On November 21, 2023 the OECD has released the Corporate Tax Statistics 2023, as well a new accompanying working paper“New evidence on global low-taxed profit, OECD Taxation Working Papers, No. 67”. According to the OECD jurisdictions with statutory and average tax rates above 15% – account for more than half of all global profits currently taxed below 15%. It might be interesting to analyze the Corporate Tax Statistics 2023 and the analysis and the conclusions drawn in the accompanying working paper. Both documents are available in the English and the French language (the French versions were not made available yet at the time of writing this article).
Corporate Tax Statistics 2023
Corporate Tax Statistics 2023, a flagship publication of the OECD, provides comprehensive insights into corporate tax systems and the tax and economic activities of thousands of multinational enterprises operating around the world. It is a key outcome of Action 11 of the OECD/G20 BEPS Project which aims to improve the measurement and monitoring of tax avoidance. The report includes data on corporate tax rates, revenues, effective tax rates, as well as tax incentives for R&D and innovation. This fifth edition also includes two years of anonymised and aggregated country-by-country reporting data, and, for the first time, information on withholding tax rates under tax treaties for member jurisdictions of the OECD and the Inclusive Framework on BEPS.
The Corporate Tax Statistics 2023 are available here in the English and will be made available here in the French language.
The OECD also released a data set that can be found here.
Working paper, Effective Tax Rates of MNEs: “New evidence on global low-taxed profit”
According to the OECD, the effective taxation of corporate profits is at the centre of an active public and academic debate. This debate is often focused on the extent of low-taxed profit of multinational enterprises (MNEs) in jurisdictions with low statutory tax rates or low average effective tax rates (ETRs). However, some affiliates in high tax jurisdictions may also be subject to low ETRs, due to tax incentives or other provisions. To date, a global accounting of the ETRs paid by MNEs that incorporates within-country heterogeneity has been missing.
Using a new dataset on the global activities of large MNEs, this paper provides new estimates of the distribution of effective tax rates of large MNEs across and within jurisdictions. The results show that low tax profit is common, and that substantial low-taxed profit exists outside low tax jurisdictions. We estimate that high tax jurisdictions (jurisdictions with average ETRs of above 15%) account for more than half (53.2%) of global profits taxed below 15%, much more than very low tax jurisdictions (those with average ETRs below 5%) which only account for 18.7% of low-taxed profits. This suggests that an assessment of global low-taxed profit that focuses only on jurisdictions with low average ETRs could potentially miss out on more than half of global low-taxed profit.
The accompanying working paper is available here in the English and will be made available here in the French language.
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