On June 5 and 6, 2025, the Business Taxation Group hosted the 3rd WU Vienna Tax Camp. The aim of this event is to bring together early-career researchers —particularly Assistant Professors and postdoctoral scholars—to discuss ongoing projects and foster academic exchange.

This year, we were pleased to welcome four international researchers who presented the following papers:

• Peter Brok (Copenhagen Business School) - Taxes and the Valuation of VC-Backed Companies: This study examines the role of taxes in the valuation of startups. The authors exploit the 2017 Tax Cuts and Jobs Act (TCJA) in the U.S., which resulted in a 14-percentage point decrease of the corporate tax rate. The authors provide evidence that this corporate tax rate reduction led to a higher valuation of late-stage venture-backed startups.

• Lisa Hillmann (WHU Otto Beisheim School of Management) - The Real Effects of Interest Limitation Rules: Evidence from M&A Investments: This study investigates the impact of rules limiting the tax deductibility of interest expenses on mergers and acquisitions (M&A). The authors find that interest limitation rules are associated with reduced M&A activity, lower deal values, and inferior deal quality. This evidence highlights the unintended consequences of anti-tax avoidance regulations, supporting the hypothesis that increasing the cost of debt financing can distort resource allocation in the economy.

• Svea Holtmann (University of Mannheim) - Assessing the Impacts of Robot Taxation: Investment of South Korean Firms: This study examines the effects of a 2018 tax reform in South Korea that reduced tax credits for robot investments. The authors find a significant decline in robot investment following the tax credit reduction and provide evidence for a substitution effect in which firms substitute machines with labor. The authors also document that while reducing the quantity of robot investments, the tax credit reduction improves investment quality, as measured by an increase in total factor productivity.

• Raffael Speitmann (European Commission Joint Research Centre) - Effective Tax Rates and Book-Tax Differences in Europe: Evidence from the DiRECT Model: This study introduces DiRECT, a novel corporate tax microsimulation model designed for policy analysis. The model estimates the corporate tax base and tax liabilities for more than 4.3 million firms across nine EU countries from 2016 to 2019, effectively addressing the limitations posed by the lack of administrative firm-level tax data. The authors document cross-sectional patterns in tax burdens and the use and intensity of tax deductions.

We extend our sincere thanks to all presenters for traveling to Vienna and to all workshop participants for contributing to the engaging and thoughtful discussions. The joint lunch provided a valuable opportunity to continue the exchange of ideas in an informal setting. We look forward to the next edition of the WU Vienna Tax Camp and to continuing this vibrant academic dialogue in the years to come.

A big thank you to Harald Amberger for organizing this great event!