An Effective Average Tax Rate as the Deciding Factor in Tax Competitiveness in the Context of Foreign Investment Influx

IF 4.4 1区 管理学 Q2 BUSINESS Journal of Competitiveness Pub Date : 2022-09-30 DOI:10.7441/joc.2022.03.01
Alena Andrejovská, J. Glova
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引用次数: 2

Abstract

A higher tax burden in individual countries need not always deter investors from investing profitably. Countries use tax burden levels in the form of changes in tax rates to attract foreign investment. The main objective of this study is to examine the tax competitiveness of the Slovak Republic compared to European Union (EU) countries (EU-27) and to evaluate the origin, extent, and form of investments from foreign investors in tangible and intangible assets in the Slovak Republic. To meet this objective, we first calculate the average tax rate for specific crossborder investments coming to Slovakia from all EU countries. To determine tax competitiveness, we compare the calculated effective average tax rate (EATR) with the EATR in individual EU countries. Finally, we perform an analysis of EATR and foreign direct investment (FDI) using cluster analysis, which categorises EU countries and evaluates their tax competitiveness. The analysis and comparison of values are conducted for the year 2019, while the countries are divided into old (EU-15) and new (EU-12) EU member countries. The article concludes that the calculated Slovak EART for cross-border investment is more profitable for old EU member countries and is, thus, more tax-competitive versus investors’ countries of origin. We can further state that the tax burden is among the most important indicators for investors and, thus, a lower EATR value than that in an investor’s country of origin contributes to the inflow of equity participation of FDI in Slovakia.
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外商投资流入背景下有效平均税率作为税收竞争力的决定因素
个别国家更高的税收负担并不一定会阻止投资者进行有利可图的投资。各国利用税率变化形式的税负水平来吸引外国投资。本研究的主要目的是考察斯洛伐克共和国与欧盟(EU)国家(EU-27)相比的税收竞争力,并评估外国投资者在斯洛伐克共和国有形和无形资产投资的来源、范围和形式。为了实现这一目标,我们首先计算所有欧盟国家对斯洛伐克的特定跨境投资的平均税率。为了确定税收竞争力,我们将计算出的有效平均税率(EATR)与个别欧盟国家的EATR进行了比较。最后,我们使用聚类分析对EATR和外国直接投资(FDI)进行了分析,该分析对欧盟国家进行了分类并评估了其税收竞争力。对2019年的价值进行了分析和比较,同时将这些国家分为旧的(欧盟15国)和新的(欧盟12国)欧盟成员国。文章的结论是,计算出的斯洛伐克跨境投资EART对旧的欧盟成员国来说更有利可图,因此,与投资者的原籍国相比,更具税收竞争力。我们可以进一步指出,税收负担是投资者最重要的指标之一,因此,EATR值低于投资者原籍国的EATR值有助于斯洛伐克外国直接投资的股权参与流入。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
11.30
自引率
2.70%
发文量
33
审稿时长
12 weeks
期刊介绍: The Journal of Competitiveness, a scientific periodical published by the Faculty of Management and Economics of Tomas Bata University in Zlín in collaboration with publishing partners, presents the findings of basic and applied economic research conducted by both domestic and international scholars in the English language. Focusing on economics, finance, and management, the Journal of Competitiveness is dedicated to publishing original scientific articles. Published four times a year in both print and electronic formats, the journal follows a rigorous peer-review process with each contribution reviewed by two independent reviewers. Only scientific articles are considered for publication, while other types of papers such as informative articles, editorial materials, corrections, abstracts, or résumés are not included.
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