The evidence shows that in most countries the present value of depreciation allowances is less than 100% of the cost of capital. In this article we use a real-option model with debt financing, and show that less favorable depreciation allowances are offset by tax benefits arising from debt...

How sensitive is inward foreign direct investment (FDI) from the United States (US) to developing Asia to corporate tax rates? This is a relevant question given the sweeping US tax bill effective in 2018, which provided incentives for US corporations abroad to repatriate profits. Using panel...

Although the Czech Republic does not have a territorial tax regime, its participation exemption allows deferral of tax on income of certain foreign subsidiaries. With EU approval, the Czech Republic provides incentives to attract investment. These incentives support manufacturing, job creation,...