Trends in income taxation: are taxes converging in Central and Eastern European countries?
Article Category: Empirical Paper
Online veröffentlicht: 31. Dez. 2023
Seitenbereich: 349 - 370
Eingereicht: 03. Mai 2023
Akzeptiert: 05. Sept. 2023
DOI: https://doi.org/10.2478/ijme-2023-0019
Schlüsselwörter
© 2023 Michał Bernardelli et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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Figure 5.
Selected characteristic features of taxation systems and applied tax incentives
| Bulgaria |
Low flat tax rate Tax incentives for regional development, creating jobs, transfer of technologies, or promoting exports Tax preferences in industrial zones |
| Croatia |
A hybrid system (components of income and consumption taxation) R&D tax relief Tax preferences for the SME sector |
| Czechia |
Lump sum tax-deductible expenses Tax losses can be carried forward R&D tax relief Tax reliefs for investment projects Shortened depreciation period for selected fixed assets Fixed-flat-rate income tax rates |
| Estonia |
Profits are not taxed until they are distributed Simple tax system with limited set of tax preferences From 2018, lower tax rate for companies making regular profit distribution |
| Lithuania |
Many tax preferences designed to promote entrepreneurship and innovation Some incentives limited in time Tax preferences offered in the SEZs |
| Latvia |
Profits are not taxed until they are distributed Favorable tax rates for small businesses Tax preferences in the SEZs and free ports (Ventspils and Riga) |
| Poland |
Tax preferences designed to share development risks between entrepreneurs and the state budget (tax losses can be carried forward) R&D tax relief Tax preferences in SEZs |
| Romania |
Tax preferences for microbusinesses R&D tax relief Tax preferences in SEZs |
| Slovakia |
Tax-deductible expenses – real or lump-sum costs R&D tax relief Tax reliefs for investment projects |
| Slovenia |
Special solutions applicable to funds ( Tax incentives |
| Hungary |
Alternative minimum tax Many tax reliefs and exemptions |
Descriptive statistics for the selected indicators of the CEECs and EU-15 countries
| Statistics | IND.1 | IND.2 | IND.3 | IND.4 | ||||
|---|---|---|---|---|---|---|---|---|
| Current income taxes (% of GDP) | Corporation income taxes (% of GDP) | Corporation income taxes (% of total) | Individual income taxes (% of GDP) | |||||
| EU-15 | CEE | EU-15 | CEE | EU-15 | CEE | EU-15 | CEE | |
| 13.6 | 6.2 | 2.4 | 1.8 | 6.4 | 5.7 | 9.9 | 4.1 | |
| 14.2 | 7.3 | 3.0 | 2.2 | 7.6 | 6.9 | 10.3 | 4.8 | |
| 13.9 | 6.9 | 2.6 | 2.0 | 6.8 | 6.2 | 10.1 | 4.4 | |
| 14.2 | 7.3 | 3.0 | 2.2 | 7.8 | 6.7 | 10.3 | 4.7 | |
| 14.4 | 8.0 | 3.2 | 2.4 | 8.3 | 7.5 | 10.5 | 5.0 | |
| 14.8 | 8.6 | 3.6 | 3.0 | 9.1 | 9.0 | 11.0 | 5.7 | |
Division into groups of the most similar countries using k-means clustering method
| Country | Group 1 | Group 2 | Group 3 |
|---|---|---|---|
| Bulgaria | ✓ | ||
| Croatia | ✓ | ||
| Czechia | ✓ | ||
| Estonia | ✓ | ||
| Hungary | ✓ | ||
| Latvia | ✓ | ||
| Lithuania | ✓ | ||
| Poland | ✓ | ||
| Romania | ✓ | ||
| Slovakia | ✓ | ||
| Slovenia | ✓ | ||
| Arithmetic mean | |||
| IND.1 – Current income taxes (% of GDP) | 6.42 | 7.50 | 7.71 |
| IND.2 – Corporation income taxes (% of GDP) | 2.59 | 3.35 | 1.76 |
| IND.3 – Corporation income taxes (% of total) | 8.76 | 10.07 | 5.28 |
| IND.4 – Individual income taxes (% of GDP) | 3.45 | 3.64 | 5.71 |