Taxing Wages 2016 (eBook)
562 Seiten
OECD Publishing (Verlag)
978-92-64-25739-9 (ISBN)
This annual flagship publication provides details of taxes paid on wages in OECD countries. It covers: personal income taxes and employee contributions paid by employees, social security contributions and payroll taxes paid by employers, and cash benefits received by in-work families. It illustrates how these taxes and benefits are calculated in each member country and examines how they have an impact on household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings.
The publication shows the amounts of taxes and social security contributions levied and cash benefits received for eight different family types, which vary by a combination of household composition and household type. It also presents: the resulting average and marginal tax rates (that is, the tax burden); the average tax rates (showing the part of gross wage earnings or total labour costs taken in tax and social security contributions, both before and after cash benefits); and the marginal tax rates (showing the part of a small increase of gross earnings or total labour costs that is paid in these levies).
This annual flagship publication provides details of taxes paid on wages in OECD countries. It covers: personal income taxes and employee contributions paid by employees, social security contributions and payroll taxes paid by employers, and cash benefits received by in-work families. It illustrates how these taxes and benefits are calculated in each member country and examines how they have an impact on household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings.The publication shows the amounts of taxes and social security contributions levied and cash benefits received for eight different family types, which vary by a combination of household composition and household type. It also presents: the resulting average and marginal tax rates (that is, the tax burden); the average tax rates (showing the part of gross wage earnings or total labour costs taken in tax and social security contributions, both before and after cash benefits); and the marginal tax rates (showing the part of a small increase of gross earnings or total labour costs that is paid in these levies).
Foreword 5
Table of contents 7
Executive summary 13
Key findings 14
The average tax burden in the OECD remained unchanged in 2015 14
Tax burdens in families with children 14
Chapter 1.
17
Introduction 18
Review of results for 2015 19
Tax wedge 19
Table 1.1. Comparison of total tax wedge 20
Table 1.2. Income tax plus employee and employer social security contributions 21
Figure 1.1. Income tax plus employee and employer social security contributions, 2015 22
Personal average tax rates 23
Table 1.3. Income tax plus employee social security contributions, 2015 23
Figure 1.2. Percentage of gross wage earnings paid in income tax and employee social security contributions, 2015 24
Family tax rates 25
Table 1.4. Comparison of total tax wedge by family type 26
Figure 1.3. Income tax plus employee contributions less cash benefits, 2015 27
Wages 28
Table 1.5. Comparison of wage levels 29
Table 1.6. Average Wage Industry Classification 30
Notes 31
Chapter 2.
33
Introduction 34
Box 1. Assumptions underlying the second earner tax wedge calculations 35
Average tax wedges and rates for second earners 36
Tax wedges on second earners in 2014 36
Figure 2.1. Average tax wedges on second earners, 2014 37
Net personal average tax rates on second earners in 2014 38
Figure 2.2. Net personal average tax rates on second earners, 2014 39
Comparison of average tax wedges and rates for second earners between 2010 and 2014 38
Changes in tax wedges for second earners between 2010 and 2014 38
Figure 2.3. Changes in average tax wedges between 2010 and 2014 40
Changes in net personal tax rates for second earners between 2010 and 2014 41
Figure 2.4. Changes in net personal average tax rates between 2010 and 2014 42
Notes 43
References 43
Part I.
45
Chapter 3.
47
Average tax burdens 48
Marginal tax burdens 50
Table 3.1. Income tax plus employee and employer contributions less cash benefits, 2015 53
Figure 3.1. Income tax plus employee and employer contributions less cash benefits, 2015 54
Table 3.2. Income tax plus employee contributions, 2015 55
Figure 3.2. Income tax plus employee contributions, 2015 56
Table 3.3. Income tax plus employee contributions less cash benefits, 2015 57
Figure 3.3. Income tax plus employee contributions less cash benefits, 2015 58
Table 3.4. Income tax, by family-type and wage level, 2015 59
Figure 3.4. Income tax, by family-type, 2015 60
Table 3.5. Employee contributions, 2015 61
Figure 3.5. Employee contributions, 2015 62
Table 3.6. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2015 63
Figure 3.6. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2015 64
Table 3.7. Marginal rate of income tax plus employee contributions less cash benefits, 2015 65
Figure 3.7. Marginal rate of income tax plus employee contributions less cash benefits, 2015 66
Table 3.8. Increase in net income after an increase of 1 currency unit in gross wages, 2015 67
Table 3.9. Increase in net income after an increase of 1 currency unit in gross labour cost, 2015 68
Table 3.10a. Annual gross wage and net income, single person, 2015 69
Table 3.10b. Annual gross wage and net income, married couple, 2015 70
Table 3.11a. Annual labour costs and net income, single person, 2015 71
Table 3.11b. Annual labour costs and net income, married couple, 2015 72
Notes 52
Chapter 4.
73
Australia 2015: Average tax wedge decomposition 76
Australia 2015: Marginal tax wedge decomposition 76
Austria 2015: Average tax wedge decomposition 77
Austria 2015: Marginal tax wedge decomposition 77
Belgium 2015: Average tax wedge decomposition 78
Belgium 2015: Marginal tax wedge decomposition 78
Canada 2015: Average tax wedge decomposition 79
Canada 2015: Marginal tax wedge decomposition 79
Chile 2015: Average tax wedge decomposition 80
Chile 2015: Marginal tax wedge decomposition 80
Czech Republic 2015: Average tax wedge decomposition 81
Czech Republic 2015: Marginal tax wedge decomposition 81
Denmark 2015: Average tax wedge decomposition 82
Denmark 2015: Marginal tax wedge decomposition 82
Estonia 2015: Average tax wedge decomposition 83
Estonia 2015: Marginal tax wedge decomposition 83
Finland 2015: Average tax wedge decomposition 84
Finland 2015: Marginal tax wedge decomposition 84
France 2015: Average tax wedge decomposition 85
France 2015: Marginal tax wedge decomposition 85
Germany 2015: Average tax wedge decomposition 86
Germany 2015: Marginal tax wedge decomposition 86
Greece 2015: Average tax wedge decomposition 87
Greece 2015: Marginal tax wedge decomposition 87
Hungary 2015: Average tax wedge decomposition 88
Hungary 2015: Marginal tax wedge decomposition 88
Iceland 2015: Average tax wedge decomposition 89
Iceland 2015: Marginal tax wedge decomposition 89
Ireland 2015: Average tax wedge decomposition 90
Ireland 2015: Marginal tax wedge decomposition 90
Israel 2015: Average tax wedge decomposition 91
Israel 2015: Marginal tax wedge decomposition 91
Italy 2015: Average tax wedge decomposition 92
Italy 2015: Marginal tax wedge decomposition 92
Japan 2015: Average tax wedge decomposition 93
Japan 2015: Marginal tax wedge decomposition 93
Korea 2015: Average tax wedge decomposition 94
Korea 2015: Marginal tax wedge decomposition 94
Luxembourg 2015: Average tax wedge decomposition 95
Luxembourg 2015: Marginal tax wedge decomposition 95
Mexico 2015: Average tax wedge decomposition 96
Mexico 2015: Marginal tax wedge decomposition 96
Netherlands 2015: Average tax wedge decomposition 97
Netherlands 2015: Marginal tax wedge decomposition 97
New Zealand 2015: Average tax wedge decomposition 98
New Zealand 2015: Marginal tax wedge decomposition 98
Norway 2015: Average tax wedge decomposition 99
Norway 2015: Marginal tax wedge decomposition 99
Poland 2015: Average tax wedge decomposition 100
Poland 2015: Marginal tax wedge decomposition 100
Portugal 2015: Average tax wedge decomposition 101
Portugal 2015: Marginal tax wedge decomposition 101
Slovak Republic 2015: Average tax wedge decomposition 102
Slovak Republic 2015: Marginal tax wedge decomposition 102
Slovenia 2015: Average tax wedge decomposition 103
Slovenia 2015: Marginal tax wedge decomposition 103
Spain 2015: Average tax wedge decomposition 104
Spain 2015: Marginal tax wedge decomposition 104
Sweden 2015: Average tax wedge decomposition 105
Sweden 2015: Marginal tax wedge decomposition 105
Switzerland 2015: Average tax wedge decomposition 106
Switzerland 2015: Marginal tax wedge decomposition 106
Turkey 2015: Average tax wedge decomposition 107
Turkey 2015: Marginal tax wedge decomposition 107
United Kingdom 2015: Average tax wedge decomposition 108
United Kingdom 2015: Marginal tax wedge decomposition 108
United States 2015: Average tax wedge decomposition 109
United States 2015: Marginal tax wedge decomposition 109
Chapter 5.
111
Table 5.1. Income tax plus employee and employer contributions less cash benefits, 2014 115
Table 5.2. Income tax plus employee contributions, 2014 116
Table 5.3. Income tax plus employee contributions less cash benefits, 2014 117
Table 5.4. Income tax, 2014 118
Table 5.5. Employee contributions, 2014 119
Table 5.6. Marginal rate of income tax plus employee and employer contributions less cash benefits, 2014 120
Table 5.7. Marginal rate of income tax plus employee contributions less cash benefits, 2014 121
Table 5.8. Increase in net income after an increase of 1 currency unit in gross wages, 2014 122
Table 5.9. Increase in net income after an increase of 1 currency unit in gross labour cost, 2014 123
Table 5.10a. Annual gross wage and net income, single person, 2014 124
Table 5.10b. Annual gross wage and net income, married couple, 2014 125
Table 5.11a. Annual labour costs and net income, single person, 2014 126
Table 5.11b. Annual labour costs and net income, married couple, 2014 127
Notes 114
Part II.
129
Chapter 6.
131
Historical trends 132
Important trends 132
Tax wedge 132
Average income tax rate 133
Net personal average tax rate 134
Progressivity 135
Families 135
Tables showing the income taxes, social security contributions and cash benefits 136
Table 6.1a. Income tax plus employee and employer contributions less cash benefits, single persons at 67% of average earnings 137
Table 6.1b. Income tax, single persons at 67% of average earnings 138
Table 6.1c. Income tax plus employee contributions less cash benefits, single persons at 67% of average earnings 139
Table 6.2a. Income tax plus employee and employer contributions less cash benefits, single persons at 100% of average earnings 140
Table 6.2b. Income tax, single persons at 100% of the average earnings 141
Table 6.2c. Income tax plus employee contributions less cash benefits, single persons at 100% of average earnings 142
Table 6.3a. Income tax plus employee and employer contributions less cash benefits, single persons at 167% of average earnings 143
Table 6.3b. Income tax, single persons at 167% of average earnings 144
Table 6.3c. Income tax plus employee contributions less cash benefits, single persons at 167% of average earnings 145
Table 6.4a. Income tax plus employee and employer contributions less cash benefits, single parent at 67% of average earnings 146
Table 6.4b. Income tax, single parent at 67% of average earnings 147
Table 6.4c. Income tax plus employee contributions less cash benefits, single parent at 67% of average earnings 148
Table 6.5a. Income tax plus employee and employer contributions less cash benefits, married couple at 100% of average earnings 149
Table 6.5b. Income tax, married couple at 100% of average earnings 150
Table 6.5c. Income tax plus employee contributions less cash benefits, married couple at 100% of average earnings 151
Table 6.6a. Income tax plus employee and employer contributions less cash benefits, married couple with two children at 100% and 33% of average earnings 152
Table 6.6b. Income tax, married couple with two children at 100% and 33% of average earnings 153
Table 6.6c. Income tax plus employee contributions less cash benefits, married couple with two children at 100% and 33% of average earnings 154
Table 6.7a. Income tax plus employee and employer contributions less cash benefits, married couple at 100% and 67% of average earnings 155
Table 6.7b. Income tax, married couple at 100% and 67% of average earnings 156
Table 6.7c. Income tax plus employee contributions less cash benefits, married couple at 100% and 67% of average earnings 157
Table 6.8a. Income tax plus employee and employer contributions less cash benefits, married couple without children at 100% and 33% of average earnings 158
Table 6.8b. Income tax, married couple without children at 100% and 33% of average earnings 159
Table 6.8c. Income tax plus employee contributions less cash benefits, married couple without children at 100% and 33% of average earnings 160
Table 6.9. Annual average gross and net wage earnings, single individual no children, 2000-15 161
Table 6.10. Annual average gross and net wage earnings, single individual no children, 2000-15 (national currency) 162
Part III.
163
Australia (2014-15 income tax year) 165
1. Personal income tax system 168
1.1. Federal income tax 168
1.2. State and local income taxes 171
2. Social security contributions 171
2.1. Employees’ contributions 171
2.2. Employers’ contributions 171
3. Other taxes 171
3.1. Pay-roll tax 171
4. Universal cash transfers 171
4.1. Transfers related to marital status 171
4.2. Transfers related to dependent children 172
4.2. Other transfers 174
5. Recent changes in the tax/benefit system 174
Energy Supplement 174
6. Memorandum items 174
6.1. Identification of an average worker 174
6.2. Employers’ contribution to private health and pension scheme 176
2015 parameter values 177
2015 tax equations 178
Austria 181
1. Personal income tax 184
1.1. Central government income tax 184
1.2. State and local income taxes 186
2. Compulsory social security contributions to schemes operated within the government sector 186
2.1. Employee and employer social security contributions 186
2.2. Payroll taxes 186
3. Universal cash transfers 187
3.1. Amount for marriage 187
3.2. Amount for children 187
4. Main changes in tax/benefit systems since 1994 187
5. Memorandum items 189
5.1. Calculation of earnings data 189
2015 parameter values 190
2015 Tax equations 191
Belgium 193
1. Personal income tax system 196
1.1. Federal government income tax 196
1.2. Regional and local government taxes 198
1.3. Tax credits 199
1.4. Rebate on the wage withholding tax 199
2. Compulsory social security contributions to schemes operated within the government sector 199
2.1. Rates and ceiling 199
2.2. Deductions according to family status or gender 201
3. Universal cash transfers 201
4. Main changes in the tax/benefit system 201
2015 parameter values 202
2015 tax equations 203
Canada 205
1. Personal income tax systems 208
1.1. Central/federal government income taxes 208
2015 Federal income tax rates 209
1.2. State and local income taxes 209
2. Compulsory social security contributions to schemes operated within the government sector 210
2.1. Employees’ contributions 210
2.2. Employers’ contributions 212
3. Universal cash transfers 213
3.1. Transfers related to marital status 213
3.2. Transfers for dependent children 213
4. Main changes in the tax/benefit system since 2009 214
5. Memorandum items 214
5.1. Identification of an average worker 214
5.2. Employer contributions to private health and pension schemes 214
2015 parameter values 215
2015 Tax equations 217
Chile 219
1. Personal income tax system 222
1.1. Central/federal government income taxes 222
1.2. State and local income taxes 223
2. Compulsory social security contributions to schemes operated within the government sector 223
2.1. Employees’ contributions 223
2.2. Employers’ contributions 224
3. Universal cash transfers 224
3.1. Marital status-related transfers 224
3.2. Transfers related to dependent children 225
4. Memorandum items 225
4.1. Identification of an average worker 225
4.2. Employers’ contribution to private health and pension schemes 225
2015 parameter values 226
2015 tax equations 226
Czech Republic 227
1. personal income tax system 230
1.1. Central government income taxes 230
1.2. State and local income tax 232
2. Compulsory social security contributions to schemes operated within the government sector 232
2.1. Employees’ contributions 232
2.2. Employers’ contributions 232
3. Universal cash transfers 232
3.1. Transfers related to marital status 232
3.2. Transfers for dependent children 232
3.3. Additional transfers 233
4. Main changes in tax/benefit systems since 2015 233
5. Memorandum items 234
5.1. Identification of AW and valuation of earnings 234
5.2. Employers’ contributions to private pension, health and related schemes 234
2015 parameter values 235
2015 tax equations 236
Denmark 237
1. Personal income tax system 240
1.1. Tax allowances and tax credits 240
1.2. Central government income taxes 241
1.3. State and local income taxes 242
2. Compulsory social security contributions to schemes operated within the government sector 242
2.1. Employees’ contributions 242
2.2. Employers’ contributions 243
3. Universal cash transfers 243
4. Main changes in tax/benefit systems 244
5. Memorandum items 246
5.1. Identification of an AW 246
5.2. Employers’ contribution to private schemes 246
2015 parameter values 247
2015 tax equations 248
Estonia 251
1. Personal income tax system 254
1.1. Central government income tax 254
1.2. Regional and local income tax 254
2. Compulsory social security insurance system 255
2.1. Employees’ contributions 255
2.2. Employers’ contributions 255
3. Payroll tax 255
4. Universal cash transfers 255
4.1. Transfers related to marital status 255
4.2. Transfers for dependent children 255
5. Main changes in tax/benefit system since 2005 256
6. Memorandum items 256
6.1. Average gross annual wage earnings calculation 256
6.2. Employer contributions to private pension and health schemes 257
2015 parameter values 257
2015 tax equations 258
Finland 259
1. Personal income tax system 262
1.1. Central government income taxes 262
1.2. Local income tax 263
2. Compulsory social security contributions to schemes operated within the government sector 264
2.1. Employee contributions 264
2.2. Employers’ contributions 264
3. Universal cash transfers 264
3.1. Amount for marriage 264
3.2. Amount for children 264
4. Main changes in the tax/benefit system since 2014 264
5. Memorandum items 265
5.1. Calculation of average gross annual wage 265
5.2. Employer contributions to private pension and health schemes 265
2015 parameter values 266
2015 tax equations 267
France 269
1. Personal income tax system 272
1.1. Tax levied by the central government on 2015 income 272
1.2. Taxes levied by decentralised authorities 275
1.3. Universal social contribution (contribution sociale généralisée, or CSG) 275
1.4. Contribution to the reimbursement of social debt (contribution au remboursement de la dette sociale, or CRDS) 275
2. Compulsory social security contributions to schemes operated within the government sector 275
2.1. Employee contributions 275
2.2. Employer contributions 276
3. Universal cash transfers 277
Main family benefits (in respect of dependent children) 277
4. Main changes in the tax system and social benefits regime since the taxation of 2014 income 278
5. Memorandum items 278
2015 parameter values 279
2015 tax equations 280
Germany 283
1. Personal income tax systems 286
1.1. Central/federal government income taxes 286
1.2. State and local income taxes 288
2. Compulsory social security contributions to schemes operated within the government sector 288
2.1. Employees’ contributions 288
2.2. Employers’ contributions 290
3. Universal cash transfers 290
3.1. Transfers related to marital status 290
3.2. Transfers for dependent children 290
4. Main changes in tax/benefit systems since 1997 290
5. Memorandum items 292
5.1. Average gross annual earnings calculation 292
5.2. Employer’s contributions to private pension, etc. schemes 292
2015 parameter values 293
2015 tax equations 294
Greece 295
1. Personal income tax system 298
1.1. Central government income tax 298
a) Tax schedule for salaried persons (employees & pensioners)
b) Tax schedule for non-salaried persons (self employed and personal businesses) 301
1.2. State and local income taxes 302
2. Compulsory social security contributions to schemes operated within the government sector 302
3. Universal cash transfers 303
3.1. Transfers related to marital status 303
3.2. Transfers for dependent children 303
3.3. Benefits for families with three or more children 304
4. Main changes in the tax/benefit system since 2014 304
5. Memorandum items 304
5.1. Identification of an AW and method of calculations used 304
Annual Gross earnings per full time employee 2000-13 Greece 305
5.2. Main employers’ contributions to private pension, health, and related schemes 305
2015 parameter values 306
2015 tax equations 307
Hungary 309
1. Personal income tax systems 312
1.1. Central/federal government income taxes 312
1.2. State and local income taxes 312
2. Compulsory social security contributions to schemes operated within the government sector 313
2.1. Employees’ contributions 313
2.2. Employers’ contributions 313
3. Universal cash transfers 314
3.1. Transfers related to marital status 314
3.2. Transfers for dependent children 314
4. Main changes in the tax/benefit system since 2010 314
5. Memorandum items 315
5.1. Employer contributions to private social security arrangements 315
2015 parameter values 315
2015 tax equations 316
Iceland 317
1. Personal income tax system 320
1.1. Central government income taxes 320
1.2. Local government income tax 321
2. Compulsory social security contributions to schemes operated within the government sector 321
2.1. Employees’ contributions 321
2.2. Employers’ contributions 321
3. Universal cash transfers 321
3.1. Marital status related transfers 321
3.2. Transfers for dependent children 321
4. Main changes in the tax/benefit system since 1998 322
4.1. The deductibility of the payment to pension funds 322
4.2. Central and local income tax rates in 1997-2015 322
4.3. A special tax on higher income 323
4.4. A revision of child benefit system 323
4.5. A revision of interest rebates 324
4.6. Transferability of basic tax credit between spouses 324
5. Memorandum items 324
5.1. Identification of AW (only eight categories) and valuation of earnings 324
5.2. Employer contributions to private pension funds, health and related schemes 324
2015 parameter values 325
2015 tax equations 326
Ireland 327
1. Personal income tax systems 330
1.1. Central/federal government income taxes 330
1.2. State and local income taxes 332
2. Compulsory social security contributions to schemes operated within the government sector 332
2.1. Employees’ contributions 332
2.2. Employers’ contributions 332
3. Universal cash transfers 333
3.1. Transfers related to marital status 333
3.2. Transfers for dependent children 333
3.3. Transfers for low income families 333
4. Other main changes in tax/benefit system since 2014 333
4.1. One-parent family tax credit 333
5. Memorandum items 333
5.1. Employer contributions to private social security arrangements 333
2015 parameter values 334
2015 tax equations 335
Israel 337
1. Personal income tax system 340
1.1. Central government income tax 340
1.2. Regional and local income tax 341
2. Compulsory social security insurance system 341
2.1. Employees’ contributions 341
2.2. Employers’ contributions 341
3. Payroll taxes 342
4. Universal cash transfers 342
4.1. Transfers related to marital status 342
4.2. Transfers for dependent children 342
5. Main changes in the tax and benefit systems since 2002 342
6. Memorandum items 343
6.1. Average gross annual wage earnings calculation 343
6.2. Employer contributions to private pension 344
6.3. Earned income tax credit 344
2015 parameter values 345
2015 tax equations 346
Italy 347
1. Personal income tax 350
1.1. Central government income tax 350
1.2. State and local taxes 352
2. Compulsory social security 353
2.1. Employee contributions 353
2.2. Employer contributions 353
3. Universal cash transfers 354
3.1. Amount for spouse and for dependent children 354
4. Main changes 354
5. Memorandum item 354
5.1. Identification of an AW 354
5.2. Contributions by employers to private pension, health, etc. schemes 354
2015 parameter values 355
2015 tax equations 356
Japan 357
1. Personal income tax systems 360
1.1. Central government income tax 360
1.2. State and local income taxes 364
2. Compulsory social security contribution to schemes operated within the government sector 365
2.1. Employees’ contributions 365
2.2. Employers’ contributions 365
3. Universal cash transfers 365
3.1. Transfers related to marital status 365
3.2. Transfers for dependent children 366
4. Main changes in the tax/benefit systems since 1998 366
5. Memorandum item 367
5.1. Average gross annual wage earnings calculation 367
5.2. Employer contributions to private pension and health schemes 367
2015 parameter values 368
2015 tax equations 369
Korea 371
1. Personal income tax system 374
1.1. Central government income tax system 374
1.2. Local income tax 377
2. Compulsory social security contribution to schemes operated within the government sector 377
2.1. Employees’ contribution 377
2.2. Employers’ contribution 377
3. Universal cash transfers 378
4. Main changes in tax/benefit system since 2000 379
5. Memorandum item 379
5.1. Identification of the Average Worker (AW) 379
5.2. Method to calculate wages 380
5.3. Employer’s reserve for employee’s retirement payment 380
2015 parameter values 381
2015 tax equations 382
Luxembourg 383
1. Personal income tax system 386
1.1. Taxes levied by central government 386
1.2. Local (municipal) taxes 388
2. Compulsory social security contributions to schemes operated within the government sector 388
3. Universal cash transfers 388
3.1. For married persons 388
3.2. For dependent children 389
4. Main changes since 2008 389
4.1. Partnerships 389
4.2. Introduction of tax credits 389
5. Memorandum item 389
5.1. Identification of the average worker 389
2015 parameter values 391
2015 tax equations 392
Mexico 393
1. Personal income tax 396
1.1. Central government income tax 396
1.2. State and local income taxes 398
1.3. Payroll taxes 398
2. Compulsory social security contributions to schemes operated within the government sector 398
2.1. Employees’ contributions 398
2.2. Employers’ contributions 399
3. Universal cash transfers 399
3.1. Transfers related to marital status 399
3.2. Transfers for dependent children 399
4. Main changes in the tax/benefit system since 1995 399
5. Memorandum items 399
5.1. Method used to identify an average worker and to calculate his gross earnings 399
5.2. Main employees’ and employers’ contributions to private pension, health, etc. schemes 400
2015 parameter values 400
2015 tax equations 401
Netherlands 403
1. Personal income tax system (central government) 406
1.1. Central government income tax 406
1.2. State and local income taxes 409
2. Compulsory social security contributions to schemes operated within the government sector 410
2.1. Employees’ contributions 410
2.2. Employers’ contributions 411
3. Universal cash transfers 411
3.1. Transfers related to marital status 411
3.2. Transfers for dependent children 411
4. Main changes in the tax/benefit systems since 2000 411
5. Memorandum items 413
5.1. Identification of the AW and calculation of the AW’s gross earnings 413
5.2. Main employers’ contributions to private pension, health and related schemes 413
2015 parameter values 414
2015 tax equations 415
New Zealand (2015-16 income tax year) 417
1. Personal income tax system 420
1.1. Central/federal government income taxes 420
1.2. State and local income taxes 420
2. Compulsory social security contributions to schemes operated within the government sector 420
3. Universal cash transfers 421
3.1. Amount for marriage 421
3.2. Amount for children 421
3.3. Family tax credit 421
3.4. In work tax credit 421
3.5. Minimum family tax credit 421
3.6. Independent earner tax credit 421
4. Main changes in tax/benefit systems over 2014/15 421
5. Memorandum items 421
5.1. Method used to identify AW and to calculate the AW’s gross earnings 421
5.2. Employer’s contributions to private pension, health schemes, etc. 422
2015 parameter values 422
2015 tax equations 423
Norway 425
1. Personal income tax system 428
1.1. Central government income tax 428
1.2. Local government income tax 428
2. Social security contributions 429
2.1. Contributions to the national insurance scheme 429
3. Universal cash transfers 430
3.1. Transfers related to marital status 430
3.2. Transfers for dependent children (child support) 430
4. Main changes in tax/benefit systems since 2002 430
5. Memorandum items 432
5.1. Identification of an AW and calculation of earnings 432
5.2. Employers’ contributions to private health and pension schemes 432
2015 parameter values 433
2015 tax equations 434
Poland 435
1. Personal income tax system 438
1.1. Central government income tax 438
1.2. State and local income tax 440
1.3. Wealth tax 440
2. Social security contributions 440
2.1. Employees’ contributions 440
2.2. Employers’ contributions 441
3. Universal cash transfers 441
3.1. Transfers related to marital status 441
3.2. Transfers for dependent children 441
4. Main changes in tax/benefit systems since 2012 441
5. Memorandum items 442
5.1. Identification of AW and valuation of earnings 442
5.2. Employers’ contributions to private pension, health and related schemes 442
2015 parameter values 442
2015 tax equations 443
Portugal 445
1. Personal income tax system 448
1.1. Taxes levied by central government 448
2. Compulsory social security contributions to schemes operated within the government sector 451
2.1. Employee contributions 451
2.2. Employer contributions 451
2.3. Areas of social protection 451
3. Universal cash benefits 451
3.1. Benefits for dependent children 451
3.2. Benefits for handicapped dependent children 452
4. Main changes in the tax/benefit system since 2006 452
5. Memorandum items 453
5.1. Method used to identify and compute gross wages of the average worker 453
5.2. Description of the employer’s main contributions to private retirement, health insurance schemes, etc. 453
2015 parameter values 454
2015 tax equations 455
Slovak Republic 457
1. Personal income tax system 460
1.1. Central government income taxes 460
1.2. State and local income tax 462
2. Compulsory social security contributions to schemes operated within the government sector 462
2.1. Employees’ contributions 462
2.2. Employers’ contributions 463
SSC: Pension – contribution sharing in case of II. Pillar participation 463
3. Universal cash transfers 464
3.1. Transfers related to marital status 464
3.2. Transfers for dependent children 464
3.3. Transfers related to social status 464
4. Main changes in tax/benefit systems since 2014 465
5. Memorandum items 465
5.1. Identification of AW and valuation of earnings 465
2015 parameter values 466
2015 tax equations 467
Slovenia 469
1. Personal income tax system 472
1.1. Central government income tax 472
1.2. Regional and local income tax 473
2. Compulsory social security insurance system 473
2.1. Employees’ contributions 473
2.2. Employers’ contributions 474
3. Payroll tax 474
4. Universal cash transfers 474
4.1. Transfers related to marital status 474
4.2. Transfers for dependent children 474
5. Main changes in tax/benefit system since 2005 476
6. Memorandum items 477
6.1. Average gross annual wage earnings calculation 477
6.2. Employer contributions to private pension and health schemes 477
2015 parameter values 478
2015 tax equations 479
Spain 481
1. Personal income tax system 484
1.1. Central government income tax 484
1.2. State and local income taxes 486
2. Compulsory social security contributions to schemes operated within the government sector 486
2.1. Employees’ contributions 486
2.2. Employers’ contributions 486
3. Universal cash transfers 486
3.1. Transfers related to marital status 486
3.2. Transfers for dependent children 487
4. Main changes in tax/benefit systems in 2015 487
5. Memorandum items 487
5.1. Identification of an AW and calculation of earnings 487
2015 parameter values 488
2015 tax equations 489
Sweden 491
1. Personal income tax systems 494
1.1. Central government income taxes 494
1.2. Local government income taxes 495
2. Compulsory social security contributions to schemes operated within the government sector 496
2.1. Employees’ contributions 496
2.2. Employers’ contributions 496
3. Universal cash transfers 497
3.1. Transfers related to marital status 497
3.2. Transfers for dependent children 497
4. Main changes in tax/benefit systems since 1998 497
5. Memorandum items 498
5.1. Identification of an AW and calculation of earnings 498
5.2. Employer contributions to private health, pension, etc. schemes 498
2015 parameter values 499
2015 tax equations 500
Switzerland 501
1. Personal income tax systems 504
1.1. Income tax collected by the federal government (Confederation) 504
1.2. Taxes levied by decentralised authorities (Canton and commune of Zurich) 506
2. Compulsory social security contributions to schemes operated within the government sector 508
2.1. Employee contributions 508
2.2. Employer contributions 509
3. Universal cash benefits 509
3.1. Benefits linked to marital status 509
3.2. Benefits for dependent children 509
4. Main changes in the tax/benefit system since 1998 509
5. Memorandum item 510
5.1. Identification of the average worker 510
5.2. Method of calculation used 510
5.3. Calculation of non-tax compulsory payments 510
2015 parameter values 511
2015 tax equations 513
Turkey 515
1. Personal income tax systems 518
1.1. Central government income tax 518
1.2. State and local income taxes 519
1.3. Stamp tax 519
2. Compulsory social security contributions to schemes operated within the government sector 519
2.1. Employees’ contributions 519
2.2. Employers’ contributions 519
3. Universal cash transfers 520
4. Main changes in tax/benefit system since 2004 520
5. Memorandum items 521
5.1. Identification of an AW 521
5.2. Contribution to private pension and health schemes 521
2015 parameter values 522
2015 tax equations 522
United Kingdom (2015-16 income tax year) 523
1. Personal income tax system 526
1.1. Central government income taxes 526
1.2. State and local income tax 527
2. Compulsory social security contributions to schemes operated within the government sector 527
2.1. Employees’ contributions 527
2.2. Employers’ contributions 528
3. Universal cash transfers 528
3.1. Transfers related to marital status 528
3.2. Transfers for dependent children 528
4. Memorandum items 528
4.1. Identification of AW and valuation of earnings 528
4.2. Employers’ contributions to private pension, health etc. schemes 528
2015 parameter values 529
2015 tax equations 530
United States 531
1. Personal income tax system 534
1.1. Central/federal government income taxes 534
Federal income tax rates 536
1.2. State and local income taxes 536
2. Compulsory social security contributions to schemes operated within the government sector 537
2.1. Employees’ contributions 537
2.2. Employers’ contributions 537
3. Universal cash transfers 537
3.1. Transfers related to marital status 537
3.2. Transfers for dependent children 538
4. Principal changes since 2011 538
5. Memorandum items 538
5.1. Identification of an AW at the wage calculation 538
5.2. Employer contributions to private social security arrangements 538
2015 parameter values 539
2015 tax equations 541
Annex.
543
Methodology 543
Introduction 543
Table A.1. Terminology 544
Taxpayer characteristics 543
Table A.2. Characteristics of taxpayers 544
The range of industries covered 543
Table A.3. International Standard Industrial Classification of All Economic Activities 545
Defining gross wage earnings 545
Table A.4. Method used to calculate average earnings 546
Table A.5. Source of earnings data, 2015 548
Calculating average gross wage earnings 550
Table A.6. Estimated gross wage earnings, 2014-15 (in national currency) 551
Table A.7. Purchasing power parities and exchange rates for 2015 552
Coverage of taxes and benefits 551
Calculation of personal income taxes 553
State and local income taxes 553
Social security contributions 554
Payroll taxes 554
Family cash benefits from general government 555
Payable tax credits 555
The calculation of marginal tax rates 556
Limitations 556
General limitations 556
Some specific limitations on the income tax calculation 557
Limitations to time-series comparisons 558
A Note on the tax equations 558
Notes 560
Chapter 1. Overview
This chapter presents the main results of the analysis of the taxation of labour income across OECD member countries in 2015. Most emphasis is given to the tax wedge – a measure of the difference between labour costs to the employer and the corresponding net take-home pay of the employee – which is calculated by expressing the sum of personal income tax, employee plus employer social security contributions together with any payroll tax, minus benefits as a percentage of labour costs. The calculations also focus on the net personal average tax rate. This is the term used when the personal income tax and employee social security contributions net of cash benefits are expressed as a percentage of gross wage earnings. The analysis focuses in the single worker with no children on average earnings and makes a comparison with the single earner married couple with two children.
This Report provides unique information for each of the thirty four OECD countries on the income taxes paid by workers, their social security contributions, the family benefits they receive in the form of cash transfers as well as the social security contributions and payroll taxes paid by their employers. Results reported include the marginal and average tax burden for one- and two-earner households, and the implied total labour costs for employers. These data are widely used in academic research and in the formulation and evaluation of social and economic policies. The taxpayer specific detail in this Report enables it to complement the information provided annually in the Revenue Statistics, a publication providing internationally comparative data on tax levels and tax structures in OECD countries. The methodology followed in this Report is described briefly in the introduction section below and in more detail in the Annex.
The tables and charts present estimates of tax burdens and of the tax “wedge” between labour costs and net take-home pay for eight illustrative family types on comparable levels of income. The key results for 2015 are summarised in second section below. part I of the Report presents more detailed results for 2015, together with comparable results for 2014 and discusses the changes between the two years. part II of the Report reviews historical changes in tax burdens between 2000 and 2015.
Introduction
This section briefly introduces the methodology employed for this Report, which focuses on full-time employees. It is assumed that their annual income from employment is equal to a given percentage of the average full-time adult gross wage earnings for each OECD economy, also referred to as the average wage (AW). This covers both manual and non-manual workers for either industry Sectors C-K inclusive with reference to the International Standard Industrial Classification of All Economic Activities, Revision 3 (ISIC Rev. 3) or industry Sectors B-N inclusive with reference to the International Standard Industrial Classification of All Economic Activities, Revision 4 (ISIC Rev. 4).1 Further details are provided in table 1.6 as well as in the Annex of this Report. Additional assumptions are made about the personal circumstances of these wage earners in order to determine their tax/benefit position. The taxes included in the present Report are confined to personal income tax, social security contributions and payroll taxes (which are aggregated with employer social contributions in the calculation of tax rates) payable on gross wage earnings. Consequently, any income tax that might be due on non-wage income and other kinds of taxes – e.g. corporate income tax, net wealth tax and consumption taxes – is not taken into account. The benefits included are those paid by general government as cash transfers, usually in respect of dependent children.
For most OECD countries, the tax year is equivalent to the calendar year, the exceptions being Australia, New Zealand and the United Kingdom. In the case of New Zealand and the United Kingdom, where the tax year starts in April, the calculations apply a “forward looking” approach. This implies that, for example, the tax rates reported for 2015 are those for the fiscal year 2015-16. However, in Australia, where the tax year starts in July, it has been decided to take a “backward looking” approach in order to present more reliable results. So, for example, the year 2015 in respect of Australia has been defined to mean its fiscal year 2014-15.
The Report presents several measures of taxation on labour. Most emphasis is given to the tax wedge – a measure of the difference between labour costs to the employer and the corresponding net take-home pay of the employee – which is calculated by expressing the sum of personal income tax, employee plus employer social security contributions together with any payroll tax, minus benefits as a percentage of labour costs. Employer social security contributions and – in some countries – payroll taxes are added to gross wage earnings of employees in order to determine a measure of total labour costs. However, it should be recognised that this measure may be less than the true labour costs faced by employers because, for example, employers may also have to make non-tax compulsory payments. The average tax wedge measures identify that part of total labour costs which is taken in tax and social security contributions net of cash benefits. In contrast, the marginal tax wedge measures identify that part of an increase of total labour costs that is paid in these levies.
The calculations also focus on the net personal average tax rate. This is the term used when the personal income tax and employee social security contributions net of cash benefits are expressed as a percentage of gross wage earnings. The net personal marginal tax rate shows that part of an increase of gross wage earnings that is paid in personal income tax and employee social security contributions net of cash benefits.
Review of results for 2015
Tax wedge
table 1.1 shows that the tax wedge between total labour costs to the employer and the corresponding net take-home pay for single workers without children, at average earnings levels, varied widely across OECD countries in 2015 (see column 1). While in Austria, Belgium, France, Germany, Hungary and Italy, the tax wedge is around 50% or higher, it is under 20% in Chile, Mexico and New Zealand. The highest tax wedge is observed in Belgium (55.3%) and the lowest in Chile (7.0%).
| Table 1.1. Comparison of total tax wedge |
|---|
| As % of labour costs |
|---|
| Country1 | Total Tax wedge 2015 | Annual change 2015/14 (in percentage points)2 |
|---|
| Tax wedge | Income tax | Employee SSC | Employer SSC3 |
|---|
| (1) | (2) | (3) | (4) | (5) |
|---|
| Belgium | 55.3 | -0.28 | -0.22 | 0.00 | -0.07 |
| Austria | 49.5 | 0.09 | 0.19 | 0.02 | -0.12 |
| Germany | 49.4 | 0.18 | 0.11 | 0.03 | 0.04 |
| Hungary | 49.0 | 0.00 | 0.00 | 0.00 | 0.00 |
| Italy | 49.0 | 0.76 | 0.76 | 0.00 | 0.00 |
| France | 48.5 | 0.05 | 0.13 | 0.14 | -0.23 |
| Finland | 43.9 | 0.20 | 0.00 | 0.19 | 0.00 |
| Czech Republic | 42.8 | 0.17 | 0.17 | 0.00 | 0.00 |
| Sweden | 42.7 | 0.24 | 0.25 | 0.00 | 0.00 |
| Slovenia | 42.6 | 0.08 | 0.08 | 0.00 | 0.00 |
| Portugal | 42.1 | 0.86 | 0.86 | 0.00 | 0.00 |
| Slovak... |
| Erscheint lt. Verlag | 3.5.2016 |
|---|---|
| Sprache | englisch |
| Themenwelt | Recht / Steuern ► Steuern / Steuerrecht |
| Recht / Steuern ► Wirtschaftsrecht | |
| Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung | |
| Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik | |
| ISBN-10 | 92-64-25739-X / 926425739X |
| ISBN-13 | 978-92-64-25739-9 / 9789264257399 |
| Informationen gemäß Produktsicherheitsverordnung (GPSR) | |
| Haben Sie eine Frage zum Produkt? |
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