The OECD has released new
data that underlines the importance of the two-pillar plan being advanced
by over 130 members of the OECD/G20 inclusive framework on BEPS to reform
international taxation rules and ensure that multinational enterprises pay a
fair share of tax wherever they operate.
The data, released in the OECD's annual corporate
tax statistics publication, shows the importance of corporate tax as a
source of government revenues, while also pointing to evidence of continuing
base erosion and profit shifting behaviours.
The data shows that statutory corporate income tax (CIT) rates
have been decreasing in almost all countries over the last two decades. Across
111 jurisdictions, 94 had lower CIT rates in 2021 compared with 2000, while 13
jurisdictions had the same tax rate, and only 4 had higher tax rates. The average
combined (central and sub-central government) statutory CIT rate for all
covered jurisdictions declined to 20% in 2021, compared to 28.3% in 2000. The
OECD notes that the declining rates highlight the importance of Pillar Two,
which will put a multilaterally agreed limit on corporate tax competition.
New country-by-country reporting data also provides aggregated
information on the global tax and economic activities of around 6,000 MNE
groups headquartered in 38 jurisdictions and operating across more than 100
jurisdictions worldwide.
The data also includes new indicators highlighting the use of
tax incentives for research and development (R&D) investments. The
indicators, which are accompanied by a new working paper, show that in 2020,
among OECD countries offering tax support, R&D tax incentives decreased the
effective tax rate on R&D investments by around 10 percentage points on
average, compared to non-R&D investments.
The OECD has released new
data that underlines the importance of the two-pillar plan being advanced
by over 130 members of the OECD/G20 inclusive framework on BEPS to reform
international taxation rules and ensure that multinational enterprises pay a
fair share of tax wherever they operate.
The data, released in the OECD's annual corporate
tax statistics publication, shows the importance of corporate tax as a
source of government revenues, while also pointing to evidence of continuing
base erosion and profit shifting behaviours.
The data shows that statutory corporate income tax (CIT) rates
have been decreasing in almost all countries over the last two decades. Across
111 jurisdictions, 94 had lower CIT rates in 2021 compared with 2000, while 13
jurisdictions had the same tax rate, and only 4 had higher tax rates. The average
combined (central and sub-central government) statutory CIT rate for all
covered jurisdictions declined to 20% in 2021, compared to 28.3% in 2000. The
OECD notes that the declining rates highlight the importance of Pillar Two,
which will put a multilaterally agreed limit on corporate tax competition.
New country-by-country reporting data also provides aggregated
information on the global tax and economic activities of around 6,000 MNE
groups headquartered in 38 jurisdictions and operating across more than 100
jurisdictions worldwide.
The data also includes new indicators highlighting the use of
tax incentives for research and development (R&D) investments. The
indicators, which are accompanied by a new working paper, show that in 2020,
among OECD countries offering tax support, R&D tax incentives decreased the
effective tax rate on R&D investments by around 10 percentage points on
average, compared to non-R&D investments.
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