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Effective Tax Rate of Corporate Income Tax in the Post-Crisis Period: The Case of Non-Financial Companies Listed on the Bucharest Stock Exchange

Author

Listed:
  • Teodorescu Mihaela

    (“Valahia†University of Targoviste)

  • Istudor Ileana Iulia

    (“Valahia†University of Targoviste)

Abstract

The intention of the paper is to analyse the evolution of the effective tax rate of corporate income tax for the 2011-2016 period, calculated for the non-financial companies listed on the Bucharest Stock Exchange (Romanian: Bursa de Valori București - BVB). The first part of the paper presents the main causes for the divergence between the statutory and effective rate of the corporate income tax, based on the provisions of the Romanian Fiscal Code. The differences between the gross income and the taxable profit, which form the basis for calculating the income tax, are highlighted. The second part is devoted to the methodology for calculating the effective income tax rate and its analysis, based on data from the financial statements published in the post-crisis period by Romanian companies listed on BVB.

Suggested Citation

  • Teodorescu Mihaela & Istudor Ileana Iulia, 2017. "Effective Tax Rate of Corporate Income Tax in the Post-Crisis Period: The Case of Non-Financial Companies Listed on the Bucharest Stock Exchange," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 655-661, December.
    • Handle: RePEc:ovi:oviste:v:xvii:y:2017:i:2:p:655-661
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    References listed on IDEAS

    as
    1. Nicodeme, Gaetan, 2001. "Computing effective corporate tax rates: comparisons and results," MPRA Paper 3808, University Library of Munich, Germany.
    2. Georgeta VINTILĂ & Ștefan Daniel ARMEANU & Maria-Oana FILIPESCU & Maricica MOSCALU & Paula LAZĂR, 2012. "Study Regarding Fiscal Policy – Corporative Social Responsibility Correlation," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(569)), pages 5-16, April.
    3. Georgeta Vintilă & Ştefan Daniel Armeanu & Maria Oana Filipescu & Maricica Moscalu & Paula Lazăr, 2011. "Fiscal Policy Impact Upon European And National Entrepreneurial Environment," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 5(5(558)(su), pages 352-359, July.
    4. European Commission, 2001. "Company Taxation in the Internal Market," Taxation Studies 0005, Directorate General Taxation and Customs Union, European Commission.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    taxable profit; profit tax; statutory tax rate; effective tax rate;
    All these keywords.

    JEL classification:

    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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