본문으로 바로가기

World Economy Brief

Publications

To list

Impacts of New International Tax System on Multinational Firms’ FDI

  • Author Sangjun Yea
  • Series22-17
  • Date2022-04-29
   In this study, I present a theoretical model to quantitatively assess the economics impact of Pillar 1 and Pillar 2, especially focusing on the changes in the FDI patterns of multinational enterprises (MNEs). Pillar 1 offsets the incentives of MNEs' profits-shifting for tax-planning purposes, thereby reducing the inbound FDI into the countries with low corporate income tax rates. Pillar 2 burdens MNEs with 'top-up' taxes attributed from the subsidiaries in low tax countries. As the profits after tax (PAT) of MNEs shrink at the global level, innovation and R&D investment for new products will decrease, and as a result, global FDI flows will hamper.
File
  • pdf 첨부파일 WEB 22-17(수정).pdf (462.47KB / Download:895) Download

Prev Next List