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| Author | : Albert Wijeweera |
| Publisher | : |
| Total Pages | : |
| Release | : 2004 |
| Genre | : |
| ISBN | : 9781863899215 |
| Author | : Anwar Shah |
| Publisher | : World Bank Publications |
| Total Pages | : 49 |
| Release | : 1990 |
| Genre | : Direkte investeringer |
| ISBN | : |
| Author | : Joosung Jun |
| Publisher | : World Bank Publications |
| Total Pages | : 40 |
| Release | : 1994 |
| Genre | : Direkte investeringer |
| ISBN | : |
| Author | : Mr. Alexander D Klemm |
| Publisher | : International Monetary Fund |
| Total Pages | : 30 |
| Release | : 2022-05-06 |
| Genre | : Business & Economics |
| ISBN | : |
The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies. We first model effective marginal and average tax rates (EMTRs and EATRs) by country, industry, and method of finance, and then use those tax rates to calculate the tax semi-elasticities of inbound FDI and PPE investment. We find that both PPE investment and FDI financed with retained earnings responded positively to the TCJA reform, but FDI financed with new equity or debt did not. In country-level PPE regressions, inclusion of macroeconomic controls renders tax rate coefficients insignificant, suggesting that the increase in PPE investment after TCJA was driven by general economic growth. In regressions of FDI financed with retained earnings, however, tax coefficients were robust to inclusion of macroeconomic controls. As the literature predicts, EATRs have a greater impact on cross-border investment than EMTRs. Country-by-industry regressions showed a larger effect of taxes on PPE investment than aggregate country-level regressions, but industry-level tax rates appear to have no effect on earnings retention.
| Author | : Jack M. Mintz |
| Publisher | : World Bank Publications |
| Total Pages | : 32 |
| Release | : 1992-01-01 |
| Genre | : Business & Economics |
| ISBN | : 9780821323014 |
This report is based on a detailed analysis of the impact that CEE corporate income tax regimes have on the profitability of foreign investment. It has two purposes. The first is to describe the analysis and compare the corporate income tax regimes in the five CEE countries with the regimes in other countries that might compete for the same capital. The second purpose is to discuss the benefits and costs of the various options that the five CEE countries may consider for development of their corporate income tax policies. Particular attention is paid to the effects of tax holidays, which are temporary tax relief that all five countries offer to foreign investors. Some other tax incentives are examined including the impact that inflation would have on them.
| Author | : Jacques Morisset |
| Publisher | : World Bank Publications |
| Total Pages | : 34 |
| Release | : 2000 |
| Genre | : Fiscal policy |
| ISBN | : |
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 | : |
| Total Pages | : 68 |
| Release | : 1993 |
| Genre | : Foreign tax credit |
| ISBN | : |
This paper examines the effect of taxation on foreign investment and on business location within the United States. The idea is to compare the inter-state distribution of investments from certain foreign countries (those with foreign tax credit systems) with the distribution of investments from other countries. Investors from countries with foreign tax credit systems receive home-country tax credits for income taxes paid to US states, so they are less likely than are other investors to avoid investing in high-tax states. The results indicate that 1% differences in state corporate tax rates are associated with 7-9% differences between the investment shares of foreign tax credit investors and the investment shares of all others, suggesting that state taxes significantly influence the pattern of foreign direct investment in the US.
| Author | : Taejoo Kim |
| Publisher | : |
| Total Pages | : 288 |
| Release | : 2001 |
| Genre | : Income tax |
| ISBN | : |
| Author | : Christian Bellak |
| Publisher | : |
| Total Pages | : 13 |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
In this note we show that tax-rate elasticities of Foreign Direct Investment (FDI) to Central and East European Countries (CEECs) derived from statutory corporate income tax rates (STRs) are likely to be flawed. From a conceptual point of view STRs are problematic as they neither capture tax base effects, nor effects of the home country, the international or the supranational tax laws on the corporate tax burden. Concerning FDI, from an empirical point of view STRs are questionable as their behavior over time and between country-pairs may be very different from that of the conceptually superior bilateral corporate effective average tax rates (BCEATRs). We compare the variability of STRs and BCEATRs of seven major home countries of FDI in eight major CEEC host countries during the period 1995-2005 via Levene-tests, using a unique dataset. Results confirm that using STRs instead of BCEATRs in empirical investigations of FDI is likely to result in too low tax-rate elasticities.
| Author | : Alex Knauer |
| Publisher | : GRIN Verlag |
| Total Pages | : 73 |
| Release | : 2008-02 |
| Genre | : Business & Economics |
| ISBN | : 3638913767 |
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, 19 entries in the bibliography, 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.
