Problem
Tax obstacles to international investment
Nature:
In an effort to correct temporary imbalances of payments, countries may introduce permanent fiscal measures which have the effect of inhibiting international capital movements by imposing a heavier burden of tax on both inward and outward movements of income over national borders. Although such measures may appear consistent with immediate national policies, they embody two extremely undesirable and inappropriate features: effects are not limited to new capital movements and are of far longer duration than the circumstances ordinarily require. Such measures run the risk of provoking retaliatory measures and a reversion to economic isolationism.
Broader Problems:
CapitalismLegal impediments to foreign investment Narrower Problems:
International double taxationTax discrimination against non-residents of a countryTax barriers to the dissemination of technical knowledgeTax discrimination against investment in a foreign country Aggravates:
Risk of capital investment Reduced By:
Tax holidaysStrategies:
Limiting foreign investment Subject(s):
Commerce → InvestmentCommerce → Taxation
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
12.06.2019 – 16:23 CEST