An empirical investigation of the effect of imputation credits on remittance of overseas dividends

► Overseas dividend remittances aid moving funds among MNCs' global subsidiaries. ► Imputation credits alleviate tax on dividends at the individual shareholder level. ► We find imputation tax credits positively affect foreign dividend payouts. ► We also find transfer-pricing may substitute for within-firm dividend remittance. ► Our results explain links between tax and MNCs' within-firm pricing and dividends.