Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/85637 
Year of Publication: 
2000
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 00-047/3
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
This paper analyses the national tax treatment of interestexpenditures of multinational enterprises in a non-cooperative world. It is shown that the international tax systemgenerally leads to distortions in the capitaldecisions of multinational firms. In contrast to the existingliterature on the tax treatment of the expendituresof multinationals, it is found that the form and size of distortionscan differ per country depending on the stakea country has in the multinational. Furthermore, internationalisationof the firm's operations and ownership isdemonstrated to lead to less generous interest deduction rules ofindividual countries and in the limit mayresult in no deduction allowance at all.
Subjects: 
International Investment
Multinational Firms
Optimal Taxation
Interest Expenditures
R&D Expenditures
JEL: 
F21
F23
H21
H32
Document Type: 
Working Paper

Files in This Item:
File
Size
85.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.