Capital Import Neutrality (CIN) and Capital Export Neutrality (CEN) are concepts from international tax law that help determine how investments across borders are taxed. These concepts influence the decisions of companies and investors on where to allocate their funds, and affect countries’ influence on their own economic and social policies. If countries follow capital import neutrality, they aim to attract investments by treating foreign companies the same as domestic ones. If they follow capital export neutrality, they try not to discourage their own companies from investing abroad through taxation.
Read more: What Are Capital Import Neutrality and Capital Export Neutrality?