International tax planning and fixed investment

Abstract

JT03408633 Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2016)85 Unclassified English-Or. English ECO/WKP(2016)85 2 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

Sectors in the Czech Republic and International Tax Planning

“…Tax planning is mostly connected with the companies from hightech sectors with higher importance of the patents and other types of intangible assets [14]. Sector as a determinant of the tax planning is used within several studies [8,19]. Also the situation of the tax planning in the sector is important for the companies' behavior.…”

“…Also the situation of the tax planning in the sector is important for the companies' behavior. Companies from the sectors, where companies use extensively tax planning, are not sensitive on the taxation when it comes to new investment [19].…”

Corporate taxation and investment of multinational firms

“…The difference between the coefficients is nevertheless itself not statistically significant in this first set of regressions, but it is significant in the next set of regressions with a more demanding fixed effect structure (column 4-5), as discussed in the following paragraph. 35. In order to examine more closely the difference in tax sensitivity across groups with different profitability rates, a specification with a more demanding fixed-effect structure is used, including countryyear fixed effects, to control for all sources of time variation of the investment rate in each country.…”

Impacts sur l’investissement du Pilier Un et du Pilier Deux

“…En pratique, savoir si une telle augmentation du TEI modifierait ou non le montant global de l'impôt payé par les EMN n'est pas évident, car cela dépend de la conception du Pilier Deux et de l'EMN considérée. En particulier, si le Pilier Deux comprend une exclusion sur la substance déterminée par une formule, un relèvement du TEI pourrait accroître le montant global de l'impôt payé par certaines EMN, car ces dernières « perdraient le bénéfice » de l'exclusion dans les pays qui relèvent leur TEI (c'est-à-dire qu'elles devraient acquitter le taux d'imposition minimum sur la totalité de leurs bénéfices, y compris ceux qui ont été exclus au titre du Pilier Deux) 43,44 . Dans le cas des EMN américaines, dans l'hypothèse de la coexistence du GILTI et du Pilier Deux, l'augmentation du TEI par une juridiction à faible fiscalité entraînerait également une augmentation du montant global de l'impôt acquitté 45 .…”