The Disappearing Tax Base : Is Foreign Direct Investment (FDI) Eroding Corporate Income Taxes? /

This paper analyzes the link between FDI, corporate taxation, and corporate tax revenues. We find strong evidence that FDI in (out) flows are affected by tax regimes in the host (home) countries and FDI flows in turn affect the corporate tax base. Simulations of European Union (EU) harmonization (is...

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Hlavní autor: Gropp, Reint
Další autoři: Kostial, Kristina
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2000.
Edice:IMF Working Papers; Working Paper ; No. 2000/173
On-line přístup:Full text available on IMF
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Shrnutí:This paper analyzes the link between FDI, corporate taxation, and corporate tax revenues. We find strong evidence that FDI in (out) flows are affected by tax regimes in the host (home) countries and FDI flows in turn affect the corporate tax base. Simulations of European Union (EU) harmonization (isolating the revenue effect of FDI on the tax base from direct effects through the rate harmonization) suggest that high (low) tax countries would gain (lose) revenue from harmonization; these effects may be substantial. Our results also suggest that EU tax harmonization would significantly affect the net FDI position of some countries.
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Fyzický popis:1 online resource (39 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students