Implementation of the Global Minimum Tax in Belgium and Luxembourg

Abstract

This article examines the implementation of the OECD Pillar Two global minimum tax in Belgium and Luxembourg following its transposition through the EU Pillar Two Directive. While both jurisdictions closely follow the OECD Model Rules, the analysis reveals divergent domestic choices regarding legislative technique and administrative design. The article further explores emerging legal uncertainties, focusing on the pending referral by the Belgian Constitutional Court to the Court of Justice of the European Union on the Undertaxed Profit Rule and broader doubts concerning the European Union’s competence to legislate in the field of direct taxation.