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Global minimum corporate income tax: Challenges and prospects for Uganda

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  • Corti Paul Lakuma
  • Rehema Kahunde

Abstract

This paper simulates the impact of the global minimum corporate tax rate (GMCTR) in Uganda by estimating the difference between the mechanical and the behavioural changes in tax revenue. Overall, implementation of GMCTR will increase tax revenue, and the revenue increase is inversely proportional to the behavioural response. The differences in elasticities may introduce tax competition. In addition, the revenue gain is positive but quantitatively small. There are also sectoral differences in revenue gain resulting from the GMCTR.

Suggested Citation

  • Corti Paul Lakuma & Rehema Kahunde, 2023. "Global minimum corporate income tax: Challenges and prospects for Uganda," WIDER Working Paper Series wp-2023-137, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-137
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    References listed on IDEAS

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    Keywords

    Corporate tax; Effective tax rate; Tax revenue; Tax administration; Base erosion; Profit shifting;
    All these keywords.

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