Effective MNE Tax Management Practices

• In Event: International

Abstract

This research examines how multinational enterprises (MNEs) can adopt effective tax management practices amid the evolving international tax landscape, particularly in response to the Organisation for Economic Co-operation and Development Pillar One and Pillar Two frameworks. These frameworks aim to address challenges related to tax digitalization and establish a global minimum tax. The research provides practical strategies for MNEs to navigate complex global tax regulations while aligning tax practices with broader corporate goals. This dissertation uses a qualitative systematic review methodology to analyze the existing literature on MNE tax management, focusing on financial optimization, governance, market adaptation, and integrating technology and corporate social responsibility (CSR). The research involved a thorough appraisal of 42 articles, synthesizing findings to develop a conceptual framework that helps MNEs align their tax strategies with global standards and socioeconomic pressures. The findings highlight that effective tax management for MNEs involves (1) leveraging tax incentives, (2) strengthening governance frameworks, and (3) engaging in proactive stakeholder management. The study emphasizes the importance of adapting tax strategies to international operations and market dynamics to enhance competitiveness. Additionally, integrating CSR and technology into tax management is crucial for ensuring transparency and ethical behavior. The practical implications of this research provide actionable insights for MNEs aiming to optimize their tax strategies while complying with evolving international tax laws. It stresses the need for continuous adaptation to new frameworks such as Pillars One and Two. It offers a comprehensive framework for aligning tax practices with CSR and ethical standards.

Author

• Santiago Gomez, Steptoe LLP