Qualified Domestic Minimum Top-Up Tax: Should Developing Countries Adopt It?

Journal
International; OECD
Bulletin for International Taxation 2024 (Volume 78), No. 3
The Qualified Domestic Minimum Top-up Tax (QDMTT) is presented as the preferred choice for developing countries. However, given its unfamiliar design, complexity, limited revenue gain, peer review and resource burdens, the QDMTT is unsuitable for developing countries. Instead, such countries should reform their tax incentives, and consider an across-the-board minimum tax.