Journal of Accounting Review  2026/07
JAR Vol. 83   43-79
DOI:10.6552/JOAR.202607_(83).0002

The Relationship Between the Global Minimum Tax and Taiwanese Enterprises: An Evaluation of Tax Policy Options

Abstract

This study examines the potential impact of the OECD Global Minimum Tax (GMT), which began taking effects in major jurisdictions starting in 2024, on Taiwanese multinational enterprises (MNEs). Using data from Taiwanese listed and over-the-counter (OTC) companies, we simulate additional tax liabilities under the GMT framework and investigate how firm characteristics and industry attributes are associated with firms’ exposure to the minimum tax.
The results show that firms with larger revenue scales, higher research and development expenditures, and substantial income from foreign subsidiaries are more likely to be affected by the GMT. Further, firms with lower effective tax rates exhibit greater exposure to potential tax increases. In addition, companies with higher proportions of foreign revenue and equity-method investment income are more likely to incur larger top-up tax liabilities.
Our results provide empirical evidence on the distributional effects of the GMT across Taiwanese MNEs and offer insights into which types of firms face the greatest exposure to GMT-related tax costs, providing a basis for policymakers to calibrate more targeted domestic responses to the GMT.