Effective Tax Rates in the Moravian-Silesian Region

Abstract

The aim of this work is to evaluate the effective corporate tax rate in the Moravian-Silesian Region in the Czech Republic on the basis of a backward-looking micro view. The results obtained are then compared with other methods of measuring the tax burden, especially with the corporate tax quota and effective corporate tax rate based on a backward-looking macro view and its components. The tax burden will be evaluated for the period 2007-2010 in order to capture the effects of the economic crisis. It is clear that the effective tax rate computed according to the backward-looking micro view and corporate tax quota confirms the results of a number of empirical studies because, in comparison to an effective marginal tax rate based on the macro view, they reflect fluctuations in business cycles.

World Tax Index: New Methodology for OECD Countries, 2000–2012

“…from questionnaire surveys are often used, which leads to the above-mentioned problems of the time series, the number of observation, etc. Effective tax rates are often used to express the tax burden on corporations (Lazar, 2010, Janíčková, 2013, but also the tax burden on highly skilled labour (Elschner and Schwager, 2004) or e.g. the tax burden on the banking sector (Ricotti et al, 2010).…”