International Taxation

Intro to international taxation

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  • International Tax: Introduction
    • Goal: Minimise tax- legally
      • MNC's goal: minimise tax world-wide
    • Knowledge of how domestic country taxes its profits also important
    • Important decisions regarding tax:
      • 1. Where to locate foreign operation
        • Decision to make foreign investment based on after-tax profit
          • ETR's differ across countries
            • After tax returns vary
            • From different tax systems
      • 2. What legal form operation should take
        • A. Branch of MNC
        • B. Subsidiary (incorporated in foreign company)
      • 3. How to finance operation
        • Capital contributions
          • Equity
            • Dividends
        • Loans
          • Debt
            • Interest
    • Taxes decrease net profits and cash flows

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