Tax exporting

Tax exportingoccurs when acountry(or other jurisdiction) shifts itstax burden(partially) abroad.

For example, if residents of country A hold shares of a company in country B, the government in B might want to levy an inefficiently high tax on this company's profits since the tax is partially borne by the shareholders in A.

Tax exporting does not necessarily involve direct taxation of foreign residents. It can also work through other economic channels, such as price changes.

See also

• Capital flight
• Capital strike
• Luxembourg leaks
• Tax avoidance
• Tax competition
• Tax inversion
• Double Irish arrangement

Further reading

• Bucovetsky, Sam (1995). "Rent seeking and tax competition".Journal of Public Economics.58(3). Elsevier BV: 337–363.doi:10.1016/0047-2727(94)01487-9.ISSN0047-2727.
• Huizinga, Harry; Nielsen, Søren Bo (1997)."Capital income and profit taxation with foreign ownership of firms"(PDF).Journal of International Economics.42(1–2). Elsevier BV: 149–165.doi:10.1016/s0022-1996(96)01449-3.ISSN0022-1996.S2CID154545409.
• Bucovetsky, S. (1991). "Asymmetric tax competition".Journal of Urban Economics.30(2). Elsevier BV: 167–181.doi:10.1016/0094-1190(91)90034-5.ISSN0094-1190.
• Hoyt, William H. (1991). "Property taxation, Nash equilibrium, and market power".Journal of Urban Economics.30(1). Elsevier BV: 123–131.doi:10.1016/0094-1190(91)90049-d.ISSN0094-1190.