.1368 | ||
| Author | ||
| عيد عشري جابر علي* | ||
| كلية الحقوق جامعة حلوان | ||
| Abstract | ||
| Abstract The OECD’s Global Minimum Tax (GMT), introduced under Pillar Two of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS), represents a major advancement in global tax governance. By establishing a universal minimum corporate tax rate for large multinational enterprises (MNEs), the initiative seeks to curb profit shifting, combat tax base erosion, and promote fairer global competition. However, its implementation introduces significant economic, legal, and regulatory challenges. Chief among these are tensions between global tax harmonization and national fiscal sovereignty, increased compliance burdens, potential conflicts with international investment agreements, and the risk of disproportionately disadvantaging developing economies that rely on preferential tax regimes to attract investment. This study critically examines these implications by exploring the extent to which legislative reforms are required to reconcile global tax obligations with domestic autonomy, The findings highlight the need for standardized legal frameworks, enhanced mechanisms for data exchange and enforcement, and targeted provisions to safeguard the interests of developing countries. The paper further recommends allocating a greater share of tax revenues to source jurisdictions—where production, labour, and consumption occur—to ensure a more equitable distribution of fiscal benefits. Additionally, developing nations should diversify their investment strategies by focusing on non-tax competitiveness factors such as infrastructure, governance, and ease of doing business. In Egypt’s case, the timely adoption of a Qualified Domestic Minimum Top-Up Tax (QDMTT) is advised to preserve domestic taxing rights and strengthen fiscal sovereignty within the evolving global tax landscape. | ||
| Keywords | ||
| Global Minimum Tax; Economic Implications; Egypt; Legal Impacts | ||
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