The influence of the tax system on the location of holding companies in Spain

Purpose: The purpose of this article is to determine the influence of the tax system on the location of holding companies in Spain. Design/methodology/approach: To achieve this purpose, we have used an analysis of cointegration in time series. The independent variable used was the number of holding...

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Detalles Bibliográficos
Autores: Cárdenas Cárdenas, Gilberto, García Gámez, Sofía de las Nieves, Salas Suárez, Álvaro Antonio
Tipo de recurso: artículo
Fecha de publicación:2020
País:España
Institución:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/709319
Acceso en línea:http://hdl.handle.net/10486/709319
https://dx.doi.org/10.1108/CR-12-2019-0135
Access Level:acceso abierto
Palabra clave:Cointegration in times series
Holding companies
International taxation
Spanish holding
Tax planning
Economía
Descripción
Sumario:Purpose: The purpose of this article is to determine the influence of the tax system on the location of holding companies in Spain. Design/methodology/approach: To achieve this purpose, we have used an analysis of cointegration in time series. The independent variable used was the number of holding companies under Régimen de Entidades de Tenencia de Valores Extranjeros Spanish regime. The dependent variables were divided into two groups: fiscal and non-fiscal variables. The dependent fiscal variables are effective tax rate and double taxation convention, whereas the non-fiscal dependent variables are government effectiveness and business freedom. Findings: The study concludes that the fiscal variables are relevant to establish a holding company in Spain, but there are other variables such as government effectiveness and business freedom that show as well as influence on the location of holding companies. Originality/value: In the year 2015, the article The influence of the tax system on the location of holding companies in Switzerland was published in the Competitiveness Review. In this article, the influence of taxation on the decision to locate a holding company in Switzerland was analyzed. Now that the Spanish holding regime is consolidated, thanks to more than twenty years of application in our tax legislation, we consider it important to carry out an analysis of the influence of taxation in the decision to locate a holding company in our country. As already mentioned in the article published in 2015, the study of the taxation of holding companies is a topic related more to law firms and/or tax advisors than to academic research, and it is for this reason that there are few empirical studies on this topic. Hence, the research developed in this paper is important