Tax burdens of sole proprietorships in Denmark, Germany, Austria and the Czech Republic

Sole proprietorships are of great significance for investment and employment in the national economies of many EU states. Although sole proprietorships are also exposed to international competition, their local fiscal conditions have not yet been adequately investigated. The article seeks to close t...

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Bibliographic Details
Published in:Zeitschrift für Wirtschaftspolitik 2007-01, Vol.56 (3), p.268-289
Main Author: Broer, Michael
Format: Article
Language:ger
Subjects:
Austria
Comparative analysis
Competition
Czech Republic
Denmark
Employment
Enterprises
Fiscal administration
Germany
Ownership
Tax burden
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Summary:Sole proprietorships are of great significance for investment and employment in the national economies of many EU states. Although sole proprietorships are also exposed to international competition, their local fiscal conditions have not yet been adequately investigated. The article seeks to close this gap. The focus is on a comparative examination of the tax burden in three states which border on Germany: Denmark, Austria and the Czech Republic. First the tax burden according to the average nominal tax rate alone is examined. In the second scenario the influence of tax benefits for retained profits are taken into account. Scenario number three analyses the effect of the various rules for setting off losses between different fiscal periods. The study shows that, all things considered, Germany is the fiscally most favourable location for about 80% of German sole proprietorships. Reprinted by permission of Lucius and Lucius Verlagsgesellschaft
ISSN:0721-3808