Trends in income taxation: are taxes converging in Central and Eastern European countries?
The paper examines the convergence of tax systems in Central and Eastern European countries (CEECs) over the period 1995–2018. Due to the increasing impact of tax competition, we have focused on income taxes, in particular, corporate ones. We have identified the factors that influence the taxation s...
| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2023-12-01
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| Series: | International Journal of Management and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/ijme-2023-0019 |
| _version_ | 1797303121064493056 |
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| author | Bernardelli Michał Felis Paweł Jamroży Marcin Lipiec Jacek Malinowska-Misiąg Elżbieta Szlęzak-Matusewicz Joanna Otczyk Grzegorz |
| author_facet | Bernardelli Michał Felis Paweł Jamroży Marcin Lipiec Jacek Malinowska-Misiąg Elżbieta Szlęzak-Matusewicz Joanna Otczyk Grzegorz |
| author_sort | Bernardelli Michał |
| collection | DOAJ |
| description | The paper examines the convergence of tax systems in Central and Eastern European countries (CEECs) over the period 1995–2018. Due to the increasing impact of tax competition, we have focused on income taxes, in particular, corporate ones. We have identified the factors that influence the taxation system and trends in income taxation in the CEECs by adapting the hidden Markov model approach. We find that many CEECs have reduced income taxation in the analysis period, mainly by lowering tax rates. Corporate income taxes have also decreased in many CEECs in the same period; however, the reverse has been observed too. Both convergence and divergence have been identified among the CEECs over the period considered. The speed of these processes based on the used variables varied depending on both exogenous and endogenous factors. These factors have been diagnosed as being specific to the periods of tax reforms, i.e., before and after accession to the European Union (EU) and the global financial crisis. |
| first_indexed | 2024-03-07T23:48:21Z |
| format | Article |
| id | doaj.art-a2b3bd8e0bda455a83ad0e1d5095a44f |
| institution | Directory Open Access Journal |
| issn | 2543-5361 |
| language | English |
| last_indexed | 2024-03-07T23:48:21Z |
| publishDate | 2023-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | International Journal of Management and Economics |
| spelling | doaj.art-a2b3bd8e0bda455a83ad0e1d5095a44f2024-02-19T09:03:46ZengSciendoInternational Journal of Management and Economics2543-53612023-12-0159434937010.2478/ijme-2023-0019Trends in income taxation: are taxes converging in Central and Eastern European countries?Bernardelli Michał0Felis Paweł1Jamroży Marcin2Lipiec Jacek3Malinowska-Misiąg Elżbieta4Szlęzak-Matusewicz Joanna5Otczyk Grzegorz6SGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandSGH Warsaw School of Economics, Warsaw, PolandThe paper examines the convergence of tax systems in Central and Eastern European countries (CEECs) over the period 1995–2018. Due to the increasing impact of tax competition, we have focused on income taxes, in particular, corporate ones. We have identified the factors that influence the taxation system and trends in income taxation in the CEECs by adapting the hidden Markov model approach. We find that many CEECs have reduced income taxation in the analysis period, mainly by lowering tax rates. Corporate income taxes have also decreased in many CEECs in the same period; however, the reverse has been observed too. Both convergence and divergence have been identified among the CEECs over the period considered. The speed of these processes based on the used variables varied depending on both exogenous and endogenous factors. These factors have been diagnosed as being specific to the periods of tax reforms, i.e., before and after accession to the European Union (EU) and the global financial crisis.https://doi.org/10.2478/ijme-2023-0019income taxtax competitiontax convergenceh2o52o57 |
| spellingShingle | Bernardelli Michał Felis Paweł Jamroży Marcin Lipiec Jacek Malinowska-Misiąg Elżbieta Szlęzak-Matusewicz Joanna Otczyk Grzegorz Trends in income taxation: are taxes converging in Central and Eastern European countries? International Journal of Management and Economics income tax tax competition tax convergence h2 o52 o57 |
| title | Trends in income taxation: are taxes converging in Central and Eastern European countries? |
| title_full | Trends in income taxation: are taxes converging in Central and Eastern European countries? |
| title_fullStr | Trends in income taxation: are taxes converging in Central and Eastern European countries? |
| title_full_unstemmed | Trends in income taxation: are taxes converging in Central and Eastern European countries? |
| title_short | Trends in income taxation: are taxes converging in Central and Eastern European countries? |
| title_sort | trends in income taxation are taxes converging in central and eastern european countries |
| topic | income tax tax competition tax convergence h2 o52 o57 |
| url | https://doi.org/10.2478/ijme-2023-0019 |
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