Local business profits respond to local business tax (LBT) rates that vary across municipalities. We estimate that a … of tax return data, as commonly done in the literature, results in a significant bias of the elasticity away from zero. …

for non-incorporated companies was introduced: Earnings may be retained at a preferential tax rate (29.8%) and will be … subjected to supplementary tax (26.4%) when they will be withdrawn in the future. By now, studies on this topic have been based … on case studies. Our article is based on microdata of the German Income Tax Statistics 2002 and provides a general …

-panel constructed from corporate tax return micro data for the period 1998-2001, a period which saw the introduction of a major … corporate tax reform in Germany. The financial leverage is measured by the ratio of long-term debt to total capital. Endogeneity … of the effective corporate tax rate is controlled for by an instrumental variable approach. Our instrument for the …

German corporated companies are taxed with a federal corporation tax and with a local busi-ness tax. The latter has a … similar, but broader tax base (including e.g. 25% of interest pay-ments) and its tax rate is set independently by every … municipality including the so called city-states (Stadtstaaten). The federal corporation tax revenue is equally split between the …

In Germany, the tax loss carry-forward of corporations significantly increased over the last decade. At the same time …, distributional breakdowns concerning the amounts of tax loss carry-forward and the effects of loss offset restrictions are provided …. I find that the restrictions on the use of tax loss carryback are rather ineffective while the newly introduced minimum …

Entrepreneurial activity is often regarded as an engine for economic growth and job creation. Through tax policy … Germany, the top marginal income tax rates were reduced exclusively for entrepreneurs in 1994 and 1999/2000. These tax reforms …, the tax rate reductions did not apply to freelance professionals (Freiberufler), and second, entrepreneurs with earnings …

The local business tax as the main revenue source of local governments in Germany has been under extensive debate for … decades. Proposals for reform range from a broad tax base in the sense of an origin-based value-added tax to a pure profit tax … that could be implemented as a surcharge on corporation and personal income tax. Local business taxation systems in OECD …

The 2008 Corporate Tax Reform Law was passed by the parliament in July 2007. It also reforms the trade tax. This … applies both to the rate and to the tax base. In future, not only the interest on permanent debt will be included in the tax …% instead of 50%. Since the interest barrier will also affect the trade tax base, it is still unclear how all the measures will …

framework for analyzing tax effects on changes in capital stock. In particular I estimate a one-step error correction model (ECM … percent will increase the firm's capital stock by 13 percent, on average. Taking my elasticity estimate to the Corporate Tax … corporate income tax rate was partly compensated for by stricter depreciation allowances. Investment dynamics appear to be …

In order to calculate the burden of a comprehensive and progressive income tax falling on a certain income source, an … apportionment scheme for the entire tax burden has to be chosen. This raises the question of how to deal with losses, which is … relevant for Germany in view of the heavy losses from renting. Using micro data from tax statistics we analyze the income tax …