International Taxation and Cross-Border Banking

Harry Huizinga, Johannes Voget and Wolf Wagner ()

No 18483, NBER Working Papers from National Bureau of Economic Research, Inc

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. Our analysis informs the debate about additional taxation of the financial sector that has emerged in the wake of the recent financial crisis.

JEL-codes: F23 G21 H25 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-acc, nep-ban and nep-cba
Note: PE
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Citations: View citations in EconPapers (1)

Published as Harry Huizinga & Johannes Voget & Wolf Wagner, 2014. "International Taxation and Cross-Border Banking," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 94-125, May.
Published as International Taxation and Cross-Border Banking , Harry Huizinga, Johannes Voget, Wolf Wagner. in Business Taxation (Trans-Atlantic Public Economics Seminar) , Devereux and Gordon. 2014

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Related works:
Journal Article: International Taxation and Cross-Border Banking (2014)
Chapter: International Taxation and Cross-Border Banking (2012)
Working Paper: International Taxation and Cross-Border Banking (2012)
Working Paper: International Taxation and Cross-Border Banking (2012)
Working Paper: International Taxation and Cross-Border Banking (2011)
Working Paper: International Taxation and Cross-Border Banking (2011)
Working Paper: International Taxation and Cross-Border Banking (2011)
Working Paper: International Taxation and Cross-Border Banking (2011)
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