Are intangible assets favoured in effective corporate taxation?
Are intangible assets favoured in effective corporate taxation?

Summary/Abstract: In the context of efficient taxation, the effective tax rate acts as an indicator to helpprospective investors choose to which nation locate their investment. This raises the questionof which type of assets is more tax-efficient for such investments. This paper aims to assesswhether intangible assets are tax-advantaged compared to tangible assets. The analysis focuseson intangible assets, while tangible assets are represented by machinery and industrialbuildings. It is conducted using average effective tax rates for the year 2022, with countriescategorized into old (EU-15) and new (EU-12) Member States. The EU countries arecategorized in the following cluster analysis based on how the average effective tax rate affectsSlovakia's share of equity participation in FDI. Conclusion evaluates those investors from 12old EU Member States and 2 new EU Member States would find it more tax efficient to investin intangible assets in Slovakia than in their home country

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