Study on Corporate Tax Rates: A Comparison of Germany and the EU


Regarding the effective tax burden of companies, Germany ranks 21st among the 27 EU countries. Only six EU member states raise higher corporate taxes than Germany. Even though fiscal reforms were passed in 2008, there is still a need for reforms in the German tax system. These are the findings of a study conducted by the Centre for European Economic Research (ZEW) in cooperation with the University of Mannheim on behalf of the Foundation for Family Businesses.

ZEW researchers used the simulation model “European Tax Analyzer” to determine the impacts of changes in the tax system on companies. At the heart of this unique instrument is a company model enabling researchers to calculate the effective tax burden of companies and their shareholders. The model takes all relevant types of taxation into account. The calculation is based on a simulated tax assessment over a period of ten years. Thus, the model can be used to estimate the detailed impacts of the different tax reform plans promoted by the parties in the German Bundestag.

Download the study (German only)