International Taxation and Cross-Border Banking

Harry Huizinga, Johannes Voget and Wolf Wagner ()

American Economic Journal: Economic Policy, 2014, vol. 6, issue 2, 94-125

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.

JEL-codes: F23 G21 H25 H87 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/pol.6.2.94
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Citations: View citations in EconPapers (22)

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