IMPLEMENTATION OF COMMON CONSOLIDATED CORPORATE TAX BASE AND ITS IMPLICATIONS FOR NON-PARTICIPATING COUNTRY: A CASE STUDY FOR THE CZECH REPUBLIC

Common Consolidated Corporate Tax Base (hereinafter as CCCTB) system can be introduced under enhanced cooperation or as optional in EU, thus countries not implementing the system can face the outflow of tax bases into jurisdictions applying CCCTB system, which will have the impact on EU Member States budgets. The aim of the paper is to quantify the outflow/inflow of the tax bases from/in to the Czech Republic as a result of the implementation of the CCCTB system in EU-27 and to quantify the impact on the corporate tax income revenue. The research performed in the paper revealed that the optimal implementation of CCCTB system in EU-27 except of the Czech Republic would negatively change the corporate tax base, as the loss would range between 0.77% and 6.77% of the current tax base, which represents 0.20% to 1.73% of current corporate tax revenues. Moreover, the Czech Republic can also face outflow of tax bases of the parent companies.