Possibilities of harmonization of direct taxes in the EU

  • Received January 11, 2017;
    Accepted June 3, 2017;
    Published July 14, 2017
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  • Article Info
    Volume 14 2017, Issue #2 (cont. 1), pp. 191-199
  • Cited by
    4 articles

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Currently, indirect taxes in the EU are highly harmonized, however, harmonization of direct taxes is still a very complex problem. Many EU member states refuse to give up their tax sovereignty, which would become considerably limited because of the har¬monization of direct taxes. Today, attention is paid to the harmonization of the tax base of corporate income tax, while a number of ways are under consideration. The European Council has issued a draft of Directive for a common consolidated tax base of corporate income tax in 2011 and updated in 2012. This draft must be approved by all member states, but some of them, however, have expressed on the draft in negative way. Because of the severity of this problems, the authors decided to focus on this topic within this article, which deals with the calculation of the tax base by the laws of the Slovak Republic and by Common Consolidated Corporate Tax Base (CCCTB); and evaluate whether the tax harmonization of direct taxes would be advantageous for the particular business.

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    • Table 1. Overview of taxes’ rates in the EU members states
    • Table 2. Non-tax expenses of company ABC Ltd. (auxiliary calculations in EUR)
    • Table 3. Tax base of company ABC Ltd. in years 2011–2015 in EUR
    • Table 4. Consolidated corporate tax base in EUR
    • Table 5. Data of company ABC Ltd. in EUR
    • Table 6. Data of company KLM Ltd. in EUR
    • Table 7. Division of consolidated corporate tax base between companies ABC Ltd. and KLM Ltd. (CCCTB proposal, 2011)
    • Table 8. Division of consolidated corporate tax base between companies’ ABC Ltd. and KLM Ltd. (CCCTB proposal, 2012)
    • Table 9. Comparison of tax base
    • Table 10. The comparison of ways of assets depreciation under the legislation of the Slovak Republic and the proposal of Directive of CCCTB