01937cas a2200313 a 4500 AALejournalIMF023170 230101c9999 xx r poo 0 0eng d 9798400216992 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Langenmayr, Dominika. Home or Away? : Profit Shifting with Territorial Taxation / Dominika Langenmayr, Li Liu. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that the profitability of UK subsidiaries in low-tax countries increased after the reform compared to subsidiaries of non-UK multinationals in the same countries by an average of 2 percentage points. This increase in profit shifting also leads to increases in measured productivity of the foreign affiliates of UK multinationals of between 5 and 9 percent. Mode of access: Internet Business Taxes and Subsidies imf International Business imf International Fiscal Issues imf International Public Goods imf Multinational Firms imf Liu, Li. IMF Working Papers; Working Paper ; No. 2022/177 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=177 IMF e-Library