Corporate Tax Statistics was an output of Action 11 of the OECD/G20 BEPS Project, aimed at improving the measurement and monitoring of tax avoidance.
The 2024 edition of the OECD´s Report “Corporate Tax Statistics” covers statutory and effective tax rates, withholding taxes, tax treaties, corporate tax revenues, and detailed MNE activities.
According to this report, global statutory corporate tax rates have stabilized after years of decline. The average corporate income tax (CIT) rate has held steady at 21.1% over the past three years, following a drop from 28% in 2000 to 21.1% in 2021.
IMPACT OF GLOBAL MINIMUM TAX
The report suggests that the upcoming Global Minimum Tax, agreed upon by over 140 members of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS), may be influencing this stabilization. More than 35 jurisdictions are either implementing or planning to implement the 15% minimum effective tax rate starting in 2024, which is expected to reduce competitive pressures on CIT rates.
TAX INCENTIVES FOR INTANGIBLE ASSETS
The 2024 report also highlights a stabilization in tax incentives to attract mobile intangible assets, such as intellectual property (IP). New data indicates that the average effective tax rates for multinational enterprises (MNEs) on intangible income have remained constant from 2019 to 2023, after a significant decrease from 2000 to 2019.
COUNTRY-BY-COUNTRY ANALYSIS AND BEPS ACTIVITY
Additionally, the report introduces new country-by-country data showing variations in MNEs’ effective tax rates within jurisdictions. This highlights the existence of low-taxed profits in high-tax jurisdictions, often due to targeted tax incentives. The data underscores the revenue-raising potential of the Global Minimum Tax in traditionally high-tax areas.
The 2021 Country-by-Country Report (CbCR) statistics suggest a decline in BEPS activity, with key indicators showing reduced median revenues and profits per employee, as well as lower related party revenues as a share of total revenue. However, the report cautions that the COVID-19 crisis may have influenced these trends.
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