the importance of the actual tax rate. For Japan, which charges a higher tax rate on corporate profits than Germany, we … find a substantial increase of FDI in Germany after the switch from worldwide to territorial taxation. For the UK, which … imposes a lower tax rate than Germany, the switch to territorial taxation is not found to exert any significant effects on …

-shifting, are large. We test this prediction using confidential firm-level tax-return data for the local business tax in Germany …