Capital Allowances in Europe, 2023

Weighted Average Net Present Value of Capital Allowances for Industrial Buildings, Machinery, and Intangibles in 33 Major European Countries, 2023

Note: To calculate the net present values, a fixed discount rate of 7.5 percent is assumed (fixed inflation rate of 2 percent and fixed real discount rate of 5.5 percent). Weighted averages are weighted by an estimate of each asset’s respective share of the capital stock (machinery: 44 percent; industrial buildings: 41 percent; and intangibles: 15 percent).
Source: Christoph Spengel, Frank Schmidt, Jost Heckemeyer, and Katharina Nicolay, “Effective Tax Levels Using the Devereux/Griffith Methodology,” European Commission, October 2021; Bloomberg Tax, “Country Guides”; EY, “Worldwide Capital and Fixed Assets Guide 2023”; EY, “Worldwide Corporate Tax Guide 2023”; PwC, “Worldwide Tax Summaries”; and author's calculations.
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