02748cas a2200325 a 4500 AALejournalIMF023212 230101c9999 xx r poo 0 0eng d 9798400221729 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Hebous, Shafik. Excess Profit Taxes : Historical Perspective and Contemporary Relevance / Shafik Hebous, Dinar Prihardini, Nate Vernon. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper discusses the design of excess profits taxes (EPTs) that gained renewed interest following the COVID-19 outbreak and the recent surge in energy prices. EPTs can be designed as an efficient tax only falling on economic rent, like an allowance for corporate capital, and drawing some parallels with current proposals for reforming multinationals' taxation. EPTs can be permanent or temporary as an add-on to the corporate income tax to support revenue during an adverse shock episode. The latter reflects experiences with EPTs during and after the World Wars. Different from that era, though, profit shifting is now a challenge. Estimation using firm-level data suggest that, at present, locations of excess profit across countries are consistent with profit shifting practices by multinationals. Destination-based EPTs can address this concern. Estimates suggest that a 10 percent EPT on the globally consolidated accounts of multinationals (on top of the current corporate income tax), with the EPT base being allocated using sales, raises global revenue by 16 percent of corporate income tax revenues. The analysis suggests that international coordination would be desirable to mitigate the risks of profit shifting and tax competition. Eventually, EPTs could mark an evolution of corporate taxation toward a non-distortionary rent tax. Mode of access: Internet Business Taxes and Subsidies imf Fiscal Policies and Behavior of Economic Agents imf Fiscal Policy imf Nonwage Labor Costs and Benefits imf Private Pensions imf Prihardini, Dinar. Vernon, Nate. IMF Working Papers; Working Paper ; No. 2022/187 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=187 IMF e-Library