What Can the Material Scope of Tax Treaties Learn from the Global Minimum Tax Approach? [pre-publication] - Intertax View What Can the Material Scope of Tax Treaties Learn from the Global Minimum Tax Approach? [pre-publication] by - Intertax What Can the Material Scope of Tax Treaties Learn from the Global Minimum Tax Approach? [pre-publication] 54 12 [pre-publication]

The OECD MC was developed almost a century ago, and its material scope has not changed substantially since then. The global minimum tax (GMT) introduced a more flexible, substance-based approach to defining taxes on income. It offers an opportunity to review the OECD’s commentaries on the material scope and to add new ones for further clarity. The characteristics of each sub-article within the material scope of the OECD MC will be compared with the GMT qualifying domestic top-up tax (QDMTT) in this article by explaining the treaty rules, describing the relevant GMT rules, and summarizing the differences and overlaps. It advocates a review and offers recommendations to expand the commentaries on Article 2 of the OECD MC.

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