Future Value of the Tax Base and Effective Company Tax Burden

Abstract

AbstractThe analysis in this section comprises three steps. First, the options for a Common Corporate Tax Base (CCTB) examined in the study are described. Second, the corporate tax bases and the effective tax burdens under current national tax provisions in each member state are measured. Third, the impacts on the size of the tax bases and on the effective tax burdens resulting from the application of a CCTB are measured and analysed. In this context, the question as to what extent an exclusive harmonisation of the tax base will effectively reduce the current EUwide differences in effective company tax burdens is also examined. The study therefore also provides evidence of the extend to which CCTB would increase or decrease the EU-wide spread between the national tax bases and the effective tax burdens. Steps two and three are performed at first for a benchmark case of a large company representing an average EU-27 corporation. A second benchmark case represents an average EU-27 SME.KeywordsBenchmark CaseLabour IntensityInventory IntensityCapital IntensityDouble TaxationThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.