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
111
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.
Why did the less developed countries usually have lower corporate tax rates?
选项
A、They want to invest more money on other projects.
B、The less developed countries want to attract more foreign investment.
C、Extra money should be spent on foreign investment.
D、Corporate tax rates are less important to the development of the less developed countries.
答案
B
解析
细节题。根据第四段内容“Less developed countries usually have lower corporate tax rates in order to attract foreign investment.”可知,为了吸引外国投资,欠发达国家一般规定较低的税率。所以正确答案是B选项。
转载请注明原文地址:https://kaotiyun.com/show/3CmO777K
0
考博英语
相关试题推荐
Asoneworkswithcolorinapracticalorexperimentalway,oneisimpressedbytwoapparentlyunrelatedfacts.Colorasseenis
Resistancetothe1954UnitedStatesSupremeCourtdecisionterminatingsegregationplacedtheschoolsinthemiddleofabitter
Thestudyofsocialscienceismorethanthestudyoftheindividualsocialsciences.Althoughitistruethattobeagoodsoci
Thestudentsexpectedthere____morereviewingclassesbeforethefinalexams.
"ItwasthebeginningofarevolutioninAmericaandtheworld,arevolutionthatsomehaveyettoacknowledgeandmanyhaveyet
"ItwasthebeginningofarevolutioninAmericaandtheworld,arevolutionthatsomehaveyettoacknowledgeandmanyhaveyet
OnApril20,2000,inAccra,Ghana,theleadersofsixWestAfricancountriesdeclaredtheirintentiontoproceedtomonetaryun
Accordingtoasurvey,whichwasbasedontheresponsesofover188,000students,today’straditional-agecollegefreshmenare
Oneofthemajordifferencesbetweenmanandhisclosestlivingrelativeis,ofcourse,thatthechimpanzeehasnotdevelopedthe
Sustainabledevelopmentisappliedtojustabouteverythingfromenergytocleanwaterandeconomicgrowth,andasaresultith
随机试题
Thebirdfluvirusismutatingandbecomingmoredangeroustomammals,accordingtoresearchers.Thediscoveryreinforcesfears
在下列检查方法中,对甲状腺肿瘤诊断恰当率高的方法是
如果这个病人有漏睛疮,检查中最好的诊断依据是:若此病人患的是针眼,最支持它的检查结果是:
不宜用煎煮法提取的中药化学成分是
某岗位的平均薪酬为5000元,顶薪点为5500元,则该岗位的薪幅百分率应为()。(2005年11月二级真题)
下列作品不是选自《一千零一夜》的是()。
下列与“一曝十寒”所体现的哲学道理相一致的是()。
中国特色社会主义的理认体系
IsYourChild’sStomachPainAllinHisHead?Weallknowtherearetimesthatkidsseemtocomplain(51)astomachacheto
Theweatherisstillunpleasanttoday,butyesterdayitwas(bad)______.
最新回复
(
0
)