INPROFORUM Junior 2010

Statutory rate influence on effective income taxation of corporations
Ivana Koštuříková

Language: cs
Last modified: 2013-07-31

Abstract


When companies are taking a decision about the location and implementation of their business activities, they find out the consequences of such activities. In most cases, they address the question by comparison of statutory corporate income tax rates. Nonetheless, this approach does not seem to be satisfactory with respect to complexity and diversity of elements creating of the national tax systems. Consequently, statutory tax rates may not hold the role of an impartial indicator for the purposes of mutual comparison of this burden in different states, and therefore economists had to come with a new measure for effective taxation of corporation. This was the implicit corporate tax rate, which are tax rates where consideration is taken not only of the amount of the statutory tax rates from corporations' incomes, but also other aspects of taxation systems determining the total amount of effectively paid taxes.


Keywords


tax, corporation, statutory rate, implicit rate, regression analysis

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