Mahlich, Jörg C.; Roediger-Schluga, Thomas - United Nations University, Maastricht Economic and … - 2006
as (1-T
E
) x I, where T
E
is the effective tax rate and I is R&D
spending.
6
Figure 3 above, which plots the … 'resident tax', which consists of two parts: 1. A 'prefecture tax', which
amounts to 5% of the 'corporate tax', i.e. 30% x 5 …% = 1.5%. 2. A 'city tax', which is 12.3% of
the 'corporate tax', i.e. 12.3% x 30% = 3.69%. The total nominal tax rate thus …