OECD data provides insight into MNE tax activity

On July 8, 2020, the OECD released data providing 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.

The data is a major output based on the country-by-country reporting requirements for MNEs under the base erosion and profit shifting project.  

The dataset contains a vast array of aggregated data on the global tax and economic activities of MNEs, including profit before income tax, income tax paid (on a cash basis), current year income tax accrued, unrelated and related party revenues, number of employees, tangible assets, and the main business activity (or activities) of MNEs.

The statistics suggest a number of preliminary insights:

• 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 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.”

 
See Database