首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
For multinational corporations, tax planning has become extremely complex affairs. It has been stated that no multinational corp
For multinational corporations, tax planning has become extremely complex affairs. It has been stated that no multinational corp
admin
2013-03-27
87
问题
For multinational corporations, tax planning has become extremely complex affairs. It has been stated that no multinational corporation possesses the ultimate tax expertise. Therefore, in addition to having their own experts, MNCs rely on heavily on local tax experts and legal counsel.
Taxes have a very important impact on foreign direct investment decisions. Taxes will determine the financial structure of subsidiary, and they will influence pricing decisions. They may also lead to the formation of holding companies. An MNC may decide to establish a branch rather than a subsidiary because of a given tax situation. The absence of a tax treaty between the country of a would-be investor and the nation where a foreign investment is to take place might lead to cancellation of investment plans. An unfavorable depreciation allowance may keep the foreign investor out. This unit will deal with the different tax systems in the world and their impact on an MNC’s global strategy.
Basically, any tax system can Be divided into direct and indirect taxes. Corporate and individual income taxes are direct, value-added taxes, sales taxes, and import duties are indirect taxes. Corporate income taxes(taxes levied on earning)vary among the industrialized nations. France, the United States, Holland, Canada, and Germany have rates of around 50 percent; Italy, the United Kingdom and Japan have rates of between 36 and 40 percent.
Less developed countries usually have lower corporate tax rates in order to attract foreign investment. Thus, Brazil has a rate of 30 percent, and Indonesia has a 40 percent tax rate. A corporate tax is levied on taxable earnings. Taxable earnings are more significant than the tax rate itself. They determine what can be deducted before the tax is computed; in other words, these items are tax deductible. Countries differ greatly in determining taxable earnings. Some allow accelerated depreciation, whereby the asset(usually the plant or equipment)is written off at a substantially higher rate during the first years than in the later years. This allows for smaller taxable earnings in the early years. Other countries allow tax-free investment reserves. These are used at a later stage for investment in undeveloped areas of countries or are sent when countries are in a recession.
A recent type of tax that has won recognition in the European Common Market is value-added tax(VAT). This is a national sales tax levied at each stage of production or at the sale of consumer goods. The tax is assessed in proportion to the value added during that stage. Generally, manufacturing goods, such as plant and equipment, have been exempted from this tax. In most cases, food items also have been exempted.
Here is an example of how VAT works. A tree owner who sells part of a tree to a lumber mill for $ 1 must set aside ten cents VAT to pay to the government. The lumber mill processes the tree into building material and sells the wood for $ 3 to a lumber wholesaler. The mill adds $ 2 in value, and thus sets aside 10 percent of the added value, or twenty cents, to pay to the government. And so the VAT continues until the final sale.
The VAT system offers advantages, such as rebates on exports. Profitable and unprofitable firms are taxed alike, as there is no possibility of tax deductions to determine taxable income. A badly run company is, therefore, forced to improve or go out of business. Further, VAT is easy to calculate and collect. But VAT is often accused of having contributed to serious inflation in countries where it was introduced, notably in Western Europe.
Tax systems can be divided into______.
选项
A、income taxes and direct taxes
B、indirect taxes and direct taxes
C、value-added taxes and sales taxes
D、import duties and sales taxes
答案
B
解析
细节题。根据第三段内容“Basically,any tax system can be divided into direct and indirect taxes.”可知,任何税收系统都可分为直接税收和间接税收两种。所以正确答案是B选项。
转载请注明原文地址:https://kaotiyun.com/show/VCmO777K
0
考博英语
相关试题推荐
SomeofmyclassmatesinthesamedormestablishedachattinggroupontheNetwhenbroadbandwasavailableoncampus.Thenever
Probablyoneofthemostrevolutionaryinnovationsinscienceduringthiscenturywastherecognitionofthedualityofmatter;【
Billcouldn’t______ananswerwhentileteacheraskedhimwhyhewaslate.
Ithasbeenarguedthatwhereschoolsbecomebureaucratized,theybecomeboundupwiththetechniquesandimplementationofthe
Statesareconsideringmajorchangesinprepaidcollegetuitionprograms——raisingprices,restrictingparticipationorcanceling
Lovecan’tconquerall.So,beforecouplestietheknot,theyshouldknowwhatthey’regettinginto.Thetabooagainstcouplesl
Vitaminsareagroupofsubstancesfoundinfood.Thebodyneedsthemforlifeandhealth.Sonaturally,manypeopleareconcern
TheordinaryfamilycolonialNorthAmericawasprimarilyconcernedwithsheerphysicalsurvivalandbeyondthat,itsowneconomi
Seariseasaconsequenceofglobalwarmingwouldimmediatelythreatenthatlargefractionoftheglobelivingatsealevel.Nea
Writersnowadayswhovaluetheirreputationamongthemoresophisticatedhardlydaretomentionprogresswithoutincludingthew
随机试题
Thenewspapersreportedyesterdayseveral______ontheboundariesofthesetwocountries.
入射光强度为透射光的100倍时。照片密度值应为
在对危险性进行控制时,可能采取限制能量措施的是()。
美发店应配备充足的、受过培训的初级理发师,雇佣他们来为顾客洗头、打扫美发馆和进行一般性的勤杂工作。这样能确保造型师集中精力为美发店创收而不会浪费时间。从价值链分析角度看,这一措施属于企业的()。
中央电视台播出的美食类纪录片《舌尖上的中国》,为人们带来了一场视觉的饕餮盛宴。纪录片从中华美食的多个侧面,展现了食物给中国人生活带来的仪式、伦理等方面的文化,下列关于中国饮食文化的表述错误的是()。
我国现行分税制把税种划分为( )。
阅读材料,回答以下问题:重庆中央党部,暨中央执监委员诸同志均鉴:今年4月,临时全国代表大会宣言,说明此次抗战之原因,曰:“自塘沽协定以来,吾人所以忍辱负重与倭国周旋,无非欲停止军事行动,采用和平方法,先谋北方各省之保全,再进而谋东北四省问题之合理解决,
收养关系的成立之日是()
根据下属材料回答题后问题:材料1列宁指出:“就本来的意义说,辩证法就是研究对象的本质自身中的矛盾。”他还指出:“是实际生活中的实际矛盾,即辩证的矛盾,而不少字面上的、臆造出来的矛盾。”材料2杜林说:“矛盾的东西是一个范畴。这个范畴只能归属于思想
SpaceTourism[A]Makeyourreservationsnow.Thespacetourismindustryisofficiallyopenforbusiness,andticketsaregoi
最新回复
(
0
)