Tax rates in Europe
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This is a list of the maximum potential tax rates around Europe for certain income brackets. It is focused on three types of taxes: corporate and individual taxes and value added taxes (VAT). It is not intended to represent the true tax burden to either the corporation or the individual in the listed country.
The quoted income tax rate is, except where noted, the top rate of tax: most jurisdictions have lower rate of taxes for low levels of income. Some countries also have lower rates of corporation tax for smaller companies. In 1980, the top federal rates of most European countries were above 60 percent. Today most European countries have rates below 50%.[1]
This article's factual accuracy is disputed. (March 2008) |
Country | Corporate tax | Maximum Income tax rate | Standard VAT rate |
---|---|---|---|
Albania[2] | 10% | 10% | 20% |
Austria | 25% | 50% | 20% [3] |
Belarus | 24% | 15% | 20%[2] |
Belgium | 33.99% | 50% | 21%[3] |
Bosnia and Herzegovina[4] | 10% | 5% (+ 0%-15% per location) | 17% |
Bulgaria[5] | 10% | 10% | 20%[3] |
Croatia | 20% | 40% | 25%[6] |
Cyprus | 10% | 30% | 17%[3] |
Czech Republic | 21% | 15% | 21%[3] |
Denmark | 25% | 55.4%[7] (labour market contributions 8% plus tax ceiling 51.5% of the remaining 92%) | 25%[3] |
Estonia | 26.58% (21/79%) | 21% | 20%[3] |
Finland | 26% | 53% | 24%[3][8] |
France | 33.33% | 75% | 19.6%[3] |
Germany | 15.825% (federal) plus 14.35% to 17.5% (local) | 45% | 19% (reduced rate of 7% applies e.g. on sales of certain foods, books and magazines, flowers and transports)[3] |
Georgia | 20% | 12% | 18% |
Greece | 25% | 45% | 23%[3] |
Hungary | 19% | 16% (20.32%, as the 27% social security paid by the employer counts as income as well) [9] | 27%[3][10][11] |
Iceland | 18%[12] | 46.28%[12] | 25.5%[12] |
Ireland | 12.50% | 41% (additional contributions at 4% Pay-Related Social Insurance (PRSI) and 7% Universal Social Charge (USC)) | 23%[13] |
Italy | 31.4% | 45% | 21%[3] |
Latvia | 15% | 23% | 21%[14] |
Liechtenstein | 12.5% (2.5% on IP and royalties) | 17.89% (11.6% Social security is shared between employer and employee) 100k USD income gives 7.6% income tax rate. 0% capital gains tax. | 8%[15] |
Lithuania | 15% | 15% (as of end 2012) | 21% |
Luxembourg | 28.59% (commercial activity); 5.718% on intellectual property income, royalties; 0% on dividends and capital gains (under certain conditions in case of major participation) | 38.95% | 15%[3] |
Macedonia[16] | 10% | 10% | 18% |
Malta | 35% | 35% | 18%[3] |
Montenegro | 9%[17] | 9%[17] | 17%[17] |
Netherlands | 25% | 52% [18] | 21%[19] |
Norway[20][21] | 28% | 54.3% | 25% |
Poland | 19% | 32% | 23%[3] |
Portugal | 12.5%-27.5% (Mean tax rate: 15%) | 46.5% (additional contributions at 11% Social Security by Employee + 23.75% Social Security by Employer) | 23% |
Romania | 16% | 16% | 24%[3][22] |
Russia | 6% | 13% (additional contributions by Employer: 5.1% Federal Health Care Fund, 2.9% Federal Social Security Fund, 22% Pension Fund) | 18% (reduced rates 10% and 0%) |
Serbia | 10% | 14% | 20% |
Slovakia | 23% | 19% (additional contributions at 4% Health Care by Employee + 10% Health Care by Employer, 9.4% Social Security by Employee + 19.4% Social Security by Employer) | 20%[3] (10% reduced rate) |
Slovenia [23] | 20% (2012: 18%, 2013: 17%, 2014: 16%, 2015+: 15%) | 41% | 20%[3] |
Spain | 30% (28% Basque Country & Navarra, 4% ZEC companies in Canary Islands) | 52% | 21%[3] (reduced rates 10% and 4%) |
Sweden | 26.3% | 56.6% | 25%[3] |
Switzerland | 25% | 45.5% | 8% [24] |
Turkey | 20% | 40% | 18% |
Ukraine | 23%, from 1.01.2012 - 21%, from 1.01.2013 - 19%, from 1.01.2014 - 16% | 17% | 20% |
United Kingdom | 20% for small annual profits under £300000 and 24% for annual profits over £300000, reducing to 21% in 2014 | 20% on annual incomes up to £35000, 40% on annual incomes between £35000-£150000 and 50% (to be reduced in 2013 to 45%) on annual incomes above £150000 plus national insurance contributions at various rates between 2% and 13.8% [25] | 20% (reduced rate of 5% for home energy and renovations, 0% for life necessities - groceries, water, prescription medications, medical equipment and supplies, public transport, children's clothing, books and periodicals) [3] |
See also
- List of countries by tax revenue as percentage of GDP
- VAT Rates
- Tax Freedom Day
- Tax haven
- Tax rates around the world
References
- ^ "Top Marginal Personal Income Tax Rates" (PDF). Tax Policy Center. 2008. Retrieved 2011-12-26.
- ^ a b Federation of International Trade Associations : country profiles
- ^ a b c d e f g h i j k l m n o p q r s t u v All current EU standard rates are from European Commission, VAT Rates Applied in the Member States of the European Community, Situation at 1 January 2009, http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf, consulted 23 August 2009.
- ^ Fabel Werner Schnittke - International Consulting and Auditing Company
- ^ Bulgaria cuts corporate tax to 10 percent - iht,business,economics, world economy,Bulgaria Corporate Tax - Business - International Herald Tribune
- ^ "Croatia - Tax changes effective March 2012". kpmg.com. 2012-02-24.
- ^ "SKAT: Income tax rates". Skat.dk. Retrieved 2011-05-12.
- ^ Change in VAT rates as of 1 July 2010
- ^ http://www.ahkungarn.hu/fileadmin/ahk_ungarn/Dokumente/Bereich_CC/Veranstaltungen/2011/2011-03/2011-03-09_Radnoczy/Valsagado_adovalsag.pdf
- ^ "VAT hike pushes Hungary's consumer price inflation to 5.1% in July". Realdeal.hu. 2009-08-11. Retrieved 2011-05-12.
- ^ "Hungary plans bigger budget cuts, VAT hike to 27 pct". 2012-01-01. Retrieved 2012-01-03.
- ^ a b c [1][dead link]
- ^ "VAT increase to 23% confirmed". Irish Times. 2011-12-06. Retrieved 2011-12-07.
- ^ Three governments, one prime minister, The Baltic Times, 27 June 2012
- ^ Liechtenstein tax law
- ^ Invest in Macedonia | Taxes and Rates
- ^ a b c [2][dead link]
- ^ Dutch Tax Administration, consulted 9 June 2010
- ^ "Netherlands 21% VAT rate increase is effective October 2012".
- ^ The Norwegian tax reform 2004-2006 - regjeringen.no
- ^ Skatteetaten - Guide to Value Added Tax in Norway
- ^ "Romania plans big VAT rise to secure bail-out funds". BBC News. 2010-06-26. Retrieved 2011-05-12.
- ^ Ministry of Finance - Tax Administration of the Republic of Slovenia
- ^ "Swiss voters approve VAT rate increase". Meridianglobalservices.com. Retrieved 2011-05-12.
- ^ HM Revenue & Customers: Rates and allowances - Income Tax