Zero corporate income tax in Moldova : tax competition and its implications for Eastern Europe /

Global economic integration intensified tax competition and raised concerns about the resulting "race to the bottom", which could undermine public investment and social spending. The aim of this paper is to test predictions that (i) there is interdependence in CIT rate setting in Eastern E...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autores principales: Piatkowski, Marcin (Autor), Jarmuzek, Mariusz (Autor)
Autor Corporativo: International Monetary Fund. European Department
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Washington, D.C. : International Monetary Fund, ©2008.
©2008
Colección:IMF working paper ; WP/08/203.
Temas:
Corporations > Taxation > Moldova.
Corporations > Taxation > Europe, Eastern.
Taxation > Moldova.
Taxation > Europe, Eastern.
Fiscal policy > Moldova.
Fiscal policy > Europe, Eastern.
Sociétés > Impôts > Moldavie.
Sociétés > Impôts > Europe de l'Est.
Impôt > Moldavie.
Impôt > Europe de l'Est.
Politique fiscale > Moldavie.
Politique fiscale > Europe de l'Est.
Corporations > Taxation
Fiscal policy
International economic relations
Taxation
Moldova > Foreign economic relations > Europe, Eastern.
Europe, Eastern > Foreign economic relations > Moldova.
Europe de l'Est > Relations économiques extérieures > Moldavie.
Eastern Europe
Moldova
Acceso en línea:Texto completo
Descripción
Sumario:Global economic integration intensified tax competition and raised concerns about the resulting "race to the bottom", which could undermine public investment and social spending. The aim of this paper is to test predictions that (i) there is interdependence in CIT rate setting in Eastern Europe and that (ii) the recent CIT cut in Moldova may intensify tax competition in the region. It finds that there is indeed evidence that during 1995-2006 countries in Eastern Europe strategically responded to changes in CIT rates in the region and that Moldovan zero CIT is likely to encourage further cuts in CIT. The paper also discusses implications of tax competition for Eastern Europe and finds that FDI flows will not be much affected, tax revenues are likely to decline, the shift in the composition in tax revenue may increase economic efficiency, but decrease equity. Tax coordination, while difficult politically, could help stem further decline in corporate taxation, but any gains might be modest and not certain to exceed the costs of tax coordination. Without tax coordination, however, it is unclear what exactly could stop corporate taxes from falling further
Notas:At head of title: European Department.
"August 2008."
Descripción Física:1 online resource (31 pages) : color illustrations
Bibliografía:Includes bibliographical references (pages 20-23).
ISBN:9781451915143
1451915144

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