The Development of Corporate Tax Structures in the European Union from 1998 to 2015 – Qualitative and Quantitative Analysis

51 Pages Posted: 20 Sep 2017

See all articles by Rainer Bräutigam

Rainer Bräutigam

ZEW – Leibniz Centre for European Economic Research

Christoph Spengel

Centre for European Economic Research (ZEW)

Kathrin Stutzenberger

University of Mannheim

Date Written: 2017

Abstract

Ongoing tax reform processes, competitive pressures and the consequences of the financial and sovereign debt crisis have considerably shaped the tax systems of the Member States of the European Union in the last two decades. Our paper combines a qualitative and quantitative analysis of the development of European tax structures based on a unique and comprehensive dataset for the EU-25 Member States between 1998 and 2015. Especially among the EU-15 Member States, we still find evidence for the often-cited trend of tax rate cut cum tax base broadening. In this context, we identify interest deduction limitation rules and loss provisions as main drivers of tax base broadening. Furthermore, the quantitative analysis of effective tax burden scenarios shows that Member States seem to additionally rely on an increased taxation of dividends to balance possible revenue losses associated with reduced corporate income tax rates.

Keywords: Tax Policy, Corporate Taxation, European Union

JEL Classification: H20, H25, K34

Suggested Citation

Bräutigam, Rainer and Spengel, Christoph and Stutzenberger, Kathrin, The Development of Corporate Tax Structures in the European Union from 1998 to 2015 – Qualitative and Quantitative Analysis (2017). ZEW - Centre for European Economic Research Discussion Paper No. 17-034 , Available at SSRN: https://ssrn.com/abstract=3038789 or http://dx.doi.org/10.2139/ssrn.3038789

Rainer Bräutigam (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

Kathrin Stutzenberger

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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