Tax Rates and Tax Revenues in the Context of Tax Competitiveness
Abstract
:1. Introduction
2. Materials and Methods
- —average corporate tax revenues of member states in year .
- —average statutory tax rate of member states in year ,
- —average effective average tax rate of member states in year ,
- —average gross domestic product of member states in year ,
- —average foreign direct investment of member states in year ,
- —average inflation rate of member states in year ,
- —average unemployment rate of member states in year .
- —level constant,
- —regression coefficients, i.e., model parameters that express the value of the change of the explanatory variable to the explained variable ,
- —random model error, i.e., a random variable that captures other influences that may affect the explanatory variable .
3. Results and Discussion
3.1. Analysis and Comparison of Tax Indicators and Corporate Tax Revenues
3.2. Regression Analysis
4. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Conflicts of Interest
Appendix A
Country | Statutory Tax Rate (%) | Average Effective Tax Rate (%) | Corporate Tax Revenues (in EUR million) | ||||||
---|---|---|---|---|---|---|---|---|---|
2004 | 2019 | Average 2004–2019 | 2004 | 2019 | Average 2004–2019 | 2004 | 2019 | Average 2004–2019 | |
Belgium | 34.0 | 29.6 | 33.4 | 29.5 | 25.0 | 26.6 | 8985.90 | 17,684.50 | 12,607.73 |
Bulgaria | 19.5 | 10.0 | 11.2 | 17.1 | 9.0 | 10.0 | 519.35 | 1212.25 | 901.71 |
Czechia | 28.0 | 19.0 | 20.8 | 24.6 | 16.7 | 18.3 | 4034.52 | 7384.22 | 5663.25 |
Denmark | 30.0 | 22.0 | 24.8 | 26.8 | 19.8 | 22.3 | 5879.85 | 9549.32 | 7193.90 |
Germany | 38.3 | 29.9 | 31.9 | 35.8 | 28.9 | 30.2 | 46,067.00 | 93,586.00 | 68,795.81 |
Estonia | 26.0 | 20.0 | 21.4 | 20.4 | 13.9 | 16.7 | 161.19 | 509.10 | 300.53 |
Ireland | 12.5 | 12.5 | 12.5 | 14.3 | 14.1 | 14.3 | 5487.78 | 11,000.00 | 6184.54 |
Greece | 35.0 | 28.0 | 28.2 | 30.4 | 26.6 | 24.9 | 5259.00 | 4071.00 | 4439.13 |
Spain | 35.0 | 25.0 | 29.7 | 36.5 | 30.1 | 32.8 | 28,793.00 | 25,757.00 | 27,480.44 |
France | 35.4 | 34.4 | 36.0 | 35.0 | 33.4 | 34.9 | 40,584.00 | 68,517.00 | 55,013.31 |
Croatia | 20.0 | 18.0 | 19.6 | 18.1 | 14.8 | 16.3 | 611.97 | 1285.43 | 1020.89 |
Italy | 37.3 | 27.8 | 32.2 | 31.8 | 24.6 | 26.8 | 33,149.00 | 34,708.00 | 37,853.13 |
Cyprus | 10.0 | 12.5 | 11.1 | 14.8 | 13.4 | 12.4 | 468.10 | 1304.20 | 1050.17 |
Latvia | 15.0 | 20.0 | 15.6 | 14.3 | 16.7 | 14.0 | 185.13 | 47.69 | 346.12 |
Lithuania | 15.0 | 15.0 | 15.8 | 12.7 | 12.7 | 13.7 | 338.55 | 759.15 | 548.21 |
Luxembourg | 30.4 | 24.9 | 28.7 | 26.5 | 21.8 | 25.1 | 1571.15 | 3761.12 | 2333.60 |
Hungary | 17.6 | 10.8 | 18.3 | 17.8 | 11.1 | 17.3 | 1740.59 | 1728.47 | 1843.03 |
Malta | 35.0 | 35.0 | 35.0 | 32.2 | 25.3 | 30.8 | 167.51 | 763.72 | 451.67 |
Netherlands | 34.5 | 25.0 | 26.4 | 31.0 | 22.5 | 23.6 | 16,266.00 | 30,001.00 | 19,240.13 |
Austria | 34.0 | 25.0 | 25.6 | 31.2 | 23.1 | 23.5 | 5607.00 | 10,983.76 | 7379.82 |
Poland | 19.0 | 19.0 | 19.0 | 17.1 | 16.6 | 17.4 | 4003.71 | 11,775.64 | 7822.07 |
Portugal | 27.5 | 31.5 | 29.1 | 24.6 | 21.4 | 24.9 | 4308.52 | 6662.13 | 5449.85 |
Romania | 25.0 | 16.0 | 16.6 | 22.4 | 14.7 | 15.2 | 1934.93 | 4685.18 | 3258.50 |
Slovenia | 25.0 | 19.0 | 20.3 | 21.5 | 17.3 | 18.3 | 522.89 | 953.54 | 715.14 |
Slovakia | 19.0 | 21.0 | 20.2 | 16.5 | 18.7 | 17.9 | 1171.95 | 2840.53 | 2109.63 |
Finland | 29.0 | 20.0 | 23.8 | 27.2 | 19.6 | 22.4 | 5357.00 | 6069.00 | 5206.50 |
Sweden | 28.0 | 21.4 | 24.9 | 23.1 | 19.4 | 21.9 | 8511.45 | 14,169.19 | 11,705.26 |
United Kingdom | 30.0 | 19.0 | 24.7 | 29.3 | 20.2 | 25.3 | 57,159.70 | 61,273.45 | 60,711.58 |
Average EU-28 | 26.6 | 21.8 | 23.5 | 24.4 | 19.7 | 21.3 | 10,315.95 | 15,465.77 | 12,772.34 |
Average EU-13 | 21.1 | 18.1 | 18.8 | 19.2 | 15.5 | 16.8 | 1220.03 | 2711.47 | 2002.38 |
Average EU-15 | 31.4 | 25.1 | 27.5 | 28.9 | 23.4 | 25.3 | 18,199.09 | 26,519.50 | 22,106.31 |
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Variable | Author (Year) | Relationship between Corporate Tax Revenue and Variable | Expected Relationship | Interpretation of Impact |
---|---|---|---|---|
Statutory tax rate and Average effective tax rate | Lee and Gordon (2005); Teather (2005); Ganghof and Genschel (2008); Guziejewska et al. (2015) | negative | + | An increase in the tax rate will increase income from corporate tax |
Clausing (2007) | positive | |||
Gross domestic product | Gropp and Kostial (2000); Clausing (2007); Kubátová and Řihová (2009); Bayer (2011); Karpowicz and Majewska (2018) | positive | + | Higher GDP leads to higher incomes from corporate tax |
Net foreign direct investment | Gropp and Kostial (2000); Clausing (2007) | positive | + | The growth of foreign direct investment increases corporate tax revenues |
Inflation rate | Kubátová and Řihová (2009); Barro and Furman (2018) | positive | + | Higher inflation rates lead to higher incomes from corporate tax |
Unemployment rate | Gropp and Kostial (2000); Tosun (2006); Clausing (2007); Kubátová and Řihová (2009); Fedeli and Forte (2012) | negative | − | Higher unemployment rates reduce incomes from corporate tax |
Model EU13 | Model EU15 | |||||
---|---|---|---|---|---|---|
t Value | p-Value | t Value | p-Value | |||
cit (Intercept ) | 4049.624 | 2.676 | 0.02539 * | −66,803.55 | −2.577 | 0.029826 * |
STR | −472.974 | −4.422 | 0.00167 ** | 1198.23 | 0.714 | 0.493491 |
EATR | 400.08 | 4.731 | 0.00107 ** | 237.22 | 0.146 | 0.887021 |
GDP | 13.194 | 3.512 | 0.00660 ** | 62.35 | 5.409 | 0.000428 *** |
FDI | 4.575 | 2.352 | 0.04319 * | 208.15 | 2.085 | 0.066702 |
INF | 28.331 | 2.706 | 0.02414 * | 949.31 | 1.921 | 0.086970 |
UN | −128.921 | −7.976 | 2.27 × 10−5 *** | −603.11 | −2.151 | 0.059900 |
Coefficient of determination | 0.9888 | 0.9078 | ||||
Corrected coefficient of determination | 0.9813 | 0.8464 | ||||
p-value for the model | 2.97 × 10−8 | 0.0003347 | ||||
Normatila residues shapiro.test(resid()) | 0.1684 | 0.8132 | ||||
Heteroskedasticity bptest() | 0.2108 | 0.8995 | ||||
Autocorrelation bgtest() | 0.3207 | 0.8206 |
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Helcmanovská, M.; Andrejovská, A. Tax Rates and Tax Revenues in the Context of Tax Competitiveness. J. Risk Financial Manag. 2021, 14, 284. https://doi.org/10.3390/jrfm14070284
Helcmanovská M, Andrejovská A. Tax Rates and Tax Revenues in the Context of Tax Competitiveness. Journal of Risk and Financial Management. 2021; 14(7):284. https://doi.org/10.3390/jrfm14070284
Chicago/Turabian StyleHelcmanovská, Martina, and Alena Andrejovská. 2021. "Tax Rates and Tax Revenues in the Context of Tax Competitiveness" Journal of Risk and Financial Management 14, no. 7: 284. https://doi.org/10.3390/jrfm14070284