Hasegawa, Makoto
Territorial tax reform and profit shifting by US and Japanese multinationals / Makoto Hasegawa
Resumen.
Bibliografía.
In 2009, Japan adopted a territorial tax regime by exempting dividends paid by Japanese-owned foreign subsidiaries to their parent firms from home-country taxation. This paper examines the impact of this tax reform on profit shifting by Japanese multinationals. I find that the semielasticity of pretax profits with respect to host-country corporate tax rates for Japanese-owned foreign subsidiaries, particularly large subsidiaries, increased after the 2008 announcement of the implementation of the territorial tax regime, relative to that for US-owned foreign subsidiaries. This suggests that large Japanese-owned foreign subsidiaries responded to the incentive for profit shifting provided by the territorial tax reform.
https://doi.org/10.1086/727012
EMPRESAS MULTINACIONALES
JAPON
ESTADOS UNIDOS
EROSIÓN DE LA BASE IMPONIBLE Y TRASLADO DE BENEFICIOS
IMPUESTO DE SOCIEDADES
National Tax Journal 0028-0283 v. 76, n. 4, December 2023, p. 771-804
Territorial tax reform and profit shifting by US and Japanese multinationals / Makoto Hasegawa
Resumen.
Bibliografía.
In 2009, Japan adopted a territorial tax regime by exempting dividends paid by Japanese-owned foreign subsidiaries to their parent firms from home-country taxation. This paper examines the impact of this tax reform on profit shifting by Japanese multinationals. I find that the semielasticity of pretax profits with respect to host-country corporate tax rates for Japanese-owned foreign subsidiaries, particularly large subsidiaries, increased after the 2008 announcement of the implementation of the territorial tax regime, relative to that for US-owned foreign subsidiaries. This suggests that large Japanese-owned foreign subsidiaries responded to the incentive for profit shifting provided by the territorial tax reform.
https://doi.org/10.1086/727012
EMPRESAS MULTINACIONALES
JAPON
ESTADOS UNIDOS
EROSIÓN DE LA BASE IMPONIBLE Y TRASLADO DE BENEFICIOS
IMPUESTO DE SOCIEDADES
National Tax Journal 0028-0283 v. 76, n. 4, December 2023, p. 771-804