Common corporate consolidated tax base – don't forget the tax rates!
Professor Dr. Christoph Spengel,University of Mannheim1
Tax obstacles to EU-wide economic activities
Company taxation in the EU reveals a great diversity. Currently, nominal tax rates vary between 10 and 38.7 per cent (Table 1). It is well known that nominal tax rates are also the decisive factor for determining the effective corporate tax burdens. This EU-wide range of company tax burdens causes several distortions with respect to cross-border activities within the EU.
Table 1 Nominal tax rates on corporate profits (federal and local level, 2007)
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