CREDIT AND DEFERRAL AS INTERNATIONAL INVESTMENT INCENTIVES

• 成果类型: Article; Proceedings Paper
• 署名作者: HINES, JR
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(94)90057-4
• 发表日期: 1994
• 页码: 323-347
• 关键词: FOREIGN TAX CREDIT; Foreign direct investment; multinational firms

摘要

Many governments tax the foreign income of their firms, using a system that grants credits for foreign taxes paid and permits tax deferral for unrepatriated income. This paper shows that such tax systems encourage firms to restrict their equity stakes in new foreign investments, and to finance their new investments with considerable debt. These incentives exist even when transfer price regulation effectively limits the profit rates foreign subsidiaries can earn. The behavior of the foreign subsidiaries of US multinationals in 1984 appears to be consistent with these incentives.