Corporate Taxation in the European Union: The Role of Intangibles in the Formulary Apportionment

Abstract This paper seeks to contribute the current debate on EU-wide corporate taxation, steered by impending Proposal European Commission a new framework for taxation of income businesses in Europe. The objective this is verify whether inclusion intangible assets enhances ability proposals Formulary Apportionment explain variability profitability. research question addressed “What explanatory power Apportionment, factors such as tangible assets, labour and sales destination, describe profitability companies active within EU internal market?”. employs regression analysis cross-sectional microeconomic data analyse Apportionment. reveals that fails enhance factoring does not appear have statistically significant effect model. best-performing model, without explained 22.6 % market.