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Efektívna priemerná daňová sadzba z kapitálu aplikovaná na slovenské podmienky
[Effective Average Tax Rate of Capital Applied to the Slovak Conditions]

Author

Listed:
  • Nikola Šimková

Abstract

Investors' decisions are not based only on the statutory tax rate in the country, but also on a range of other aspects, such as depreciation of fixed assets, treatment of foreign source income, property taxes paid by firms, as well as treatment of dividends paid by companies and taxes on wealth and capital gains at the level of individuals. These aspects are incorporated into the model created by the Centre for European Economic Research (ZEW). This model provides a comprehensive look at the issue of tax competition, therefore the paper deals with describing and explaining its construction. The benefit is description of the effective average tax rate (EATR) in the Slovak conditions, evaluation of its development and changes by the different types of assets and the ways of financing, as well as forecasting its level based on the change in the corporate income tax rate. The indicator, which represents the level of capital taxation, is complicated to determine. EATR means the significant progress on this issue.

Suggested Citation

  • Nikola Šimková, 2016. "Efektívna priemerná daňová sadzba z kapitálu aplikovaná na slovenské podmienky [Effective Average Tax Rate of Capital Applied to the Slovak Conditions]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(1), pages 51-64.
    • Handle: RePEc:prg:jnlpol:v:2016:y:2016:i:1:id:1054:p:51-64
    DOI: 10.18267/j.polek.1054
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    References listed on IDEAS

    as
    1. Jacobs, Otto H. & Spengel, Christoph & Finkenzeller, Martin & Roche, Matthias, 2003. "Company taxation in the new EU member states: Survey of the tax regimes and effective tax burdens for multinational investors," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110499, September.
    2. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    3. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    incremental investment; effective marginal tax rate; effective average tax rate; costs of capital; Corporate income tax; capital;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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