Indicators of the Corporate Income Tax Burden in Macedonia
Abstract
This article represents an extensive analysis of the reliable tax burden indicators on corporate income in the Republic of Macedonia (RM). It is obvious for the majority of European Union (EU) countries that the already developed tendencies of increased tax rates as an appropriate answer for the ongoing economic crises and the enlarged public debt are not working. On the other side, Macedonia is one of the few countries that has managed to keep its tax policy relatively unaffected and unchanged by the actual crisis. The purpose of this paper is to establish and analyze the most important corporate income tax (CIT) burden measures in the domestic economy. They include the general indicators of the CIT burden, such as the statutory tax rate, tax revenue structure and the CIT/GDP ratio, as well as the measurements of effective tax rates. The last group of indicators commonly consists of the cost of capital, the effective marginal tax rate (EMTR) and the effective average tax rate (EATR) which in this paper are calculated according to the widely accepted Devereux-Griffith methodology. The results of the analysis will clearly show that the implemented domestic tax policy reforms have transformed this country into one of the most, if not the most favorable tax country for investment in Europe.Downloads
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