The Organisation for Economic Co-operation and Development (OECD) released their annual Corporate Tax Statistics publication yesterday (July 8), which includes aggregated information on the global tax and economic activities of nearly 4,000 multinational enterprise (MNE) groups headquartered in 26 jurisdictions and operating across more than 100 jurisdictions worldwide.
This data released on MNE's by the OECD is a substantial new output based on the Country-by-Country reporting requirements under the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project. The OECD notes that the new data suggests four primary preliminary findings.
They are:
- There is a misalignment between the location where profits are reported and the location where economic activities occur, with MNEs in investment hubs reporting a relatively high share of profits compared to their share of employees and tangible assets.
- Revenues per employee tend to be higher where statutory CIT (Corporate Income Tax) rates are zero and in investment hubs.
- On average, the share of related party revenues in total revenues is higher for MNEs in investment hubs.
- The composition of business activity differs across jurisdiction groups, with the predominant business activity in investment hubs being “holding shares and other equity instruments”.
To read more on the OECD Corporate Tax Statistics data released on July 8th, click here.