On June 2 and 3, the Max Planck Institute for Tax Law and Public Finance hosted the international conference “The Division of Tax Revenue in a Globalized World” at the Harnack House in Berlin. The event brought together international experts from the fields of law and economics to discuss a central question in current tax policy debates: Where should profits be taxed—and who should decide?
Over two days, participants delivered no fewer than seventeen presentations on a wide range of current topics in international taxation. Key areas included income shifting and the elasticity of taxable income, market-based proposals for profit allocation, and withholding taxes and their impact on international trade and domestic resource mobilisation. They also examined the taxation of global value networks and frameworks for a fair and efficient division of profit tax revenues using formula apportionment.
The conference also addressed the current evolving landscape of digital assets and corporate tax residence. The implications of digital currencies and the importance of accurate residence attribution for multinational firms were highlighted.
Two outstanding keynote lectures framed these debates within a broader global context: Kimberly Clausing from the University of California in Los Angeles examined the difficulties of international cooperation in the areas of tax, trade, and climate policy. Last but not least, Daniel Shaviro from New York University offered a critical assessment of digital services taxes and their implications as substitutes for Pillar One of the OECD's BEPS project.
June 2025