This paper shows that OECD’s Pillar Two may increase employment and investment in low-tax countries due to the Substance-based Income Exclusion (SBIE). The SBIE allows to tax-deduct payroll costs and user costs of tangible assets twice from the tax base of the top-up tax owed by subsidiaries in low-tax countries. Consequently, it implies that a 15% minimum corporate tax for low-taxed subsidiaries is not achieved if the SBIE is positive. We show that Pillar Two dampens tax-motivated transfer pricing, but changes the employment, investment and import incentives, and that for a sufficiently large cost share of labor and/or capital, the SBIE is equivalent to a production subsidy.

本文表明，由于基于物质的收入排除（SBIE），经合组织的第二支柱可能会增加低税收国家的就业和投资。SBIE 允许从低税率国家子公司所欠补充税的税基中两次扣除工资成本和有形资产使用成本。因此，这意味着如果 SBIE 为正，则低税率子公司无法实现 15% 的最低企业税。我们表明，第二支柱抑制了税收驱动的转让定价，但改变了就业、投资和进口激励措施，并且对于足够大的劳动力和/或资本成本份额，SBIE 相当于生产补贴。