| The Global Anti-Base Erosion Proposal(The GloBE proposal)is one of the solutions proposed by the BEPS Inclusive Framework(IF)to address the tax challenges arising from the digitalisation of the economy,with the goal of addressing cross-border tax avoidance through a package of rules,so as to ensure that no matter where multinational enterprises obtain income from,they are required to pay tax at a rate no less than the global minimum effective tax rate set in the GloBE proposal.The GloBE proposal has drawn a blueprint for effectively stopping harmful tax competition and thoroughly addressing the remaining BEPS issues.However,the specific rules of the GloBE proposal are difficult to support the implementation of the policy objectives of the GloBE proposal.The GloBE proposal with complex and influential rules has risks of excessive restriction of national tax sovereignty and the risk of double taxation.In this regard,stakeholders call for a clear scope of application of the GloBE proposal,which leads to a discussion on the application limitation of the GloBE proposal in the international community:Most commentators proposed to introduce a series of exclusion rules including carve outs and application threshold to limit the scope of application of the GloBE proposal from the perspective of protecting national tax sovereignty and abiding by the principle of tax fairness;A small number of commentators opposed to limiting the scope of application of GloBE proposal from the perspective of eliminating harmful tax competition and following the principle of tax neutrality.So far,the proposal of GloBE has not reached a consensus among more than 130 members under IF.OECD has repeatedly stressed the hope of reaching a consensus in mid2021.However,in the current situation of the CO VID-19,which has brought the global economy under enormous downward pressure,the final implementation of the GloBE proposal still needs to be examined.There is still uncertainty in the scope of application of the GloBE proposal.Based on the public consultation document released by OECD,this paper explores the comments of different stakeholders on the scope of application of the GloBE proposal,and grasps the development trend of the GloBE proposal,which will help to find out the impact and challenges of the GloBE proposal on China’s domestic tax system and Chinese enterprises,and lay a theoretical foundation for China’s position selection of global program.Based on China’s actual situation of protecting the development of digital economy and paying attention to the benefits of tax incentives,on the one hand,China should oppose the global application of the GloBE proposal to protect the tax autonomy of developing countries;on the other hand,China should actively participate in the construction of international tax rules to provide Chinese ideas for the application of the proposal of the GloBE proposal.Therefore,starting from the discussion of the restrictions on the application of the GloBE proposal,it is not only conducive to exporting China’s opposition to the GloBE proposal,but also to thinking about the corresponding domestic rules from participating in the construction of international rules,So as to constantly improve the rules of controlled foreign companies,preferential tax regimes and other domestic rules in response to the global proposal. |
