PhD student: Dr D. Bettens

Promotor: L. De Broe

Duration: 1/10/2020 - 24/9/2031

PhD defence: Leuven, 6/12/2024

Abstract:

The 21st century is characterised by far-reaching globalisation and digitalisation. As a result, the current tax system, which was developed in the 20th century at a time when physical presence was vital, is no longer able to achieve its current goals. This leads to various companies locating their business in countries with a low tax burden and therefore paying very little tax, putting pressure on some of the basic principles of the tax system. That is why solutions are being sought at various levels, including the introduction of a minimum tax. The United States already introduced such a concept into its tax system in 2017. In the meantime, the OECD has also proposed a minimum tax, while voices are also being raised in the EU to launch such a concept. However, while a minimum tax receives much attention at the policy level, a general approach to minimum taxes is lacking in the literature. This dissertation wants to remedy this shortcoming and offer such a general approach. It consists out of two main parts. The first part tries to explore which objectives a minimum tax should pursue and tries to situate this in the broader policy context within the OECD and the EU. The second part then seeks to examine the extent to which current minimum tax concepts are able to achieve these objectives. This effectiveness criterion is complemented by other criteria. Based on this, the study will recommend the minimum tax concept it considers the best, possibly after introducing adjustments.