2023

Allaying the United States’ pillar 2 concerns is a political necessity for the EU that will require legal creativity to avoid delays and renewed tensions with the Trump administration, according to observers.

Ted Peterson examines past and present U.S. tariffs as well as the economic risks and rewards of a tariff-driven system, noting important distinctions between tariffs used strategically to support industrial development and those used solely as a revenue-generating or punitive measure.

The U.N. has released two workstreams that focus on addressing issues related to its framework convention on international tax cooperation and dispute prevention and resolution.

A U.N. panel of national tax administrators has advanced plans to tee up guidance and further studies on a wide array of key tax issues, including the use of artificial intelligence in tax administration.

The U.N. published a concept note regarding the second early protocol to the framework convention on international tax cooperation, which focuses on tax dispute prevention and resolution, explaining that key topics of the protocol design include giving jurisdictions the option to adopt the mechanism or not; a focus on exclusively cross-border tax disputes; allowing application to a wide range of disputes; establishing a legal basis for cross-border administrative cooperation; and making mutual agreement procedures more accessible.

Lee A. Sheppard examines the seemingly doomed fate of the OECD’s BEPS 2.0 project.

An Indonesian Ministry of Finance tax official told a panel he believes “the future of international tax is actually still in pillar 1 because we are now moving to a digital economy” globally.

The French National Assembly’s Finance Committee has approved a proposal to sharply increase the rate and narrow the scope of the country’s controversial digital services tax as part of the 2026 finance bill.

The G7 proposal’s special carveout for the United States from the OECD’s global anti-base-erosion rules threatens to undermine international tax coordination, according to the Italian Parliamentary Budget Office.

The OECD’s framework for overhauling the way multinationals are taxed is “dead,” the chair of Ireland’s state-sponsored foreign-direct investment body said.

Nana Ama Sarfo outlines a discussion at the recent IFA Congress in Lisbon about the need for standardization in determining the place of effective management in this era of cross-border remote work.

Much uncertainty remains in worldwide tax with less than a year to go before the first pillar 2 global anti-base-erosion information returns must be filed, a panel said.

Countries are still divided on a number of issues as they renegotiate the global minimum tax agreement, according to Tim Power, chair of the Committee on Fiscal Affairs at the OECD.

EU countries will be able to selectively apply changes to the minimum tax law before revising their domestic law, according to a senior European Commission official.

The European Commission's 2026 work program announced the withdrawal of several tax proposals, including those that would have addressed the debt-equity bias, negotiated a financial transaction tax, and harmonized transfer pricing rules.

Advocacy group BusinessEurope called on the European Commission to show “ambitious leadership” to secure global consensus on pillar 2, extend its safe harbors, and “bring genuine” simplification and investment-friendly tax rules.

The United Nations approved a plan to develop guidance making it easier for developing countries to tax companies without a physical presence within their borders.

The EU should revisit its minimum tax law “to ensure it remains a reasonable and proportionate way forward” for European businesses, said BusinessEurope, a trade association representing Europe’s industry.

Kimberly S. Blanchard responds to a recent letter by Patrick Driessen to clarify her perspective on U.S. foreign tax credits and their relationship to international tax policy.

Mindy Herzfeld considers the One Big Beautiful Bill Act’s changes to key international tax provisions in the Tax Cuts and Jobs Act, highlights areas where pre-TCJA rules no longer make sense, and proposes changes to reduce the rules’ complexity and lower compliance costs to U.S. taxpayers.

Reuven S. Avi-Yonah examines the United States’ reticence to embrace the VAT and argues that its regressivity can be negated.

Mindy Herzfeld considers the One Big Beautiful Bill Act’s changes to key international tax provisions in the Tax Cuts and Jobs Act, highlights areas where pre-TCJA rules no longer make sense, and proposes changes to reduce the rules’ complexity and lower compliance costs to U.S. taxpayers.

G20 members have pledged to advance multilateral talks on an approach to address outstanding concerns about the OECD global minimum tax framework but said its delivery will need to meet certain requirements.

While the EU still generally favors a global agreement on digital taxation, Italian and Spanish officials appeared open to the suggestion of a permanent digital establishment at a recent interparliamentary meeting of the European Parliament.

The OECD base erosion and profit-shifting project has reduced tax avoidance over the past 10 years, but countries will further its progress by simplifying compliance burdens and supporting global minimum taxation, the organization said.

Robert Goulder comments on the Trump administration’s shifting legal basis for tariff authorization.

The United Nations committee for helping developing nations boost tax revenue will decide next week whether wealth taxes, critical minerals, or transfer pricing will figure among the priorities in its new four-year term.

The Group of 20 nations agreed to continue working towards an agreement on the global minimum tax.

Reuven S. Avi-Yonah explores the status of transfer pricing and suggests the United States move to a single-factor formula, with sales of a multinational enterprise into the United States taxed by the United States.

Hafiz Choudhury and Peter Hann examine the legislative history of the U.N. framework convention on international tax cooperation and identify potential obstacles to its implementation.

OECD Secretary-General Mathias Cormann has submitted a report to G20 finance ministers and central bank governors on tax developments in the implementation of pillar 2; tax knowledge inequality and growth; reforms to support global mobility; approaches to environmental taxation; support for developing countries; and transparency.

EU officials affirmed the OECD’s framework to reallocate corporate profits as the best chance of enforcing an effective tax on digital services.

The US budget deficit declined slightly for the 2025 fiscal year as tariff revenue hit a record high, though the pace of borrowing remains historically elevated at a time of economic expansion and financial stability.

Countries in the EU and beyond are continuing to implement pillar 2 global minimum tax rules through guidance and draft reforms and regulations, with one jurisdiction proposing to introduce the rules for the first time.

The OECD aims to reach an agreement to re-write major parts of the global minimum tax by the end of the year, its Secretary-General told the G20 Finance Ministers and Central Bank Governors in a report.

Poland intends to finalize plans for a digital services tax by the end of the year, according to Deputy Prime Minister Krzysztof Gawkowski.

Isabella Barreto compares digital services taxes with traditional sin taxes, arguing that DSTs' association with market dominance, externalities, and social harm contains a strong similarity with the logic and moral undertones of sin taxes.

Patrick Driessen responds to the idea that the OECD’s pillar 2 tax test can be fulfilled if income sourced in a particular nation is taxed “somewhere” at 15 percent.

The world’s shipping regulator is on the verge of green-lighting a global charge on the industry’s emissions, something that has prompted the Trump administration to threaten tariffs in response.

Nana Ama Sarfo discusses the historical context for a proposal floated at the U.N. for a public transfer pricing comparables database.

Carrie Brandon Elliot reviews the link between tariffs and transfer prices in section 1059A and accompanying regs.

Reuven S. Avi-Yonah examines the arguments for and against the U.S. government’s revenue collection deal with Nvidia and AMD and its investment in Intel.

Treasury and the IRS have a large assortment of guidance teed up this year to implement the One Big Beautiful Bill Act’s international tax provisions, tax practitioners told Tax Notes.

Tim Messner examines the German royalty barrier rule’s problems and its likelihood of being replaced.

As governments deploy tariffs to advance their positions in ongoing trade disputes, multinational entities are confronting a new layer of tax complexity. The United States’ 2025 reciprocal tariff regime has forced companies to revisit not just supply chains but also how they set transfer prices across borders. This article examines the collision of tariffs and transfer pricing, modeling real-world scenarios and exploring strategies to mitigate risks while staying tax compliant.

The European Commission is seeking authorization from EU member states to negotiate the U.N.'s second protocol on tax dispute resolution on behalf of the bloc, arguing that the talks include matters within the EU’s competence.

Patrick Driessen argues that U.S. tax changes coupled with accommodations by the OECD in pillar 2 will lead to very low global corporate income tax collections and that U.S. and global interests would be better served by a strong pillar 2 that treats the United States like any other nation.

 For the New York University School of Law's 27th annual David R. Tillinghast Lecture on International Taxation, Ruth Mason examines the European Union’s state aid law and enforcement through a review of the Apple and other major state aid cases pursued by the European Commission.

Lee A. Sheppard examines the changes the One Big Beautiful Bill Act made to global intangible low-taxed income and foreign-derived intangible income rules and how those changes interact with the OECD’s BEPS 2.0 project.