La justificación y los efectos económicos del impuesto de sociedades

This article begins by reviewing the theoretical justification for Corporate Income Tax and goes on to deal with the development of Corporate Tax in Spain and in the Autonomous Community of the Basque Country, recent trends in EU countries and its economic effects. The article concludes with a series of reflections on recent reforms in Company Tax in Spain and in the Autonomous Community of the Basque Country. The article¿s basic argument is that apart from the fact that in practice the vast majority of companies pay little or no Corporate Tax, this tax has very reduced effects - if any- on the companies´ level of activity and competitiveness. On this basis, the article questions recent reforms in Corporate Tax, especially because of the incentives and bonuses introduced and the advantages offered to SMEs.