Economic Analysis of International Taxation

2023 Fiscal Year Final Research Report

• Project/Area Number: 20K01725
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Review Section: Basic Section 07050:Public economics and labor economics-related
• Research Institution: Kyoto University
• Principal Investigator: Hasegawa Makoto 京都大学, 経済学研究科, 准教授 (50722542)
• Project Period (FY): 2020-04-01 – 2024-03-31
• Keywords: 国際課税制度 / 多国籍企業 / 外国子会社配当益金不算入制度 / 利益還流 / 利益移転

Outline of Final Research Achievements

I examined the effect of Japan's adoption of the foreign dividend exemption system on profit repatriation through dividends, interest, and royalties. This reform decreased the effective tax rate on foreign income repatriated via dividends for most Japanese-owned foreign affiliates. In response to this tax rate reduction, Japanese-owned foreign affiliates increased dividends but did not change royalties or interest paid to their Japanese parents. As a result, these affiliates increased the total payments to the parents. I published a working paper for this research. Moreover, I examined the effect of this tax reform on the profit-shifting behavior of Japanese multinationals. I found evidence suggesting that Japanese-owned foreign subsidiaries, particularly large subsidiaries, became more sensitive to the incentive for profit shifting after the 2008 announcement of the reform's implementation. Finally, I published this paper in a refereed journal.

Free Research Field

公共経済学

Academic Significance and Societal Importance of the Research Achievements

本研究は、外国子会社配当益金不算入制度の導入が配当・使用料・利子といった複数の利益還流手段に与えた影響を包括的に分析している。この税制改正によって使用料・利子から配当へと利益還流手段の代替が起こる可能性を考慮すると、使用料や利子など配当以外の利益還流手段への影響を確認することの学術的意義は大きいと考える。さらに、本研究の成果はこの制度変更の政策評価に寄与し、さらに多国籍企業の利益還流行動についての理解を深めることに貢献できる点に社会的意義があると考える。