Keywords: Global trends;, Income tax;, Tax reforms;, Tax competition;, global company

Article Content:-


There are issues challenging the validity of existing company tax regimes to better serve the principle of effective, efficiency, fairness and accountability of public interest. This has in turn lead to an initiative of company tax reform seeking new way to design a system that is promoting competitiveness and generating steady stream of tax revenues flow. Therefore, this study aimed to provide brief reviews of literatures in which discuss the emerging trends of company income tax in global and possible tax reforms. A comprehensive review of company tax bases and rates are then employed. Data that is depicting the trends of company tax rates across these years are then being overviewed, compared, and evaluated. The importance of company’s taxation, concept of company tax base and rates, trends and comparison of global income Tax, tax competition and tax reforms are reviewed. It can be concluded from the literature review that most of the trends in jurisdictions are reducing tax rates to demonstrate their competitive. Also, the global trade tax circumstances have varied radically over past few decades and impair the effectiveness of company taxation administration policies nowadays to remain competitive and generate sufficient incomes without disrupted by aggressive profit shifting. Therefore, future studies should explore areas like tax transparency and country to country reporting, unitary tax system and tax cooperation in order to ensure effective and efficient tax reforms.



Auerbach, A. J. (2006). Why Have Corporate Tax Revenues Declined? Another Look. National Bureau of Economic Research Working Pape.

Baker, P. (2015). The BEPS Action Plan in the Light of EU Law: Treaty Abuse. British Tax Review , 408-416.

Benshalom, R. A.-Y. (2011). Formulary Apportionment – Myths and Prospects: Promoting Better International Tax Policies by Utilizing the Misunderstood and Under Theorized Formulary Alternative. World Tax Journal , 371-398.

Bretschger, L. F. (2002). Globalisation, capital mobility and tax competition: Theory and evidence for OECD countries. European Journal of Political Economy , 695-716.

Clausing, K. A. (2007). Corporate tax revenues in OECD countries. 115-133: Int Tax Public Finan.

Cobham, A. (2005). Tax evasion, tax avoidance and development finance. QEH Working Paper Series.

Commission, E. (2010). Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB). Retrieved May 16, 2016, from European Commission Web Site:

Devereux, M. (2011). Transparency in reporting financial data by multinational corporations. Oxford University Centre for Business Taxation.

Djurović-Todorović, J. (2002). Corporate Income Tax In EU Countries Comparative Analysis. FACTA Universitatis.

Flamin, E. T. (2015). The Impact of BEPS on the Fight Against Harmful Tax Practices: Risks … and Opportunities for the EU. British Tax Review , 396-407.

Gravelle, J. G. (2012). Corporate Tax Reform: Issues for Congress. CRS Report , 1-43.

Gravelle, J. G. (2014). International Corporate Tax Rate Comparisons and Policy Implications. CRS Report R41743 , 1-28.

Hassett, A. B. (2007). Revenue-Maximizing Corporate Income Taxes: The Laffer Curve in OECD Countries. AEI Working Paper.

Hooker, J. R. (2016, March 4). It becoming harder for international firms to avoid tax? Retrieved May 14, 2016, from BBC News:

James R. Hines, J. L. (2009). How Globalization Affects Tax Design. NBER Working Paper.

Kawano, J. S. (2015). How do corporate tax bases change when corporate tax rates change? With implications for the tax rate elasticity of corporate tax revenues. International Tax and Public Finance , 401-433.

KPMG. (2016). Corporate tax rates table. Retrieved May 14, 2016, from KPMG Web Site:

Maria Theresia Evers, I. M. (2014). Transparency in Financial Reporting: Is Country-by-Country Reporting suitable to combat international profit shifting? Bulletin for International Taxation , pp. 1-11.

Michael P. Devereux, A. v. (2011, March). Corporate tax reform in the EU: Weighing the pros and cons.

Michael P. Devereux, R. G. (2012). Corporate Income Tax Reforms and International Tax Competition. Great Britain: Economic Policy.

Michela Redoano, B. L. (2008). Do Countries Compete Over Corporate Tax Rates? Journal of Public Economic , 1210-1235.

Murphy, P. S. (2015). Unitary Taxation: Tax Base and the Role of Accounting. ICTD Working Paper.

Murphy, R. (2012). Closing the European Tax Gap – A Report for Group of the Progressive Alliance of Socialists & Democrats in the European Parliament,. United Kingdom: Tax Research LLP.

Ndikumana, L. (2014). International Tax Cooperation and Implications of Globalization. United Nations: CDP Background Paper.

Neubig, R. C. (2011). The Economic Benefits of Reducing the US Corporate Income Tax Rate. United State: Ernst & Young LLP.

Nicholas Bull, T. D. (2011). Corporate Tax Reform: A Macroeconomic Perspective. National Tax Journal , 923-942.

Nicodème, G. (2009). Corporate Income Tax and Economic Distortions. Working Papers CEB.

Owens, J. (2015). Tax Transparency and BEPS. Journal of Tax Administration , 5-14.

Paeralta, S. W. (2006). Should countries control international profit shifting? Journal of International Economics , 24-37.

Pomerleau, K. (2015, October 1). Corporate Income Tax Rates around the World, 2015. Retrieved May 16, 2016, from Tax Foundation Web Site:

PWC. (2012). Corporate Income Tax – A global Analysis. PWC.

Simmons, R. S. (2006). Does Recent Empirical Evidence Support the Existence of International Corporate Tax Competition? Journal of International Accounting, Auditing and Taxation , 16-31.

Slemrod, J. (2004). Are corporate tax rates, or countries, converging?. Journal of Public Economics , 1169-1186.

Viard, A. D. (2009). Two Cheers for Corporate Tax Base Broadening. National Tax Journal , 399-412.

Wilson, J. A. (1986). Theory of Interregional Tax Competition. Journal of Urban Economics , 296-315.

Zodrow, G. R. (1986). Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods. Journal of Urban Economics , 356-370.

Zodrow, G. R. (2003). Tax Competition and Tax Coordination in the European Union. International Tax and Public Finance , 651-671.


Citation Tools

How to Cite
Naseif, A., Hasan, S., Talab, H., & Hussein, N. (2019). A Theoretical Review on Global Trends of Company Income Taxes and Alternatives of Tax Reforms. Account and Financial Management Journal, 4(03), 1883-1895.