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Impact of a Common Corporate Tax Base on the effective tax burden in Belgium

Author

Listed:
  • Annelies Roggeman
  • Isabelle Verleyen
  • Philippe Van Cauwenberge
  • Carine Coppens

Abstract

In March 2011, the European Commission launched a proposal for a Common Consolidated Corporate Tax Base (CCCTB). However, a Common Corporate Tax Base (CCTB), leaving consolidation and apportionment out of consideration, appears to be a more realistic proposition for corporate tax harmonization in Europe. Using the European Tax Analyzer (ETA), we simulate the impact of the CCTB on the effective tax burden in Belgium. The results show that the adoption of the CCTB increases the Belgian effective tax burden by 16%. This remarkable increase is mainly driven by the fact that national tax deductions are not allowed under CCTB. This study allows policymakers to gain insight into the size effects of certain corporate tax measures and contributes to the current discussion on corporate tax harmonization in Europe.

Suggested Citation

  • Annelies Roggeman & Isabelle Verleyen & Philippe Van Cauwenberge & Carine Coppens, 2014. "Impact of a Common Corporate Tax Base on the effective tax burden in Belgium," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(3), pages 530-543, June.
    • Handle: RePEc:taf:jbemgt:v:15:y:2014:i:3:p:530-543
    DOI: 10.3846/16111699.2013.807869
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    References listed on IDEAS

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    2. Xi Wei & Nie Yingqin & Cheng Xiran, 2019. "Indirect Tax Burden of Regional Residents: Study on Long Term MRIO Model," Journal of Systems Science and Information, De Gruyter, vol. 7(6), pages 568-583, December.
    3. Jozef Konings & Catherine Lecocq & Bruno Merlevede, 2022. "Does a tax deduction scheme matter for jobs and investment by multinational and domestic enterprises?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(4), pages 1966-1989, November.
    4. Konings, Jozef & Lecocq, Cathy & Merlevede, Bruno, 2018. "Does a Tax Credit matter for Job Creation by Multinational Enterprises?," CEPR Discussion Papers 13105, C.E.P.R. Discussion Papers.
    5. Cieślik, Andrzej & Turgut, Mehmet Burak, 2021. "Fiscal harmonization in view of the Euro adoption: Economic implications for Poland," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 394-415.
    6. David Procházka, 2014. "The IFRS as Tax Base: Potential Impact on a Small Open Economy," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2014(4), pages 59-75.

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