IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/365-en.html
   My bibliography  Save this paper

Corporate Taxation of Foreign Direct Investment Income 1991-2001

Author

Listed:
  • Kwang-Yeol Yoo

Abstract

This paper constructs indicators of tax burden on FDI in order to review their trends and cross-country patterns. Over the 1990s, the overall tax burden on inward FDI (measured by the effective marginal tax rates) fell by 8 percentage points, reflecting corporate tax reforms in some OECD countries. Nevertheless, a large variation across host countries still remains. With the effective tax rates on inward FDI differing across host countries by as much as 28 percentage points for marginal FDI and by as much as 21 percentage points for infra-marginal FDI in 2001, a cross-country comparison of tax burden indicators shows that, irrespective of the tax burden indicators chosen, Canada, Iceland and Japan are persistently ranked as high-tax host countries over the 1990s. It is also found that there is more variation in the tax burdens faced by a parent company operating in different host countries than in the tax burdens faced by subsidiaries from different home countries operating in the ... Imposition sur les sociétés du revenu de l'investissement direct étranger (l'IDE) Cette étude construit les indicateurs de la charge fiscale sur l’IDE afin d’examiner leurs tendances et les caractéristiques par pays. Pendant les années 90, la charge fiscale globale sur les entrées d’IDE (mesurée par les taux marginaux effectifs d'imposition) a diminué de 8 points de pourcentage, reflétant des réformes de l'imposition du revenu des sociétés dans certains des pays de l’OCDE. Néanmoins, une grande diversité demeure entre pays d'accueil. Les taux marginaux effectifs d'imposition sur les entrées d’IDE différaient selon les pays d'accueil d’environ 28 points de pourcentage pour l’IDE marginal et d’environ 21 points de pourcentage pour l’IDE infra-marginal en 2001. Une comparaison internationale des indicateurs de charge fiscale montre que, quels que soient les indicateurs choisis, le Canada, l’Islande et le Japon figurent systématiquement parmi les pays d'accueil à forte fiscalité au cours des années 90. On a également pu constater que les charges fiscales auxquelles ...

Suggested Citation

  • Kwang-Yeol Yoo, 2003. "Corporate Taxation of Foreign Direct Investment Income 1991-2001," OECD Economics Department Working Papers 365, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:365-en
    DOI: 10.1787/218605563356
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/218605563356
    Download Restriction: no
    File URL: https://libkey.io/10.1787/218605563356?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bellak, Christian & Leibrecht, Markus & Romisch, Roman, 2005. "A Note on the Appropriate Measure of Tax Burden on Foreign Direct Investment to the CEECs," Discussion Paper Series 26365, Hamburg Institute of International Economics.
    2. Da Rin, Marco & Di Giacomo, Marina & Sembenelli, Alessandro, 2011. "Entrepreneurship, firm entry, and the taxation of corporate income: Evidence from Europe," Journal of Public Economics, Elsevier, vol. 95(9), pages 1048-1066.
    3. Willi Leibfritz & Paul O'Brien, 2005. "The French Tax System: Main Characteristics, Recent Developments and Some Considerations for Reform," OECD Economics Department Working Papers 439, OECD Publishing.
    4. Peter Egger & Simon Loretz, 2010. "Homogeneous Profit Tax Effects for Heterogeneous Firms?," The World Economy, Wiley Blackwell, vol. 33(8), pages 1023-1041, August.
    5. Christina Elschner & Jost H. Heckemeyer & Christoph Spengel, 2011. "Besteuerungsprinzipien und effektive Unternehmenssteuerbelastungen in der Europäischen Union: Regelt sich die EU‐weite Steuerharmonisierung von selbst?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 47-71, February.
    6. Michael P Devereux & Simon Loretz, 2008. "Increased efficiency through consolidation and formula apportionment in the European Union?," Working Papers 0812, Oxford University Centre for Business Taxation.
    7. Rixen, Thomas & Rohlfing, Ingo, 2020. "The Institutional Choice of Bilateralism and Multilateralism in International Trade and Taxation," SocArXiv uwge8, Center for Open Science.
    8. Elias Steinmüller & Georg U. Thunecke & Georg Wamser, 2019. "Corporate income taxes around the world: a survey on forward-looking tax measures and two applications," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 418-456, April.
    9. Tehmina S. Khan & Mr. John Norregaard, 2007. "Tax Policy: Recent Trends and Coming Challenges," IMF Working Papers 2007/274, International Monetary Fund.
    10. Federici, Daniela & Parisi, Valentino & Ferrante, Francesco, 2020. "Heterogeneous firms, corporate taxes and export behavior: A firm-level investigation for Italy," Economic Modelling, Elsevier, vol. 88(C), pages 98-112.
    11. Daniela Federici & Valentino Parisi, 2014. "Corporate Taxation and Exports: Evidence from Italian Firm-Level Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 23-38, May.
    12. Marina Riem, 2016. "Corporate investment decisions under political uncertainty," ifo Working Paper Series 221, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    13. Stacie Beck & Alexis Chaves, 2011. "The Impact Of Taxes On Trade Competitiveness," Working Papers 11-09, University of Delaware, Department of Economics.

    More about this item

    Keywords

    effective marginal (inframarginal) tax rates; entrées (sorties) IDE; IDE marginal (infra-marginal); inward (outward) FDI; marginal (infra-marginal) investment; planification fiscale; retenues à la source; taux marginaux (effectifs) d'imposition; tax planning; traitement des revenus de source étrangère; treatment of foreign-source income; withholding tax;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:365-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.