Effective Tax Rates and Book-Tax Differences in Europe: Evidence from the DiRECT Microsimulation Model | Andrzej Stasio (JRC Seville)

23 Ottobre 2025 | 12:00 — 13:00

Hybrid/Mixed

FBK-IRVAPP is pleased to invite you to the following seminar: Effective Tax Rates and Book-Tax Differences in Europe: Evidence from the DiRECT Microsimulation Model.

With the participation of Andrzej Stasio (JRC Seville)

Abstract

We introduce DiRECT, a novel corporate tax microsimulation model designed for policy analysis. The model estimates the corporate tax base and corresponding tax liabilities for more than 4.3 million firms across nine EU countries from 2016 to 2019, effectively addressing the limitations posed by the unavailability of administrative firm-level tax data. DiRECT incorporates several methodological advancements in constructing a sample using accounting data, enabling the simulation of key national tax deductions, including tax depreciation of fixed assets, limitations on interest deductibility, tax-exempt dividend income, allowances for corporate equity, and provisions for intra-group or inter-period loss offsetting. Using the simulated tax liabilities and deductions, we construct firm-level effective tax rates (DiRECT ETRs) and book-tax difference (BTD) measures, presenting their distributions across countries and size classes. This reveals cross-sectional patterns in tax burdens and the usage and intensity of tax deductions. The validity of the model’s estimates is assessed through detailed benchmarking against firm-level administrative tax data. DiRECT opens important avenues for capturing structural differences among firms and evaluating the distributional and revenue effects of corporate tax reforms.

The seminar is held in English.

Guest Speakers

Andrzej Stasio - Relatore ospite

JRC Seville

Andrzej works an economist and project leader for corporate taxation at the Joint Research Centre of the European Commission. He holds a PhD degree in Economics from the WU Vienna University of Economics and Business, specialising in business taxation. He has worked extensively on double tax treaties, contributed to several EU initiatives and is the lead developer of a new corporate tax microsimulation model for EU countries.

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Registration closed on 23/10/2025.

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