On the effects of anti-profit shifting regulations: A developing country perspective

• 成果类型: Article
• 署名作者: Teles, Sabine Laudage; Riedel, Nadine; Strohmaier, Kristina
• 署名单位: University of Munster; University of Duisburg Essen
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105134
• 发表日期: 2024
• 关键词: Corporate taxation; international taxation; Transfer pricing laws

摘要

Multinational profit shifting is a major concern for low and middle income countries (LMICs). Many have enacted anti -profit shifting rules in order to constrain this type of tax avoidance behavior. Yet, not much is known on the rules' effects. We offer a first empirical assessment, providing two pieces of evidence: First, we draw on macro data for more than 120 LMICs for a 30 -year -period and show that the introduction of transfer pricing (TP) rules - provisions that constrain profit shifting from mis-pricing of intra-firm trade - significantly increased corporate tax revenue collection in LMICs. Second, we use rich tax administrative and trade data for South Africa to provide first-stageevidence for firms' behavioral response to stricter TP provisions: we establish that a tightening of South African TP rules reduced intra-firm trade mis-pricing and increased taxable income reporting of affected multinational firms.