Lower Effective Tax Rates for Large Companies in Europe

Large companies tend to pay less taxes on their profit than smaller companies. Large accounting departments and a flexible (often international) company structure helps them to lower effective tax payments – this is not a common practice in smaller companies. With 1.6 percent taxes on profit as share of their turnover, SMEs in Italy transfer the highest share of their turnover to the government. This is the highest value in the sample.In France, a tax incentive (Competitiveness and Employment Tax Credit (CICE)) introduced in 2013 helped to reduce effective tax payments for companies (e.g. incentives for companies with many employees).

This statistic and many more can be found in Statista's European financial KPI and cost benchmark.