Tax Survey Effective tax ratesof employees with different income levels in 25countries. Ivan Fučík. Fučík & partners, Prague, Czech Republic

Transcription

1 Tax Survey 2012 Effective tax ratesof employees with different income levels in 25countries Ivan Fučík Fučík & partners, Prague, Czech Republic

2 Content Introduction of the survey Assumptions Participants Survey results Incomeoftheaveragewage Incomeoftwicetheaveragewage Incomeoffourtimestheaveragewage Summary

3 Introduction of the survey

4 Assumptions for the calculation Who is the selected taxpayer Individual Employee 35 years Income: a) Average wage b) Twice the average wage c) Four times the average wage Married, husband/wife is employee, whose income is the average wage One child (8 years) Tax relief (deductible items) are not allowed except of the tax relief for the taxpayer and for child The employer is a producer of consumer goods and his annual turnover in 2011 amounted to 30 millionand equity of 1 million.

5 Assumptions for the calculations Other assumptions Allfiguresare in EUR For convertion of the domestic currency into euros were used courses oftheeuropeancentralbank as at8thdecember2011 Survey participants had to filled the survey form in accordance with thetax legislation as of1stjanuary2012 Social and health insurance contributions are included in the calculations Sources for the survey Fučík & partners and consulting firms, most of which are members of the BKR international

6 Effective tax rate Effective tax rate = Taxes + social and health insurance contributions paid by the employee Gross wage Complex effective tax rate = Taxes + social and health insurance contributions paidby theemployeeand by theemployer Gross wage

7 Participants from various countries Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia France Germany Great Britain Greece Hungary Ireland Israel Italy Latvia Luxembourg Malta Nerherlands Poland Portugal Romania Slovakia South Africa Spain

8 Survey results

9 a) Taxation of employees with income of the average wage

10 4,000 Average wages The highest: Denmark, Ireland, Netherlands, Germany, Great Britain, Israel The lowest: Bulgaria, Slovakia, Romania, Hungary, Latvia, Estonia 3,500 3,000 2,500 2,000 1,500 1,

11 40% Effective tax rates To 15 %: Cyprus, Ireland, Slovakia 15 to25%:bulgaria, Czech Republic, Estonia, Ireland, SouthAfrica, Luxembourg, Malta, Portugal, Spain, Great Britain 26 to 35 %: Italy, Latvia, Hungary, Netherlands, Poland, Austria, Roamnia, France, Greece More than 35 %: Germany, Belgium, Denmark 35% 30% 25% 20% 15% 10% 5% 0%

12 40% 35% 30% 25% 20% 15% 10% 5% 0% Effective tax rates 80% 70% 60% 50% 40% 30% 20% 10% 0% Complex effective tax rates

13 Social and health insurance contributions of employee and employer (as a percentage of gross wages) 70% 60% 50% 40% 30% 20% 10% 0%

14 b) Taxation of employees with income of twice the average wage

15 Effective tax rates 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Complex effective tax rates 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

16 Social and health insurance contributions of employee and employer (as a percentage of gross wages) 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

17 c) Taxation of employees with income of four times the average wage

18 70% Effective tax rates 60% 50% 40% 30% 20% 10% 0% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Complex effective tax rates

19 Social and health insurance contributions of employee and employer (as a percentage of gross wages) 70% 60% 50% 40% 30% 20% 10% 0%

20 Summary

21 Effective tax rates Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia France Germany Great Britain Greece Hungary Ireland Average wage 27% 36% 22% 10% 18% 36% 22% 26% 37% 23% 26% 35% 14% Twice the average wage 37% 47% 22% 21% 24% 44% 24% 28% 45% 30% 35% 43% 31% Four times the average wage 39% 53% 18% 21% 28% 50% 25% 32% 47% 37% 42% 47% 42% Israel Italy Latvia Luxembourg Malta Netherlands Poland Portugal Romania Slovakia South Africa Spain Average wage 17% 31% 27% 17% 15% 33% 28% 21% 28% 14% 17% 19% Twice the average wage 30% 37% 30% 17% 24% 40% 29% 42% 29% 22% 26% 26% Four times the average wage 38% 43% 32% 28% 30% 46% 38% 60% 29% 26% 33% 34% 70% 60% 50% 40% 30% 20% 10% 0% Average wage Twice the average wage Four times the average wage

22 Complex effective tax rates 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Average wage Twice the average wage Four times the average wage

23 Social and health insurance contribution of employee and employer(as a percentage of gross wage) depending on the amount of income 70% 60% 50% 40% 30% 20% 10% 0% Average wage Twice the average wage Four times the average wage

24 Thank you for your attention Ivan Fučík Fučík & partners, Prague, Czech Republic