Effective tax rates of MNEs electrónico new evidence on global low-taxed profit by Felix Hugger, Ana Cinta Gonzalez Cabral and Pierce O'Reilly
By: Hugger, Felix
| OCDE.
Contributor(s): Cabral, Ana Cinta G | O'Reilly, Pierce.
Material type: 
TextSeries: OECD taxation working papers ; no. 67.Publisher: Paris OECD Publishing 2023Description: 64 p. graf. 1 recurso en línea.Subject(s): IMPUESTO DE SOCIEDADES | TIPOS DE GRAVAMEN | GRAVAMEN | EMPRESAS MULTINACIONALES | TIPO MÍNIMO GLOBAL | ORGANIZACION DE COOPERACION Y DESARROLLO ECONOMICOOnline resources: Click here to access online Summary: 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. Of the average annual net profits of USD 5,929 billion in our four-year sample, 12.7%
(USD 753 billion) are taxed at ETRs below 5%; a further 23.4% (USD 1,390 billion) are taxed at ETRs
between 5% and 15%. The majority of MNE profit is taxed at ETRs between 15% and 30%.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Recursos electrónicos | IEF | IEF | OL 1865 (Browse shelf) | Available | OL 1865 |
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Bibliografía.
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. Of the average annual net profits of USD 5,929 billion in our four-year sample, 12.7%
(USD 753 billion) are taxed at ETRs below 5%; a further 23.4% (USD 1,390 billion) are taxed at ETRs
between 5% and 15%. The majority of MNE profit is taxed at ETRs between 15% and 30%.
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