Corporate tax in the Netherlands
Corporate taxation is the sum of the taxes that apply to businesses.
- 2.1 Double Taxation
- 2.2 Tax Competition
- 2.3 Alternative control systems
- 2.4 Unitary Taxation
Corporate Taxation in Germany
The German system of corporate taxation are three major types of taxes:
- Taxation of income
- Taxation of consumption
- Taxation of the substance
Taxation of income
Major types of taxes: income tax, corporation tax, business tax, the solidarity surcharge
The legal provisions relating to income taxation in Germany are determined by the distinction between taxation within the meaning of the principle of transparency and taxation within the meaning of the separation principle.
Sole proprietorships and partnerships are taxed transparent, winnings will be subject to income tax of the shareholder.
Corporations are subject to the principle of separation, gains subject to corporation tax. Distributions are subject to personal income tax, to which the withholding tax is applicable. If the shareholder is a corporation, distributions with the exception of 5 % non-deductible business expenses are tax free.
Be achieved within the framework of activities of the company business income, such business tax is to be paid. This is a community control is an essential aspect of the national tax competition within Germany.
To income and corporation tax, a solidarity surcharge is levied.
Taxation of consumption
Major types of taxes: sales tax, property transfer tax
Sales tax is indeed levied on companies, but is economically borne by the final consumer. The company has so far to pay the tax only on the basis of their own value. It is therefore entitled to deduct input tax.
- For a general presentation: VAT
- The regulations in Germany: VAT ( Germany )
The real estate tax is levied on the acquisition of a domestic property.
In addition, may incur other consumption taxes, but in the context of corporate taxation generally have no significant meaning.
Taxation of the substance
Major types of taxes: property tax, inheritance and gift tax
Property tax is levied as a municipal tax on the ownership of land.
The inheritance and gift tax is levied on an inheritance or gift. This is also the case when entire companies or shares are inherited or given away.
Aspects of International Corporate Taxation
Double taxation
In order to reduce the tax disadvantage of companies with cross- border activities, agreements to reduce double taxation have been agreed between many countries. These are generally based on the OECD model convention.
Tax competition
A guided with low corporate tax rates, international tax competition between states mainly aims to attract mobile production factor capital as a necessary basis for investment in their own country. Due to avoidance of tax by companies, conversely, the tax competition between states to a race to the bottom, ie, always carry lower tax revenues. This phenomenon can be observed nationally and internationally for several decades.
Empirically, the actual tax burden of major international corporations are hardly reliably determined. For modeling the determination of an effective tax rate in different countries, therefore, simulation programs such as the European Tax Analyzer, the Centre for European Economic Research can be used.
Company taxation for the year 2008 - according to corporate tax reform in Germany in 2008, in an international comparison, the following table of the Federal Ministry of Finance for the EU and other countries are taken ( tax rates for central government plus possibly for regional authorities ).
Country
Alternative tax systems
Especially in Scandinavian countries, the model of dual income tax is distributed. The corporate taxation is changed by this model, since it differentiates between earned income and capital income. This system was proposed in April 2006, the Advisory Council on the Assessment of economic development for Germany. In Estonia, one exists for Europe unique system of corporate taxation, all corporations do not pay income taxes on their profits, it only the withdrawals taxed and they are taxed only in the recipient of the removal, so with a current rate of 21%.
Unitary Taxation
To get the tax avoidance by multinational companies in handle, the total group taxation or Unitary Taxation is discussed in the OECD and the EU as an alternative. It not obtain the benefit of the individual operating sites are determined, but it is the income of the entire group taken as a basis. This total profit is then split using a formula to the countries and there taxed respectively with the national tax rate.