Determinants of corporate tax revenue in European union

This masters thesis deals with determinants of corporate tax revenue in European union. First chapter focuses on the advantages and disadvantages of Corporate tax. The process of harmonization of direct taxes in the EU is described in more detail, including adopted directives and rullings of CJEU which have had an impact on harmonization. Two most common ways of measuring the development of Corporate tax revenue are also defined – Corporate tax revenue as share of GDP and Corporate tax revenue as share of total tax revenue. Second part of the thesis focuses on individual determinants of corporate tax revenue and regression analysis. Results of analysis with dependent variable Corporate tax revenue as share of GDP were that two indicators were found to be statistically significant – (1) share of GDP per capita that is one of indicators used to measure the size and profitability of the corporate sector and (2) the globalization index used to account for tax evasion. Results of analysis with dependent variable Corporate tax revenue as share of total tax revenue were that three indicators were found to be statistically significant – (1) statutory tax rate, (2) GDP growth rate and (3) GDP per capita.