International taxation and cross-border banking

H.P. Huizinga, J. Voget, W.B. Wagner

Research output: Contribution to journalArticleScientificpeer-review

19 Citations (Scopus)


This paper examines empirically how international taxation affects the volume and pricing of cross-border banking activities for a sample of banks in 38 countries over the 1998�2008 period. International double taxation of foreign-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher interest margins charged abroad. These results imply that international double taxation distorts the activities of international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary country.
Original languageEnglish
Pages (from-to)94-125
JournalAmerican Economic Journal: Economic Policy
Issue number2
Publication statusPublished - May 2014


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