Could OECD's global minimum tax violate foreign investors' rights and lead to investment treaty arbitrations?

This article considers the potential implications of the Organisation for Economic Co-operation and Development's (OECD) Model Rules inviting participating jurisdictions to implement a coordinated global minimum tax (GMT) of 15% for multinational enterprises and, in particular, whether it might violate investment protections guaranteed to foreign investors. It analyses the types of measures that states may take under the Model Rules to implement the GMT and how these could potentially violate bilateral and multilateral investment treaties. It also looks at steps that investors should consider, to ensure that they are prepared to enforce their rights, if necessary.