Impact of the New International Tax Principles on International Investment Agreements (IIA) and Geographical Strategies of Multinational Companies
New Tax Rules for The New Economic Scenario
Keywords:
International Taxation, OECD, BEPS, Pillar 1, Pillar 2, Source jurisdiction, GloBE, IIA, UN Model, UN, Multilateral Convention Framework, International CooperationAbstract
The international taxation based on physical presence is obsolete. Since 2015, the OECD and the G20 have worked toward fairer tax rules. Countries have adopted Pillars 1 and 2 of the Inclusive Framework, aiming to tax companies at the source and establish a global minimum tax rate of 15%. While Pillar 1 remains on hold, Pillar 2 is already in effect in several countries. Significant advances have also been made in tax transparency and information exchange (mainly by the Global Forum), aiming to reduce illicit financial flows and gradually eliminate tax havens. The UN resolution of November 22, 2023, establishes an Ad Hoc Committee to develop the Draft Terms of Reference for a Multilateral Framework Convention (UN General Assembly A/AC.295/2024/L.4, 2024), thereby encouraging more inclusive and effective international cooperation on tax matters. This new scenario influences investment agreement negotiations and the geographic structure of transnational companies.
Author Biography
Eva María Márquez Campón, University of Seville
Professor in the Department of Financial and Tax Law at the Faculty of Law, University of Seville. Her research focuses on recent developments in international tax cooperation, an area in which the United Nations has asserted its undeniable leadership. Therefore, since 2021, she has been attending the sessions of the United Nations Committee of Experts on International Tax Matters (UNTAXCO) as an academic observer and has participated in extraordinary sessions of the ECOSOC from 2022. She has also represented the University of Seville in the two substantive sessions of the Ad Hoc Intergovernmental Committee (AHC), held in March-April and July-August 2024, tasked with drafting the Terms of Reference for the Framework Convention on International Cooperation in Tax Matters. Among her recent works are topics such as remote workers, the teaching of Tax Law and fiscal awareness, the use of AI in legal education, international tax cooperation and climate change, and international tax cooperation and illicit financial flows.
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