Impact of hypothetical tax reforms in the EU

Abstract

This section considers the impact of hypothetical tax reforms on the effective tax burdens which were calculated and analysed in the previous sections. Since there is no initiative in this respect, the scenarios for tax reforms should not be regarded as proposals for reforming or harmonising company taxation in Europe. The results from these scenarios should rather help to identify and analyse the impact of different elements of the tax regimes on the effective tax burden. It is important both for policy makers and investors to have an idea about the weight of the different tax drivers in the effective average tax burden (EATR), i.e. to identify the relative weight of the tax bases, the tax rates, the different types of taxes and the corporation tax system in the EATR separately. Therefore, the scenarios for tax reforms are divided into three categories: elements of the corporation tax base, the corporation tax rate including local taxes and the corporation tax system.KeywordsLocal TaxisInternational Account StandardPersonal TaxisPension CostTangible Fixed AssetThese 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.