Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283587 
Year of Publication: 
2023
Series/Report no.: 
ZEW Discussion Papers No. 23-066
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Tax incentives are a key component of governments' investment policy mix as they directly impact companies' tax burden. In this paper, we illustrate the EU's tax attractiveness as investment location over time in terms of effective average tax rates and evaluate potential tax reform options. Our quantitative assessment of recent tax policies suggests that corporate tax rate cuts, notional interest deductions and R&D incentives reduce the effective average tax rate significantly. However, we argue that targeted measures such as accelerated depreciations and R&D incentives are most suitable for creating an attractive tax environment for business investments, especially in the context of the global minimum tax.
Subjects: 
Mannheim Tax Index
effective tax rates
Devereux-Griffith methodology
globalminimum tax
tax incentives
investment
location attractiveness
JEL: 
F21
F23
H25
K34
Document Type: 
Working Paper

Files in This Item:
File
Size
445.74 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.