Corporate taxation in the context of tax competitiveness of EU states

The tax burden significantly affects the development of individual economies in EU member states. Despite efforts to harmonize and coordinate tax coordination, the tax burden can vary considerably between states. This difference may have an impact on the investment strategy of an investor who is interested in corporate taxation in a given state, among other factors. The aim of this paper was to empirically verify the impact of changes in corporate taxation on tax competitiveness in EU states for the period 2004-2019. The analysis was performed using the method of constant tax shares and the rate relation method. The research was complemented by the hypothesis that the new EU member states are more competitive than the old EU member states, and this was confirmed. In conclusion, we state that the decline in tax rates is related to the growth of tax competition between EU member states. Tax competitiveness will exist until full harmonization of the tax system.