The Evolution of US Multinational Tax Planning: Evidence from Effective Tax Rate Reconciliation Statements

• In Event: Reporting, Transparency, and Information Exchange

Abstract

We compile a novel dataset from effective tax rate reconciliation statements filed by US multinational public corporations. In contrast to publicly available tax data, this information is available for more recent tax years and is disaggregated at the firm level. This dataset allows us to examine the evolution of US multinationals' use of tax incentives related to foreign income. We find large shifts in the use of tax incentives that aim to repatriate foreign intangible assets after 2020. We examine sectoral differences in the use of these incentives and drivers of heterogeneity in tax planning across firms.

Authors

• Alexander Arnon, Penn Wharton Budget Model, University of Pennsylvania

• Lysle Boller, University of Pennsylvania

• Xiaoyue Sun, Penn Wharton Budget Model