Revenue Implications of Destination-Based Cash-Flow Taxation

Shafik Hebous, Alexander Klemm*, Saila Stausholm

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review


We estimate the revenue implications of a destination-based cash-flow tax (DBCFT) for 80 countries. On a global average, DBCFT revenues under unchanged tax rates would remain similar to the existing corporate income tax (CIT) revenue, but with sizable redistribution of revenue across countries. Countries are more likely to gain revenue if they have trade deficits, are not reliant on the resource sector, and/or—perhaps surprisingly—are developing economies. DBCFT revenues tend to be more volatile than CIT revenues. Moreover, we consider the revenue losses resulting from spillovers in case of unilateral implementation of a DBCFT. Results suggest that these spillover effects are sizeable if the adopting country is large and globally integrated. These spillovers generate strong revenue-based incentives for many—but not all—other countries to follow the DBCFT adoption.
TidsskriftIMF Economic Review
Udgave nummer4
Sider (fra-til)848-874
Antal sider27
StatusUdgivet - dec. 2020

Bibliografisk note

Published online: 23 October 2020.


  • Tax revenue
  • Destination-based cash fow tax
  • Border adjustment tax