2 National tax systems: Structure and recent developments

Transcription

1 Ireland Structure and development of tax revenues Table IE.1: Tax Revenue (% of GDP) Ranking Revenue (billion euros) A. Structure by type of tax Indirect taxes VAT Taxes and duties on imports excluding VAT Taxes on products, except VAT and import duties Other taxes on production Direct taxes Personal income taxes Corporate income taxes Other Social contributions Employers Households Less: capital transfers ( 2 ) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Total Memo item: Total payable tax credits B. Structure by level of government as % of total taxation Central government State government ( 1 ) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Local government Social security funds n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. EU institutions C. Structure by economic function as % of GDP Consumption Labour of which on income from employment Paid by employers Paid by employees Paid by non-employed Taxation trends in the European Union DG Taxation and Customs Union

2 National tax systems: Structure and recent developments 2 Table IE.1: Tax Revenue (continued) (% of GDP) Ranking Revenue (billion euros) Capital Income of corporations Income of households Income of self-employed Stock of capital D. Environmental taxes as % of GDP Environmental taxes Energy of which transport fuel taxes : : : Transport Pollution and resources E. Property taxes as % of GDP Taxes on property Recurrent taxes on immovable property Other taxes on property F. Implicit tax rates % Consumption Labour ( 1 ) This level refers to the Länder in Austria and Germany, the gewesten and gemeenschappen / régions et communautés in Belgium, and the comunidades autónomas in Spain. ( 2 ) Representing taxes assessed but unlikely to be collected. Source: DG Taxation and Customs Union, based on Eurostat data. Figure IE.1: Tax revenues by main taxes, compared to EU-28, (in % of GDP) Consumption 15 Social contributions Indirect taxes 10 Capital 5 by employers 0 Direct taxes by non-employed by employees IE EU-28 Source: DG Taxation and Customs Union, based on Eurostat data. DG Taxation and Customs Union Taxation trends in the European Union 113

3 Latest tax reforms Table IE.2: Latest tax reforms Description of measure Change Date Personal income tax Increase in Home Carer Tax Credit (raised from EUR 810 to EUR and Base decrease In force from: 01/01/2016 income threshold from EUR to EUR 7200) Introduction of an Earned Income Credit for self-employed traders and Introduction (decrease) In force from: 01/01/2016 business owners Capital Acquisitions Tax - increase in tax threshold for parent to child gifts or Base decrease In force from: 14/10/2015 inheritances from EUR to EUR Film Relief - Cap on eligible expenditure to be increased to EUR 70 million, Base decrease Legislation:01/01/2016 subject to EU State Aid approval Corporate income tax Knowledge Development Box % corporate tax rate for profits from Rate decrease In force from: 01/01/2016 certain patents and copyrighted material resulting from R&D carried out in Ireland 3 year relief for start-up companies Base decrease In force from: 01/01/2016 Tobacco excises Increase in tobacco products tax Rate increase In force from: 31/10/2015 Other, non-harmonised excises Motor Tax reduction for large vehicles Rate decrease In force from: 01/01/2016 Other types of tax Reduction in base and rates of the Universal Social Charge - USC rates were Both base and rate decrease In force from: 01/01/2016 cut in each of the 3 lowest bands: from 1.5% to 1% for 0 to ; from 3.5% to 3% for to ; and from 7% to 5.5% for to The entry level was raised from to Tax relief for young farmers extended to 2018 Base decrease Legislation:01/01/2016 Capital Gains Tax (CGT) Entrepreneur relief Rate decrease In force from: 01/01/2016 Source: DG Taxation and Customs Union. 114 Taxation trends in the European Union DG Taxation and Customs Union

4 National tax systems: Structure and recent developments 2 Main features of the tax system Table IE.3: Individual taxation (PIT) General Base and jurisdiction Resident: worldwide income (subject to double-tax relief)) n-resident: domestic income Taxation of couples and families Joint assessment of married couples Possibility of opting for separate assessment, or as single individuals System and Applicable rates Global / Labour income scheme Basic allowance EUR 1 650;additional tax credits for PAYE employees (EUR 1 650) Depending on family situation 2 rates: 20%, 40% Rate schedule Top marginal rate: 40% (> EUR (single), > EUR (one income couple)) Surtaxes Universal Social Charge: 1.5% to 8% depending on income (11% top rate for self-employed) Regional and local surcharges Top statutory PIT rate (including surcharges) 48% (51% for self employed > EUR ) Owner occupied dwelling t included Capital income Income from renting movable property Income from renting immovable property Capital gains (immovable property) 33% ordinary rate (with some exemptions and reliefs) Capital gains (movable property) 33% ordinary rate (with some exemptions and reliefs) Dividends Withholding tax 20% Interests on deposits and special savings accounts 41% (Deposit Interest Retention Tax) Interests on corporate and government bonds Other specific features and alternative regimes Other tax provisions Main tax credits & deductions Professional expenses, based on real expenses, capped Pension savings Mortgage (interests) Others (not exhaustive) Medical expenses, donations Treatment of losses (business/self-employed income) 3 year carry backward; unlimited carry forward DG Taxation and Customs Union Taxation trends in the European Union 115

5 Table IE.4: VAT Tax rates Standard 23% Reduced rate(s) 4.8% (super-reduced rate), 9% and 13.5% Table IE.5: Corporate Taxation (CIT) Tax rates minal corporate income tax rate 12.5% (on trading income) (25% on non-trading income) Central government surcharge Regional government surcharge Local government surcharge Top statutory CIT rate (including surcharges) 12.5% Special tax rate for SMEs (all-in rate) Tax base Worldwide income Anti-avoidance Limits to interest deductions (deductions wholly and exclusively for business purposes; some restrictions on related party payments and borrowing; no thin cap rules) Transfer pricing rules, arm s length principle Controlled foreign company (CFC) Controlled foreign company (CFC) for passive income only Allowance for Corporate Equity Table IE.6: Social contributions Base Employers contributions Total rate of which: Capped contributions Employment income, income from business and self-employed activities, benefits in kind, pensions, dividends, interest, income from renting property, income from occasional activities 10.75% (reduced rate 8.5% for low earners) Rate structure reflects a total rate and is not split into rates per benefit type Employees contributions Total rate 4% of which: Rate structure reflects a total rate and is not split into rates per benefit type Capped contributions Table IE.7: Wealth and transaction taxes Inheritance and gift tax Real estate taxation Recurrent real estate tax Regional differentiation Tax discount for primary dwelling Real estate transfer tax Net wealth tax 33% ordinary rate with some exemptions and reliefs Source: DG Taxation and Customs Union, on the basis of information provided by the national finance ministries. For more detail the TEDB database contains an extensive inventory of the main taxes in force in EU Member States. 116 Taxation trends in the European Union DG Taxation and Customs Union