Holding company location

This paper aims to present the size and structure of passive income payments, such as dividends, interest, royalty payments, and fees for intangible services, made by companies domiciled in Poland belonging to a multinational enterprises (MNE) group. The authors formulate a hypothesis that tax jurisdictions offering extensive legal and tax incentives for holding structures, in particular concerning the tax treatment of dividends and other withholding tax payments, are the preferred location of holding companies. A review of the literature and legal sources precedes empirical research. The empirical analysis shows that passive income flows, including dividends, interest, royalties, and fees for intangible services, which constitute the dominant type of payments to holding companies, are directed from Poland primarily to countries with tax and regulatory solutions that are friendly to holding companies, including in particular the so-called intra-EU tax havens, namely Luxembourg, Cyprus, the Netherlands, Malta and Ireland. Real trade with these countries is neither significant nor proportional to the scale of passive income

Ad valorem tax · Business · Dividend · Dividend tax · Double taxation · Economics · Gross income · Incentive · Income tax · International economics · Market economy · Monetary economics · Multinational corporation · Payment · Public economics · State income tax · Tax reform · Withholding tax · Corporate Taxation and Avoidance · Economic and Fiscal Studies · Finance · Taxation and Legal Issues

• Niekorzystanie ze zwolnienia od całości dochodów bez względu na źródło ich osiągania – uwagi na tle interpretacji jako wymogu efektywnego opodatkowania

  Open Access•Robert Łopatek•Ruch Prawniczy Ekonomiczny i…•2024

  Add to list

• Investigating a thin-capitalization rule

  Open Access•Jan Vlachý•Politická ekonomie•2008

  Add to list