Modelling effective corporate tax rate in the Czech Republic

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F17%3A00094981" target="_blank" >RIV/00216224:14560/17:00094981 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Modelling effective corporate tax rate in the Czech Republic
Original language description
Comparing the statutory corporate tax rates with the effective corporate tax rates at corporate level, one can observe a statistically significant average difference of 2 percent in the Czech Republic. The goal of our paper is to identify and quantify the most important factors influencing the effective corporate tax rate in the Czech Republic which contribute to the variability in the effective taxation. Using the public data from the accounting statements from the last 15 years we have formulated and estimated a panel data model using various real and financial indicators of the Czech companies. The most significant factors are the size of companies, the ratio of noncurrent assets to total assets, the rentability of assets, the ratio of inventory to the total assets, the economic activity classification CZ-NACE, and the legal form. We show that the influence of the indebtedness ratio is non-linear. Surprisingly, the company's age and the retained losses prior years have no effects on final effective tax rates. Our model is able to predict statutory tax rate pretty well.
Czech name
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Czech description
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Project
<a href="/en/project/GA17-26705S" target="_blank" >GA17-26705S: Impact of changes in tax legislation on efficiency and equity in the Czech Republic</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
35th International Conference Mathematical Methods in Economics MME 2017 Conference Proceedings
ISBN
9788074356780
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
511-516
Publisher name
Faculty of Informatics and Management, University of Hradec Králové
Place of publication
Hradec Králové
Event location
Hradec Králové
Event date
Jan 1, 2017
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000427151400087

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