Besteuerungsprinzipien und effektive Unternehmenssteuerbelastungen in der Europäischen Union

The harmonisation of company taxation within the European Union is on the European Commission's agenda since a long time. An equal company tax burden across all EU member states would guarantee efficiency in terms of both, production efficiency and equal saving incentives, and would create a level playing field for all investors within the European Union. This article provides an in‐depth analysis of the effective company taxation within the European Union between 1998 and 2007. Differences in tax levels and tax regimes across EU member states are highlighted by two central indicators of effective tax burden: the cost of capital and the effective average tax rate (EATR). Both measures are calculated according to the method put forward by Devereux and Griffith. The tax burden on both domestic as well as cross‐border investments is analysed. Domestic effective tax rates differ largely between the old and the new EU member states. The new member states show considerably lower tax levels than most old EU member states. Ireland is one of few old member states which is competitive with the new member states in what concerns corporate taxation. The time series from 1998 to 2007, though, reveals that after the new member states undertook reforms with massive tax reductions at the beginning of the time horizon also the old member states started to lower the tax burden at their locations, especially from 2004 onwards. The effective tax rates on cross‐border investments clearly demonstrate capital import neutrality being the mainly used concept in taxing foreign profits within the European Union. The identified lack of tax harmonisation within the EU generates production inefficiencies due to investment and location decisions being distorted by corporate taxes. The time series even shows a shift from capital export neutrality to capital import neutrality within the last years.

Elschner, Christina, Jost Henrich Heckemeyer and Christoph Spengel (2009), Besteuerungsprinzipien und effektive Unternehmenssteuerbelastungen in der Europäischen Union, ZEW Discussion Paper No. 09-034, Mannheim.