A Corporate Income Tax Microsimulation Model for Italy

Chiara Bellucci, Silvia Carta, Sara De Tollis, Federica Di Giacomo, Marco Manzo, Daniela Bucci, Donato Curto, Fabrizio De Grandis and Francesca Sica
Additional contact information
Chiara Bellucci: Ministry of Economy and Finance
Silvia Carta: Ministry of Economy and Finance
Sara De Tollis: Ministry of Economy and Finance
Federica Di Giacomo: Ministry of Economy and Finance
Marco Manzo: Ministry of Economy and Finance
Daniela Bucci: Soluzioni per il Sistema Economico S.p.A. - Sose
Donato Curto: Soluzioni per il Sistema Economico S.p.A. - Sose
Fabrizio De Grandis: Soluzioni per il Sistema Economico S.p.A. - Sose
Francesca Sica: Soluzioni per il Sistema Economico S.p.A. - Sose

Working Papers from Ministry of Economy and Finance, Department of Finance

Abstract: The CITSIM-DF is the corporate tax microsimulation model developed by the Department of Finance in order to estimate the heterogeneous impact of changes in fiscal regulation on average effective tax rates, both in terms of financial and distributional effects. One of the main innovations of the model is the inclusion of forecasts on future economic trends into the simulations, by projecting forward the main fiscal and financial variables. Currently projections are based, at macro level, on national accounts and official projections reflected in the documents of economy and finance. In the next future, the model will be further developed in a now-casting perspective, incorporating in the projections, at micro level, the most recent administrative data available. The model proposes also a new methodology for disentangling investments and historical cost broken by type of asset (buildings, machinery and equipment). CITSIM-DF is based on a unique dataset that integrates administrative data derived from tax returns and financial statements for corporations.

Keywords: Tax treatment of losses; Allowance for corporate equity; Corporate taxation; Microsimulation (search for similar items in EconPapers)
JEL-codes: C63 H25 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2023-02
New Economics Papers: this item is included in nep-acc, nep-cmp, nep-pbe and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:ahg:wpaper:wp2023-17

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