The Impact of Implicit Rates on Corporate Tax Revenue in the EU Countries

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  • Source Type: Journal
  • Document Type: Study
  • Document Language: English
  • Published on: 31. 12. 2013
  • File Format: PDF
  • File Size: 709 kB

Květa Kubátová

In: Societas et iurisprudentia • 2013 • Volume 1 • Issue 1 • Pages 191-203 • ISSN 1339-5467

Abstract: The aim of this study is to determine whether in corporate income tax sphere exists the competition between states, which allows states with lower tax burdens to get higher tax revenues for the benefit of their budgets. The hypothesis is verified through a simple regression analysis using cross-sectional data for 17 EU countries in 2011. It has been found that the elasticity of the corporate income tax share in the GDP with respect to the implicit tax rate is 0.59 and the elasticity of corporate income tax per capita is 1.07 %. Both elasticities are positive, what indicates that tax competition by reducing the effective taxation of corporations hasn’t been detected.

Key Words: Tax Competitiveness; Corporation Income Tax CIT; Implicit Tax Rate; Tax Revenue; Analysis; the European Union Countries.


Bibliographic Citation

KUBÁTOVÁ, K. The Impact of Implicit Rates on Corporate Tax Revenue in the EU Countries. Societas et iurisprudentia [online]. 2013, vol. 1, no. 1, pp. 191-203 [cit. 2020-01-01]. ISSN 1339-5467. Available at: