Corporate tax avoidance generates significant tax revenue losses, tilts the playing field in favour of tax-aggressive MNEs, distorts the location of highly mobile intangible assets, and misdirects foreign direct investment.

Measuring the impact and scale of tax avoidance activities, and their relationship to MNE activity is therefore crucial. The OECD Corporate Tax Statistics database responds to this need by providing comprehensive insights into corporate tax systems and the tax and economic activities of thousands of multinational enterprises operating around the world.

Since the beginning of the negotiations on the two pillar package, the OECD has carried out economic analysis to assess the impact of both Pillar One and Pillar Two. These analyses support a level playing field across Inclusive Framework member jurisdictions as they negotiate and implement the agreement.

Recent OECD studies have highlighted that Pillar One would allocate approximately USD 200 Bn in taxing rights, and raise USD 17 - 32 Bn. Pillar Two would reduce global low-taxed profit by 80%, and raise an estimated USD 155-192 Bn, while reducing tax rate differentials across countries, potentially improving the allocation of global capital. 

Tax incentives are widely used to steer and support investment and innovation. In 2021, 22 out of 38 OECD countries offered income-based tax incentives for R&D and innovation, while 33 offered expenditure-based incentives. Incentives are also widely used amongst developing countries, with almost 90% of 52 economies in the OECD Investment Tax Incentives Database using at least one CIT incentive in the form of a tax exemption. Governments need to carefully consider tax incentive design, implementation, and governance. Poorly designed incentives can offer poor value for money and lead to windfall gains.

The OECD has significantly expanded available comparative data on tax incentives for investment and innovation through the OECD Tax Incentive Database and the R&D tax incentives databases. Ongoing work includes examining the interaction of tax incentives the Global Minimum Tax, and the use of tax incentives to support the green transition.