Position statement
Around the globe, tax policy plays an important role in promoting economic growth. An efficient and economically sound tax system allows individuals and businesses to increase economic value. Sound tax policy can also promote technological advancements that enhance the overall well-being of society. Effective global tax policies should also reflect the realities of the global marketplace and enable companies to compete on a level playing field.
Bilateral income tax treaties are important policy tools that prescribe internationally agreed thresholds for the imposition of taxation by foreign governments on investment within their borders. Treaties are agreements between countries that require each treaty partner's tax laws be applied in a non-discriminatory manner for nonresident companies operating in their respective countries. Accordingly, such agreements provide a significant measure of certainty for potential investors. The U.S. and other countries are committed to expanding their network of treaties as a means of reducing barriers to cross-border flows of investment and capital.
IBM supports tax policies around the world that are based on the general principles above. We support an expanded network of bilateral income tax treaties particularly with emerging market and high growth countries. Many countries are actively engaged in reforming their tax systems to reduce complexities, inequities and adapt their policies to an increasingly competitive global marketplace. To ensure that country tax policies assist IBM's growth objectives, Governmental Programs partners closely with IBM Global Taxes and the business units worldwide. We work with governments and international organizations on a global basis to craft and implement tax policies that help us achieve our global business objectives.
Additional resources
Tax issues
- International R&D Incentives (30KB)
- EU on R&D Incentives (70KB)
- Bilateral Income Tax Essentials (15KB)
- Corporate Tax Reform Principles—United States (29KB)
- Fundamental Tax Reform: an International Perspective (256KB)
- Tax Dispute Resolution — OECD (449KB)
- Research & Development Tax Credit (15KB)
- India Treaty-related Tax Issues (28KB)
- Tax Reform Yale paper - U.S. (192KB)
- Hufbauer on U.S. international tax — Peterson Institute (132KB)
- BEA data on overseas investment by U.S. firms (3,747KB)
