Effective tax rates of multinational corporations: Country-level estimates

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F23%3A10475085" target="_blank" >RIV/00216208:11230/23:10475085 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=xgxBrlRxa_" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=xgxBrlRxa_</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1371/journal.pone.0293552" target="_blank" >10.1371/journal.pone.0293552</a>

Result language
angličtina
Original language name
Effective tax rates of multinational corporations: Country-level estimates
Original language description
Effective tax rates (ETRs) estimated from the income statement data of multinational corporations (MNCs) are useful for comparing MNCs' corporate income taxation across countries.In this paper, we propose a new methodological approach to estimate ETRs as reliably andfor as many countries as possible using Orbis' unconsolidated data for the 2011-2015period. We focus on countries with at least 50 available companies, which results in a sample of 47, mostly European, countries. We estimate the ETR of a country as the ratio of corporate income tax to gross income for all affiliates of MNCs in that country, weighted bygross income. We propose four ETR estimations, including lower and upper bounds, whichdiffer by gross income calculation. We find that ETRs substantially differ from statutory taxrates for some countries. For example, we show that despite similar statutory rates of 28%and 29%, MNCs in Luxembourg paid as little as 1-8% of gross income in taxes, while thosein Norway paid as much as 46-67%. Despite being the best available, existing data is stillimperfect. We therefore call for better data in the form of MNCs' unconsolidated, publiccountry-by-country reporting data.
Czech name
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Czech description
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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

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)

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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