Tax loss offset restrictions - last resort for the treasury? An empirical evaluation of tax loss offset restrictions based on micro data

Arbeitspapier

In Germany, the tax loss carry-forward of corporations significantly increased over the last decade. At the same time only a small percentage of losses have been effectively offset in the following periods. One potential reason for this puzzle is that stricter loss offset restrictions have been introduced in recent years. I use a newly developed micro simulation model for the corporate sector in Germany to evaluate the fiscal effects of these restrictions. Additionally, distributional breakdowns concerning the amounts of tax loss carry-forward and the effects of loss offset restrictions are provided. I find that the restrictions on the use of tax loss carryback are rather ineffective while the newly introduced minimum taxation considerably increases yearly tax revenue by 1.1 billion €.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 764

Classification and Topics

• Classification: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT)
• Subject: micro simulation ; loss offset restrictions ; corporate taxation ; tax loss carryforward ; tax loss carry-back ; tax reform ; Verlust ; Steuerbegünstigung ; Körperschaftsteuer ; Steuerreform ; Steuerwirkung ; Steueraufkommen ; Mikrosimulation ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dwenger, Nadja
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/27288
• Last update: 10.03.2025, 11:43 AM CET