Tax treaty shopping: structural determinants of Foreign Direct Investment routed through the Netherlands

  title={Tax treaty shopping: structural determinants of Foreign Direct Investment routed through the Netherlands},
  author={Francis Weyzig},
  journal={International Tax and Public Finance},
  • F. Weyzig
  • Published 1 December 2013
  • Economics
  • International Tax and Public Finance
Many multinationals divert Foreign Direct Investment (FDI) through conduit countries that have a favorable tax treaty network, to avoid host country withholding taxes. This is referred to as tax treaty shopping. The Netherlands is the world’s largest conduit country; in 2009, multinationals held approximately €1,600 billion of FDI via the Netherlands. This paper uses microdata from Dutch Special Purpose Entities to analyze geographical patterns and structural determinants of FDI diversion… 

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