Background Note | HBS Case Collection | August 2005

Note on International Tax Regimes

by Mihir A. Desai, Mark Veblen and Kathleen Luchs

Abstract

Provides a framework for understanding different types of international tax regimes. Examines how alternative tax regimes tax the foreign income of their citizens (including corporate citizens); how tax regimes define foreign and domestic income; and how foreign tax credits and deductions are used in worldwide tax regimes to mitigate double taxation. Discusses in detail the current U.S. system of worldwide taxation and the managerial incentives created by the U.S. tax system.

Keywords: Motivation and Incentives; Earnings Management; Nationality Characteristics; Framework; Taxation; Profit; Globalization; Credit; United States;

Citation:

Desai, Mihir A., Mark Veblen, and Kathleen Luchs. "Note on International Tax Regimes." Harvard Business School Background Note 206-014, August 2005.