The Norwegian Shareholder Tax Reconsidered
2011 (English)Report (Other academic)
In an article in International Tax and Public Finance, Peter Birch Sørensen (2005) gives an in-depth account of the new Norwegian Shareholder Tax, which allows the shareholders a deduction for an imputed risk-free rate of return. Sørensen’s positive evaluation appears as reasonable for a closed economy where the deduction for the imputed return is capitalized into the market prices of corporate shares. We show that in a small open economy where no capitalization occurs, the Norwegian shareholder tax is likely to leave the distortions caused by the corporate income tax unaffected, and to add new distortions to shareholders’ portfolio decisions.
Place, publisher, year, edition, pages
Uppsala, 2011. , 24 p.
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2011:6
Tax neutrality, open economy, shareholder taxation, corporate-personal tax integration, small firms
Research subject Economics
IdentifiersURN: urn:nbn:se:uu:diva-209306OAI: oai:DiVA.org:uu-209306DiVA: diva2:656651