Processing...
Continue shopping Go to cart
return to product list

The Tax Sparing Mechanism and Foreign Direct Investment

This book reviews the rationale of the tax sparing mechanism and analyses its effects within a framework of foreign direct investment from China into EU Member States.
tab_0
Title:

The Tax Sparing Mechanism and Foreign Direct Investment

Series:

Volume 44 in the Doctoral Series

Author(s):
Date of publication:
ISBN:

978-90-8722-483-7

Type of publication:

Print book

Number of pages:

342

Terms:

Shipping fees apply. View shipping information

Price:
EUR 110 / USD 130 (VAT excl.)
Order Print
tab_1
Title:

The Tax Sparing Mechanism and Foreign Direct Investment

Series:

Volume 44 in the Doctoral Series

Author(s):
Date of publication:
ISBN:

978-90-8722-484-4

Type of publication:

eBook in ePub format

Number of pages:

342

Other:

Please note: Adobe Digital Editions is required

Read our eBook FAQ | Download sample

Price:
EUR 88 / USD 104 (VAT excl.)
Order eBook: ePub
tab_2
Title:

The Tax Sparing Mechanism and Foreign Direct Investment

Series:

Volume 44 in the Doctoral Series

Author(s):
Date of publication:
ISBN:

978-90-8722-485-1

Type of publication:

eBook in PDF format 

Number of pages:

342

Other:

This format has a fixed layout and is identical to the original print book. It is not possible to adjust font size, however, you can zoom in on a page or graphic.

Please note: Adobe Acrobat Reader is required

For further information see our eBook FAQ.

Price:
EUR 88 / USD 104 (VAT excl.)
Order eBook: PDF
tab_3
Title:

The Tax Sparing Mechanism and Foreign Direct Investment

Series:

Volume 44 in the Doctoral Series

Author(s):
Date of publication:
ISBN:

978-90-8722-483-7

Type of publication:

Online book

Number of pages:

342

Terms:

Up to 5 users. View purchase information

Price:
EUR 110 / USD 130 (VAT excl.)
Order Online Book
tab_offer
  • Order both the print and an electronic version of the book and receive a 20% discount on each format. The discount is calculated automatically in your shopping cart.
  • Bulk discounts apply on orders of 11 or more books of the same format (this applies to each of the formats). The offer is not valid for resellers.
  • Students are entitled to a 50% discount on IBFD books (valid student card required).

To obtain bulk or student discounts, contact Customer Support.

The Tax Sparing Mechanism and Foreign Direct Investment
Why this book?
This book reviews the rationale for the tax sparing mechanism and analyses its effects within a framework of foreign direct investment (FDI) from China into EU Member States. The author argues that the tax sparing mechanism should not be regarded as a foreign-aid tool used by developed countries to help developing countries; it is, rather, a technique that should be used by both residence state and source state to achieve their different objectives in respect of FDI.
 
Tax sparing is a mechanism usually reflected in tax treaty provisions, whereby one state commits to crediting the taxes spared (i.e. not actually paid) in another. The spared taxes are the common link between the tax sparing mechanism and FDI, so the book focuses on them throughout, examining the following questions: Which state sacrifices its tax revenue to generate the spared taxes? Who benefits from the spared taxes? Why would contracting states agree to include tax sparing in their tax treaties? And how does the tax sparing mechanism preserve the effect of the spared taxes? The answers lead to the author’s findings:
 
First, the residence state is not alone in sacrificing tax revenue, as the source state also forgoes tax revenue to generate the spared taxes. Furthermore, the residence state can benefit from the tax sparing mechanism, given that the spared taxes preserved by the mechanism can enhance the competitiveness of its residents in overseas markets and can reduce the distortional effects on its residents’ decisions regarding the repatriation of profits.
 
Second, the tax sparing mechanism is a treaty technique, with both positive and negative effects. The necessity of adopting the tax sparing mechanism is rooted in the inadequacy of the residence state’s foreign credit method, which nullifies the effectiveness of spared taxes for foreign direct investors. The tax sparing mechanism can resolve this inadequacy by obliging the residence state to credit the spared taxes as if they had been duly paid in the source state.
 
Finally, as a policy suggestion, both residence state and source state should use the tax sparing mechanism in their tax treaties.

 

Downloads

 

This book is part of the IBFD Doctoral Series
 
 

 

Author(s)
Na Li is an Associate Professor at East China University of Political Science and Law (Shanghai). She is an attorney licensed to practise in China and the United States (New York State), focusing on cross-border investment and international taxation. Dr Li obtained a PhD from Vienna University of Economics and Business (WU) in 2015.
Since we value your opinion, we invite you to share your thoughts about this IBFD book with other clients.

Send us your review
return to product list