The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates

Merlo, Valeria, Nadine Riedel, Georg Wamser (2020) Review of International Economics 28.1, 35-61. [2014] Abstract This paper examines how restrictions on the tax deductibility of interest cost affect location choices of multinational corporations (MNCs). Many countries have introduced so‐called thin‐capitalization rules (TCRs) to prevent MNCs from shifting their tax base to countries with lower taxContinue reading “The impact of thin‐capitalization rules on the location of multinational firms’ foreign affiliates”