The website of the Directorate General for Economic and Financial Affairs has moved.
You will find all publications issued after July 2015 on the new web presence.
Foreign ownership and corporate income taxation : an empirical evaluation - Harry Huizinga and Gaëtan Nicodème
Author(s): Harry Huizinga (Tilburg University and CEPR) and Gaëtan Nicodème (Directorate General for Economic and Financial Affairs)
Foreign ownership and corporate income taxation : an empirical evaluation - Harry Huizinga and Gaëtan Nicodème (273 kB)
Economic integration in Europe has not led to a ‘race to the bottom’ regarding corporate income taxes. This paper documents trends in the foreign ownership of companies in Europe and it examines whether foreign ownership has exerted a positive influence on corporate income tax levels. Using company-level data, we document that the foreign ownership share in Europe stood at around 21.5 percent in the year 2000. The estimation suggests that a one percentage point increase in foreign ownership increases the average corporate income tax rate between a half and one percent. Further international economic integration is likely to lead to higher foreign ownership shares with a concomitant positive influence on corporate taxation levels.
(European Economy. Economic Papers 185. June 2003.
Brussels. 50pp. Tab. Free.)
|ISBN 92-894-5833-X (online)||
|ISSN 1016-8060 (online)