Reproducibility package for Income Taxation of Top Earners in Honduras: Linking Personal & Corporate Taxes
Overview
This note is an innovative example of using tax records in a developing country to assess the effective income tax rates of top earners, including a comprehensive measure of income by linking personal and corporate income. It builds on an extensive collaboration with the Honduras Tax Authority ( Servicio de Administración de Rentas, SAR), that allowed for the construction of comprehensive income, by connecting firms to their shareholders and assigning undistributed profits to them. The results highlight the crucial link between the design of personal and corporate income taxes, since a large share of income attributable to top earners consists of undistributed profits. We document that undistributed corporate profits represent more than 50 percent of total comprehensive income for the top 0.05 percent of earners, whereas distributed capital income represents less than 15 percent.
Reproducibility Package
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Reproducibility
Paper exhibits were reproduced on a computer with the following specifications:
– OS: Windows 10 Enterprise
– Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.90 GHz (2 processors)
– Memory available: 32 GB
– Software version: Microsoft Excel for Microsoft 365 MSO (Version 2402 Build 16.0.17328.20550) 64-bit
~ 10 minutes
The data for this package is strictly confidential, which makes obtaining access and running the package challenging. However, the results obtained by the replicators are stored in the 'output' folder and can be compared against the paper to validate reproducibility.
Data
Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.
Description
| Author | Affiliation | |
|---|---|---|
| Thiago Scot | World Bank | tscot@worldbank.org |
| Pierre Bachas | World Bank | pbachas@worldbank.org |
| Santiago Cesteros | World Bank | scesteros@worldbank.org |
| Tatiana Flores | World Bank | rfloresibarra@worldbank.org |
| Gabriel Oqueli | World Bank | gabriel.oqueli@unah.hn |
| Edgardo Espinal | Servicio de Administracion de Rentas de Honduras (SAR) | eespinal@sar.gob.hn |
| Wilman Nuñez | Servicio de Administracion de Rentas de Honduras (SAR) | wponce@sar.gob.hn |
2024-12
Scope and coverage
| Location | Code |
|---|---|
| Honduras | HND |
Disclaimer
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
Access and rights
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
Contacts
| Name | Affiliation | |
|---|---|---|
| Thiago Scot | World Bank | tscot@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
Information on metadata
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
2024-12-19
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