Company tax coordination cum tax rate competition in the European Union

Arbeitspapier

This paper reviews the recent theoretical literature that analyses the European Union's policy to eliminate preferential corporate tax regimes and the proposal to introduce a consolidated EU tax base with formula apportionment for the taxation of multinational firms. Since neither proposal includes a harmonisation of corporate tax rates, a core issue is how tax competition between member states will be affected by these partial coordination measures. The conclusions from our review are supportive of the EU's ban on preferential tax regimes, but the economic incentive effects of a switch to formula apportionment are found to be ambiguous.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2006-11

Classification and Topics

• Classification: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Multinational Firms; International Business ; International Fiscal Issues; International Public Goods
• Subject: corporate taxation ; tax coordination ; multinational firms ; Unternehmensbesteuerung ; Steuerbelastung ; Multinationales Unternehmen ; Steuerwettbewerb ; EU-Steuerrecht ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eggert, Wolfgang ; Haufler, Andreas
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (where): München
• (when): 2006

Further information

• DOI: doi:10.5282/ubm/epub.902
• Handle: http://hdl.handle.net/10419/104216
• URN: urn:nbn:de:bvb:19-epub-902-8
• Last update: 10.03.2025, 11:45 AM CET