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Corporate Taxation

CORTAX model

Cortax model Graphs Numbers

CORTAX (short for CORporate TAXation) is a Computable General Equilibrium (CGE) model designed to evaluate the macro-economic effects of unilateral and multilateral corporate tax reforms. JRC has been using CORTAX in order to support important European Commission tax initiatives, including proposals for a common consolidated corporate tax base, taxation of the digital economy, the debt-equity bias, and the Communication on Business Taxation for the 21st Century.

CORTAX Model  

Corporate tax microsimulation model

Corporate microsimulation model

The JRC is currently developing a tailored corporate tax microsimulation model for the EU. The primary focus of this model is to provide valuable insights into the fiscal and distributional impact of corporate income tax (CIT) reforms.

Corporate tax microsimulation model 

Business taxation for 21st century

Business Taxation Corporate

Building on its analytical tools, such as the CORTAX model, the JRC provides key inputs to the evidence base underpinning current policy initiatives.

Business taxation for 21st century 

Debt-equity bias

Debt equity Corporate

In its Communication on Business Taxation for the 21st Century, the European Commission announced a legislative proposal to address the debt-equity bias in corporate taxation through an allowance system. The JRC contributed to the economic impact assessment of this initiative by analysing the effects of different forms of tax allowances for equity on important macroeconomic aggregates using the general equilibrium model CORTAX.

Debt-equity bias

Withholding taxes

Withholding taxes Corporate taxation

The Action Plan for fair and simple taxation supporting the recovery proposes to introduce a common, standardised EU-wide system for withholding tax relief at source. The JRC actively contributed to the economic impact assessment of the FASTER initiative by analysing the effects of withholding taxes and relief procedures on cross-border investment and macro-economic aggregates using the general equilibrium model CORTAX.

Withholding tax

To find out more about the JRC's work on similar topics, explore the related JRC portfolios: