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Pregled bibliografske jedinice broj: 908870

The impact of corporate income tax on R&D of multinational entities


(University of Innsbruck) Hulya Celebi; Sabina Hodžić
The impact of corporate income tax on R&D of multinational entities // European Financial and Accounting Journal, 12 (2017), 3; 17-31 doi:10.18267/j.efaj.185 (međunarodna recenzija, pregledni rad, znanstveni)


Naslov
The impact of corporate income tax on R&D of multinational entities

Autori
Hulya Celebi ; Sabina Hodžić

Kolaboracija
University of Innsbruck

Izvornik
European Financial and Accounting Journal (1802-2197) 12 (2017), 3; 17-31

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, pregledni rad, znanstveni

Ključne riječi
Key words: Corporate income tax ; Tax incentives for R&D ; CCCTB ; Separate Entity Approach.

Sažetak
The significant contribution of R&D to economic development and sustainability has been shown by various studies. Therefore, governments offer different fiscal instruments to attract R&D, especially regarding multinational entities (MNEs). One of the fiscal instruments are tax incentives for R&D. Furthermore, the EU has been working on the switch from Separate Entity Approach (SEA) to Common Consolidated Corporate Tax Base (CCCTB) for longer than a decade, which will lead to harmonized R&D tax allowances, however without harmonizing the tax rates. Hence, this study aims at analyzing how SEA and CCCTB impact the location of MNEs' R&D activities, tax burden and countries' tax revenue through a case study. The results show that, under SEA, tax jurisdictions can stimulate MNEs’ R&D activities by means of attractive tax allowances and lower tax rates. Especially for high-tax countries, the tax allowances represent an important tool for attracting R&D activities. However, under CCCTB, the location of R&D activities additionally depends on the Formula Apportionment (FA) factors of the tax base, where the countries cannot exert a direct influence. Hence, the reduction of tax rates remains the only tool left to Member States, which can lead to revenue loss on the whole.

Izvorni jezik
Engleski



POVEZANOST RADA


Autor s matičnim brojem:
Sabina Hodžić, (310785)

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