The project ‘Effective tax rates in an enlarged European Union’ is based on the methodology used for the calculation of effective tax rates (ETRs) as set out by Devereux and Griffith (1999, 2003).
This study enhances the existing data by analysing the Effective Tax Rates in different industries.
This study extends the work completed in previous intermediate reports of TAXUD/2008/CC/099. These previous reports, dated 2009 to 2011, are available for download under ec.europa.eu/…/.
The previous studies present estimates of the effective tax rates on investment in the EU member states from 1998 onwards. Furthermore, the EU candidate countries Croatia, FYROM, Turkey as
well as Norway, Switzerland, Canada, Japan and the United States are covered. They consider taxes on corporations in each country, but also include analyses of personal taxes on investment
and saving. The reports consider the tax burden levied on domestic investments, cross-border investments, and investment by small and medium sized enterprises (SME). The methodology
applied is that set out by Devereux and Griffith (1999, 2003).
The extensions put forward in this study refer to the time period covered (going back to 1991), the industry-specific details (including now tax regulation for 11 industries), and the type of assets analysed (7 specific types of assets). The report considers taxes on corporations in each country, but also includes analysis of personal taxes on investment and saving. Only domestic investment is considered.
The 11 industries considered are:
– Agriculture, Hunting, Forestry and Fishing
– Mining and Quarrying
– Total Manufacturing
– Electricity, Gas and Water Supply
– Wholesale and Retail Trade
– Hotels and Restaurants
– Transport, Storage and Communication
– Finance, Insurance, Real Estate and Business Services
– Public Administration, Defence and Compulsory Social Security
– Education, Health and Other Community Services
The 7 types of assets are:
– Residential Structures
– Non-residential Structures
– Transport Equipment
– Computing Equipment
– Communications Equipment
– Other Machinery and Equipment
STUDY – FULL TEXT: Effective tax levels at the industry level using the Devereux/Griffith methodology (PDF)
Studies on taxation – DG TAX website.