Globalization and the competition of countries to attract companies and capital has resulted in a downward trend for Corporation Tax: in twenty years the rate has decreased a quarter from the 28% it represented in 2000 to 20.6% in 2020, according to data collected by the OECD in 119 countries or jurisdictions analyzed. Spain During this time interval it was no exception: if it had a rate of 35% twenty years ago, now it has a rate of 25%, still higher than the OECD average.
At the same time, in these twenty years the tax has increased its weight in world tax collection: The 2.7% of the GDP that it represented in 2000 in 2017 was 3.1%. Spain had a contrary trend: it went from entering 2.9% in 2000 to 2.2% in 2017. Nour country enters less despite having a higher rate for tax exemptions, deductions and discounts, which the Independent Authority for Fiscal Responsibility (Airef) is now reviewing along with those of the rest of the tax system.
In these twenty years they were approved reductions in corporation tax in 88 jurisdictions, while there were increases in 6 and in the remaining 15 there were no changes. While in 2000 there were 13 jurisdictions with a nominal rate of Companies greater than or equal to 40%, twenty years later it was only in that group India (with 48.3%, which includes a tax for the distribution of dividends).
Along with these trends, the report “Corporate Tax Statistics” includes an avalanche of data collected through the country by country report that 4,000 multinationals Delivered since 2016: Although they are based in 26 countries, their operations extend to more than one hundred countries worldwide. On average effective rates are somewhat lower Among the jurisdictions analyzed, the nominal ones in Spain are similar, around 19% compared to 25% of theoretical type.
The OECD reaches several conclusions after analyzing the data of this group of multinationals. “There is decoupling between where benefits are declared and where they are generated economic activities ”, includes the Organization for Economic Cooperation and Development (OECD).
Innovation and development
Interestingly, most countries support innovation more than in 2006, although Spain is one of the exceptions. The tax aid to business R&D they are below the average for other countries, as well as direct financing, which together represents less than 0.1% of GDP, far from almost 0.5% dedicated by Russia or 0.4% by France .
The OECD also listens to what intellectual property tax regimes are like. In Spain in these settings the type of Companies falls from 25% of the nominal to 10%, a real guy who is even a little less in the Basque Country and Navarra. In countries such as Luxembourg, the rate becomes 5% in these cases, while in Ireland it is 7% and in Hungary or Uruguay, 0%.