Did the Tax Cuts and Jobs Act Reduce Profit Shifting by US Multinational Companies?
Did the Tax Cuts and Jobs Act Reduce Profit Shifting by US Multinational Companies?
| Autoři: | Javier Garcia-Bernardo Petr Jansky Gabriel Zucman |
|---|---|
| Publikováno v: | IES Working Papers 28/2025 |
| Klíčová slova: | multinational corporation; corporate taxation; profit shifting; effective tax rate; country-by-country reporting; Tax Cuts and Jobs Act |
| JEL kódy: | F23, H25, H26, H32 |
| Citace: | Garcia-Bernardo J., Jansky P., Zucman G. (2025): " Did the Tax Cuts and Jobs Act Reduce Profit Shifting by US Multinational Companies? " IES Working Papers 28/2025. IES FSV. Charles University. |
| Abstrakt: | The 2017 Tax Cut and Jobs Act lowered the US corporate tax rate and introduced provisions to curb profit shifting. We combine survey data, tax data, and firm financial statements to study the evolution of the geographical allocation of US firms’ profits after the reform. Between 2017 and 2020, the share of profits booked abroad declined by 1–5 percentage points, in part related to repatriations of intellectual property to the US. However, the share of foreign profits booked in tax havens remained stable at around 50%. While aggregated changes in profit allocation are small, a number of firms responded strongly. |
| Ke stažení: | wp_2025_28_garcia-bernardo, jansky, zucman |
