How Do Corporate Tax Bases Changes When Corporate Tax Rates Change? With Implications for the Tax Rate Elasticity of Corporate Revenues

2015 ◽  
Author(s):  
Laura Kawano ◽  
Joel B. Slemrod
Keyword(s):  
Tax Rates ◽  
Corporate Tax ◽  
Tax Rate ◽  
Corporate Tax Rates ◽  
Tax Bases

scholarly journals Faktor Penentu Tarif Pajak Efektif Pada Perusahaan Kesehatan: Sebelum dan Saat Covid-19

2021 ◽  
Vol 26 (3) ◽  
pp. 412
Author(s):  
Anindita D. Pinastika, Ferry Irawan
Keyword(s):  
Ownership Structure ◽  
Health Sector ◽  
Tax Rates ◽  
Corporate Tax ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Tax Management ◽  
State Tax ◽  
Corporate Tax Rates ◽  
The Government

The pandemic of Covid-19 had attacked and contribute to the Indonesia’ economics negatively. State tax revenues could not be achieved given the restrictions on activities that were intensified to prevent the spread of virus. Incentives issued by the government are one of the factors causing the decline in state revenues, one of which is in the form of lowering corporate tax rates. The effective tax rate used in measuring corporate tax management is tested with related-parties transaction, profitability, leverage, and ownership structure variables. The effect of this variable is then compared in 2019 and 2020 to observe whether there is a difference before and during the pandemic. The research was conducted on health sector companiesas a sector that was positively affected by the pandemic. The results of the study show that leverage has an effect on the effective tax rate (ETR) in 2020 while ownership structure has an effect on the ETR in 2019. The effective tax rate of health sector companies, which allegedly decreased due to incentives from the government, has actually increased during the pandemic.

How Do Cross-Country Differences in Corporate Tax Rates Affect Firm Value?

2012 ◽  
Vol 34 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Lisa A. Bryant-Kutcher ◽  
David A. Guenther ◽  
Mark Jackson
Keyword(s):  
Firm Value ◽  
Tax Rates ◽  
Corporate Tax ◽  
Effective Tax Rates ◽  
Tax Rate ◽  
Corporate Tax Rates ◽  
International Setting ◽  
Cross Country ◽  
Tax Benefits ◽  
Tax Costs

ABSTRACT We examine how differences in corporate tax rates across countries affect firm value for U.S. multinationals. Although competition for tax benefits may increase non-tax costs, in an international setting, transaction costs and other frictions may prevent tax differences from being completely competed away. We find that firm value, as measured by Tobin's q, is negatively related to foreign effective tax rates. This result is robust to the presence of growth and risk proxies and other control variables in the model. Our results provide empirical evidence that (1) differences in corporate tax rates are not completely offset by non-tax costs, and (2) the differences in tax costs are reflected in higher firm value for the low tax rate firms.

scholarly journals The determinants of Italy’s corporate tax rates: an empirical investigation

2016 ◽  
Vol 5 (4) ◽  
pp. 7-14
Author(s):  
Valentino Parisi
Keyword(s):  
Fixed Effects ◽  
Jel Classification ◽  
Interesting Case ◽  
Panel Regression ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Rate ◽  
Independent Variables ◽  
Corporate Tax Rates ◽  
The Impact

This paper examines the determinants of the effective corporate tax rates in Italy in the years 1998-2006. While from its inception in the early 1970s, the Italian business income tax regime changed only marginally for over twenty years, in the period between 1998 and 2006, the corporate tax system underwent two major reforms with the declared objective of simplifying the system and reducing the tax burden on firms. Therefore, from a tax policy perspective, the author believes Italy is an interesting case study. The empirical analysis is based on a strongly balanced panel with 5,134 companies that combine company accounts and firm survey data. The author employs a fixed effects panel regression to study the role of size, the debt ratio, the rate of profitability, labor productivity, the assets composition, and internationalization in explaining heterogeneity among firms and, therefore, their effective corporate tax rate. Furthermore, the author employs a quantile regression to analyze the impact of the variation in the effect of independent variables on the effective corporate tax rate at different quantiles of the distribution, thus, providing information on the degree of heterogeneity in firm behavior with the final aim of capturing non-linear effects of the independent variables on the tax rate. Keywords: effective corporate tax rates, tax heterogeneity, panel regression, Italy. JEL Classification: H25, H32

Closer Economic Integration and Corporate Tax Systems

2008 ◽  
Vol 8 (2) ◽  
pp. 1850136 ◽  
Author(s):  
Kimberly A. Clausing
Keyword(s):  
Economic Integration ◽  
Union Member ◽  
Tax Rates ◽  
Corporate Tax ◽  
Data Set ◽  
Tax Rate ◽  
Corporate Income Taxation ◽  
Tax Revenues ◽  
Parabolic Relationship ◽  
Corporate Tax Rates

This article investigates two aspects of corporate income taxation: the determinants of corporate tax rates and the determinants of corporate tax revenues. In the context of theoretically informed empirical models, the analysis examines the influence of increasing economic integration on corporate tax rates and corporate tax revenues, focusing in particular on the case of European Union member and applicant countries. The investigation utilizes a data set of 36 OECD and European countries over the period from 1979 to 2002. Findings are consistent with theoretical expectations: more integrated countries chose lower corporate tax rates, while larger countries, those with bigger governments, and those with higher individual income tax rates chose higher rates. Corporate tax revenues are found to be parabolically related to tax rates. Further, this parabolic relationship is steeper as economies are more integrated, implying a lower revenue-maximizing tax rate for such countries.

scholarly journals The Quantification of the Significance of EATR Determinants: Evidence for EU Countries

2017 ◽  
Vol 65 (2) ◽  
pp. 501-510
Author(s):  
Jan Široký ◽  
Danuše Nerudová ◽  
Veronika Dvořáková
Keyword(s):  
Tax Burden ◽  
Investment Incentives ◽  
Panel Analysis ◽  
Tax Rates ◽  
Corporate Tax ◽  
Tax Rate ◽  
Eu Member States ◽  
Loss Compensation ◽  
Corporate Tax Rates ◽  
Tax Holidays

At present, corporate tax is applied in all EU Member States with the exception of Estonia. Nevertheless, the nominal corporate tax rate does not reflect the real tax burden. For determination of the effective tax burden for corporations, there are used effective corporate tax rates. The aim of the paper is to quantify the relation between the effective average corporate tax rate and nominal corporate tax rates, depreciations, loss compensation and selected investment incentives and to identify the significance of these factors based on the panel analysis. Based on the panel analysis it was found that effective average tax rate is only statistically dependant on nominal corporate tax rate, on tax loss compensation and on the depreciation tax rate of movable property, while in case of other factors, such as depreciation of immovable property, tax holidays and R&D incentives, the dependence is not statistically significant.

Sign in / Sign up

Export Citation Format

Share Document