Company tax coordination cum tax rate competition in the European Union

Wolfgang Eggert and Andreas Haufler ()

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: 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.

Keywords: corporate taxation; tax coordination; multinational firms (search for similar items in EconPapers)
JEL-codes: H25 F23 H87 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-pbe
Date: 2006-03
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Related works:
Working Paper: Company Tax Coordination cum Tax Rate Competition in the European Union (2006)
Journal Article: Company-Tax Coordination cum Tax-Rate Competition in the European Union (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:lmu:muenec:902

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