Navarro Ibarrola, Aitor2023-06-302023-06-302021-10-20Navarro, A. (2021). Jurisdiction Not to Tax, Tax Sparing Clauses, and the OECD Minimum Taxation (GloBE) Proposal. Nordic Tax Journal, 2021(1), pp. 6-19.2246-1809https://hdl.handle.net/10016/37704The OECD Programme of Work on the tax challenges arising from the digitalization of the economy comprises a so-called GloBE (Global Base Erosion) or Pillar Two proposal, consisting of a series of measures aimed atestablishing a floor to tax competition by achieving minimum taxation of the income obtained by in-scope multinational enterprises. If such a measure is implemented, developing countries would be severely deprived of the possibility to grant tax incentives to attract FDI and potentially foster economic growth. This contribution emphasizes the importance of the thorough review of their taxpolicy preferences that developing countries should undertake amidst the rapid adoption of GloBE, which theOECD is pushing to achieve. To illustrate this concern, anexamination of implementation issues shows that a deficient enactment of the income inclusion rule proposed inGloBE could paradoxically trigger the applicability of taxsparing clauses aimed at protecting the effectiveness of taxincentives, even when both sets of rules pursue opposing goals14eng© 2021 Aitor Navarro, published by SciendoAtribución-NoComercial-SinDerivadas 3.0 EspañaGlobeJurisdiction to taxTax sparingTax incentivesPillar twoTax treatiesresearch articleDerechohttps://doi.org/10.2478/ntaxj-2021-0004open access6119Nordic Tax Journal2021AR/0000028522