Daxenberger S, Hechtner F, Weiß M (2026)
Publication Language: English
Publication Type: Other publication type, SSRN Working Paper
Publication year: 2026
URI: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6379058
Open Access Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6379058
The global minimum tax (GMT) introduces a new framework for income taxation, with the goal of ensuring fair international tax competition and a fair distribution of profits. However, the potential benefits of this minimum taxation are contrasted by the individual costs incurred by taxpayers. System adjustments and regulatory additions can cause considerable compliance costs for firms. Typically, it is challenging to quantify the associated Tax Compliance Costs (TCC). Drawing on an interview study with German tax advisors and German listed multinational firms, we aim to explore the potential determinants of TCC in the context of the global minimum taxation. In particular, interviewees emphasize the importance of data infrastructure measures and the use of external resources such as consulting and internal personnel measures as key cost drivers. The paper highlights the need for a balanced consideration of regulatory objectives and operational burdens placed on businesses, to ensure the effective and practical implementation of the new tax system.
APA:
Daxenberger, S., Hechtner, F., & Weiß, M. (2026). Tax Compliance Costs of Pillar Two - A Qualitative Study.
MLA:
Daxenberger, Sarah, Frank Hechtner, and Marius Weiß. Tax Compliance Costs of Pillar Two - A Qualitative Study. 2026.
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