Corporate Taxation in the European Union: The Role of Intangibles in the Formulary Apportionment

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F23%3A43924020" target="_blank" >RIV/62156489:43110/23:43924020 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.2478/revecp-2023-0006" target="_blank" >https://doi.org/10.2478/revecp-2023-0006</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.2478/revecp-2023-0006" target="_blank" >10.2478/revecp-2023-0006</a>

Result language

angličtina

Original language name

Corporate Taxation in the European Union: The Role of Intangibles in the Formulary Apportionment

Original language description

This paper seeks to contribute to the current debate on EU-wide corporate taxation, steered by the impending Proposal by the European Commission on a new framework for the taxation of income of businesses in Europe. The objective of this paper is to verify whether the inclusion of intangible assets enhances the ability of the current proposals for Formulary Apportionment to explain variability in profitability. The research question addressed is &quot;What is the explanatory power of the Formulary Apportionment, for factors such as tangible assets, intangible assets, labour and sales by destination, to describe the variability in the profitability of companies active within the EU internal market?&quot;. The paper employs regression analysis of cross-sectional microeconomic data to analyse the explanatory power of the Formulary Apportionment. The research reveals that the inclusion of intangible assets fails to enhance the explanatory power and that factoring in intangible assets does not appear to have a statistically significant effect in the model. The best-performing model, without the inclusion of intangible assets, explained 22.6 % of the variability in the profitability of companies active within the EU internal market.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Národohospodářský obzor

ISSN

1213-2446

e-ISSN

1804-1663

Volume of the periodical

23

Issue of the periodical within the volume

3

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

21

Pages from-to

181-201

UT code for WoS article

001070473100001

EID of the result in the Scopus database

2-s2.0-85173466730