The taxation of corporate income creates huge difficulties in an open economy; each government tries to take advantage by undercutting the tax levels of other governments or offering superior levels of public services. The existence of a strong interrelation implies that competition between countries, interested in capturing the tax base of the whole market, becomes more significant because capital will follow the maximization of profits in the global market. The most competitive countries will have an advantage in terms of total revenue in the short run and a greater rate of economic growth in the medium-long term.

tax policy ,corporate income tax, CCCTB