Skip to main content
  • Experts
  • Events
  • Briefing Book
  • Resources
  • About
  • Contact
  • Support
  • Fiscal Facts
Twitter
Facebook
Logo Site
  • Topics
    • Individual Taxes
    • Business Taxes
    • Federal Budget and Economy
    • State and Local Issues
    • Campaigns, Proposals, and Reforms
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Features
Research report

Is a Territorial Tax System Viable for the United States?

Eric Toder
March 28, 2017
Download PDFPrint
Share

Primary tasks

  • Overview(active tab)
  • Full Report

Abstract

Territorial tax systems require clear rules to distinguish between taxable domestic and exempt foreign-source income. Defining the source of a multinational company’s profits is difficult, however, especially for profits that are attributable to intangible assets. Shifting of reported profits to low-tax countries with little economic activity is eroding territorial systems around the world. The OECD Base Erosion and Profit Shifting report would limit these abusive transactions, while attempting to maintain territorial systems that tax foreign affiliates of multinational companies as independent entities. Alternatives would abandon territorial systems altogether and seek different ways of taxing profits of multinational companies.

Research Area

Business Taxes Income taxes (business) Pass-through entities Tax compliance (business) Campaigns, Proposals, and Reforms Fundamental reform proposals Federal Budget and Economy Federal budget
To reuse content from the Tax Policy Center, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

Meet the Experts

  • Eric Toder
    Institute Fellow and Codirector, Tax Policy Center
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
  • Donate Today
  • Topics
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Privacy Policy
  • Newsletters
Twitter
Facebook
  • © Urban Institute, Brookings Institution, and individual authors, 2022.