IDEAS home Printed from
   My bibliography  Save this paper

Taxing foreign income in capital-importing countries : Thailand's perspective


  • Mintz, Jack M.
  • Leechor, Chad


This paper proposes a framework for analyzing international-income taxation. The standard approach, involving the user cost of capital, is extended to incorporate the role of tax policy implemented by the home country. Tax provisions of home countries vary significantly. Of particular relevance are: (a) whether remitted earnings are taxed at home; (b) if so, whether they receive any unilateral tax relief, that is, deduction or foreign tax credit; (c) whether the home country accepts tax sparing; and (d) the scope and extent of deductible expenses, which generally differ from those of the host. Also of interest to the host are firms'international tax planning opportunities. Thailand has sought and achieved double-taxation agreement with most of its trading partners. It has attracted substantial foreign investments and collected the attendant revenue. Its tax policy remains vulnerable in many areas, however. There are, for example, inadequate safeguards against excessive leverage, transfer pricing, and treaty shopping. Its strategy concerning tax incentives could also be strengthened to remove the barriers for extending the treaty network and enhancing regional coordination.

Suggested Citation

  • Mintz, Jack M. & Leechor, Chad, 1990. "Taxing foreign income in capital-importing countries : Thailand's perspective," Policy Research Working Paper Series 499, The World Bank.
  • Handle: RePEc:wbk:wbrwps:499

    Download full text from publisher

    File URL:
    Download Restriction: no


    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:wbk:wbrwps:499. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.