In spite of the reduction in corporation tax rates, the tax burden on firms in Germany has only sunk slightly this year. In contrast, the tax burden on the employment of highly qualified workers can considerably improve Germany’s international competitiveness in 2004 and 2005. The ZEW has come to this result with the help of the European Tax Analyzer, a software tool by which the tax burden imposed on companies and their activities in five countries can be compared, and the IBC-Taxation Index.
The study was completed by the Centre for European Economic Research (ZEW) in cooperation with VDInachrichten. It is based upon a survey of 332 firms in industry and technical services which was conducted from September till November 2003.