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Taxes in the EU New Member States and the Location of Capital and Profit

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  • Michael P Devereux

    (Oxford University Centre for Business Taxation, IFS, CEPR and CESifo)

Abstract

This paper investigates taxes on corporate profit levied in the new member states of the European Union. Part A provides some background for analysing the current position of corporate taxes in the EU, paying particular attention to the position of the new member states. It has three sections. The first summarises the influences that taxes on profit can have on economic decisions. The second analyses the development of corporation taxes in the EU over the last ten years, making a comparison between the 15 countries who were members prior to 2005, and the 10 new member states joining in 2004. The third section speculates on future developments, summarising evidence on whether there has been significant tax competition, and if so, where it is likely to lead. Part B draws out some policy implications in the light of this evidence and in the light of recent proposals from the European Commission for a common consolidated tax base in the EU.

Suggested Citation

  • Michael P Devereux, 2007. "Taxes in the EU New Member States and the Location of Capital and Profit," Working Papers 0703, Oxford University Centre for Business Taxation.
    • Handle: RePEc:btx:wpaper:0703
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    File URL: http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/Publications/Working_Papers/Series_07/WP0703.pdf
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    References listed on IDEAS

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    Cited by:

    1. Christoph Spengel & Sebastian Lazar & Lisa Evers & Benedikt Zinn, 2012. "Reduction of the effective corporate tax burden in Romania 1992--2012 and Romania's current ranking among the Central and Eastern European EU member states," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 477-502, August.
    2. Marcin Piatkowski & Mariusz Jarmuzek, 2008. "Zero Corporate Income Tax in Moldova: Tax Competition and Its Implications for Eastern Europe," IMF Working Papers 2008/203, International Monetary Fund.
    3. Tehmina S. Khan & Mr. John Norregaard, 2007. "Tax Policy: Recent Trends and Coming Challenges," IMF Working Papers 2007/274, International Monetary Fund.
    4. Spengel, Christoph & Lazar, Sebastian & Evers, Lisa & Zinn, Benedikt, 2012. "Romania's development to a low-tax country: Effective corporate tax burden in Romania from 1992 to 2010 and Romania's current ranking among the eastern European member states," ZEW Discussion Papers 12-003, ZEW - Leibniz Centre for European Economic Research.
    5. Friedrich Heinemann & Michael Overesch & Johannes Rincke, 2010. "Rate‐Cutting Tax Reforms And Corporate Tax Competition In Europe," Economics and Politics, Wiley Blackwell, vol. 22(3), pages 498-518, November.
    6. Apostol, Oana & Pop, Alina, 2019. "‘Paying taxes is losing money’: A qualitative study on institutional logics in the tax consultancy field in Romania," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 1-23.
    7. Malgorzata Sulimierska, 2008. "The Theoretical Link Between Capital Account Liberalization and Currency Crisis Episodes," International Trade and Finance Association Conference Papers 1111, International Trade and Finance Association.

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