Global evidence on profit shifting within firms and across time
We provide estimates of profit shifting for over 2 million firm-year observations in 100 countries over the period 2009–2020. Employing nonparametric estimation techniques within a mainstay model of profit shifting, we examine how the profits of both parent and subsidiary firms within a multinational group respond to marginal changes in the composite tax indicator. The key advantage of this approach is that it yields firm-year estimates of profit shifting. Multinational firms engage in extensive profit shifting by maintaining affiliates in low-tax countries and zero-tax havens. Multinational groups with an ultimate tax-haven owner exhibit the largest profit response to tax incentives. Our new database opens important avenues for analyzing the sources and effects of profit shifting.
DELIS Fotis;
DELIS Manthos;
LAEVEN Luc;
ONGENA Steven;
2025-06-27
ELSEVIER
JRC131948
0165-4101 (online),
https://www.sciencedirect.com/science/article/pii/S0165410124000740?casa_token=Nmy_PIYDv48AAAAA:pK3xIG3droXggsSLdDdqbwoXhrmj1_UAdWkhaj8o7qDkdA5LgjyyLXxa8WnVJqM2uTgbUPmY_2B8,
https://www.sciencedirect.com/science/article/pii/S0165410124000740,
https://publications.jrc.ec.europa.eu/repository/handle/JRC131948,
10.1016/j.jacceco.2024.101744 (online),
Additional supporting files
| File name | Description | File type | |
|---|
