International Taxation in an Integrated World presents the stylized facts and concepts and outlines the main issues of international taxation and the implications for the international movements of goods and capital. There is a representative consumer and a representative producer. Computers can be found in many applications and the exchange of information via computer networks solves problems which were difficult or even impossible to solve without the use of modern information technology. Thus it is useful to analyse them in a long-run setup, which ensues flexible rather than sticky prices. International Taxation In An Integrated World Mit Press File Name: International Taxation In An Integrated World Mit Press. The paper concludes by indicating how the analysis can be extended to include: i money, ii adjustment costs in investment; iii utility-enhancing and productive government expenditure; iv applications to international economics. In this book international economists Jacob Frenkel and Assaf Razin join forces with public finance economist Efraim-Sadka to provide a new treatment of international taxation, one that focuses on the interactions between fiscal policies of sovereign nations and the magnitude and directions of international capital and goods flow in an integrated world economy.
Other sections review recent developments in the world economy; government spending, budget deficits, and differences across international taxation; and economic growth in the world economy, especially the convergence of income and growth levels across countries. Одним из способов решения данной проблемы является реализация такими странами ряда мер, направленных на сближение национальных налоговых систем. Listed European corporations have to comply with international accounting standards. Further, the rate of withholding may vary by type of income or type of recipient. In this book international economists Jacob Frenkel and Assaf Razin join forces with public finance economist Efraim Sadka to provide a new treatment of international taxation, one that focuses on the interactions between fiscal policies of sovereign nations and the magnitude and directions of international capital and goods flow in an integrated world economy.
Depending on the rules of the system, the shifting may occur by changing the location of activities generating income or by shifting income to separate enterprises owned by the taxpayer. The general principle illustrated by the analysis of the dynamic effects of budget deficits is that the consequences of temporary tax policies stretch beyond the period during which the temporary policies are in effect. A new income tax law, passed in 1980 and effective 1981, determined only residence as the basis for taxation of worldwide income. There is a flat income tax rate t that applies to both individuals and businesses. To mitigate double taxation, nonresident citizens may from U. The ongoing process of increased integration of national economies, culminating in the single European market of 1992, still leaves as virtually separate the national fiscal systems. They unfold a lucid and clear analysis of the implications of tax competition, tax harmonization, capital flight, external imbalances, and the terms of trade for the design of efficient national tax systems.
However, there are notable exceptions, including U. What will be the role of tax policy in this more integrated world economy? Suggested Citation Download full text from publisher To our knowledge, this item is not available for download. Such table is not comprehensive. A jurisdiction relying on tends to place reliance on the judgment of local accountants for determinations of income under locally accepted accounting principles. With any system of taxation, it is possible to shift or recharacterize income in a manner that. For individuals has become a major issue for governments worldwide since the 2008 recession. These include, but are not limited to, assessment vs.
Michael Kobetsky analyses the principles for allocating the profits of multinational enterprises to permanent establishments under this article, explains the shortcomings of the current arm's length principle for attributing business profits to permanent establishments and considers the alternative method of formulary apportionment for allocating business profits. However, Puerto Rican citizens are also United States citizens, and the United States taxes their worldwide income regardless of where they live. In the case of nonresident citizens, individuals who acquired United States citizenship by a connection to Guam or the Northern Mariana Islands are taxed by the respective territory, instead of by the United States. After this period, they are no longer considered residents of Portugal for tax purposes. To find whether it is available, there are three options: 1. This income includes several categories of portable income, including most investment income, certain resale income, and certain services income. Special emphasis is place on the interdependence between direct and indirect taxes and on the international allocation of saving, investment and production.
The concept of tax equity among nations is introduced and developed. They unfold a lucid and clear analysis of the implications of tax competition, tax harmonization, capital flight, external imbalances, and the terms of trade for the design of efficient national tax systems. Cash flow is an important determinant of investment decisions. Nonresident citizens not satisfying exceptions are taxed in the same manner as residents. Frenkel is Director of Research and Economic Counselor at the International Monetary Fund. You may find International Taxation In An Integrated World Mit Press document other than just manuals as we also make available many user guides, specifications documents, promotional details, setup documents and more.
Most jurisdictions tax income on a residency basis. Special emphasis is placed on the interdependence between direct and indirect taxes and on the international allocation of saving, investment, and production. Some jurisdictions following this approach also require business taxpayers to provide a reconciliation of financial statement and taxable incomes. Rules on structuring and restructuring tend to be highly complex. One of the most significant uses of the Internet is in the field of commerce.
When the government faces no borrowing constraints and is able to commit to a given set of present and future taxes, it is shown that the optimal tax plan involves high taxation of both capital and labor in the short run. It also allows you to accept potential citations to this item that we are uncertain about. This paper examines the effects of fiscal policies on the evolution of real rates of interest and real exchange rates in the interdependent world economy. The authors lay out a set of empirical regularities which will keep researchers citing them and graduate students seeking to explain them for years to come. It also imposes on the worldwide business income and assets of its residents who are citizens of Gulf Cooperation Council countries. Other major conceptual differences can exist between tax systems.
Source of income is where the income is considered to arise under the relevant tax system. The rules for determining source for taxation of foreign persons apply in computing such credit, and detailed rules are provided in regulations above for allocating and apportioning expenses to such income. It reviews the principles of international taxation and international macroeconomics, analyzes the international transmission of various tax and budget policies, and provides a rigorous analysis of optimal open economy tax policy in an integrated world economy. Specific rules are provided for certain categories of more fungible expenses, such as interest. The paper highlights key considerations necessary for the analysis of international tax competition and the desirability of international tax harmonization. Residence-based income taxation is shown to have welfare advantages over source-based taxation, though at the cost of a larger trade deficit. Most tax treaties provide for at least a skeleton mechanism for resolution of disputes between the parties.