The Comparative Analysis of Specific Effective Average Tax Rates of Corporation in the EU Countries in Years 1998 – 2007

This article based on comparative analysis investigates the effective average tax rates of corporations determining an actual tax burden in EU Member states with the emphasis on the Czech Republic and further the individual effective rates calculated by various methods. However corporations are taxed by one nominal rate, in fact the different sectors and types of investments are taxed at different rates. Such taxes having distorting effects on the behavior of economic entity are considered to be wrongful and ineffective because they cause excessive tax burden. The current Tax Reforms put a target to limit these looses caused by distortions. There are several specific effective rates,which vary each other inmethodology of calculation. Devereux et al. 2008 figured out average (EATR) and marginal (EMTR) rates using by the European Commission and Eurostat for their statistics. These are microeconomic indicators ex ante whereas implicit rate (ITR) is computed as ex post macroeconomic indicator.