in addition , for very profitable companies examined in this paper the nominal tax rate compared to the tax base is clearly the more dominant factor (tax driver) on the effective tax burden
thus,the focus of the effort to converge the tax competitive situation for companies in the european union should be on the nominal tax rate ; an agreement about minimum tax rates would,in particular,be an option with regard to the subsidiary principle
this would also increase the attractiveness of the EU market as a whole because the choice of location made by multinational investors in regard to homogenous economic markets shows a significant empirically provable correlation with the nominal tax burden