UNDERSTANDING THE DIFFERENCE BETWEEN THE STATUTORY AND EFFECTIVE CORPORATE INCOME TAX RATES: THE ROLE OF TAX INCENTIVES IN THE OECD COUNTRIES

This study examines the gap between statutory and effective corporate income tax rates, with tax incentives identified as a key factor in this divergence. The objective is to quantify the gap and analyze the relationship between statutory and effective rates in the OECD countries in the period from 2000 to 2022. The methodological framework is based on the Devereux–Griffith model and employs descriptive statistics, t-tests, and correlation analysis. The empirical results demonstrate that tax incentives significantly shape the effective tax rate, thereby contributing to its deviation from the statutory rate. The analysis confirms a positive correlation between the two rates and identifies statistically significant differences in certain years. The findings contribute to the literature on tax policy and provide practical guidelines for policymakers aimed at reducing the gap between rates and improving the transparency of tax incentives.