Public finance and fiscal policy

Workshop: Effective Corporate Taxation


Effective Corporate Taxation
OECD, Paris, 4 July 2006
Salle Roger Ockrent, Chateau de la Muette

Corporate taxation has been on the agenda of the recent tax policy debate in many OECD countries. In particular, there has been a policy interest in analysing the impact of corporate taxation on the location and level of investment in the context of globalisation of production. Assessing this impact requires computing appropriate measures of corporate tax burden since widely available nominal or statutory corporate tax rates are often poor indicators of this burden. Against this background, this workshop focuses on two issues: i) pros and cons of available indicators of corporate tax burden, and the related cross-country evidence, and ii) the evidence on the influence of corporate taxation on investment incentives.

The one-day workshop will be split in two sessions. Several experts will present their research in order to give a state-of-the-art overview of the literature.


Morning session

10:00-10:20 Analysis of corporate tax burdens - an introduction
Christopher Heady, OECD/CTPA

10:20-13:00 Assessing effective corporate tax rates: international comparisons
Presentations (15-20m) discussants (5-10m)

Implicit tax rates for non-financial corporations - macro vs. micro approach
Claudius Schmidt-Faber, German Federal Foreign Office and EC/DG Taxation and Customs Union, Emanuela Tassa, EC/DG Taxation and Customs Union
Effective tax burden of companies and skilled manpower – an international comparison
Christina Elschner and Michael Overesch, ZEW (Zentrum für Europäiche Wirtschaftsforschung)

11:00-11:30 Coffee break

Indicators of tax burden of foreign direct investment – trends and cross-country patterns
Kwang-Yeol Yoo, Korean Ministry of Finance and Economy
Discussants: Christian Valenduc, Belgian Ministry of Finance and Michael Broer, German Federal Ministry of Finance
Valenduc, C. (2006) Effective corporate taxation - Comments

Afternoon session

15:00-16:30 The impact of corporate taxation on investment incentives

Presentations (15-20m) discussants (5-10m)
Impact of tax burden on regional productivity growth
Martin Eichler, BAK Basel Economics
Corporate taxation and foreign direct investment decisions
Giuseppe Nicoletti, OECD/ECO
Tax competition, public infrastructure and foreign direct investment decisions
Agnès Bénassy-Quéré, CEPII (Centre d'Études Prospectives et d’Informations Internationales)
Discussants: Steven Clark, OECD/CTPA, Joaquim Oliveira Martins, OECD/ECO
Clark, S. (2006) Assessing the impact of corporate taxation on foreign direct investment
Oliveira Martins, J. (2006) Impact of Corporate Taxation on Investment Incentives - Comments

This workshop is by invitation only. For further information please contact Mrs. Irene Sinha
Email:, Tel: +33 1 45 24 90 42; Ms. Laura Vartia, Email:, Tel: +33 1 45 24 94 72
Useful background papers:

Eichler, M. et al. (2005) Effective tax burden of companies and on highly qualified manpower
Eichler, M. et al. (2006) Determinants of productivity growth
Bénassy-Quéré, A. et al. (2004) Tax competition and foreign direct investment
Hajkova, D., Nicoletti, G., Vartia, L.,Yoo K-Y. (2006) Taxation, business environment and FDI location in OECD countries
OECD Tax Policy Studies, Tax Burdens: Alternative Measures (Chapter 6)
OECD Tax Policy Studies, Using Micro-Data to assess average tax rates
Schmidt-Faber, C. (2004) An implicit tax rate for non-financial corporations - Definition and comparison with other tax indicators
Yoo, K.-Y. (2003) Corporate taxation of foreign direct investment income 1991-2001


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