Copying and distributing are prohibited without permission of the publisher

Eurostat confirms EU average corporate tax rate increases for first time since 2001

29 May 2012

Joe Dalton

The average corporate tax rate among EU member states has increased for the first time in more than a decade, and taxpayers can expect fewer rate cuts while the financial crisis continues, according to advisers.

Figures released by Eurostat last week showed that the average corporate tax rate among the 27 member states was 23.5% in 2012, up from 23.4% in 2011.

The increase bucks the trend for the last eleven years where the average rates have fallen consistently from a high of 31.9% in 2000.

Maricla Pennesi, head of tax for DLA Piper in Italy, said she expects to see member states maintain more steady corporate tax rates for the next two years while the EU remains in crisis.

"[The} corporate tax rate is a really sensitive issue both for economic growth internally and for attracting foreign investment as well as for financing and supporting country indebtedness, so eurozone countries will try to be more steady with rates," said Pennesi.

The lowest rates are found in Bulgaria and Cyprus, at 10%, and in Ireland, at 12.5%. At the other end of...



This article is locked content, available to current subscribers or triallists.

  • Current subscribers or trialists - Please log in to view this article in full.
  • New users - Please take a free 7 day trial.
  • Expired subscribers or trialists - Please subscribe to gain immediate full access.

If you think you've received this message in error, please contact your account manager, Nick Burroughs:
Email: nburroughs@euromoneyplc.com, Tel: +44 (0)207 779 8379

Subscribe now

Subscribe today to gain full access to International Tax Review.

Subscribe

Free trial

Take a free trial now and gain 7 days of full access to International Tax Review.

Free trial




Which possible outcome of the G20 / OECD BEPS project would carry the biggest fear for your company?