Business, Management and Accounting
3 years ago

Minimum Corporate Income Taxation Could Drive High-Tax Countries into Economic Decline.

RePEc: Research Papers in Economics
Why Minimum Corporate Income Taxation Can Make the High-Tax Countries Worse off: the Compliance Dilemma
Yukihiro Nishimura, Jean Hindriks

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Higher tax rates for developed countries could boost revenue significantly

Tax Evasion
Tax Avoidance
Fiscal Decentralization
2 views
Business, Management and Accounting
4 years ago

Tax treaties may lead to double taxation, hindering international development.

EU Tax Law
Tax Avoidance
Tax Evasion
2 views
Business, Management and Accounting
4 years ago

Tax rules impact foreign investment flows more than corporate tax rates.

Tax Avoidance
EU Tax Law
Public Finance
1 view

Minimum corporate income taxation can backfire in high-tax countries due to a compliance dilemma. When multinational companies shift profits to low-tax countries, high-tax countries can lose out on tax revenue. The minimum tax standard aims to address this issue, but it can lead low-tax countries to stop cooperating on tax compliance. This breakdown in cooperation can actually make high-tax countries worse off than if there was no minimum taxation in place.