Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65(2), 501-510 | DOI: 10.11118/actaun201765020501

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

Jan Široký1, Danuše Nerudová2, Veronika Dvořáková3
1 Department of Accounting and Taxes, Faculty of Economics, VŠB - Technical University of Ostrava, Sokolská 33, 702 00 Ostrava, Czech Republic
2 Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 313 00 Brno, Czech Republic
3 The Brno International Business School (B.I.B.S.), Lidická 81, 602 00 Brno, Czech Republic

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.

Keywords: effective average tax rate, depreciation methods, loss compensation methods, nominal corporate tax rate, investment incentives
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The paper presents the results of the research within the project SP2016/42: "Vliv zavedení společného konsolidovaného základu daně z příjmů právnických osob (CCCTB) na vybrané ekonomické subjekty v České republice".

Prepublished online: April 30, 2017; Published: May 1, 2017  Show citation

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Široký, J., Nerudová, D., & Dvořáková, V. (2017). The Quantification of the Significance of EATR Determinants: Evidence for EU Countries. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(2), 501-510. doi: 10.11118/actaun201765020501
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