Share:


Impact of a Common Corporate Tax Base on the effective tax burden in Belgium

    Annelies Roggeman Affiliation
    ; Isabelle Verleyen Affiliation
    ; Philippe Van Cauwenberge Affiliation
    ; Carine Coppens Affiliation

Abstract

In March 2011, the European Commission launched a proposal for a Common Consolidated Corporate Tax Base (CCCTB). However, a Common Corporate Tax Base (CCTB), leaving consolidation and apportionment out of consideration, appears to be a more realistic proposition for corporate tax harmonization in Europe. Using the European Tax Analyzer (ETA), we simulate the impact of the CCTB on the effective tax burden in Belgium. The results show that the adoption of the CCTB increases the Belgian effective tax burden by 16%. This remarkable increase is mainly driven by the fact that national tax deductions are not allowed under CCTB. This study allows policymakers to gain insight into the size effects of certain corporate tax measures and contributes to the current discussion on corporate tax harmonization in Europe.

Keyword : CCTB, effective tax burden, Belgium, simulation, ETA, CCCTB

How to Cite
Roggeman, A., Verleyen, I., Cauwenberge, P. V., & Coppens, C. (2014). Impact of a Common Corporate Tax Base on the effective tax burden in Belgium. Journal of Business Economics and Management, 15(3), 530-543. https://doi.org/10.3846/16111699.2013.807869
Published in Issue
Jul 8, 2014
Abstract Views
688
PDF Downloads
534
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.