Establishing the Baseline: Estimating the Fiscal Contribution of Multinational Enterprises

32 Pages Posted: 11 Jun 2020

See all articles by Richard Bolwijn

Richard Bolwijn

United Nations - Conference on Trade and Development (UNCTAD)

Bruno Casella

United Nations - Conference on Trade and Development (UNCTAD)

Davide Rigo

Graduate Institute, Geneva (IHEID), Students

Multiple version iconThere are 2 versions of this paper

Date Written: November 20, 2018

Abstract

Tax revenues from multinational enterprises (MNEs) are an important source of public finance in developing economies. The research and policy debate so far have mostly focused on the “missing” part, i.e. the government revenues lost due to the tax avoidance practices of MNEs (Bolwijn et al., 2018). In this study, we take a different, but complementary, approach, looking at the taxes and other revenues actually paid by foreign affiliates of MNEs to developing-country governments. We present two alternative methodologies to estimate foreign affiliates’ fiscal contribution – the contribution method and the foreign direct investment (FDI) income method – and show that they lead to the same order of magnitude. The findings allow us to set a baseline for an informed discussion on tax avoidance by MNEs.

Keywords: multinational enterprise, fiscal contribution, BEPS, domestic revenues, developing countries

Suggested Citation

Bolwijn, Richard and Casella, Bruno and Rigo, Davide, Establishing the Baseline: Estimating the Fiscal Contribution of Multinational Enterprises (November 20, 2018). Transnational Corporations Journal, Vol. 25, No. 3, 2018, Available at SSRN: https://ssrn.com/abstract=3621982

Richard Bolwijn (Contact Author)

United Nations - Conference on Trade and Development (UNCTAD) ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

Bruno Casella

United Nations - Conference on Trade and Development (UNCTAD) ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

Davide Rigo

Graduate Institute, Geneva (IHEID), Students ( email )

Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
10
Abstract Views
33
PlumX Metrics