The Transposition of the OECD-Proposed Tax Reform at the European Union level

In the context of increasing economic interdependence, tax reform has become critical on the international agenda due to widespread tax avoidance by multinational companies and digital giants. The OECD has proposed tax reforms to address these challenges, aiming for a fairer distribution of tax revenues among countries. This paper examines the necessity and impact of implementing the OECD's tax reforms within the EU, considering the diverse tax systems of member states. The analysis reveals an upward trend in profits transferred to tax havens globally. EU tax havens like the Netherlands, Ireland, and Luxembourg are significant recipients of these profits. The OECD reforms, by reallocating profits and establishing a minimum tax, are expected to reduce the attractiveness of these havens. The impact will vary: less developed EU countries may lose foreign investment opportunities, while more developed countries could benefit from increased tax revenues and fairer profit distribution.