Do taxes affect the location of corporate headquarters?

Research Highlight 2008

The relocation of corporate headquarters has become a pressing issue in the UK. Research in the Centre has examined the evidence of the effects of taxation on relocation decisions. Results indicate that taxes do have an effect in countries which tax foreign source dividends, such as the UK and the USA. Preliminary empirical results suggest that in these countries, the higher the tax due on the receipt of such dividends the more likely a company is to relocate its headquarters to a country which exempts such dividends.