In spite of the comprehensive Company Tax Reform Act 2008, the German tax system is still in need of reform. In this respect, the objective should be to render the tax system more neutral with respect to financing and investment decisions, reduce tax compliance costs and increase Germany’s attractiveness as a location for investment. Against this background, the study’s aim is twofold. First, the development of the tax burden of German corporations and partnerships from 1990 to 2011 will be determined and analysed applying the European Tax Analyzer. Second, a detailed proposal how to reform company taxation in Germany on a medium and a long term basis will be developed. For this purpose, current tax reform proposals promoted by all major political parties in Germany as well as comprehensive reform options brought forward by academics will be analysed and assessed in detail. In doing so, not only the level of the effective tax burden under the reform options is considered, but also their potential to reduce compliance cost will be addressed.
12.05.2011 - 31.03.2012