Corporate Effective Tax Rates in an Enlarged European Union
AbstractThis paper offers an assessment of European corporate tax regimes using forward-looking indicators for corporate investment based on the Devereux-Griffith methodology. It draws on time series of average effective tax rates (EATR) using a detailed set of tax parameters for 27 EU Member States as well as some important non-EU countries. The analysis shows that over time the reduction in the corporate effective average tax rates (EATR) was lower than for the corporate statutory rates and the figures suggest that simple corporate tax base broadening by means of less generous capital allowances is not a sufficient explanation for this phenomenon. Finally, it is shown that the tax gap between the old and new EU Member States has grown over time and even accelerated after accession.
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Bibliographic InfoPaper provided by Directorate General Taxation and Customs Union, European Commission in its series Taxation Papers with number 14.
Length: 28 pages
Date of creation: Apr 2009
Date of revision: Apr 2009
European Union; effective tax rate; effective tax burden; corporate taxation; company taxation.;
Find related papers by JEL classification:
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
- NEP-EEC-2009-05-02 (European Economics)
- NEP-PBE-2009-05-02 (Public Economics)
- NEP-PUB-2009-05-02 (Public Finance)
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