Abstract
The article analyzes the main trends in income, tax base and tax deductions for Czech companies in years 1993 - 2012. After an initial survey of the problem, the article describes the issue of national accounting policy regulation in relation to IFRS and shows the evolution of main macroeconomic indicators of profitability and corporate taxation in the EU and the Czech Republic. The following part is based on data from the Ministry of Finance of the Czech Republic and monitors the development of corporate accounting profits, tax bases and tax deductions. All data collected for the purposes of this article were available only on an annual accrual basis as an aggregate; therefore it is not possible to draw any conclusions for any specific groups of companies or sectors. The concluding section summarizes the main findings of the paper and offers suggestions for further research.
Highlights
One of the expected impacts of the economic recession in 2009 was an increase in corporate taxation in developed countries as a response to the need for additional tax revenue and negative voter sentiment aimed in particular on the financial sector
The structure of this paper is as follows: after an initial survey of the problem and prior research literature, the paper describes the issue of national accounting policy regulation in relation to International Financial Reporting Standards (IFRS) and shows the evolution of main macroeconomic indicators of profitability and corporate taxation in the European Union (EU) and the Czech Republic
The effective corporate tax rate expressed in terms of implicit tax rate (ITR) has been falling during the past 10 years in the Czech Republic; in 2009-2011 the ITR was significantly reduced in the entire group of EU17 countries
Summary
One of the expected impacts of the economic recession in 2009 was an increase in corporate taxation in developed countries as a response to the need for additional tax revenue and negative voter sentiment aimed in particular on the financial sector. The structure of this paper is as follows: after an initial survey of the problem and prior research literature, the paper describes the issue of national accounting policy regulation in relation to IFRS and shows the evolution of main macroeconomic indicators of profitability and corporate taxation in the EU and the Czech Republic. The following section is based on data from the Ministry of Finance of the Czech Republic and monitors the development of corporate accounting profits, tax bases and tax deductions. The concluding section summarizes the main findings of the paper and offers suggestions for further research
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