<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In the context of globalization, the advantages and disadvantages of the taxation strategies of multinational companies include the scope of taxes collected at the state budget, as well as foreign direct investment inflows, both having the possibility to influence economic growth directly or indirectly. In this paper, we tested with unifactorial linear model the theory that direct investment inflows have an insignificant impact on economic growth as well as the impact of collected taxes on economic growth. The research was carried out on four member states of the European Union, namely Germany, France, Romania and Bulgaria, and the data collected covered the period 2012-2021. The research results highlighted that a developed country that has a lower tax rate generated more foreign direct investment inflows and less corporate taxes collected at the state budget than a developed country that has a much higher tax rate, but taxes had a larger contribution to GDP growth when we consider only this variable. On the other hand, a developing country with an average tax rate but a larger economy generated more foreign direct investment inflows and more taxes collected at the state budget than a country with a lower rate and a smaller economy.</p>
</abstract>

In the context of globalization, the advantages and disadvantages of the taxation strategies of multinational companies include the scope of taxes collected at the state budget, as well as foreign direct investment inflows, both having the possibility to influence economic growth directly or indirectly. In this paper, we tested with unifactorial linear model the theory that direct investment inflows have an insignificant impact on economic growth as well as the impact of collected taxes on economic growth. The research was carried out on four member states of the European Union, namely Germany, France, Romania and Bulgaria, and the data collected covered the period 2012-2021. The research results highlighted that a developed country that has a lower tax rate generated more foreign direct investment inflows and less corporate taxes collected at the state budget than a developed country that has a much higher tax rate, but taxes had a larger contribution to GDP growth when we consider only this variable. On the other hand, a developing country with an average tax rate but a larger economy generated more foreign direct investment inflows and more taxes collected at the state budget than a country with a lower rate and a smaller economy.

The Advantages and Disadvantages of Taxation Strategies Applied on MNEs in the European Union

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution 4.0 International License.

In the context of globalization, the advantages and disadvantages of the taxation strategies of multinational companies include the scope of taxes collected at...

The Advantages and Disadvantages of Taxation Strategies Applied on MNEs in the European Union

Published Online: Jul 14, 2023

Page range: 298 - 313

DOI: https://doi.org/10.2478/picbe-2023-0031

Keywords
taxation strategies, corporate tax collected, foreign direct investments, economic growth, multinational companies, European Union

© 2023 Laurențiu-Mihai Tănase et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Advantages and Disadvantages of Taxation Strategies Applied on MNEs in the European Union

Published Online: Jul 14, 2023

Page range: 298 - 313

DOI: https://doi.org/10.2478/picbe-2023-0031

Keywordstaxation strategies, corporate tax collected, foreign direct investments, economic growth, multinational companies, European Union

© 2023 Laurențiu-Mihai Tănase et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
taxation strategies, corporate tax collected, foreign direct investments, economic growth, multinational companies, European Union