Original scientific paper
https://doi.org/10.18045/zbefri.2023.2.391
Linear determinants of the effective tax burden of ICT companies in the Republic of Croatia*
Marijana Bubanić
orcid.org/0000-0002-8882-1430
Abstract
The actual tax burden of a company often differs from that prescribed by law, but
there are also differences among the companies themselves. The question arises
whether there are systematic explanations for these differences and whether they
can be related to the type of business activity, asset structure, debt and other
determinants. Therefore, the main objective of the research is to identify the
determinants of the effective tax burden of ICT companies in the Republic of
Croatia. The time horizon includes companies from the section J information and
communication (NACE Rev. 2), in the period from 2008 to 2016. Using an
unbalanced sample and dynamic panel regression with the Arellano-Bover/
Blundell-Bond estimator, the determinants of the effective tax burden identified
were as follows: effective tax burden from the previous period, company size, debt,
capital and labor intensity, inventory intensity, profitability, and business cycles.
However, the determinants differ according to the size classes of the company and
the divisions. Compared to previous research, the subject is focused on companies
of all sizes, not only large companies including not only listed companies but all
companies in an industry that contributes to the homogeneity of the sample and
the reliability of the results.
Keywords
effective tax burden; ICT activity; dynamic panel regression;
Hrčak ID:
312450
URI
Publication date:
28.12.2023.
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