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Effective Tax Rates, Firm Size and the Global Minimum Tax

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dc.contributor.authorBachas, Pierre
dc.contributor.authorBrockmeyer, Anne
dc.contributor.authorDom, Roel
dc.contributor.authorSemelet, Camille
dc.date.accessioned2025-03-25T17:51:35Z
dc.date.available2025-03-25T17:51:35Z
dc.date.issued2025-03-25
dc.description.abstractThis paper documents new facts on corporate taxation and the revenue potential of corporate minimum taxes, leveraging firm-level tax returns from 16 countries. First, effective tax rates follow a humped-shaped pattern with firm size: small firms benefit from reduced rates, while large firms take up tax incentives, leaving mid-sized firms with the highest effective rates. On average, the effective tax rate for the largest 1 percent of firms is 2.2 percentage points lower than the average effective tax rate for the top decile of firms. Second, although statutory tax rates are above 15 percent in all sample countries, over a quarter of top firms face an effective rate below 15 percent, challenging the simple tax haven versus non-haven dichotomy. Third, a simple 15 percent domestic minimum tax for the top 1 percent firms could raise corporate taxes by 14 percent on average across countries, absent behavioral responses. In contrast, the global minimum top-up tax would only raise a quarter of this revenue due to its generous deductions and smaller number of firms in scope.en
dc.identifierhttp://documents.worldbank.org/curated/en/099225003242534123
dc.identifier.doi10.1596/1813-9450-11090
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11090
dc.identifier.urihttps://hdl.handle.net/10986/42991
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11090
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCORPORATE TAX
dc.subjectTAX EXPENDITURES
dc.subjectEFFECTIVE TAX RATE
dc.subjectGLOBAL MINIMUM TAX
dc.subjectMULTINATIONALS
dc.titleEffective Tax Rates, Firm Size and the Global Minimum Taxen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/258 Link to reproducibility package
okr.date.disclosure2025-03-25
okr.date.doiregistration2025-04-14T11:57:46.759327Z
okr.date.lastmodified2025-03-25T15:03:07Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099225003242534123
okr.guid099225003242534123
okr.identifier.docmidIDU-7e2f876b-e749-4eca-b00a-b74846fd7984
okr.identifier.doi10.1596/1813-9450-11090
okr.identifier.externaldocumentum40002598
okr.identifier.internaldocumentum40002598
okr.identifier.reportWPS11090
okr.import.id6954
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099225003242534123/pdf/IDU-7e2f876b-e749-4eca-b00a-b74846fd7984.pdfen
okr.region.geographicalWorld
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.unitDECMG; EMFTX - EFI - Macro Fiscal - Tax
relation.isAuthorOfPublicationf233804e-2b8f-53ad-b925-77dc2418ba41
relation.isAuthorOfPublication.latestForDiscoveryf233804e-2b8f-53ad-b925-77dc2418ba41
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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