How Would EU Corporate Tax Reform Affect US Investment in Europe?
This paper examines the likely impact of a proposed formula apportionment system for corporation tax in the EU on the inbound investment of US multinational companies. We pay attention to tax planning strategies that may be employed by US multinationals and investigate whether effective tax rates in Europe of US companies differ from those of European companies. The proposal is for an optional system: we estimate the extent to which both European and US companies would be likely to choose it taking into account their existing structures and future investment incentives. The relative position of US and European companies depends crucially on the taxation of foreign passive income.
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- Clemens Fuest & Thomas Hemmelgarn & Fred Ramb, 2007.
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- Clemens Fuest & Thomas Hemmegarn & Fred Ramb, 2007. "How would the introduction of an EU-wide formula apportionment affect the distribution and size of the corporate tax base? An analysis based on German multinationals," International Tax and Public Finance, Springer, vol. 14(5), pages 627-629, October.
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"Corporate tax harmonization in the EU,"
CPB Discussion Paper
133, CPB Netherlands Bureau for Economic Policy Analysis.
- Ruud A. de Mooij & Sjef Ederveen, 2008.
"Corporate tax elasticities: a reader's guide to empirical findings,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 24(4), pages 680-697, winter.
- Ruud A. de Mooij & Sjef Ederveen, 2008. "Corporate Tax Elasticities A Reader’s Guide to Empirical Findings," Working Papers 0822, Oxford University Centre for Business Taxation.
- Gordon, Roger H & Wilson, John Douglas, 1986. "An Examination of Multijurisdictional Corporate Income Taxation under Formula Apportionment," Econometrica, Econometric Society, vol. 54(6), pages 1357-73, November.
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