Decomposing Multinational Corporations' Declining Effective Tax Rates
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F22%3A10454643" target="_blank" >RIV/00216208:11230/22:10454643 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=9jMXFs4X5X" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=9jMXFs4X5X</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1057/s41308-022-00157-9" target="_blank" >10.1057/s41308-022-00157-9</a>
Alternative languages
Result language
angličtina
Original language name
Decomposing Multinational Corporations' Declining Effective Tax Rates
Original language description
We develop a methodology to decompose the observed decline in multinational corporations' (MNCs') effective tax rates into several components and quantify the role of tax havens. We apply this methodology to the best available data for MNCs headquartered in the USA - from the Bureau of Economic Analysis - and in the EU - from Orbis - and we arrive at three main findings. First, we estimate that between 2005 and 2015 increased profits in tax havens directly explain only 29% and 1% of the 7% and 9% point declines in effective tax rates for US and EU MNCs, respectively. Second, we find that US MNCs have primarily benefited from domestic tax base reductions, most of which can be explained by sectoral changes, while the statutory rate has remained constant. Third, we show that EU MNCs have mainly benefited from falling domestic statutory rates and we observe similar patterns across EU home countries, host countries and sectors.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50201 - Economic Theory
Result continuities
Project
<a href="/en/project/GM21-05547M" target="_blank" >GM21-05547M: Taxing multinational corporations in the globalised world (CORPTAX)</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
IMF Economic Review
ISSN
2041-4161
e-ISSN
2041-417X
Volume of the periodical
70
Issue of the periodical within the volume
2
Country of publishing house
GB - UNITED KINGDOM
Number of pages
44
Pages from-to
338-381
UT code for WoS article
000766138600001
EID of the result in the Scopus database
2-s2.0-85125927489