Unveiling the variation in corporate tax base distribution under the formulary apportionment
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925825" target="_blank" >RIV/62156489:43110/24:43925825 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.2478/danb-2024-0012" target="_blank" >https://doi.org/10.2478/danb-2024-0012</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.2478/danb-2024-0012" target="_blank" >10.2478/danb-2024-0012</a>
Alternative languages
Result language
angličtina
Original language name
Unveiling the variation in corporate tax base distribution under the formulary apportionment
Original language description
This paper reflects the tabled novel framework for corporate taxation in the European Union, founded on the Formulary Apportionment methodology and envisaged inclusion of intangible assets in the allocation formula. The objective is to simulate the variation between the currently used Separate Accounting and tabled Formulary Apportionment distribution of corporate tax base of companies active in the European Union. This paper exploits secondary microeconomic panel data obtained from the Orbis database for 77,087 subsidiaries affiliated with 2,283 parent companies observed from 2011 to 2019. The results reveal that the most significant relative declines of over 15% in the corporate tax base would be faced by Luxembourg, Malta, Cyprus, the Netherlands, and Ireland. In contrast, the biggest relative gains were accounted for Greece, Romania, Hungary, Estonia, and Latvia. If cross-border consolidation of losses is incorporated in the envisaged corporate tax framework, the EU-wide aggregate tax base reduces by 15, 67% over the examined years.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2024
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
DANUBE: Law and Economics Review
ISSN
1804-6746
e-ISSN
1804-8285
Volume of the periodical
15
Issue of the periodical within the volume
3
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
18
Pages from-to
203-220
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85207754897