Olbert, Marcel
Measuring and interpreting countries' tax attractiveness for investments in digital business models / Marcel Olbert, Christoph Spengel & Ann-Catherin Werner .-- , 2019
Resumen.
This article analyses the tax attractiveness of locations for investments in digital business models. It identifies and assesses relevant tax rules affecting domestic and cross-border digital business models across thirty-three countries (the EU-28 Member States, Canada, Japan, Norway, Switzerland and the USA). The computation of average effective tax rates is based on the neoclassical investment model of Devereux/Griffith. The results help to evaluate tax-related location factors in the digital economy by combining the most relevant tax parameters and rules for taxable nexus in an objective measure. The authors find that investments in digital business models face generally lower average effective tax rates than those in traditional business models since a high share of investment costs is immediately expensed and a higher share of activities falls within the scope of countries' tax incentives for R&D input and/or output. While more generous depreciation rules for digital investments such as software make countries relatively more attractive, the results are mostly driven by statutory tax rates, special incentive schemes such as Intellectual Property (IP) Boxes, R&D credits, and super-deductions. Overall, the authors acknowledge an increasing trend in tax competition for digital businesses.
ECONOMÍA DIGITAL
INVERSIONES EMPRESARIALES
IMPUESTOS
INCENTIVOS FISCALES
Spengel, Christoph
Werner, Ann Catherin
Intertax 0165-2826 v. 47, n. 2, February 2019, p. 148-160
Measuring and interpreting countries' tax attractiveness for investments in digital business models / Marcel Olbert, Christoph Spengel & Ann-Catherin Werner .-- , 2019
Resumen.
This article analyses the tax attractiveness of locations for investments in digital business models. It identifies and assesses relevant tax rules affecting domestic and cross-border digital business models across thirty-three countries (the EU-28 Member States, Canada, Japan, Norway, Switzerland and the USA). The computation of average effective tax rates is based on the neoclassical investment model of Devereux/Griffith. The results help to evaluate tax-related location factors in the digital economy by combining the most relevant tax parameters and rules for taxable nexus in an objective measure. The authors find that investments in digital business models face generally lower average effective tax rates than those in traditional business models since a high share of investment costs is immediately expensed and a higher share of activities falls within the scope of countries' tax incentives for R&D input and/or output. While more generous depreciation rules for digital investments such as software make countries relatively more attractive, the results are mostly driven by statutory tax rates, special incentive schemes such as Intellectual Property (IP) Boxes, R&D credits, and super-deductions. Overall, the authors acknowledge an increasing trend in tax competition for digital businesses.
ECONOMÍA DIGITAL
INVERSIONES EMPRESARIALES
IMPUESTOS
INCENTIVOS FISCALES
Spengel, Christoph
Werner, Ann Catherin
Intertax 0165-2826 v. 47, n. 2, February 2019, p. 148-160