OECD Tax’s Post

OECD Tax Has Recently Provided New Data Highlighting Stabilization in Statutory Corporate Tax Rates Worldwide The following are quick takeaways: 1. The average statutory CIT rate has stabilized at 21.1% over the past three years. 2. The new Global Minimum Tax agreement, involving more than 140 members, may have influenced this stabilization. 3. Over 35 jurisdictions are moving towards implementing a 15% minimum corporate effective tax rate by 2024. 4. Tax incentives for mobile intangible assets have also stabilized, with effective tax rates staying constant from 2019 to 2023, following a significant decline from 2000 to 2019. #TAXPOLICY# #TAX# INTERNATIONALTAX#

New analysis from the OECD reveals that statutory corporate income tax (CIT) rates are stabilising worldwide after a lengthy period of falling rates.

🌐 A new edition of CTS is out! This year with new insights on tax incentives to R&D and innovation related income such as intellectual property regimes (See Chapter 5 for more!).

New findings from the OECD highlight stabilisation in statutory corporate tax rates worldwide. The 2024 edition of the OECD Corporate Tax Statistics shows that average statutory corporate income tax (CIT) rates have remained steady at 21.1% over the past three years. This follows a two-decade period that saw average statutory CIT rates decline from 28% in 2000 to 21.1% in 2021. Anticipation of the new Global Minimum Tax agreed by more than 140 members of the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) may have contributed to the recent stabilisation, as more than 35 jurisdictions are currently implementing, or plan to implement, the 15% minimum corporate effective tax rate with effect from 2024, reducing competitive pressures on statutory CIT rates. Indicators based on the 2021 aggregated and anonymised Country-by-Country Reporting (CbCR) statistics also released in today’s publication suggest a reduction in BEPS activity over recent years. ➡️ https://oe.cd/5Da #CorpTaxStats #OECDtax #OECD #tax #MNEs #GlobalMinimumTax

OECD Data Shows Stabilization in Global Corporate Tax Rates After Decades of Decline, Driven by Anticipation of Global Minimum Tax #OECD #corporatetax #economy #taxation https://lnkd.in/dVYTixrT

Kudos to OECD Tax for releasing Corporate Tax Statistics 2024 Some Highlights: -Continuous decline-though modest- in Corporate Tax Average ETR from 21.6% in 2017 to 20.2% in 2023 -Average Statutory tax rate stable- from 21.7% in 2019 to 21.1% in 2024 (after huge decline from 28% in 2000) -Low and middle income countries continue to rely heavily on corporate tax- share of corporate tax in total revenue is 18.7% in Africa, 18.2% in Asia Pacific, 15.4% in Latin America as compared to 10.2% in OECD countries -Misalignment between location where profits are reported and where economic activities occur continues, though reducing- Median revenue per employee in investment hubs is USD 1638,000 whereas in high, middle and low income jurisdictions the same are USD 504000, USD 210000 and USD 226000 respectively- MNEs also report high share of profits(18%), compared to share of employees(4%) and tangible assets(12%) in investment hubs #beps #developingcountries #corporatetax https://lnkd.in/gCCmp_KT

Mandatory #CbCR - 102 Countries enacted Mandatory Country by Country Reporting (CbCR) by 2022, up from 49 in 2016. Welcome to Tax Transparency Insight 19. The recent OECD Tax report advised that, of the 101 Countries that had enacted CbCR in 2021 (102 - 2022), only 52 shared aggregated data with the OECD - OCDE. 5 countries advised they had no data to share, and others that they had insufficient aggregated data to ensure confidentiality. That confidentiality issue should quickly disappear with the introduction of #PublicCbCR in the near future. Importantly - the 52 countries (incl. the US, UK, China, etc.) represents over 80% of the Mandatory CbCRs filed, and the Public CbCRs that will soon have to be filed. For Project AITAX13, with our plans to build the world's largest publicly-available #AIEnhanced Knowledge Database of Public CbCR / BEPS 13, the data on the 52 countries (the largest providers of CbCR information) makes for compelling reading (and some interesting planning challenges). Thanks to Working Party No. 2 on Tax Policy and Statistics of the #InclusiveFramework (IF) on #BEPS for the 6th edition of their report - Corporate Tax Statistics: Have a great weekend. The Project AITAX13 Team www.aitax13.com

What is Pillar Two and the GloBE Rules? What is the Subject to Tax Rule (#STTR), the Qualifying Domestic Minimum Top-up Tax (#QDMTT) and why are these aspects crucial for developing countries? The international tax landscape is fast changing! Keeping up to speed with these changes is of course critical if you're engaged in this field. The OECD Tax’s recently released Minimum Tax Implementation Handbook that builds upon #ATAF's recommended approach for drafting a QDMTT is such a helpful 30 paged guide. This handbook includes: 1. An easily understandable overview of Pillar Two. 2. Points to consider for policy makes (Impact assessment/reform options) 3. Valuable and practical guidance on implementation.   You can Download the handbook in either English or French here: https://oe.cd/p2-handbook   #OECDP2 #P2handbook #OECDtax #tax4dev #globalminimumtax #Globerules #pillar2 #Beps

The 2022 Mutual Agreement Procedures (MAP) Statistics, the 2022 MAP Awards and the 2023 Consolidated Information on MAP were released during the fifth OECD Tax Certainty Day where tax officials and stakeholders took stock of the tax certainty agenda and discussed ways to further improve dispute prevention and resolution.

The OECD has released an updated impact assessment of the Global Minimum Tax (GMT), revealing that it could generate annual revenue gains of between $155 billion and $192 billion, representing a significant increase in global corporate income tax (CIT) revenues. This estimate is based on a recent OECD working paper and an associated webinar held on January 9, 2024. Read our full Tax News Service report here https://lnkd.in/exHd6qXe #Tax #GlobalEconomy #OECD #GloBE