European taxation and capital investment

John Pointon, Suzanne Farrar, Jon Tucker

Research output: Contribution to journalArticle

Abstract

A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5% for plant and machinery investments in Spain to 13.8% for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).
Original languageEnglish
Pages (from-to)57-76
Number of pages20
JournalThe European Journal of Finance
Volume2
Issue number1
DOIs
Publication statusPublished - 14 Oct 1996
Externally publishedYes

Fingerprint

Machinery
Taxation
Capital investment
Ireland
The Netherlands
Tax rate
Tax incentives
Rate of return
Italy
Tax
Spain
Personal taxes

Keywords

  • Investment
  • Tax
  • Europe
  • Incentives
  • Capital

Cite this

European taxation and capital investment. / Pointon, John; Farrar, Suzanne; Tucker, Jon.

In: The European Journal of Finance, Vol. 2, No. 1, 14.10.1996, p. 57-76.

Research output: Contribution to journalArticle

Pointon, John ; Farrar, Suzanne ; Tucker, Jon. / European taxation and capital investment. In: The European Journal of Finance. 1996 ; Vol. 2, No. 1. pp. 57-76.
@article{6786198bc5714f8984972fb8f65bd21a,
title = "European taxation and capital investment",
abstract = "A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5{\%} for plant and machinery investments in Spain to 13.8{\%} for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).",
keywords = "Investment, Tax, Europe, Incentives, Capital",
author = "John Pointon and Suzanne Farrar and Jon Tucker",
year = "1996",
month = "10",
day = "14",
doi = "10.1080/135184796337607",
language = "English",
volume = "2",
pages = "57--76",
journal = "The European Journal of Finance",
issn = "1351-847X",
publisher = "Taylor & Francis",
number = "1",

}

TY - JOUR

T1 - European taxation and capital investment

AU - Pointon, John

AU - Farrar, Suzanne

AU - Tucker, Jon

PY - 1996/10/14

Y1 - 1996/10/14

N2 - A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5% for plant and machinery investments in Spain to 13.8% for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).

AB - A simulated study is conducted of the relative tax incentives to capital investment in Europe. For 1994 required pre-tax rates of return vary from 8.5% for plant and machinery investments in Spain to 13.8% for commercial property in Ireland. Within investment categories, however, the spreads between countries are much narrower. After personal tax, the smallest tax disincentives are found in Italy (to invest in plant and machinery and commercial buildings) and the UK (industrial buildings). The largest disincentives occur in the Netherlands (to invest in plant and machinery and industrial buildings) and Ireland (with respect to commercial property).

KW - Investment

KW - Tax

KW - Europe

KW - Incentives

KW - Capital

UR - https://www.tandfonline.com/doi/abs/10.1080/135184796337607

U2 - 10.1080/135184796337607

DO - 10.1080/135184796337607

M3 - Article

VL - 2

SP - 57

EP - 76

JO - The European Journal of Finance

JF - The European Journal of Finance

SN - 1351-847X

IS - 1

ER -