Capital Import Neutrality definition
Capital Import Neutrality. (CIN), means that capital funds invested in various countries should be equally taxed, regardless of the domicile of the investor. Thus, there is a neutrality between residents and non-residents, the same tax rate applies to income derived from the same source. CIN provides therefore better neutrality than CEN when taxation is based on the source of income. According to Kemmeren the CIN system would lead to the optimal allocation of production factors and this approach should therefore be prevailed.41 CIN based systems do, however, not take into account losses made abroad.