Global Minimum Tax and Protection of Acquired Rights and Legitimate Expectations
Global Minimum Tax and Protection of Acquired Rights and Legitimate Expectations

Summary/Abstract: This article examines whether the global minimum tax (Pillar Two) could infringe upon the principles of protecting acquired rights and legitimate expectations. It argues that implementing a top-up tax under Pillar Two might violate promises made by governments to multinational enterprises, particularly by revoking previously granted tax incentives. The article delves into the fact that the possibility of utilizing pre-GloBE deferred tax assets and the substance-based carve-out may not be enough to prevent such infringements. It explores potential legal avenues for MNEs to challenge the QDMTT, IIR, and UTPR. The article concludes by emphasizing that the lack of robust safeguards for these but also other fundamental rights in the Pillar Two Model Rules raises serious questions about the legitimacy and long-term sustainability of a global tax regime.

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