CORPORATE INCOME TAX REVENUES IN THE CONTEXT OF TAX COMPETITION AND FISCAL STABILITY: EVIDENCE FROM OECD COUNTRIES AND SERBIA

Abstract

The paper examines the fiscal significance of corporate income tax (CIT) with a particular focus on OECD member countries and the Republic of Serbia. The main objective is to identify the key trends in corporate income tax revenues, assess their role within the structure of public finance, and analyze the factors determining their variability across different economic systems. The research employs descriptive and comparative analysis based on secondary statistical data obtained from the OECD and the Ministry of Finance of the Republic of Serbia. The findings indicate that in OECD countries, the share of CIT in total tax revenues remains relatively stable, averaging between 9% and 11%, while its share in GDP is around 3%. In contrast, in Serbia, corporate income tax represents a moderately significant fiscal source but exhibits a clear upward trend—from 0.56% of GDP in 2005 to 2.94% in 2022, which is above both the EU and OECD averages. The results reveal that the fiscal importance of corporate income tax is shaped by statutory tax rates, the scope of tax incentives, the degree of economic development, and the intensity of tax competition. The paper concludes that further reform of Serbia’s corporate taxation system is essential to enhance its revenue capacity and align it with modern fiscal and investment practices.