Pillar 2 Insights From Yesterday’s OECD Corporate Tax Statistics Report
The OECD issued the Fourth Edition of its Corporate Tax Statistics report yesterday. The Press Release that accompanied the report stated that the report supported the need to press forward with the OECD Two-Pillar Solution to address base erosion issues.
In this article we look at some of the key Pillar Two insights and highlights from the report.
Corporate Income Tax (CIT) Rates
The report notes that headline CIT rates have been decreasing on average over the last two decades, with the average CIT rate for the jurisdictions covered being 20% in 2022, compared to 28% in 2000. 97 jurisdictions had lower tax rates in 2022, 14 jurisdictions had the same tax rate, and six had higher tax rates (namely Andorra, the Cook Islands, Honduras, Hong Kong, the Maldives, and Oman).
In particular the number of jurisdictions with tax rates equal to or greater than 20% and less than 30% increased from 27 jurisdictions to 51 jurisdictions, whilst the number of jurisdictions with tax rates equal to or greater than 10% and less than 20% increased from seven to 33 jurisdictions.
However, the number of jurisdictions with very low tax rates of less than 10% hasn’t changed much. There were ten jurisdictions with tax rates less than 10% in 2000, compared to 14 below in 2022.
The tool below allows you to choose a jurisdiction to view the headline CIT rates for 2012 and 2022.
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Lee is a qualified Chartered Accountant and Chartered Tax Adviser.
A former Senior Tax Analyst at Bloomberg Tax, Lee began his career in
Ernst & Young's Entrepreneurial Services department and has 20 years of international tax planning experience.
Lee's books have been recommended by The Times, The Guardian and The Telegraph.
This website is not affiliated with or related to the OECD. We provide independent insights and analysis on the OECD Two-Pillar Solution