{"id":54867,"date":"2023-12-01T18:29:06","date_gmt":"2023-12-01T17:29:06","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/the-relevance-of-depreciation-allowances-as-a-fiscal-policy-instrument-a-hybrid-approach-to-ccctb\/"},"modified":"2025-10-22T22:19:33","modified_gmt":"2025-10-22T20:19:33","slug":"the-relevance-of-depreciation-allowances-as-a-fiscal-policy-instrument-a-hybrid-approach-to-ccctb","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/54867\/","title":{"rendered":"The relevance of depreciation allowances as a fiscal policy instrument: A hybrid approach to CCCTB?"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-54867","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"A major goal of the European Commission in the area of direct taxation is the introduction of a common consolidated corporate tax base in Europe (CCCTB). While hardly discussed in the literature, such a system would limit national discretion over tax depreciation. In a sample of up to 47 countries, we find that the probability of a tax reform that improves the depreciation allowances increases, if the macroeconomic situation is weak. This suggests that changes in depreciation allowances are used as a fiscal instrument for stabilisation. A common consolidated tax base deprives national governments from implementing investment incentives via accelerated depreciation. This paper discusses the possible implementation of a hybrid system that combines features of formula apportionment and separate accounting. Such a hybrid system may substantially mitigate transfer pricing problems and other tax planning issues, whilst preserving national discretion over depreciation allowances.","onlinedate":"2020-08-01 02:00:00","lang":"English","publication_series":"","publication_date":"20200801","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"http:\/\/www.springer.com\/10663","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"47","monthly_report_pages":"579-610","monthly_report_pages_sort":"579","issue":"3","journal":"Empirica","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3500],"collaboration":"","persons":[14773,11993],"persons_data":"[{\"personId\":14773,\"personName\":\"Kunka Petkova\",\"organisationNames\":[]},{\"personId\":11993,\"personName\":\"Alfons J. 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