One of the choices that may be distorted by taxes is the choice of a business location

when we are trying to select the location for corporate headquarters than we need to look for the taxes which are most primarily associated with the overall corporate taxation as at the headquarter level and we will be looking for taxation related to tu high outflow and they will be also associated with foreign taxation and other text credits which are involving with business division and units.

If I am allocating a factory that was labour incentive, then I will be more focused towards the employee based taxations, and I will be looking for the labour taxation and I will be looking for the daily wages payment and short-term taxations because these labour incentive industries are mostly associated with casual workers in large numbers.