Taxation of Multinational companies: Old rules, new challenges ? Impact assessment of the OECD-G20 program of work (04/03/2021)

Het eerste webinar van dit jaar zal op donderdag 4 maart van 14.00 uur tot 15.30 uur met als thema ” Taxation of Multinational companies: Old rules, new challenges ? Impact assessment of the OECD-G20 program of work“.


The basic rules of international taxation seems to be out of date. They rely on physical presence and multinational companies are taxed at the entity level, what requires complex rules for the valuation of transactions between affiliates (transfer pricing). Globalisation and digitalization raise fundamental questions and call for reforms. The low effective tax rates of the “GAFA” (Google, Amazon, Facebook and Apple) and other MNEs raise concern about the fairness of taxation and the possibility to achieve an efficient taxation in a globalized world with the current rules.

A first wave of reforms took place with the agreement on the BEPS project in 2015. However, the issue of the taxation of the digital economy remained pending. The OECD and the G20 engaged in a new program of work, working with more than 130 jurisdictions through the Inclusive Framework on BEPS. It relies on two pillars; Pillar One concerns the allocation of taxing rights, while Pillar Two aims to ensure a minimum level of taxation.

The OECD Secretariat has conducted an economic impact assessment. David Bradbury, Head of the Tax Policy Division at the Centre for Tax Policy and Administration (CTPA) and his colleagues will present the results, that will be discussed by Mathieu Parenti (Ecares, Université Libre de Bruxelles and CEPR).

Presentations and discussion will be in English


  • David Bradbury, Tibor Hanappi and Ana Cinta González Cabral, OECD, Centre for Tax Policy and Administration and Sébastien Turban, OECD, Economics Department
  • Mathieu Parenti, Ecares, Université libre de Bruxelles, and CEPR (Centre for Economic Policy Research)

Related publications

  • OECD (2020), Tax Challenges Arising from Digitalisation – Economic Impact Assessment: Inclusive Framework on BEPS, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris,
  • Hanappi, T. and A. González Cabral (2020), “The impact of the Pillar One and Pillar Two proposals on MNE’s investment costs: An analysis using forward-looking effective tax rates”, OECD Taxation Working Papers, No. 50, OECD Publishing, Paris,
  • Millot, V., et al. (2020), “Corporate taxation and investment of multinational firms: Evidence from firm-level data”, OECD Taxation Working Papers, No. 51, OECD Publishing, Paris,
  • Turban, S., et al. (2020), “A set of matrices to map the location of profit and economic activity of multinational enterprises”, OECD Taxation Working Papers, No. 52, OECD Publishing, Paris,
  • C. Fuest, M. Parenti, F Toubal Note du CAE n° 54 (2019) ( International Corporate Taxation: What Reforms ? What Impact ?
  • S. Laffite, J. Martin, M. Parenti, B. Souillard, F. Toubal (2020) “International corporate taxation after COVID-19: Minimum taxation as the new normal” Vox Eu
  • J Martin, M Parenti, F Toubal (2020) Corporate tax avoidance and industry concentration CEPR Discussion Paper No. DP15060