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. …

Tax competition for the mobile factor capital has led to a trend in many countries to levy lower taxes on interest … such differential taxation on the debt ratio of firms. We exploit a 2009 tax reform in Germany as a quasi-experiment, which … introduced a flat final withholding tax and opened a gap of 18 percentage points between the tax rate on income from …

average tax rate to measure liquidity outflow through taxation that corporate taxation affects investment through changing …

interest barrier. In case the debt ratio is reduced, our results present evidence for a proportional increase of firms' tax …

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 …

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 …

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be retained at a preferential tax rate (29.8%) and will be … subjected to supplementary tax (26.4%) when they will be withdrawn in the future.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 …