| Abstract [eng] |
In this research corporate income tax burden tendencies and its determinants in the Baltic States are analysed. Corporate income tax plays an important role in the tax system of different countries. This is one of the tools that governments use to regulate the economy and its efficiency by changing the incentives for business formation, development and innovation. Moreover, corporate income tax can affect the integrity of the market and certain strategic decisions of the companies. By setting the optimal level of profit tax burden, the economic losses are reduced, therefore corporate income tax burden is an important factor of the country’s prosperity in global competition. In European Union countries corporate tax competition is becoming increasingly important for policy makers, as companies around the world are expanding their business globally to the most favorable locations. Most researches indicates that countrys compete with each other by lowering statutotary corporate income tax rates or adding various tax exemptions and reliefs. This leads to a reduction in the tax burden for companies, but this way countrys loosses significant part of their budget revenue. Therefore, it is important for every country to monitor the corporate income tax burden trends, identifying factors that determine its changes. |
