Cover IMF Working Papers
Retarding Short-Term Capital Inflows Through withholding Tax
Author:
Mr. Howell H Zee
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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 040
Language:
English
Publication Date:
01 Feb 2000
DOI:
https://doi.org/10.5089/9781451845969.001
ISBN:
9781451845969
ISSN:
1018-5941
Pages:
13
Keywords:
WP; tax; The CBCT; Tobin tax; income; tax authorities; withholding tax; financial transactions tax; capital movements; file tax; CBCT refund; tax net; CBCT credit; refund provision; Capital inflows; Capital flows; Income and capital gains taxes; Financial transaction tax; Personal income; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper proposes a price-based measure to mitigate the destabilizing impact of the volatility of global capital movements on the domestic economy of a country pursuing sound economic policies. The measure is a withholding tax on all private capital inflows, with a credit and refund provision that operates within the administrative framework of the existing domestic tax system to relieve noncapital inflows from the tax. This withholding tax, which is substantially more difficult to evade than the much-discussed alternative of imposing non-remunerated reserve requirements, can be implemented with little additional costs to the taxpayers and the tax authorities.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2000: Issue 040