||Abstract This thesis aims to analyze the scope of proﬁt shifting by U.S. multinational corporations using eﬀective tax rates as a metric. Alternatively, unlike other academic literature on the subject, this work complements the analysis by utilizing also statutory coporate tax rate. The main contribution of the thesis is an econometric analysis of the most recent data provided by Bur- eau of Economic Analysis. It is shown that the scope of proﬁt shifting is rising with gross income sensitivity to eﬀective tax rates clearly increasing in the time span from 1983 till 2015. According to the panel data from this time span, one percentage point increase in eﬀective tax rate would decrease the reported gross income in a low tax jurisdiction by 2.4 percent. Interestingly, an analogous analysis using statutory tax rates does not yield any statistically signiﬁcant eﬀect. Moreover, results show that the richer the country is, the lower its eﬀective tax rate and the higher its statutory rate. These results indicate that the two metrics can have diﬀerent implications. Furthermore, if some version of proﬁt apportionment formula was applied on the proﬁt of U.S. multinationals, a signiﬁcant proﬁt redistribution would take place. Gross income would oftentimes be attributed to developing coun- tries with a large share of workforce. On the other hand, tax havens would lose much income if the apportionment mechanism applied. All these results indicate a large and still increasing scale of proﬁt shifting in the countries with a low tax rate.