The aim of this study is to determine whether in corporate i n- come tax sphere exists the competition between states, which allows states with lower tax burdens to get higher tax revenues for the benefit of their budgets. The hypothesis is verified through a simple regression analysis u s- ing cross - sectional data for 17 EU countries in 2011. It has been found that the elasticity of the corporate income tax share in the GDP with respect to the implicit tax rate is 0.59 and the elasticity of corporate income tax per capita is 1.07 %. Both elasticities are positive, what indicates that tax co m- pet ition by reducing the effective taxation of corporations hasn’t been d e- tected