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Factors Affecting Effective Corporate Income Tax Rate of the Czech and Russian "Blue Chips" in 2012 - 2015

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  • Marina Purina

Abstract

Nowadays, influence of international business groups on the individual countries´ economic systems is still growing. Effective tax rate showing a real level of the tax burden is one of the most important parameters of each economy. This article analyses the factors affecting the effective corporate income tax rate of the "blue chips" in the Czech Republic and in the Russian Federation. The factors are divided into two groups: external and internal ones. The hypothesis states that the internal factors (assets, debt ratio and equity) are more correlated with the dependent variable than the external ones (Paying Taxes index and average oil price). The regression analysis, particularly, panel data model with fixed effects, was used to estimate influence of the independent variables on the effective tax rate separately in Russia and Czech Republic. The research demonstrated that the mentioned internal factors are more significant for the Russian companies that the external factors. In the case of the Czech Republic, the same result was obtained with lower confidence level.

Suggested Citation

  • Marina Purina, 2017. "Factors Affecting Effective Corporate Income Tax Rate of the Czech and Russian "Blue Chips" in 2012 - 2015," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2017(1), pages 51-69.
    • Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:1:id:177:p:51-69
    DOI: 10.18267/j.efaj.177
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    References listed on IDEAS

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    1. Ladislav Mejzlík & Leoš Vítek & Jana Roe, 2014. "Adjustments to Accounting Profit in Determination of the Income Tax Base: Evolution in the Czech Republic," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2014(4), pages 4-24.
    2. Elena Fernández-Rodríguez & Antonio Martínez-Arias, 2014. "Determinants of the Effective Tax Rate in the BRIC Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(03), pages 214-228, May.
    3. Mendoza, Enrique G. & Razin, Assaf & Tesar, Linda L., 1994. "Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 297-323, December.
    4. Elena Fernández-Rodríguez & Antonio Martínez-Arias, 2014. "Determinants of the Effective Tax Rate in the BRIC Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(S3), pages 214-228.
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    Cited by:

    1. Marina Purina, 2021. "Human Freedom and Effective Corporate Income Tax Rates of CEE Listed Companies," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2021(2), pages 05-28.

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    More about this item

    Keywords

    Blue chips; Regression analysis; Effective corporate income tax rate; Corporate income tax;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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