Statutory tax rates have increased and are high compared with OECD‑EU countries

2021 ◽  
Keyword(s):  
Tax Rates ◽  
Eu Countries

Tax revenues in the European Union countries

2017 ◽  
Vol 62 (5) ◽  
pp. 79-99
Author(s):  
Agata Szymańska
Keyword(s):  
European Union ◽  
Social Economic ◽  
Tax Rates ◽  
The European Union ◽  
Eu Countries ◽  
Excise Duty ◽  
Tax Revenues ◽  
Historical Factors ◽  
European Union Countries ◽  
The Eu

The aim of this paper is to analyse tax revenues and examine similarities of selected tax revenues (mainly VAT, CIT, PIT and excise duty) in the European Union countries. The analysis of the EU members concerns the period between 2003 (i.e. the year preceding the biggest enlargement of the EU) and 2012 (due to data completeness). Tax rates and the structure of tax revenues in the EU countries were compared and then the cluster analysis was applied to assess the similarity of tax revenues. The analysis suggests that the process of tax harmonization, which took place in the period considered, did not exert a significant impact on the similarity of the structure of tax revenues in the EU countries. The structure seems to be still determined by e.g. social, economic or historical factors, which influenced the tax systems creation in particular EU countries.

scholarly journals Asymmetric competition in the setting of diesel excise taxes in EU countries

2013 ◽  
Vol 63 (4) ◽  
pp. 423-450 ◽  
Author(s):  
László Paizs
Keyword(s):  
Tax Competition ◽  
Western Europe ◽  
Strategic Interaction ◽  
Competition Model ◽  
Tax Rates ◽  
Elastic Demand ◽  
Country Size ◽  
Eu Countries ◽  
Excise Taxes ◽  
Tax Changes

This paper tests new implications of the asymmetric tax competition model on diesel excise taxes. We extend the standard tax competition model by replacing the unit demand assumption with iso-elastic demand. As a result, not only the level of the equilibrium tax, but also the slope of the tax reaction function depends positively on the size of the country. The new implication is tested on panel data in first differences for 16 countries of Western Europe. The results provide strong evidence for strategic interaction in the setting of diesel excises and confirm the effect of country size on the response to tax changes in neighbouring countries. Strategic interaction between EU countries intensified in the mid-1990s and drove small European countries to set lower diesel tax rates. These results explain why the EU’s minimum tax policy has failed to harmonise diesel tax rates.

scholarly journals Anti-Crisis Fiscal Measures in the European Union during the COVID-19 Pandemic and their Impact on GDP

2020 ◽  
Vol 6 (3) ◽  
pp. 225-243
Author(s):  
V. V. Karpova ◽  
◽  
V. F. Tischenko ◽  
V. N. Ostapenko ◽  
Yu. B. Ivanov ◽  
...  
Keyword(s):  
Tax Revenue ◽  
Gdp Growth ◽  
Tax Rates ◽  
The European Union ◽  
Eu Countries ◽  
Indirect Connection ◽  
Social Contributions ◽  
Tax Payments ◽  
The Uk ◽  
Tax Loss

The aim of this study is to analyze the connection between anti-crisis fiscal measures adopted by EU governments in response to the COVID-19 pandemic and these countries’ GDP growth. The study relies on methods of statistical analysis, including cluster analysis, to examine the challenges of forecasting tax revenue collections during the COVID-19 pandemic. It is possible to make preliminary conclusions regarding the relationship between fiscal anti-crisis measures in EU countries and these countries’ GDP growth even in the absence of the actual data. The study has revealed variations in forecast GDP growth caused by a higher than usual degree of uncertainty. The best way to minimize such variations is to constantly monitor the situation and adjust the forecast estimates depending on the changes in the relevant factors. The variations in forecast estimates can also stem from adjustments for the changes in tax revenues of EU countries implementing fiscal anti-crisis measures. Most EU countries resorted to such instruments as deferral of certain tax payments, temporary tax breaks, reduction of tax rates, tax loss carryforwards, cancellation or reductions of social contributions. The European leaders in terms of anti-crisis fiscal measures are the Czech Republic and Ireland – these countries used four out of five instruments and were followed by Austria, Hungary and the UK, which used three instruments. We also analyzed the coefficient of tax elasticity for European countries and demonstrated that tax reliefs (tax preferences) influence the level of tax revenue. The hypothesis that there is an indirect connection between the anti-crisis fiscal measures and GDP growth was confirmed. It is shown that clusters of EU countries grouped depending on their anti-crisis fiscal measures do not coincide with the clusters of countries grouped depending on their GDP growth estimates. Thus, a tentative forecast can be made that the fiscal anti-crisis measures taken by EU countries will not have a direct impact on their GDP growth.

scholarly journals Differentiated VAT rates in Ukraine: problems and directions of solution

2021 ◽  
Vol 2021 (1) ◽  
pp. 5-21
Author(s):  
Tetiana IEFYMENKO ◽  
◽  
Yurij IVANOV ◽  
Vlada KARPOVA ◽  
◽  
...  
Keyword(s):  
Quantitative Methods ◽  
Price Regulation ◽  
Business Community ◽  
Tax Rates ◽  
The European Union ◽  
Eu Countries ◽  
Goods And Services ◽  
Existing Problems ◽  
Product Service ◽  
Reduced Rate

In the context of the economic crisis, it is important to ensure a steady flow of taxes to the budget and at the same time support domestic producers. There is a negative trend towards a decrease in VAT revenues for goods and services produced in Ukraine. This leads to a fall in GDP and a deterioration of the economy in Ukraine. Therefore, it is necessary to identify existing problems of administrating VAT in Ukraine and suggest ways of their solving. The purpose of the article is to study the problems of administrating VAT in Ukraine, which are associated with the application of differentiated VAT rates and to develop recommendations for their solution. The article uses qualitative research methods to describe the existing problems in VAT administration. Quantitative methods are used to analyze VAT revenues. The study identified four problems in VAT administration. The first problem is the lack of harmonization of norms on the application of reduced VAT rates in Ukraine with the legislation of the European Union (EU). It is proposed to analyze the potential consequences that may lead to an expansion of the range of transactions for which reduced VAT rates are applied in Ukraine in line with Directive № 112. The second problem is the lack of tools in the Ukrainian legislation that ensure the reduction of prices for the relevant product (service) by the supplier when reduced tax rates are introduced. It is proposed to analyze the price regulation tools used in the practice of EU countries and determine the feasibility of their use in Ukraine, taking into account the current regulatory framework for price regulation. The third problem is the growth of the tax burden on processing enterprises with the introduction of reduced VAT rates in Ukraine. It is proposed to analyze the feasibility of extending reduced VAT rates not only to primary products, but also to the relevant processing companies that use these products, based on the practice of EU countries. The fourth problem is ambiguities in rules for applying a reduced VAT rate to the hotel business. It is proposed to clearly define which services are subject to the reduced rate, whether the reduced rate is applied to catering services or to other hotel services, as provided for in some EU countries. In addition, it is necessary to clearly define the range of persons who can apply a reduced VAT rate to hotel services and also include natural persons-entrepreneurs, travel agencies and tour operators who are VAT payers. The proposals set out in the article should be discussed with scientists, specialists, representatives of the business community and the public. Based on the results of the disputes, it is advisable to develop specific recommendations for making appropriate changes to the Tax Code of Ukraine. This will be the direction of further research.

scholarly journals TRANSFORMATION OF TAX REGULATION IN EU COUNTRIES: POSITIVE EXPERIENCE FOR UKRAINE

2020 ◽  
pp. 97-104
Author(s):  
Yuriy Turyanskyy
Keyword(s):  
Fiscal Policy ◽  
Tax Policy ◽  
Tax Administration ◽  
Tax Burden ◽  
Tax Rates ◽  
Positive Experience ◽  
Tax System ◽  
Eu Countries ◽  
The Eu ◽  
Tax Regulation

Introduction. Ukraine's active progress towards integration with the European social and economic space requires an update of domestic fiscal policy to ensure adequate cooperation with European countries. The need for changes in tax regulation in the context of integration processes actualises the issue of generalizing the features of fiscal policy in the EU with the identification of the most positive experience of reforming it. Methods. The following methds are used in conducting the research: systematic, institutional methods (to study the tax system and mechanisms for regulating tax relations in individual EU countries), the trend analysis method (to analyze the dynamics of tax rates and tax revenues in EU countries). Eurostat data on major tax aggregates of national accounts of different countries were used as an information source. Results. The current tax policy of EU countries is characterized by the co-ordination of the interests of each state, the abolition of inefficient elements of tax systems and the renunciation of nominal tax sovereignty. Bid sizes are not uniform and tax rates are quite low. The effectiveness of the EU tax system is manifested primarily in the distribution of taxes, that is, in their share in the overall structure of tax revenues. The highest is the share of indirect taxes, with the average value of the share of VAT fluctuating within 20-30%, the share of personal tax - within 8-30%. Considering the positive experience of the EU member states, the main directions of transformation of tax regulation of Ukraine are the implementation of EU norms in the field of taxation into the legal system and tax practice: improvement of tax policy principles, as well as modification of the national structure of tax types in accordance with European standards; ensuring the systematic and efficient functioning of the internal taxation regime and the tax administration process. Discussion. Further scientific research should cover the development and use of state-of-the-art analytical tools for tax burden forecasting and fiscal regulation effectiveness. Keywords: tax system, fiscal policy, tax burden, tax administration, taxpayers, European integration, economic integration.

scholarly journals Tendencies and limitations on increasing excise tax on cigarettes in EU member states

2021 ◽  
Vol 2021 (8) ◽  
pp. 100-112
Author(s):  
Mykhailo POLIAKOV ◽  
Keyword(s):  
Transition Period ◽  
Purchasing Power ◽  
Tax Rates ◽  
Negative Experience ◽  
Member States ◽  
Excise Tax ◽  
Illicit Trade ◽  
Eu Countries ◽  
Legislative Changes ◽  
The Eu

The recent studies of levying excise tax on cigarettes and the policy of the EU and its member states aimed at setting a minimum excise tax thereon have been analyzed in order to substantiate recommendations on the respective reform in Ukraine. The article confirms findings that a sharp increase in the excise tax (high excise rates) lead to the growth of illicit trade in such products. For that reason, when initiating corresponding changes to legislation, it is essential to choose such pace of increase in tax rates that would take into account the purchasing power and the level of such rates in neighboring countries. Even severe tax control measures may turn out to be inefficient if there are any conditions for getting high profits from the illicit market. Achieving excise revenue growth without fiscal losses due to the increase in illicit tobacco trade is possible only through a gradual increase in tax rates. It has been established that the negative experience of a number of the new EU countries in reaching the EU minimum excise tax on cigarettes should be taken into consideration while designing future pan-European legislative changes to avoid decisions that would either set out too high target thresholds or disregard the need to provide a sufficient transition period to achieve them. Today significant differences persist in the levels of purchasing power in the member states and there are still opportunities for smuggling cigarettes into the EU through its eastern borders. Given this, several post-socialist EU countries remain vulnerable to new increases in the minimum excise tax on cigarettes and are unlikely to agree on legislative changes that set forth “jumps” in the excise tax rates or their significant growth in the coming years. It has also been demonstrated that most EU countries have abstained from raising cigarette excise tax significantly during the COVID crisis for fear of the illicit trade growth. It has been proven that Ukraine should review the current plan on increasing cigarette excise tax by slowing down the tax growth and extending the plan till 2028.

scholarly journals Tax Competition Or Tax Coordination? What Is Better For The European Union?

2015 ◽  
Vol 18 (2) ◽  
pp. 37-55 ◽  
Author(s):  
Joanna Działo
Keyword(s):  
Tax Competition ◽  
Developed Countries ◽  
Modern Technology ◽  
Real Problem ◽  
Tax Rates ◽  
The European Union ◽  
Tax Havens ◽  
Tax Coordination ◽  
Eu Countries ◽  
The Eu

Tax competition is defined as the use of tax policy that will allow to maintain or increase the attractiveness of a particular territory for business location. Tax competition is used especially by the relatively under-developed countries, as foreign capital inflow gives them the possibility to implement modern technology, new management methods, or to increase exports. One of the effects of tax competition is the formation of tax havens, i.e. countries or territories offering preferential tax rates in order to gain capital from abroad. A comparative analysis of the income tax rates in the EU countries and certain tax havens shows that despite the progressive reduction of the rates of these taxes in the EU, the phenomenon of tax competition is still very strong, and the position of tax havens as countries with relatively low or very low taxes seems to be unthreatened. The question arises whether tax competition is a real problem for the EU Member States and if there exist arguments for tax harmonization, or at least tax coordination within the EU countries. The discussion in this paper suggests that the arguments for tax coordination in the EU are not yet strong enough. However, both tax competition and tax coordination have their supporters and opponents.

scholarly journals Tax-in or Tax-out? Evidence from the relation of financial performance and effective taxation of Czech subsidiaries under foreign control

2019 ◽  
Vol 30 (3) ◽  
pp. 304-315
Author(s):  
David Procházka
Keyword(s):  
Czech Republic ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Tax Avoidance ◽  
Tax Rates ◽  
Effective Tax Rate ◽  
The Czech Republic ◽  
Tax Rate ◽  
Eu Countries ◽  
Foreign Control

The paper evaluates the financial performance of Czech entities under control of companies listed in the EU and its relation to effective tax rates. Using individual corporate data, empirical evidence of 4,917 year-firm observations indicates a wide dispersion both in performance and taxation. The domicile of the parent has an impact on the subsidiary’s effective tax rate and the effective taxation of Czech subsidiaries under control of foreign listed parents is significantly lower than for other Czech companies. Despite exhibiting tax avoidance to some extent, the data reveal significant variability in relative tax rates suggesting that the majority of foreign parents from western and northern EU countries prefer to tax profits in the Czech Republic rather than elsewhere. Shifting profits to the Czech Republic results in superior reporting performance of the affected subsidiaries. In contrast, empirical evidence shows that parent companies from southern EU countries seek ways to avoid taxation. The unclear tax motives of both parent company groups hinder an appropriate assessment of the financial performance of subsidiaries from being conducted.

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