search query: @indexterm taxation / total: 1872
reference: 281 / 1872
| Author: | Davies, R. B. |
| Title: | The OECD model tax treaty: tax competition and two-way capital flows |
| Journal: | International Economic Review
2003 : MAY, VOL. 44:2, p. 725-753 |
| Index terms: | Taxation OECD Capital theory |
| Language: | eng |
| Abstract: | Model tax treaties do not require tax rate coordination, but do require that either credit or exemptions be applied to repatriated earnings. This contradicts recent models with a single capital exporter where deductions are most efficient. The author incorporates tha fact that capital flows are typically bilateral. With symmetric countries, credits by both is the unique and efficient treaty equilibrium. This equilibrium weakly dominates the nontreaty equilibrium. With asymmetric countries, the treaty need not offer improvements without tax harmonization. |
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