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Table 3 Prediction years and tax rate

From: The detection of earnings management through a decrease of corporate income tax

Country Predicted Year Definition Corporate tax (%) Constant rate (%) Standard ratea (%) Integrated tax rateb (%)
The Netherlands 2006 Taxable income begins between 31/12/2005 and 1 January 2006 29.6 20 15 46.5
2007 Taxable income begins between 31/12/2006 and 1 January 2007 25.5 20 10 38.7
2008 Taxable income begins between 31/12/2007 and 1 January 2008 25.5 20 5.5 35.4
2009 Taxable income begins between 31/12/2008 and 1 January 2009 25.5 20 5.5 35.2
Germany 2006 Taxable income begins between 31/12/2005 and 1 January 2006 38.9 25 10.6 60.0
2007 Taxable income begins between 31/12/2006 and 1 January 2007 38.9 25 9.9 55.5
2008 Taxable income begins between 31/12/2007 and 1 January 2008 30.2 25 9.4 49.5
2009 Taxable income begins between 31/12/2008 and 1 January 2009 30.2 25 8.6 44.6
  1. Source: Author work
  2. aStandard rate computed as a different among local government tax
  3. bintegrated tax rate (T) is computed as follows: T = (1 + t2) t1 + t3/ 1 + t3