Item

International taxation and cross-border banking

Huizinga,H.P.
; 
Voget,J.
; 
Wagner,W.B.
Abstract
This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998�2008 period. International double taxation of foreign-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher interest margins charged abroad. These results imply that international double taxation distorts the activities of international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary country.
Description
Date
2014-05
Journal Title
Journal ISSN
Volume Title
Publisher
Collections
Tilburg University Research Output Collection
Show all metadata
Research Projects
Organizational Units
Journal Issue
Keywords
F23 - Multinational Firms ; International Business, G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages, H25 - Business Taxes and Subsidies, H87 - International Fiscal Issues ; International Public Goods, SDG 17 - Partnerships for the Goals
Citation
Huizinga, H P, Voget, J & Wagner, W B 2014, 'International taxation and cross-border banking', American Economic Journal-Economic Policy, vol. 6, no. 2, pp. 94-125. https://doi.org/10.1257/pol.6.2.94
URI
https://hdl.handle.net/20.500.14602/61963
Embedded videos