Paris, Nov 21 (EFE).- Large multinational companies enjoy unequal taxation that encourages them to transfer their profit declaration to areas where they do little or no business, but are more fiscally attractive, the OECD insisted this Tuesday.
Around 37.1% of the net profits of large companies (2,411 million dollars out of 6,503 million) have a corporate tax rate of less than 15%, indicated a global report on the taxation of multinationals published by the Organization for Economic Cooperation and Development (OECD).
The document points out that this phenomenon also takes place in jurisdictions with high taxation (more than 15% of corporate tax) and in which what is paid ends up being lower than that figure, which underlines “the need for tax reform at the level global,” the OECD reiterates in a statement.
Data from 2019 and 2020 compiled by the 52 international jurisdictions that have statistics, covering the activity of some 7,000 multinationals, show “a mismatch between the places where profits are reported and the places where economic activities occur,” the report adds.
In a global report on Corporate Tax Statistics, the OECD points out as an example that in jurisdictions with a high level of investments, turnover per employee was 1.71 million dollars, compared to the average of 290,000 dollars in other jurisdictions.
Although this difference may be due in part to commercial reasons, it also indicates the likelihood of profit shifting practices to more tax-friendly jurisdictions, the OECD detailed.
“These results show how the introduction of a global minimum tax rate on the profits of large multinationals”, as agreed within the framework of the OECD and the G20, “would create new opportunities for the mobilization of domestic resources” in all types of jurisdictions, the statement noted.
The OECD also points out that the average effective rate of this tax has stabilized in recent years after experiencing a decline in the last two decades.
And the effective average corporate tax rate went from 28.1% on average in 141 jurisdictions in 2000 to 21.3% in 2020, although it has remained at 21.1% in 2021 and the two following years. .
A total of 111 jurisdictions lowered their tax rate between 2000 and 2023, while 15 maintained it and only 15 raised them.
A total of twenty jurisdictions lowered the tax rate by 20 points or more during that period, with three of them (Jersey, Guernsey and the Isle of Man) eliminating the tax.
Despite this decline, the OECD notes that corporation tax, which taxes company profits, makes a significant contribution to national income around the world, accounting for an average of 15.1% of tax revenues. totals in 116 jurisdictions in 2020.
In Spain, that figure was 5%, the same as in the United States and France, while in Germany it was 4% and in the United Kingdom 7%.
In addition, this tax represented an average of 3% of the Gross Domestic Product (GDP) of those jurisdictions in 2020. In Spain it was also 3%, 1% in the US and 2% in France, Germany and the United Kingdom. .
The OECD report also notes the increase in tax incentives that the organization’s countries give to companies’ research and development (R&D) expenses.
A total of 33 of the organization’s 38 members offered tax incentives for corporate R&D spending in 2021, up from 19 in 2000. Additionally, these incentives “have become more generous over time,”