Corporate tax in Europe: Towards convergence?

•We analyse convergence in corporate tax rates in a group of European countries.•We apply the Phillips and Sul (2007, 2009) methodology.•We find evidence of four clear convergence clubs.

In this paper, we analyse whether there has been any convergence in statutory corporate tax rates within a pool of European countries. We find that there has been some degree of convergence; specifically we find four main convergence clubs.