The Effect of Taxation on Corporations in the OECD Countries
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School of Business |
Bachelor's thesis
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Authors
Date
2023
Department
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
20 + 6
Series
Abstract
This literature review answers the question: what is the effect of taxation on corporations in the OECD countries? Theoretical background is based on public economics and, in more detail, corporate taxation. I analyze how corporations are taxed and how the previous literature covers the topic. Through this comprehensive literature review, I will show the research results that taxes have on business decisions in operations and financing, foreign investments, and corporations' international competitiveness. Finally, I will cover the main challenges related to corporate taxation: profit shifting, cross-border transactions, transfer pricing, tax avoidance, and fiscal adjustments. As a result, corporate taxation may reduce entrepreneurial innovation and investments, decrease the number of new business operations, encourage relocating local operations internationally, affect corporations' financing and business operations decisions, and affect foreign investment decisions. The results are consistent with the knowledge that taxation significantly affects corporations and their efficient outcomes.Description
Thesis advisor
Kitti, MitriKeywords
corporate taxes, multinational enterprises, transfer pricing, foreign direct investment, tax competition