Table 1.
Selected characteristic features of taxation systems and applied tax incentives
| Bulgaria |
|
| Croatia |
|
| Czechia |
|
| Estonia |
|
| Lithuania |
|
| Latvia |
|
| Poland |
|
| Romania |
|
| Slovakia |
|
| Slovenia |
|
| Hungary |
|
1 Source: Based on Felis et al. [2020].
Table 2.
Descriptive statistics for the selected indicators of the CEECs and EU-15 countries
| Statistics | IND.1 | IND.2 | IND.3 | IND.4 | ||||
|---|---|---|---|---|---|---|---|---|
| Current income taxes (% of GDP) | Corporation income taxes (% of GDP) | Corporation income taxes (% of total) | Individual income taxes (% of GDP) | |||||
| EU-15 | CEE | EU-15 | CEE | EU-15 | CEE | EU-15 | CEE | |
| Min | 13.6 | 6.2 | 2.4 | 1.8 | 6.4 | 5.7 | 9.9 | 4.1 |
| Mean | 14.2 | 7.3 | 3.0 | 2.2 | 7.6 | 6.9 | 10.3 | 4.8 |
| Q1 | 13.9 | 6.9 | 2.6 | 2.0 | 6.8 | 6.2 | 10.1 | 4.4 |
| Median (Q2) | 14.2 | 7.3 | 3.0 | 2.2 | 7.8 | 6.7 | 10.3 | 4.7 |
| Q3 | 14.4 | 8.0 | 3.2 | 2.4 | 8.3 | 7.5 | 10.5 | 5.0 |
| Max | 14.8 | 8.6 | 3.6 | 3.0 | 9.1 | 9.0 | 11.0 | 5.7 |
Figure 1.
Indicators showing the characteristic features of the tax systems in the countries covered by the study. IND.1: current taxes on income, wealth, etc., as a percentage of the GDP; IND.2: taxes on the income or profits of corporations, including holding gains, as a percentage of the GDP; IND.3: taxes on the income or profits of corporations, including holding gains, as a percentage of the total; IND.4: taxes on individual or household income, including holding gains, as a percentage of the GDP. GDP, gross domestic product; IND., indicator.
Figure 2.
Speed of convergence to the reference series in the years 1995-2018. The value “0” indicates perfect similarity between countries, and “1” indicates divergence from the reference country. GDP, gross domestic product; IND., indicator.
Table 3.
Division into groups of the most similar countries using k-means clustering method
| Country | Group 1 | Group 2 | Group 3 |
|---|---|---|---|
| Bulgaria | ✓ | ||
| Croatia | ✓ | ||
| Czechia | ✓ | ||
| Estonia | ✓ | ||
| Hungary | ✓ | ||
| Latvia | ✓ | ||
| Lithuania | ✓ | ||
| Poland | ✓ | ||
| Romania | ✓ | ||
| Slovakia | ✓ | ||
| Slovenia | ✓ | ||
| Arithmetic mean | |||
| IND.1 – Current income taxes (% of GDP) | 6.42 | 7.50 | 7.71 |
| IND.2 – Corporation income taxes (% of GDP) | 2.59 | 3.35 | 1.76 |
| IND.3 – Corporation income taxes (% of total) | 8.76 | 10.07 | 5.28 |
| IND.4 – Individual income taxes (% of GDP) | 3.45 | 3.64 | 5.71 |
Figure 3.
Speed of convergence to reference series in Group 1 (Bulgaria, Croatia, and Romania) in terms of the particular indicators. The value “0” indicates perfect similarity between countries, and “1” indicates divergence from the reference country. GDP, gross domestic product; IND., indicator.
Figure 4.
Speed of convergence to reference series in Group 2 (Czechia and Slovakia) in terms of the particular indicators. The value “0” indicates perfect similarity between countries, and “1” indicates divergence from the reference country. GDP, gross domestic product; IND., indicator.
Figure 5.
Speed of convergence to reference series in Group 3 (Estonia, Hungary, Latvia, Lithuania, Poland, and Slovenia) in terms of the particular indicators. The value “0” indicates perfect similarity between countries, and “1” indicates divergence from the reference country. GDP, gross domestic product; IND., indicator.