Reproducibility package for Effective Tax Rates, Firm Size And The Global Minimum Tax

2025

Get Reproducibility Package

Reference ID

RR_WLD_2025_281

DOI

https://doi.org/10.60572/hj9f-6w85

Author(s)

Pierre Bachas, Anne Brockmeyer, Roel Dom, Camille Semelet, Santiago Rodrigo Cesteros

Collections

World Bank Policy Research Working Papers

Metadata

JSON

Created on

Mar 26, 2025

Last modified

Mar 26, 2025

Overview

Abstract

We document new facts on corporate taxation and the revenue potential of corporate minimum taxes, leveraging firm-level tax returns from 16 countries. First, effective taxes rates (ETRs) follow a humped-shaped pattern with firm size: small firms beneit from reduced rates, while large firms take up tax incentives, leaving mid-sized firms with the highest ETRs. On average, the ETR for the largest 1% of firms is 2.2 percentage points lower than the average ETR for top decile firms. Second, althoug statutory tax rates are above 15% in all sample countries, over a quarter of top firms face an ETR below 15%, challenging the simple tax haven vs non-haven dichotomy. Third, a simple 15% domestic minimum tax for the top 1% firms could raise corporae taxes by 14% on average across countries, absent behavioral responses. In contrast, the global minimum top-up tax would only raise a quarter of this revenue due to its generous deductions and a smaller number of firms in scope.

Reproducibility Package

Scripts

Readme Get Reproducibility Package

Link: https://reproducibility.worldbank.org/index.php/catalog/258/download/758/README.pdf

Reproducibility package for Effective Tax Rates, Firm Size And The Global Minimum Tax

Title

Reproducibility package for Effective Tax Rates, Firm Size And The Global Minimum Tax

Date

2025-03

Dependencies

R dependencies are listed in the file renv.lock. Stata dependencies are listed in the ado folder.

Notes

Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.

Source code repository

Repository name	URI
Reproducible Research Repository (World Bank)	https://reproducibility.worldbank.org

Software

Name

Version

4.4.2

Stata

Name

Stata

Version

16.1 MP

Reproducibility

Technology environment

Paper exhibits were reproduced on a computer with the following specifications:
– OS: Windows Server 2016 Standard
– Processor: Intel(R) Xeon(R) CPU E7-4890 v2 @ 2.80GHz 2.79 GHz (8 processors)
– Memory available: 128 GB
– Software version: R 4.4.2, Stata 16.1 MP

Technology requirements

Runtime: 2 hours

Reproduction instructions

Access to data: There is no documented way to access the corporate tax data, and one dataset (Orbis) requires purchase. No portion of the code can run without the restricted datasets. See the README and the Datasets section for details.
Download and place data: Once the data is obtained, users should put it in the appropriate folders.
Run the code: After placing the data in the folder:
- Open to do-files "0_master_cleaning", "2_4_GMT_output", and "Code_FA2" and update the path globals in lines 41, 11, and 17 respectively
- Open the script "0_master_ETR_GMT.R"
- Update the variable project in line 154
- Update the path to the Stata executable in line 246
- Run the script

Since not all the data is accessible, the package includes the results produced by replicators in the folder "output/figures" and "output/tables". These files can be used to review the results presented in the paper.

Data

Datasets

Corporate tax data - Albania

Name

Corporate tax data - Albania

Note

Source: General Directorate of Taxation (DPT). Data files from this data source are specified in the README. Data was accessed in May 2020.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Colombia

Name

Corporate tax data - Colombia

Note

Source: Dirección de Impuestos y Aduanas Nacionales (DIAN). Data files from this data source are specified in the README. Data was accessed in July 2024.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Costa Rica

Name

Corporate tax data - Costa Rica

Note

Source: Ministerio de Hacienda. Data files from this data source are specified in the README. Data was accessed in August 2021.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Dominican Republic

Name

Corporate tax data - Dominican Republic

Note

Source: Dirección General de Impuestos Internos (DGII). Data files from this data source are specified in the README. Data was accessed in November 2019.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Ecuador

Name

Corporate tax data - Ecuador

Note

Source: Servicio de Rentas Internas (SRI). Data files from this data source are specified in the README. Data was accessed in August 2018.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Eswatini

Name

Corporate tax data - Eswatini

Note

Source: Eswatini Revenue Service (ERS). Data files from this data source are specified in the README. Data was accessed in July 2020.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Ethiopia

Name

Corporate tax data - Ethiopia

Note

Source: Ethiopian Revenues and Customs Authority (ERCA). Data files from this data source are specified in the README. Data was accessed in June 2018.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Greece

Name

Corporate tax data - Greece

Note

Source: Independent Authority for Public Revenue (IAPR). Data files from this data source are specified in the README. Data was accessed in January 2021.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Guatemala

Name

Corporate tax data - Guatemala

Note

Source: Superintendencia de Administración Tributaria (SAT). Data files from this data source are specified in the README. Data was accessed in February 2016.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Honduras

Name

Corporate tax data - Honduras

Note

Source: Servicio de Administración de Rentas (SAR). Data files from this data source are specified in the README. Data was accessed in April 2022.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Jamaica

Name

Corporate tax data - Jamaica

Note

Source: Tax Administration Jamaica (TAJ). Data files from this data source are specified in the README. Data was accessed in April 2024.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Mexico

Name

Corporate tax data - Mexico

Note

Source: Servicio de Administración Tributaria (SAT). Data files from this data source are specified in the README. Data was accessed in November 2018.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Rwanda

Name

Corporate tax data - Rwanda

Note

Source: Rwanda Revenue Authority (RRA). Data files from this data source are specified in the README. Data was accessed in June 2021.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Senegal

Name

Corporate tax data - Senegal

Note

Source: Directorate General of Taxes and Domains (DGID). Data files from this data source are specified in the README. Data was accessed in April 2021.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - South Africa

Name

Corporate tax data - South Africa

Note

Source: South African Revenue Service (SARS). Data files from this data source are specified in the README. Data was accessed in October 2022.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Corporate tax data - Uganda

Name

Corporate tax data - Uganda

Note

Source: Uganda Revenue Authority (URA). Data files from this data source are specified in the README. Data was accessed in June 2020.

Access policy

There is no documented way to access the data, and it is not included in the reproducibility package. See README for more information.

Orbis

Name

Orbis

Note

Source: Moody's. Orbis is a dataset with data on private companies' ownership, investments, and mergers and acquisitions. Data files from this data source are specified in the README. Data was accessed in October 2025.

Access policy

Data access requires purchase and is not included in the reproducibility package.

License URL

https://www.moodys.com/web/en/us/legal/terms-of-use.html

Data URL

https://www.moodys.com/web/en/us/capabilities/company-reference-data/orbis.html

Exchange Rates from the OECD

Name

Exchange Rates from the OECD

Note

Source: OECD. Data files from this data source are specified in the README. Data was accessed in December 2024 (except for data for Greece which was accessed in July 2024).

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License

Creative Commons Attribution BY 4.0 licence

License URL

https://creativecommons.org/licenses/by/4.0/

Data URL

https://stats.oecd.org/

OECD Country-by-Country Reporting (CbCR) for Tax Purposes

Name

OECD Country-by-Country Reporting (CbCR) for Tax Purposes

Note

Source: OECD. Data files from this data source are specified in the README. Data was accessed in March 2024.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License URL

https://www.oecd.org/en/about/terms-conditions.html

Data URL

https://www.oecd.org/tax/beps/country-by-country-reporting.htm

Total Number of Firms by country from the World Bank Entrepreneurship Database

Name

Total Number of Firms by country from the World Bank Entrepreneurship Database

Note

Source: World Bank. Data files from this data source are specified in the README. Data was accessed in October 2024.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License

Creative Commons Attribution 4.0 International License (CC BY 4.0) with additional terms specified in the license URL

License URL

https://www.worldbank.org/en/about/legal/terms-of-use-for-datasets

Data URL

https://www.worldbank.org/en/programs/entrepreneurship/total-number-of-firms

World Inequality Database

Name

World Inequality Database

Note

Source: World Inequality Database. Indicators used: gross operating surplus and mixed income for all ages and individuals. Data files from this data source are specified in the README. Data was accessed in October 2024.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

Data URL

https://wid.world/data/

Global Tax Expenditures Database (GTED)

Name

Global Tax Expenditures Database (GTED)

Note

Source: GTED. Indicators used: revenue forgone (USD) and revenue forgone from corporate income tax (percentage). Data files from this data source are specified in the README. Data was accessed in September 2023.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

Data URL

https://gted.taxexpenditures.org/data-download/

IMF World Revenue Longitudinal Data (WoRLD)

Name

IMF World Revenue Longitudinal Data (WoRLD)

Note

Source: International Monetary Fund. Data files from this data source are specified in the README. Data was accessed in September 2023.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License URL

https://www.imf.org/en/About/copyright-and-terms#data

Data URL

https://prosperitydata360.worldbank.org/en/dataset/IMF+WoRLD

UNU-WIDER Government Revenue Dataset

Name

UNU-WIDER Government Revenue Dataset

Note

Source: United Nations University World Institute for Development. Data files from this data source are specified in the README. Data was accessed in March 2023.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License

Creative Commons Attribution-NonCommercial-ShareAlike 3.0 IGO

License URL

https://creativecommons.org/licenses/by-nc-sa/3.0/igo/

Data URL

https://www.wider.unu.edu/project/grd-government-revenue-dataset

Harmonized tax revenue data from Bachas et al. (2022)

Name

Harmonized tax revenue data from Bachas et al. (2022)

Note

Source: "How has globalization affected the taxation of labor and capital incomes?" by Pierre Bachas, Matthew Fisher-Post, Anders Jensen, and Gabriel Zucman. Data files from this data source are specified in the README. Data was accessed in February 2023.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

Data URL

https://globaltaxation.world/

World Development Indicators

Name

World Development Indicators

Note

Source: World Bank. Indicators: population, inflation, exchange rates, GDP per capita. Data files from this data source are specified in the README. Data was accessed in December 2024.

Access policy

Data is publicly available in the data URL but it is not included in the reproducibility package.

License

Creative Commons Attribution 4.0 International License (CC BY 4.0) with additional terms specified in the license URL

License URL

https://www.worldbank.org/en/about/legal/terms-of-use-for-datasets

Data URL

https://databank.worldbank.org/source/world-development-indicators

Data statement

Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.

Description

Output

Effective Tax Rates, Firm Size And The Global Minimum Tax

Type

PRWP Working Paper

Title

Effective Tax Rates, Firm Size And The Global Minimum Tax

Authors

Pierre Bachas, Anne Brockmeyer, Roel Dom, Camille Semelet

Description

Policy Research Working Papers (PRWP)

URL

http://documents.worldbank.org/curated/en/099225003242534123

Authors

Author	Affiliation	Email
Pierre Bachas	World Bank and EU Tax Observatory	pbachas@worldbank.org
Anne Brockmeyer	IFS, UCL, World Bank and CEPR	abrockmeyer@worldbank.org
Roel Dom	University of Antwerp and World Bank	roel.dom@uantwerpen.be
Camille Semelet	University of Munich, ifo Institute and World Bank	semelet@ifo.de
Santiago Rodrigo Cesteros	World Bank	scesteros@worldbank.org

Date of production

2025-03-17

Scope and coverage

Geographic locations

Location	Code
World	WLD

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

License

Name	URI
Modified BSD3	https://opensource.org/license/bsd-3-clause/

Contacts

Name	Affiliation	Email
Santiago Rodrigo Cesteros	World Bank	scesteros@worldbank.org
Reproducibility WBG	World Bank	reproducibility@worldbank.org

Information on metadata

Producers

Name	Abbreviation	Affiliation	Role
Reproducibility WBG	DIME	World Bank - Development Impact Department	Verification and preparation of metadata

Date of Production

2025-03-17

Document version

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