The Resource Anti profit-shifting rules and foreign direct investment

Anti profit-shifting rules and foreign direct investment

Label
Anti profit-shifting rules and foreign direct investment
Title
Anti profit-shifting rules and foreign direct investment
Creator
Subject
Language
eng
Summary
This paper explores the effects of unilateral tax provisions aimed at restricting multinationals' tax planning on foreign direct investment (FDI). Using a unique dataset which allows the authors to observe the worldwide activities of a large panel of multinational firms, the authors test how limitations of interest tax deductibility, thin-capitalization rules, and regulations of transfer pricing by the host country affect investment and employment of foreign subsidiaries. The results indicate that introducing a typical thin-capitalization rule or making it more tight exerts significant adverse effects on FDI and employment in high-tax countries. Moreover, in countries that impose thin-capitalization rules, the tax-rate sensitivity of FDI is increased. Regulations of transfer pricing, however, are not found to exert significant effects on FDI or employment
Citation source
In: International tax and public finance. - New York. - Vol. 25 (2018), no. 3 ; p. 553-580
http://library.link/vocab/creatorName
  • Buettner, T
  • Overesch, M
  • Wamser, G
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • foreign investment
  • BEPS
  • corporate income tax
  • interest deduction
  • thin capitalization
  • transfer pricing
Label
Anti profit-shifting rules and foreign direct investment
Instantiates
Publication
Label
Anti profit-shifting rules and foreign direct investment
Publication

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