Corporate Income Tax in the EU, the Common Consolidated Corporate Tax Base (CCCTB) and Beyond: Is it the Right Way to Go?

2019 ◽  
Author(s):  
Christian Valenduc
Keyword(s):  
Income Tax ◽  
Corporate Income Tax ◽  
Corporate Tax ◽  
Tax Base ◽  
The Common ◽  
The Right ◽  
The Eu

scholarly journals Possibilities of harmonization of direct taxes in the EU

2017 ◽  
Vol 14 (2) ◽  
pp. 191-199 ◽  
Author(s):  
Adela Feranecová ◽  
Eva Manová ◽  
Marek Meheš ◽  
Jana Simonidesová ◽  
Slavomíra Stašková ◽  
...  
Keyword(s):  
Income Tax ◽  
Slovak Republic ◽  
Complex Problem ◽  
Corporate Income Tax ◽  
Corporate Tax ◽  
Tax Base ◽  
Member States ◽  
Eu Member States ◽  
Tax Harmonization ◽  
The Eu

Currently, indirect taxes in the EU are highly harmonized, however, harmonization of direct taxes is still a very complex problem. Many EU member states refuse to give up their tax sovereignty, which would become considerably limited because of the har¬monization of direct taxes. Today, attention is paid to the harmonization of the tax base of corporate income tax, while a number of ways are under consideration. The European Council has issued a draft of Directive for a common consolidated tax base of corporate income tax in 2011 and updated in 2012. This draft must be approved by all member states, but some of them, however, have expressed on the draft in negative way. Because of the severity of this problems, the authors decided to focus on this topic within this article, which deals with the calculation of the tax base by the laws of the Slovak Republic and by Common Consolidated Corporate Tax Base (CCCTB); and evaluate whether the tax harmonization of direct taxes would be advantageous for the particular business.

scholarly journals The European Commission Proposal for a Council Directive on a Common Corporate Tax Base (CCCTB) as an Example of Applying Financial Accounting Standards in Taxation on the Corporate Income Tax

Teisė ◽  
2021 ◽  
Vol 119 ◽  
pp. 52-65
Author(s):  
Martynas Endrijaitis
Keyword(s):  
European Commission ◽  
Income Tax ◽  
Accounting Standards ◽  
Legal Regulation ◽  
Financial Accounting ◽  
Corporate Income Tax ◽  
Corporate Tax ◽  
Tax Base ◽  
Council Directive ◽  
Accounting Rules

This article discloses the conception of CCCTB and the relations between CCCTB and the legal regulation of financial accounting, including an analysis of concrete examples of how financial accounting rules are applied in CCCTB. The research highlights the necessity of applying financial accounting standards in CCCTB.

scholarly journals THE EU APPORTIONMENT FORMULA: INSIGHTS FROM A BUSINESS CASE

2013 ◽  
Vol 14 (2) ◽  
pp. 235-251 ◽  
Author(s):  
Annelies Roggeman ◽  
Isabelle Verleyen ◽  
Philippe Van Cauwenberge ◽  
Carine Coppens
Keyword(s):  
Business Case ◽  
Multinational Companies ◽  
Corporate Tax ◽  
Firm Level ◽  
Tax Base ◽  
Tax System ◽  
Level Data ◽  
Tax Harmonization ◽  
The Common ◽  
The Eu

In this paper we use firm level data from a listed multinational to investigate how several designs for the Common Consolidated Corporate Tax Base (CCCTB) formula could affect the allocation of the consolidated tax base. The design is relevant in the light of member states’ concern for protecting their tax revenues, as well as for the multinational companies’ tax minimizing possibilities. Moreover, it plays an important role in achieving an efficient and simple tax system. Simulating different apportionment formulas, the results show that including more factors and using more equal weights distributes the common tax base more equally, which could reduce the incentive to shift factors from high to low tax countries. The results also indicate that simplifying the factor definitions, leads to rather minor changes in the allocation. Using unpublished data, this study allows to investigate the consequences of different formulas in detail, which contributes to the current discussion on corporate tax harmonization in the EU.

scholarly journals Assessing the Impact of Tax Reforms on the Long-Term Sustainability of Public Finances

2019 ◽  
Vol 86 (3) ◽  
pp. 25-37
Author(s):  
O. S. Bilousovа
Keyword(s):  
Income Tax ◽  
Corporate Income Tax ◽  
Tax Burden ◽  
Tax Rates ◽  
Tax Reforms ◽  
Tax Base ◽  
Public Finances ◽  
The Impact ◽  
The Eu

The article is devoted to the methodological aspects of assessing the impact of tax reforms on the sustainability of public finances. The low impact of numerous tax changes during 2003–2017 in Ukraine aimed at reducing the tax burden, improving the investment climate, led to a narrowing of fiscal space, a decrease in government investment, and a curtailment of enterprise investment. The problem of assessing the direct and indirect effects of tax reforms in terms of changes in tax rates and tax base, tax revenue structure, tax benefits, on public finances and the finances of economic entities in the short and long term remains insufficiently investigated. The task is to identify the relationship between tax policy changes that are taking place within the framework of tax reforms, the economic behavior of economic entities, and their impact on the sustainability of public finances. The article identifies trends in the development of taxation in the EU, which create the conditions for activation of the factors of development of innovative, competitive economy, in particular, the reduction of corporate income tax rates and personal income tax while expanding the tax base, increasing consumption taxes on property. The methodological support of the assessment of tax reforms of EU countries is summarized and the conclusion is made about the possibility of its application in Ukraine. Changes in the share of various taxes in the total amount of tax revenues are analyzed. The reasons and the financial consequences of the tax effects in Ukraine established in the EU countries were found to be associated with a reduction in corporate income tax rates and a compulsory social contribution (lower rates do not reduce tax revenues and increase the budgetary income in the medium term). Indicators and models that can be used to assess tax reforms aimed at improving tax competitiveness (reducing tax rates), as well as reforms to ensure economic growth (redistribution of tax burden and tax incentives - tax innovation benefits) are identified. It is proposed to supplement this list with indicators: the level of investment of the institutional sectors of the economy, the investment rate, the level of profitability, the global innovation index. Proposals on adjusting the directions of tax development in Ukraine have been elaborated.

scholarly journals Measuring the Effects of Corporate Tax Cuts

2018 ◽  
Vol 32 (4) ◽  
pp. 97-120 ◽  
Author(s):  
Alan J. Auerbach
Keyword(s):  
Multinational Corporations ◽  
Income Tax ◽  
Capital Investment ◽  
Corporate Income Tax ◽  
Tax Law ◽  
Corporate Tax ◽  
The Law ◽  
Jobs Act ◽  
The Impact ◽  
Tax Cuts

On December 22, 2017, President Donald Trump signed the Tax Cuts and Jobs Act (TCJA), the most sweeping revision of US tax law since the Tax Reform Act of 1986. The law introduced many significant changes. However, perhaps none was as important as the changes in the treatment of traditional “C” corporations—those corporations subject to a separate corporate income tax. Beginning in 2018, the federal corporate tax rate fell from 35 percent to 21 percent, some investment qualified for immediate deduction as an expense, and multinational corporations faced a substantially modified treatment of their activities. This paper seeks to evaluate the impact of the Tax Cuts and Jobs Act to understand its effects on resource allocation and distribution. It compares US corporate tax rates to other countries before the 2017 tax law, and describes ways in which the US corporate sector has evolved that are especially relevant to tax policy. The discussion then turns the main changes of the Tax Cuts and Jobs Act of 2017 for the corporate income tax. A range of estimates suggests that the law is likely to contribute to increased US capital investment and, through that, an increase in US wages. The magnitude of these increases is extremely difficult to predict. Indeed, the public debate about the benefits of the new corporate tax provisions enacted (and the alternatives not adopted) has highlighted the limitations of standard approaches in distributional analysis to assigning corporate tax burdens.

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