Taxes on multinational corporations must be standardized on a global scale: OECD Millennium Group

The great andMultinational corporations enjoy unequal taxation that encourages them to shift their profits To areas where they do little or no business, but are more attractive from a financial point of view Organization for Economic Cooperation and Development.

About 37.1 percent of the net profits of large companies ($2,411 million out of $6,503 million) have The corporate tax rate is less than 15 percentA global report on taxation of multinational corporations published by the Organization for Economic Co-operation and Development (OECD) noted.

The document indicated this This phenomenon also occurs in jurisdictions with high taxes. (more than 15% of corporate tax) as what is paid in the end ends up being less than this number, which confirms “ The need for global tax reform“, reiterates the OECD.

Data for 2019 and 2020 collected by 52 international jurisdictions with statistics covering the activity of about 7,000 multinational companies, “A” show Mismatch between the places where benefits are reported and the places where economic activities occur“The report adds.

In another global report on corporate tax statistics, the OECD cites an example of this In jurisdictions with a high level of investment, turnover per employee was $1.71 millioncompared to an average of $290,000 in other jurisdictions.

Although this difference may be partly due to commercial reasons, it is also true Indicates potential profit shifting practices to more tax-friendly jurisdictions, the OECD reported.

The average effective tax rate has stabilized in recent years, the agency said.

“These results show how – Imposing a global minimum tax on the profits of large multinational companiesThis, as agreed within the OECD and G20 framework, “would create new opportunities for domestic resource mobilization” in all types of jurisdictions, he noted.

The OECD also highlighted this The average effective rate of this tax has stabilized in recent years After witnessing a decline in the past two decades.

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The effective average corporate tax rate The proportion rose from an average of 28.1 percent across 141 jurisdictions in 2000 to 21.3 percent in 2020.Although it remained at 21.1 percent in 2021 and two consecutive years.

111 jurisdictions reduced the tax rate between 2000 and 2023, while 15 maintained it and only 15 raised it.

A total of Twenty jurisdictions reduced taxes by 20 points or more over that period, and three of them (Jersey, Guernsey and the Isle of Man) abolished the tax.

Despite this decline, the OECD points out that Corporation tax, which taxes a company’s profits, contributes significantly to national income Worldwide, representing an average of 15.1 percent of total tax revenues in 116 jurisdictions in 2020.

In Spain, this figure reached 5 percent, the same number as in the United States and FranceWhile the percentage in Germany was 4 percent and in the United Kingdom 7 percent.

next to, This tax represents an average of 3% of GDP. of those jurisdictions in 2020. In Spain it was also 3 percent, 1 percent in the United States and 2 percent in France, Germany and the United Kingdom.

OECD report The increase in tax incentives is also noted provided by the countries of the organization For research and development expenses (Research and development) for companies.

A total of 33 of the organization’s 38 members offered tax incentives By companies spending on research and development in 2021, up from 19 in 2000. Additionally, these incentives have become “more generous over time.”


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