{
  "title": "Corporate Tax Rates: How Low Can You Go",
  "publication": "IMF Blog, July 15, 2019",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2019/07/15/corporate-tax-rates-how-low-can-you-go",
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  "summary": "Over the past 30 years, corporate tax rates in all countries have fallen to very low levels.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Over the past 30 years, corporate tax rates in all countries have fallen to very low levels.\n- The trend toward lower corporate tax rates, combined with profit-shifting by large multinational corporations, undermines tax revenue and public confidence in tax fairness.\n- A fundamental rethink of international corporate taxation is urgent to address these problems and to protect the revenue base of low-income countries."
    },
    {
      "heading": "Problems identified",
      "content": "- Ease of tax avoidance by multinationals undermines both tax revenue and faith in the fairness of the overall tax system.\n- The existing international corporate tax architecture is described as \"fundamentally out of date.\"\n- Advanced economies have historically shaped international corporate tax rules without sufficient consideration for their effects on low-income countries."
    },
    {
      "heading": "Impact on low-income and non-OECD countries",
      "content": "- The current situation is especially harmful to low-income countries, depriving them of revenue needed to:\n  - achieve higher economic growth,\n  - reduce poverty,\n  - meet the 2030 Sustainable Development Goals.\n- IMF analysis shows non-OECD countries lose about $200 billion in revenue per year, or about 1.3 percent of GDP, due to companies shifting profits to low-tax locations."
    },
    {
      "heading": "IMF analysis and criteria for reform",
      "content": "- New IMF research analyzes options for reform in the context of three key criteria:\n  - better addressing profit-shifting and tax competition;\n  - overcoming the legal and administrative obstacles to reform;\n  - ensuring full recognition of the interests of emerging and developing countries.\n- Large changes are now being considered; rethinking the existing system and addressing root causes could allow all countries, including low-income nations, to benefit."
    },
    {
      "heading": "Policy direction and cooperation",
      "content": "- Effective reform requires countries to work together.\n- Progress needs cooperation among all countries toward a lasting, efficient, and fair approach that pays particular attention to the interests and special circumstances of developing countries."
    },
    {
      "heading": "About the blog entry",
      "content": "- Title: Corporate Tax Rates: How Low Can You Go\n- Author: The Editors\n- Date: July 15, 2019\n- IMFBlog is a forum for views of IMF staff and officials; the IMF is an organization of 191 countries working to foster global monetary cooperation and financial stability.\n- Views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.\n\nIMF Blog — Corporate Tax Rates: How Low Can You Go; The Editors; July 15, 2019.\n\n---\n\n\n References\n\n- https://www.imf.org/wp-content/uploads/2019/07/tax.png\n- a new approach\n- https://www.imf.org/wp-content/uploads/2019/07/tax2.png\n- analysis\n\nSource: https://www.imf.org/en/blogs/articles/2019/07/15/corporate-tax-rates-how-low-can-you-go"
    }
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    "Authors: The Editors",
    "Published: July 15, 2019",
    "Over the past 30 years, corporate tax rates in all countries have fallen to very low levels.",
    "The trend toward lower corporate tax rates, combined with profit-shifting by large multinational corporations, undermines tax revenue and public confidence in tax fairness.",
    "A fundamental rethink of international corporate taxation is urgent to address these problems and to protect the revenue base of low-income countries.",
    "Ease of tax avoidance by multinationals undermines both tax revenue and faith in the fairness of the overall tax system.",
    "The existing international corporate tax architecture is described as \"fundamentally out of date.\"",
    "Advanced economies have historically shaped international corporate tax rules without sufficient consideration for their effects on low-income countries.",
    "The current situation is especially harmful to low-income countries, depriving them of revenue needed to:",
    "IMF analysis shows non-OECD countries lose about $200 billion in revenue per year, or about 1.3 percent of GDP, due to companies shifting profits to low-tax locations.",
    "New IMF research analyzes options for reform in the context of three key criteria:",
    "Large changes are now being considered; rethinking the existing system and addressing root causes could allow all countries, including low-income nations, to benefit.",
    "Effective reform requires countries to work together.",
    "Progress needs cooperation among all countries toward a lasting, efficient, and fair approach that pays particular attention to the interests and special circumstances of developing countries.",
    "Title: Corporate Tax Rates: How Low Can You Go",
    "Author: The Editors",
    "Date: July 15, 2019",
    "IMFBlog is a forum for views of IMF staff and officials; the IMF is an organization of 191 countries working to foster global monetary cooperation and financial stability.",
    "Views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.",
    "[https://www.imf.org/wp-content/uploads/2019/07/tax.png](https://www.imf.org/wp-content/uploads/2019/07/tax.png)",
    "[a new approach](https://www.imf.org/en/News/Articles/2019/03/25/sp032519-md-piie-opening-remarks-on-international-corporate-taxation)",
    "[https://www.imf.org/wp-content/uploads/2019/07/tax2.png](https://www.imf.org/wp-content/uploads/2019/07/tax2.png)",
    "[analysis](https://www.imf.org/en/Publications/Policy-Papers/Issues/2019/03/08/Corporate-Taxation-in-the-Global-Economy-46650)"
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