International Tax Spillovers and Tangible Investment, with Implications for the Global Minimum Tax
This paper articulates and, using newly-assembled data, explores how international taxation affects aggregate tangible cross-border investment. Spillovers from statutory tax rates abroad seem: As sizable as effects from the host’s rate; larger than previous consensus values (attributed to a systematic bias from FDI data); and consistent with ‘implicit’ profit shifting through real investment (rather than ‘paper’ profit shifting). Contrary to much policy discussion, the results also imply that: Host countries’ marginal effective tax rates have at best a weak effect on real investment; those elsewhere have none; and, applied to the prospective global minimum tax, inward tangible investment in most sample countries will increase.
| Main Authors: | , , |
|---|---|
| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2023-05-03
|
| Subjects: | CORPORATE TAXATION, GLOBAL MINIMUM TAX, INTERNATIONAL TAX, MULTINATIONAL INVESTMENT, FOREIGN DIRECT INVESTMENT, TAX COMPETITION, |
| Online Access: | http://documents.worldbank.org/curated/en/099356505012330106/IDU05ff39989002bd04258092ed0cc2c2f299d33 https://openknowledge.worldbank.org/handle/10986/39777 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|