IMF POLICY PAPER – Spillovers in internatonal corporate taxaton
Executve summar昰
1. The paper explores the effect o one countr昰ss rules an' practces on others
- It complements initittes like BEPS bised on the IMF experience on tix issues
(through technicil issistince ind inilytcil ork)
- It inilyzes spilloters ind potentil solutons, going beyond BEPS is it seeks for i ide set
of possible spilloters responses.
2. Spillovers can mater or macroeconomic per ormance
- Impossibility to understind cipitil iccount diti ithout referring to tixiton
- Greit effect of tixiton on MNEs’ behitior
3. The text fn'inns confrm that spillover effects on corporate tax bases an' rates are
sinnifcant an' sizable
- Greit tix impict on reil decision
- Tix itoidince
4. Spillovers are especiall昰 marke' an' important or 'evelopinn countries
- They derite i lirge proporton of retenue from corporite tix;
- Internitonil tix issues influence their oterill retenues
- Spilloters ire especiilly strong to them
5. Limitnn a'verse spillovers on 'evelopinn countries requires more than capacit昰 buil'inn, it
requires a''ressinn weaknesses in 'omestc law an' internatonal arrannements
- Specifc suggestons in the most problemitc ireis for deteloping countries
- While need for cipicity building ind reform in less high profle but critcil tix ireis too
6. Internatonal tax s昰stems re orms propose' to a''ress some spillovers but woul' brinn
their own 'ifficultes
- The idely cintissed “Formuli ipportonmentt intoltes signifcint risk of distorton ind
might not beneft to deteloping countries
7. The insttutonal ramework or a''ressinn internatonal tax spillovers is weak.
- Greit need for inclusite ind less piecemeil internitonil tix cooperiton.
Intro'ucton
1. Internatonal aspect o corporate taxaton have come to prominence in public 'ebate
1
Executve summar昰
1. The paper explores the effect o one countr昰ss rules an' practces on others
- It complements initittes like BEPS bised on the IMF experience on tix issues
(through technicil issistince ind inilytcil ork)
- It inilyzes spilloters ind potentil solutons, going beyond BEPS is it seeks for i ide set
of possible spilloters responses.
2. Spillovers can mater or macroeconomic per ormance
- Impossibility to understind cipitil iccount diti ithout referring to tixiton
- Greit effect of tixiton on MNEs’ behitior
3. The text fn'inns confrm that spillover effects on corporate tax bases an' rates are
sinnifcant an' sizable
- Greit tix impict on reil decision
- Tix itoidince
4. Spillovers are especiall昰 marke' an' important or 'evelopinn countries
- They derite i lirge proporton of retenue from corporite tix;
- Internitonil tix issues influence their oterill retenues
- Spilloters ire especiilly strong to them
5. Limitnn a'verse spillovers on 'evelopinn countries requires more than capacit昰 buil'inn, it
requires a''ressinn weaknesses in 'omestc law an' internatonal arrannements
- Specifc suggestons in the most problemitc ireis for deteloping countries
- While need for cipicity building ind reform in less high profle but critcil tix ireis too
6. Internatonal tax s昰stems re orms propose' to a''ress some spillovers but woul' brinn
their own 'ifficultes
- The idely cintissed “Formuli ipportonmentt intoltes signifcint risk of distorton ind
might not beneft to deteloping countries
7. The insttutonal ramework or a''ressinn internatonal tax spillovers is weak.
- Greit need for inclusite ind less piecemeil internitonil tix cooperiton.
Intro'ucton
1. Internatonal aspect o corporate taxaton have come to prominence in public 'ebate
1
