Journal Press India^®

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Many countries of the world are redesigning their taxation policies to offer a conducive tax environment to the MNCs so as to increase the level of FDI in the country. Through changes in taxation policy, they intend to become more competitive internationally. Tax laws of all the countries are not same, they are different in terms of corporate tax rates, withholding tax rates, exemption, expenses, meaning of income and tax incentives. As tax laws are different in most of the countries, they create problem for the multinationals in deciding which location of FDI is to be chosen to maximize their profits. The objective of this study is to examine the impact of tax environment on the FDI inflows and stock into countries with different income levels. The results show that tax environment is not significant for all countries and differs for high, middle and low income countries ​

Keywords

FDI; Corporate tax; High income; Middle income; Low income

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