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Measuring the Effective Levels of Company Taxation in the New Member States: A Quantitative Analysis

Author

Listed:
  • Martin Finkenzeller

    (University of Mannheim and Centre for European Economic Research (ZEW))

  • Christoph Spengel

    (University of Giessen and Centre for European Economic Research (ZEW))

Abstract

This paper presents evidence on the effective levels of company taxation in the new member states. The focus is on a quantitative analysis of taxation of international mobile capital. In particular, it reveals the impact of taxation on the relative attractiveness of the acceding countries in isolation from other economic factors. The study relies on the measure of the effective average tax rate (EATR) derived from a forward-looking approach developed by Devereux and Griffith and recently applied by the European Commission.

Suggested Citation

  • Martin Finkenzeller & Christoph Spengel, 2004. "Measuring the Effective Levels of Company Taxation in the New Member States: A Quantitative Analysis," Taxation Papers 7, Directorate General Taxation and Customs Union, European Commission, revised Dec 2004.
    • Handle: RePEc:tax:taxpap:0007
    as

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    File URL: https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/corporate_income_tax_belgium.pdf
    File Function: final version, 2004
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    References listed on IDEAS

    as
    1. Devereux, Michael P & Griffith, Rachel, 2003. "Evaluating Tax Policy for Location Decisions," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 10(2), pages 107-126, March.
    2. Agnès Bénassy-Quéré & Lionel Fontagné & Amina Lahrèche-Révil, 2001. "Foreign Direct Investment and Company Taxation in Europe," Economics Working Papers 004, European Network of Economic Policy Research Institutes.
    3. Devereux, Michael P. & Griffith, Rachel, 1998. "Taxes and the location of production: evidence from a panel of US multinationals," Journal of Public Economics, Elsevier, vol. 68(3), pages 335-367, June.
    4. Ulrich Schreiber & Christoph Spengel & Lothar Lammersen, 2002. "Measuring The Impact Of Taxation On Investment And Financing Decisions," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 54(1), pages 2-23, January.
    5. Lammersen, Lothar, 2002. "The Measurement of Effective Tax Rates: Common Themes in Business Management and Economics," ZEW Discussion Papers 02-46, ZEW - Leibniz Centre for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Leon Bettendorf & Albert van der Horst, 2006. "Documentation of CORTAX," CPB Memorandum 161.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Albert van der Horst & Leon Bettendorf & Hugo Rojas-Romagosa, 2007. "Will corporate tax consolidation improve efficiency in the EU?," CPB Document 141, CPB Netherlands Bureau for Economic Policy Analysis.
    3. repec:esr:chaptr:jacb200759 is not listed on IDEAS
    4. Leon Bettendorf & Albert van der Horst & Ruud A. De Mooij, 2009. "Corporate Tax Policy and Unemployment in Europe: An Applied General Equilibrium Analysis," The World Economy, Wiley Blackwell, vol. 32(9), pages 1319-1347, September.
    5. van der Horst, Albert, 2007. "Is EU Coordination Needed for Corporate Taxation?," Papers BP2008/3, Economic and Social Research Institute (ESRI).
    6. Mário MARQUES & Carlos PINHO, 2014. "Effects of Corporate Taxation and Bilateral Tax Treaties on European Multinationals’ Investment, 2005-2009. A Multi-Country Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 33-44.
    7. Barrett, Alan & Barry, Frank & Van der Horst, Albert & Kearney, Ide & Lane, Philip R. & Nolan, Brian & O'Brien, Martin & Walsh, John R., 2007. "Budget Perspectives 2008," Research Series, Economic and Social Research Institute (ESRI), number BMI199 edited by Callan, Tim.
    8. Leon Bettendorf & Albert van der Horst, 2006. "Documentation of CORTAX," CPB Memorandum 161, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Koenig, Pamina & MacGarvie, Megan, 2011. "Regulatory policy and the location of bio-pharmaceutical foreign direct investment in Europe," Journal of Health Economics, Elsevier, vol. 30(5), pages 950-965.
    10. Leon Bettendorf & Joeri Gorter & Albert van der Horst, 2006. "Who benefits from tax competition in the European Union?," CPB Document 125, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Marques, Mário & Pinho, Carlos & Montenegro, Tânia Menezes, 2019. "The effect of international income shifting on the link between real investment and corporate taxation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 36(C), pages 1-1.

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    More about this item

    Keywords

    European Union; Corporate Taxation; European Enlargement; Effective Tax Burden; Location Decision;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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