The Impact of International Taxation on Location Choice of Multinational Firms: Does Tax Treaty Matter?

• Main Author: 李昀錚
• Other Authors: 陳香梅
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/72538110353161174512

碩士 === 國立政治大學 === 財政學系 === 104 === Using nested logit model, the thesis examined the impact of international taxation on location choice of Taiwanese multinational firms from 2001 to 2013. Compared to previous studies that only focused on the impact of tax rate and anti-avoidance legislations (transfer pricing rule and thin capitalization prvision), the thesis focused on the impact of tax treaty, examining the relationship between location choice and bilateral or multilateral tax treaties. The results showed that countries which had tax treaty with Taiwan did not attract Taiwanese multinational firms, and the possible reason was the exchange of information article in tax treaties. The study also found that the more tax treaties one potential host country had, the higher probability of Taiwanese multinational enterprises setting up subsidiaries in that host country, which suggested that Taiwanese multinational enterprises may have the behavior of treaty shopping. Other results related to tax variables showed that potential host countries with lower tax rate or with no anti-avoidance legislations would attract Taiwanese multinational firms.