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Author: Alex Knauer
Publisher: GRIN Verlag
ISBN: 3638006832
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
Seminar paper from the year 2006 in the subject Economics - Finance, grade: 1,3, University of Duisburg-Essen (Mercator School of Management), course: Internationalisierung von Unternehmen, language: English, abstract: Foreign direct investment has often been of great importance for developing countries and countries in transition. These countries develop various strategies to attract FDI, one of which includes the taxation attractiveness. This paper deals with the impact of international taxation on investment location choice of multinational firms. General aspects of taxation of the FDI destination country and the source country are looked close upon. Such general tax factors like corporate income tax rate, indirect taxes and tax law transparency, as well as tax incentives and taxation in the investor’s home country, play an important role for a multinational’s investment location decision, especially for the decision of footloose industries like export-oriented firms or manufacturing companies. Further, bilateral tax treaties including provisions of foreign tax credits, exemptions and tax savings affect the investor’s tax planning, since they may alleviate or completely eliminate the problem of double taxation. Tax avoidance is also an important factor described in the paper. High tax rates, tax incentives and tax treaties may encourage multinational firms to use tax avoidance strategies in order to qualify for tax incentives or extend received ones, or to carry out profit reallocations.
Author: Alex Knauer
Publisher: GRIN Verlag
ISBN: 3638006832
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
Seminar paper from the year 2006 in the subject Economics - Finance, grade: 1,3, University of Duisburg-Essen (Mercator School of Management), course: Internationalisierung von Unternehmen, language: English, abstract: Foreign direct investment has often been of great importance for developing countries and countries in transition. These countries develop various strategies to attract FDI, one of which includes the taxation attractiveness. This paper deals with the impact of international taxation on investment location choice of multinational firms. General aspects of taxation of the FDI destination country and the source country are looked close upon. Such general tax factors like corporate income tax rate, indirect taxes and tax law transparency, as well as tax incentives and taxation in the investor’s home country, play an important role for a multinational’s investment location decision, especially for the decision of footloose industries like export-oriented firms or manufacturing companies. Further, bilateral tax treaties including provisions of foreign tax credits, exemptions and tax savings affect the investor’s tax planning, since they may alleviate or completely eliminate the problem of double taxation. Tax avoidance is also an important factor described in the paper. High tax rates, tax incentives and tax treaties may encourage multinational firms to use tax avoidance strategies in order to qualify for tax incentives or extend received ones, or to carry out profit reallocations.
Author: Martin Feldstein
Publisher: University of Chicago Press
ISBN: 0226241874
Category : Business & Economics
Languages : en
Pages : 338
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Book Description
The tax rules of the United States and other countries have intended and unintended effects on the operations of multinational corporations, influencing everything from the formation and allocation of capital to competitive strategies. The growing importance of international business has led economists to reconsider whether current systems of taxing international income are viable in a world of significant capital market integration and global commercial competition. In an attempt to quantify the effect of tax policy on international investment choices, this volume presents in-depth analyses of the interaction of international tax rules and the investment decisions of multinational enterprises. Ten papers assess the role played by multinational firms and their investment in the U.S. economy and the design of international tax rules for multinational investment; analyze channels through which international tax rules affect the costs of international business activities; and examine ways in which international tax rules affect financing decisions of multinational firms. As a group, the papers demonstrate that international tax rules have significant effects on firms' investment and other financing decisions.
Author: Jacques Morisset
Publisher: World Bank Publications
ISBN:
Category : Fiscal policy
Languages : en
Pages : 34
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Book Description
Tax incentives neither make up for serious deficiencies in a country's investment environment nor generate the desired externalities. But when other factors, such as infrastructure, transport costs, and political and economic stability are more or less equal, the taxes in one location may have a significant effect on investors' choices. This effect varies, however, depending on the tax instrument used, the characteristics of the multinational company, and the relationship between the tax systems of the home and recipient countries.
Author: James R. Hines
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 592
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Book Description
Collection of articles on international aspects of taxation issues, originally published in economic research journals in the period between 1980 and 2004. The various parts focus on foreign direct investment, international borrowing, tax avoidance, tax competition, and international tax policy implications.
Author: James R. Hines
Publisher: University of Chicago Press
ISBN: 0226341755
Category : Business & Economics
Languages : en
Pages : 285
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Book Description
Because the actions of multinational corporations have a clear and direct effect on the flow of capital throughout the world, how and why these firms behave the way they do is a major issue for national governments and their policymakers. With an unprecedented ability to adjust the scale, character, and location of their global operations, international corporations have become increasingly sensitive to the kind and degree of tax obligations imposed on them by both host and home countries. Tax rules affect the volume of foreign direct investment, corporate borrowing, transfer pricing, dividend and royalty payments, and research and development. National governments that tax the profits of international firms face important challenges in designing tax policies to attract them. This collection examines the global ramifications of tax policies, offering up-to-date, theoretically innovative, and empirically sound perspectives on a problem of immense significance to future economic growth around the globe.
Author: Assaf Razin
Publisher: University of Chicago Press
ISBN: 0226705889
Category : Business & Economics
Languages : en
Pages : 456
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Book Description
The increasing globalization of economic activity is bringing an awareness of the international consequences of tax policy. The move toward the common European market in 1992 raises the important question of how inefficiencies in the various tax systems—such as self-defeating tax competition among member nations—will be addressed. As barriers to trade and investment tumble, cross-national differences in tax structures may loom larger and create incentives for relocations of capital and labor; and efficient and equitable income tax systems are becoming more difficult to administer and enforce, particularly because of the growing importance of multinational enterprises. What will be the role of tax policy in this more integrated world economy? Assaf Razin and Joel Slemrod gathered experts from two traditionally distinct specialties, taxation and international economics, to lay the groundwork for understanding these issues, which will require the attention of scholars and policymakers for years to come. Contributors describe the basic provisions of the U.S. tax code with respect to international transactions, highlighting the changes contained in the U.S. Tax Reform Act of 1986; explore the ways that tax systems influence the decisions of multinationals; examine the effect of taxation on trade patterns and capital flows; and discuss the implications of the opening world economy for the design of optimal international tax policy. The papers will prove valuable not only to scholars and students, but to government economists and international tax lawyers as well.
Author: Karl P Sauvant
Publisher: Oxford University Press
ISBN: 0199745188
Category : Law
Languages : en
Pages : 800
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Book Description
Over the past twenty years, foreign direct investments have spurred widespread liberalization of the foreign direct investment (FDI) regulatory framework. By opening up to foreign investors and encouraging FDI, which could result in increased capital and market access, many countries have improved the operational conditions for foreign affiliates and strengthened standards of treatment and protection. By assuring investors that their investment will be legally protected with closed bilateral investment treaties (BITs) and double taxation treaties (DTTs), this in turn creates greater interest in FDI.
Author: Ruud A. de Mooij
Publisher: International Monetary Fund
ISBN: 1513511777
Category : Business & Economics
Languages : en
Pages : 388
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Book Description
The book describes the difficulties of the current international corporate income tax system. It starts by describing its origins and how changes, such as the development of multinational enterprises and digitalization have created fundamental problems, not foreseen at its inception. These include tax competition—as governments try to attract tax bases through low tax rates or incentives, and profit shifting, as companies avoid tax by reporting profits in jurisdictions with lower tax rates. The book then discusses solutions, including both evolutionary changes to the current system and fundamental reform options. It covers both reform efforts already under way, for example under the Inclusive Framework at the OECD, and potential radical reform ideas developed by academics.
Author: Ruud A. de Mooij
Publisher: International Monetary Fund
ISBN: 149830009X
Category : Business & Economics
Languages : en
Pages : 44
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Book Description
This paper explores how corporate income tax reform can help Japan increase investment and boost potential growth. Using international and Japan-specific empirical estimates of corporate tax elasticities, investment is predicted to expand by around 0.4 percent for each point of rate reduction. International consensus estimates suggest further that between 10 and 30 percent of the static revenue loss could be recovered in the long run through dynamic scoring, although Japan’s offset may be closer to the lower bound. Compensating fiscal measures are necessary in light of Japan’s tight fiscal constraints. The scope for base broadening in the corporate income tax is found to be limited and some forms of base broadening will undo positive investment effects of a rate cut. Alternative revenue sources include higher consumption and property taxes. A gradual approach toward lowering tax rates mitigates windfall gains and reduces short-run revenue costs. An incremental allowance-for-corporate-equity system could boost investment with limited fiscal costs in the short run.
Author: Alberto Giovannini
Publisher: University of Chicago Press
ISBN: 9780226297019
Category : Business & Economics
Languages : en
Pages : 348
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Book Description
This book presents research on how taxes affect the investment and financing decisions of multinationals. The contributors examine the effects of taxation on decisions about international financial management, business investment, and international income shifting. They consider the influence of tax rules on dividend policy decisions within multinationals; the extent to which tax incentives affect the level and location of research and development across countries; and the fact that foreign-controlled companies operating in the United States pay lower taxes than do domestically controlled companies.
