Fiche du document
20 janvier 2022
- 2201.08444
Mots-clés
Economics - General EconomicsSujets proches
Net incomeCiter ce document
Javier Garcia-Bernardo et al., « Profit Shifting of Multinational Corporations Worldwide », arXiv - économie
Partage / Export
Résumé
We exploit the new country-by-country reporting data of multinational corporations, with unparalleled country coverage, to reveal the distributional consequences of profit shifting. We estimate that multinational corporations worldwide shifted over \$850 billion in profits in 2017, primarily to countries with effective tax rates below 10\%. Countries with lower incomes lose a larger share of their total tax revenue due to profit shifting. We further show that a logarithmic function is better suited for capturing the non-linear relationship between profits and tax rates than linear or quadratic functions. Our findings highlight effective tax rates' importance for profit shifting and tax reforms.