OECD: Nominal corporate income tax rates continue to fall

From Tax Advisers Europe: The OECD has announced that on average, global nominal corporate income tax rates have continued the downwards trend, down 8 points on average from the year 2000 (28.3%) to year 2021 (20%). Across 111 jurisdictions, 94 had lower corporate income tax rates in 2021 compared with 2000, while 13 jurisdictions had the same tax rate, and only 4 had higher tax rates. In addition, data confirms that corporate income tax continues to be an important source of government revenue for developing countries and emerging economies: the corporate income tax share of government revenue in Africa stands as 19.2%, in Latin America and the Caribbean at 15.6%, compared to the OECD countries average of 10%.

Detailed overview is available in OECD’s Corporate Tax Statistics database and the latest report on the matter, which also highlights the persistent practice of profit shifting relative to the importance of the recently reached G20 agreement on global taxation.

The Corporate Tax Statistics database is intended to assist in the study of corporate tax policy and expand the quality and range of data available for the analysis of base erosion and profit shifting (BEPS).

The 2015 Action 11 report, Measuring and Monitoring BEPS, highlighted that the lack of quality data on corporate taxation is a major limitation to the measurement and monitoring of the scale of BEPS and the impact of the OECD/G20 BEPS project. While this database is of interest to policy makers from the perspective of BEPS, its scope is much broader. Apart from BEPS, corporate tax systems are important more generally in terms of the revenue that they raise and the incentives for investment and innovation that they create. The Corporate Tax Statistics database brings together a range of valuable information to support the analysis of corporate taxation, in general, and of BEPS, in particular.

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