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View profile for Mathias Cormann, graphic

Secretary-General of the OECD - Secrétaire général de l’OCDE

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

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Jeroen Lammers

Assistant Professor of International Tax Law at CBS | Partner at Publyon DK

1mo

Or just maybe the minimum tax has absolutely nothing to do with it. instead there may be a natural rate floor between 15 and 20% because at one point you cannot broaden national bases more while lowering rates. Since CIT to GDP ratios have been stable since 1965 there really is no reason - other than wishful thinking - to assume that a minimum tax that so far effectively has only been implemented by countries with nominal rates over the minimum ETR has much to do with anything

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Priya Kohli

Senior Technical Specialist - Pillar Two at the Canada Revenue Agency

1mo

Very informative. Thanks for sharing Mathias.

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