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 taxes in the European Union 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 effectiv...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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University of Chicago Press
2012
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| _version_ | 1797098431857033216 |
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| author | Devereux, M Loretz, S |
| author_facet | Devereux, M Loretz, S |
| author_sort | Devereux, M |
| collection | OXFORD |
| description | This paper examines the likely impact of a proposed formula apportionment system for corporation taxes in the European Union 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. |
| first_indexed | 2024-03-07T05:09:27Z |
| format | Journal article |
| id | oxford-uuid:db0fa6dd-ddcf-4702-9f15-ce8a1c6672a0 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T05:09:27Z |
| publishDate | 2012 |
| publisher | University of Chicago Press |
| record_format | dspace |
| spelling | oxford-uuid:db0fa6dd-ddcf-4702-9f15-ce8a1c6672a02022-03-27T09:07:45ZHow would EU corporate tax reform affect US investment in Europe?Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:db0fa6dd-ddcf-4702-9f15-ce8a1c6672a0EnglishDepartment of Economics - ePrintsUniversity of Chicago Press2012Devereux, MLoretz, SThis paper examines the likely impact of a proposed formula apportionment system for corporation taxes in the European Union 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. |
| spellingShingle | Devereux, M Loretz, S How would EU corporate tax reform affect US investment in Europe? |
| title | How would EU corporate tax reform affect US investment in Europe? |
| title_full | How would EU corporate tax reform affect US investment in Europe? |
| title_fullStr | How would EU corporate tax reform affect US investment in Europe? |
| title_full_unstemmed | How would EU corporate tax reform affect US investment in Europe? |
| title_short | How would EU corporate tax reform affect US investment in Europe? |
| title_sort | how would eu corporate tax reform affect us investment in europe |
| work_keys_str_mv | AT devereuxm howwouldeucorporatetaxreformaffectusinvestmentineurope AT loretzs howwouldeucorporatetaxreformaffectusinvestmentineurope |