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Qian, Xuefeng; Tian, Bifei; Reed, W. Robert; Chen, Ziruo - In: Economics: The Open-Access, Open-Assessment E-Journal 12 (2018) 2018-58, pp. 1-25

This paper investigates profit-shifting behaviour among multinational corporations (MNCs) in China. The authors exploit … the flat-rate structure of China's corporate income tax, along with its system of targeted, preferential rates, to …-owned MNCs from the years 2005-2009. Using the traditional approach of regressing before-tax profits on tax rates, the authors …

Persistent link: https://www.econbiz.de/10011902135

Profit shifting of multinational corporations worldwide

Garcia-Bernardo, Javier; Janský, Petr - 2023

We exploit the new country-by-country reporting data of multinational corporations, with unparalleled country coverage, to reveal the distributional consequences of profit shifting. We estimate that multinational corporations worldwide shifted over $ 850 billion in profits in 2017, primarily to...

Persistent link: https://www.econbiz.de/10014494991

The Effects of Multinationals? Profit Shifting Activities on Real Investments

Overesch, Michael - 2007

This paper investigates whether the size of multinationals? real investments in a high-tax country is affected by profit shifting activities. A simple theoretical analysis shows that tax rates abroad impact the cost of capital in the presence of profit shifting activities of multinational...

Persistent link: https://www.econbiz.de/10010297971

Discrete investment and tax competition when firms shift profits

Stöwhase, Sven - 2006

In this paper, we model the tax setting game between two revenue maximizing countries which compete for the location of a single production plant owned by a multinational firm. We introduce the possibility that the multinational can shift a fraction of its profits out of the country where the...

Persistent link: https://www.econbiz.de/10010300160

Unobserved Tax Avoidance and the Tax Elasticity of FDI

Egger, Peter; Merlo, Valeria; Wamser, Georg - 2014

This paper investigates the tax responsiveness of multinational firms' investment decisions in foreign countries, distinguishing firms that are able to avoid taxes (avoiders) from those that are not (non-avoiders). From a theoretical point of view, the tax responsiveness of firms crucially...

Persistent link: https://www.econbiz.de/10010398611

Extending taxation of interest and royalty income at source: An option to limit base erosion and profit shifting?

Finke, Katharina; Fuest, Clemens; Nusser, Hannah; … - 2014

This paper discusses tax policy measures to reduce corporate tax avoidance by extending taxation in the source country without imposing double taxation. We focus on four options: Bilaterally restricting interest and royalty deductibility, introducing an inverted tax credit system, levying...

Persistent link: https://www.econbiz.de/10010420395

Profit Shifting opportunities, Multinationals, and the determinants of FDI

Stöwhase, Sven - 2002

The theory of tax competition suggests that different tools might be used to attract physical capital and taxable profits. While it is assumed that FDI in real activity is deterred by high effective taxes, investment undertaken for purpose of profit-shifting is deterred by a higher statutory tax...

Persistent link: https://www.econbiz.de/10010427361

Asymmetric Capital Tax Competition with Profit Shifting

Stöwhase, Sven - 2004

This paper analyses capital tax competition between jurisdictions of different size when multinational firms can shift some fraction of their tax base between them. For the case of revenue maximizing governments, we show that introducing profit shifting will not generally increase downward...

Persistent link: https://www.econbiz.de/10010427401

Cross-border loss offset can fuel tax competition

Haufler, Andreas; Mardan, Mohammed - 2013

Following recent court rulings, cross-border loss compensation for multinational firms will likely be introduced, at least in Europe. This paper analyzes the effects of introducing a coordinated cross-border tax relief in a setting where multinational firms choose the size of a risky investment...

Persistent link: https://www.econbiz.de/10010427665

Effective tax rates under IP tax planning

Evers, Lisa; Spengel, Christoph - 2014

Tax planning with intangibles has become one of the most popular and most vividly debated topics in international taxation. We incorporate various intellectual property (IP) tax planning models into forward-looking measures of effective tax rates, namely the disposal of intangibles to low-tax...

Persistent link: https://www.econbiz.de/10010457067