About the indicator

When a country makes special tax arrangements for multinational corporations, they pay far less than the statutory corporate income tax rate on profits. This also may trigger a race to the bottom in tax rates across the world. This indicator measures the country's lowest available corporate income tax rate for any large, tax-resident for-profit company. It takes the statutory corporate income tax rate as a starting point and then analyses legal gaps and loopholes that result in lower tax rates, such as those based on sector, company size, region of operation or individual arrangements. The indicator compares the lowest available corporate income tax rate with the highest available corporate income tax rate in a democracy to assess negative spillovers.