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 |