International corporate tax comparison

UNCTAD developed a simple modeling tool to assess the burden of corporate income taxation on investors. It measures the amounts paid in corporate taxes as a percentage of the total cash received from the project by a foreign investor, in net present value terms (see annex II on methodology). The model uses hypothetical business plans in 13 sectors and enables international comparisons on a comprehensive and objective basis, going well beyond simple comparisons of headlines corporate income tax rates. The modeling is based on projects fully financed by a foreign investor, which means that withholding taxes on dividend payments abroad play an important role, in addition to income taxes paid at the company level.

Related Subject(s): United Nations