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The Distribution of Profit Shifting

Author

Listed:
  • Sarah Clifford
  • Jakob Miethe
  • Camille Semelet

Abstract

Key MessagesTax haven subsidiaries are instrumental in multinational profit shiftingProfit shifting is concentrated in firms exceeding the EUR 750 million revenue threshold of the recently introduced global minimum tax (GMT)The GMT captures 95 percent of shifted profits from German multinationalsGMT compliance costs are modest compared to the revenues raised by large multinational firmsPursuing a consistent policy remains preferable even in light of the recent US exemption

Suggested Citation

  • Sarah Clifford & Jakob Miethe & Camille Semelet, 2025. "The Distribution of Profit Shifting," EconPol Policy Brief 78, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:econpb:_78
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    File URL: https://www.ifo.de/DocDL/EconPol-PolicyBrief_78.pdf
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    References listed on IDEAS

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    1. Thomas Tørsløv & Ludvig Wier & Gabriel Zucman, 2023. "The Missing Profits of Nations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(3), pages 1499-1534.
    2. Thomas Tørsløv & Ludvig Wier & Gabriel Zucman, 2023. "The Missing Profits of Nations," Post-Print halshs-04928943, HAL.
    3. Gaul, Johannes & Klein, Daniel & Müller, Jessica M. & Pfrang, Alina & Schulz, Inga & Spengel, Christoph & Weck, Stefan & Wickel, Sophia & Winter, Sarah, 2022. "Significant costs, limited benefits: A global minimum tax in Germany," ZEW policy briefs 7/2022e, ZEW - Leibniz Centre for European Economic Research.
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    Cited by:

    1. Flora Bellone & Charlie Joyez & Xavier Poulet-Goffard, 2026. "Tax Avoidance by Small Multinationals as a Side Effect of Anti Tax Avoidance Policy," GREDEG Working Papers 2026-10, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Hindriks, Jean & Nishimura, Yukihiro, 2025. "Minimum tax, tax haven and the foreign direct investment," LIDAM Discussion Papers CORE 2025023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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