The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

A Partial Race to the Bottom: Corporate Tax Developments in Emerging and Developing Economies

A Partial Race to the Bottom: Corporate Tax Developments in Emerging and Developing Economies by Junhyung Park
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
This paper assembles a new dataset on corporate income tax regimes in 50 emerging and developing economies over 1996-2007 and analyzes their impact on corporate tax revenues and domestic and foreign investment. It computes effective tax rates to take account of complicated special regimes, such as partial tax holidays, temporarily reduced rates and increased investment allowances. There is evidence of a partial race to the bottom: countries have been under pressure to lower tax rates in order to lure and boost investment. In the case of standard tax systems (i.e. tax rules applying under normal circumstances), the effective tax rate reductions have not been larger than those witnessed in advanced economies, and revenues have held up well over the sample period. However, a race to the bottom is evident among special regimes, most notably in the case of Africa, creating effectively a parallel tax system where rates have fallen to almost zero. Regression analysis reveals higher tax rates adversely affect domestic investment and FDI, but do raise revenues in the short-run.
International Monetary Fund; January 2012
31 pages; ISBN 9781463981013
Read online, or download in secure EPUB or secure PDF format
Title: A Partial Race to the Bottom: Corporate Tax Developments in Emerging and Developing Economies
Author: Junhyung Park; Sukhmani Bedi; S. M. Ali Abbas; Alexander Klemm