Template-type: ReDif-Paper 1.0
Author-Name: Janssen B.
Author-Name: Buijink W
Author-Name: Schols Y
Author-workplace-name: METEOR
Title: Evidence of the effect of domicile on corporate average effective tax rates in the European Union
Abstract: We estimate corporate average effective tax rates from financial statements for companies domiciled in European Union (EU) member states during 7 years from 1990 to 1996. Our objective is to compare the tax rate effectively experienced by companies with the corporate statutory tax rate in the EU country in which each company is domiciled. The difference between the corporate statutory tax rate and the financial statements based corporate average effective tax rate provides information on the magnitude of tax incentives provided by governments within the EU. These tax incentives come on top of the directly observable differences in statutory tax rates between EU member states. We find (i) that the use of tax incentives, over and above differences in statutory tax rates, differs substantially between EU member states (corporate domiciles) and (ii) that the provision of tax incentives does not have the effect of equalizing corporate effective tax rates between EU member states (corporate domiciles).
Keywords: microeconomics ; 
Series: Research Memoranda
Creation-Date: 2000
Number: 017
File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:f84f6795-68ad-4051-8a14-bda45764cb56/datastreams/ASSET1/content
File-Format: application/pdf
File-Size: 491273
Handle: RePEc:unm:umamet:2000017