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Assessment of Corporate Income Tax Revenues in the Light of Their Current Determinants

Slavomira Tahlova, Anna Banociova
2019 Montenegrin Journal of Economics  
Keywords: corporate income taxation, corporate income tax revenues, panel regression model, EU member states Purpose: Based on the literature review, the purpose of the paper is to determine tax and non-tax determinants of corporate income tax revenues and assess their impact. The purpose of this paper is to point out to the current determinants that have a link to the amount of corporate income tax revenues and play an important role in tax policy making, through an empirical assessment.
more » ... l assessment. Methodology: The empirical assessment of the research purpose specifies an econometric model draft of panel regression. The model is based on the decomposition of the share of corporate income tax revenues in relation to GDP into individual components that affect these revenues. Approach: Corporate income tax revenues, dynamic variables affected in time by multiple factors are researched through mathematical and statistical methods in Excel and R program environments using regression analysis panels (Pooling, FEM, and REM models). The subject of the research is the EU-28 states over the period 2007-2016. Significant tax and macroeconomic factors are identified. Findings: The determinants of corporate income tax revenues, defined through the empirical research, include tax determinants, which have a direct link to the corporate tax structure itself and affect the size and profitability of the corporate sector, and specific non-tax determinants in the form of cyclical and international factors. Based on the analysis carried out it can be stated that corporate income tax revenues are determined by elements of tax legislation and specific non-tax factors.
doi:10.14254/1800-5845/2019.15-1.7 fatcat:5pcxa3ey7rdq5i6pciavx6fuha