Externe Publikationen

On the effects of anti-profit shifting regulations: A developing country perspective

Luadage Teles, Sabine / Nadine Riedel / Kristina Strohmaier
Externe Publikationen (2024)

in: Journal of Public Economics 235, article 105134

DOI: https://doi.org/10.1016/j.jpubeco.2024.105134
Open access

Multinational profit shifting is a major concern for low and middle income countries (LMICs). Many have enacted anti-profit shifting rules in order to constrain this type of tax avoidance behavior. Yet, not much is known on the rules’ effects. We offer a first empirical assessment, providing two pieces of evidence: First, we draw on macro data for more than 120 LMICs for a 30-year-period and show that the introduction of transfer pricing (TP) rules – provisions that constrain profit shifting from mis-pricing of intra-firm trade – significantly increased corporate tax revenue collection in LMICs. Second, we use rich tax administrative and trade data for South Africa to provide “first-stage” evidence for firms’ behavioral response to stricter TP provisions: we establish that a tightening of South African TP rules reduced intra-firm trade mis-pricing and increased taxable income reporting of affected multinational firms.

Weitere Expert*innen zu diesem Thema

Berensmann, Kathrin


Fasold, Maximilian

Politische Ökonomie 

Haldenwang, Christian von


Mchowa, Chifundo


Schiller, Armin von


Walle, Yabibal



Cornelia Hornschild
Koordinatorin Publikationen

E-Mail Cornelia.Hornschild@idos-research.de
Telefon +49 (0)228 94927-135
Fax +49 (0)228 94927-130

Alexandra Fante
Bibliothekarin/Open Access-Koordinatorin

E-Mail Alexandra.Fante@idos-research.de
Telefon +49 (0)228 94927-321
Fax +49 (0)228 94927-130