Record Details

FOREIGN DIRECT INVESTMENT DECISIONS & TAX PLANNING FOR CHINESE FIRMS

Journal of Chinese Tax and Policy

View Archive Info
 
 
Field Value
 
Title FOREIGN DIRECT INVESTMENT DECISIONS & TAX PLANNING FOR CHINESE FIRMS
 
Creator THOMAS, KOLLRUSS
 
Description This article is concerned with the role of tax planning in the foreign directinvestment (FDI) decisions of Chinese multinational corporations (MNCs).It can be shown that tax planning (intergroup debt financing) enables Chinesefirms to locate value-added chain and direct investment (e.g. production)in high-taxed foreign countries by offsetting the relatively high tax burden.Therefore, tax planning can be regarded as an instrument to enhance thecompetitiveness of a foreign country as a location for Chinese firms’ directinvestment regarding the net after-tax profits as a key determinant of decisions.In this respect, this article shows how Chinese firms can utilise tax planning toselect Germany as a target location for direct investment. Moreover, Chinesefirms may use Germany as an intermediary location for tax planning, especiallyfor structuring Chinese FDI in the USA. In this respect, thin-capitalisationand CFC rules must be considered as main restrictions for optimising the taxburden (effective tax rate/ETR).
 
Publisher Journal of Chinese Tax and Policy
 
Contributor —
 
Date 2018-05-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Identifier https://openjournals.library.sydney.edu.au/index.php/JCTP/article/view/12726
 
Source Journal of Chinese Tax and Policy; Vol 3, No 1 (2013): Chinese Tax and Policy 4
1839-065X
2205-2550
 
Language en
 
Rights Copyright (c) 2018 KOLLRUSS THOMAS