Tax discrimination against non-residents of a country

Countries may introduce special taxes which are theoretically applicable to both resident and non-resident enterprises but which in practice impinge almost exclusively on the profits of the non-resident. Examples are: special taxes on profits when dividends are not paid within the country; special taxes on profits when a certain proportion of shares are not owned by residents; special tax on that part of the profits remitted out of the country; denial to non-resident companies of any rebate of tax on profits.

1. Tax obstacles to international investment

1. Vulnerability of frontier workers
2. International double taxation

1. Ineffective economic structures in industrial nations

1. Using economic instruments
2. Reducing tax discrimination against non-residents of a country

1. Discrimination [D]