The competition analysis in the field of corporate income tax in the EU

With the emergence of multinational corporations and globalization of their economic activities, the competition between these companies is being expanded also on the competition between individual states. This competition is also manifested in the tax area, when less economically developed countries are trying to attract the foreign investors from economically advanced countries to their country through a lower corporate tax burden, which is considered as harmful tax competition. This article contains a comparative analysis of developments in the corporate income tax burden in the EU, with the aim to assess the merits of the opinion on the harmful impact of tax policy in this area, used by thirteen new, economically less developed EU member countries. As an indicator of the size of the tax burden are used herein both the statutory and the effective corporate tax rates.