Assessment of Factors Influencing of Final Corporate Income Tax Liabilities in Selected Sectors in the Czech Republic
Assessment of Factors Influencing of Final Corporate Income Tax Liabilities in Selected Sectors in the Czech Republic

Author(s): Karolina Lisztwanová, Iveta Ratmanová
Subject(s): Business Economy / Management, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: corporate income tax; tax base; pyramidal decomposition; functional method; individual sectors;
Summary/Abstract: The Czech government uses corporate taxation to support desirable corporates` behaviour, for example the willingness to invest or the elimination of impact of corporates` risk etc. The object of the paper is to assess the impact of changes of the statutory tax rate, to emphasize the impact of the items reducing tax base and the influence of the tax discounts on the total tax liability. First of all, main attention is devoted to the evaluation of the impact of tax losses, research and development expenses, expenses connected with donation activities and investment incentives of the selected sectors during period 2005-2016 with using data provided by Ministry of Finance of the Czech Republic. The method of pyramidal decomposition of the final tax liability is used, so that we could state and compare the changes of above-mentioned items moreover functional method is applied in case of identification of multiplicative relationship among defined individual items. As far as our results are concerned, we are able to emphasize the items that influenced the changes of the corporate income tax liability of the selected sectors the most. We can state that the changes of the individual adjustments of tax base are the most significant in the case of all sectors, but on the other hand, when it comes to the rest of the items their impact differs

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