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Corporate income tax coordination in the European Union

Author

Listed:
  • Michael P. Devereux

    (Oxford University Centre for Business Taxation, Michael.Devereux@sbs.ox.ac.uk)

  • Clemens Fuest

    (Oxford University Centre for Business Taxation)

Abstract

The globalisation of economic activity and the growing importance of multinational corporations have far-reaching consequences for national tax policies. Since 1995, the average corporate tax rate in the EU has fallen from 35% to 23%. In addition, differences and incompatibilities between the national systems of corporate income taxation distort investment, complicate the tax system and give rise to conflicts between taxpayers and tax authorities as well as between tax authorities of different countries. Given this, there is a widespread view that greater coordination of corporate taxation is required. Recently, the European Commission proposed introducing a Common Consolidated Corporate Tax Base (CCCTB) in Europe. This article discusses the economic advantages and the drawbacks of the CCCTB concept.

Suggested Citation

  • Michael P. Devereux & Clemens Fuest, 2010. "Corporate income tax coordination in the European Union," Transfer: European Review of Labour and Research, , vol. 16(1), pages 23-28, February.
    • Handle: RePEc:sae:treure:v:16:y:2010:i:1:p:23-28
    DOI: 10.1177/1024258909357699
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    References listed on IDEAS

    as
    1. Clemens Fuest, 2008. "The European Commission's proposal for a common consolidated corporate tax base," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(4), pages 720-739, winter.
    2. European Commission, 2001. "Annex to Company Taxation in the Internal Market," Taxation Studies 0006, Directorate General Taxation and Customs Union, European Commission.
    3. European Commission, 2001. "Company Taxation in the Internal Market," Taxation Studies 0005, Directorate General Taxation and Customs Union, European Commission.
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