Common Corporate Tax Base (CCTB) and Effective Tax Burdens in the EU Member States

25 Pages Posted: 11 Jul 2009

See all articles by Timo Reister

Timo Reister

ZEW – Leibniz Centre for European Economic Research

Christoph Spengel

Centre for European Economic Research (ZEW)

Andreas Oestreicher

University of Goettingen (Gottingen)

Date Written: 2009

Abstract

The article assesses the impact of a Common Corporate Tax Base (CCTB) as promoted by the European Commission and the related Working Groups on the effective tax burdens of companies in all 27 EU member states. The results shall help to evaluate the economic consequences of introducing a harmonized set of tax accounting rules for EU-based companies. The proposals for a CCTB covered here include depreciation on intangibles, machinery, buildings, furniture and fixture, simplified valuation of inventories, determination of production costs for stocks, treatment of costs for R&D as part of production costs, provisions for future pension payments, provisions for legal obligations, avoidance of double taxation regarding dividend income, and loss relief. The proposed options for a CCTB are applied for average EU-27 corporations of different size as well as for model companies belonging to different economic sectors.

Keywords: European taxation, tax harmonization, tax accounting, effective tax burdens

JEL Classification: H20, H21, H25, K34

Suggested Citation

Reister, Timo and Spengel, Christoph and Oestreicher, Andreas, Common Corporate Tax Base (CCTB) and Effective Tax Burdens in the EU Member States (2009). ZEW - Centre for European Economic Research Discussion Paper No. 09-026, Available at SSRN: https://ssrn.com/abstract=1431893 or http://dx.doi.org/10.2139/ssrn.1431893

Timo Reister (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Christoph Spengel

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany

Andreas Oestreicher

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

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