USEITI logo
How it works /

Corporate Income Tax

Due to U.S. law, information about companies’ individual income tax payments is confidential. However, there are two key sources of publicly available information about federal income taxes for the extractive industries: the government and the filings of companies that are publicly listed.

Tax information from government sources

As mandated by the Revenue Act of 1916, the Internal Revenue Service (IRS) publishes statistics related to “the operations of the internal revenue laws” as they affect individuals, corporations, and other entities. The IRS Statistics of Income (SOI) program is responsible for executing this function by collecting, processing, and presenting this data, and then sharing information about how the tax system works with other government agencies and the general public.

SOI publishes data on tax statistics and corporation tax statistics. SOI aggregates tax data separately for S-corporations.

SOI presents the data in various ways for corporations, including by size, type of return, and sector or industry. The data by sector or industry is aggregated by NAICS industrial sectors, and then further by major and minor industry classifications. The total federal income tax liability reported by industry should be interpreted with care because industry classification of companies with multiple lines of business are classified into an industry category based on the taxpayer’s determination of the business activity from which it derives the highest percentage of its total receipts.

Corporate income tax receipts

SOI’s calculations of federal corporate income tax receipts from all returns in the mining and petroleum refining sectors for tax years 2009 to 2013 are presented below.1

Industry Total receipts (in millions USD)2
2009 2010 2011 2012 2013
Mining $3,831 $5,722 $5,941 $5,249 $4,896
Oil and gas extraction 1,424 2,152 1,811 1,642 1,943
Coal mining 207 344 325 245 32
Metal ore mining 866 1,573 1,945 1,329 755
Nonmetallic mineral mining and quarrying 181 158 183 233 222
Support activities for mining 1,153 1,494 1,677 1,800 1,944
Petroleum and coal products manufacturing3 $1,897 $5,126 $7,630 $9,223 $6,908
Petroleum refineries (including integrated) 1,772 4,865 7,402 9,064 6,631

Tax information from company filings

Publicly listed companies are required to report tax information in a variety of ways in their annual financial statement filings, including on their statements of cash flows, income statements, and balance sheets. Depending on the geographic scope of a company’s activities, it may be subject to income taxes at the federal, state, local, or foreign levels, which are generally reported as a single aggregate sum of the various types of tax paid during a financial reporting period.

Companies that are not publicly listed are generally not required to publish any of these tax disclosures.

In 2010, the United States enacted the Dodd-Frank Act, which requires listed extractive companies to separately disclose information about payments to governments around the world, including their federal corporate income tax payments. The Securities and Exchange Commission is rewriting the rule and has stated that it will be proposed in the spring of 2016. Once finalized, publicly traded companies will report according to the law and the rule.

Notes

  1. Statistics on corporate income taxes relative to companies performing extractive activities are generally classified under the NAICS Mining major industry. In addition, integrated companies that operate in both the downstream extractive and refining spaces are classified under the NAICS Petroleum and Coal Products Manufacturing major industry.

  2. Internal Revenue Service, Tax Returns of Active Corporations. All figures are estimates based on samples.

  3. Petroleum and coal products manufacturing encompasses an additional industry subcategory, Asphalt paving, roofing, other petroleum and coal products, which as exluded because it is outside the scope of EITI.