Download rate - Europa

European Commission /
Taxation and Customs Union
Taxation trends in the
European Union
Edition 2010
Marco Fantini
Head of Sector “Quantitative Analysis of Taxation”
Taxation and Customs Union DG
European Commission
European Commission /
Taxation and Customs Union
EU is a high tax area…
2008 tax and social contributions revenue as % of GDP; EU, US, Japan
40
39.3
30
28.3
26.9
20
10
0
European Commission /
Taxation and Customs Union
Development of overall tax ratio
% of GDP, weighted; projection based on Commission spring 2010 forecasts
42
41
40
%
39
38
37
1998
1999
2000
2001
2002
EU-27
2003
2004
2005
2006
2007
2008
EA-16
2009
2010
2011
European Commission /
Taxation and Customs Union
Development of overall tax ratio
% of GDP, weighted; projection based on Commission spring 2010 forecasts
42
41
40
%
39
38
37
1998
1999
2000
EU-27
2001
2002
2003
EA-16
2004
2005
2006
EU-27 projection
2007
2008
2009
EA-16 projection
2010
2011
European Commission /
Taxation and Customs Union
Development of tax ratio since 2000 by level of
taxation
Average change in total tax-to-GDP between 2000 and 2008
in percentage points
2
1.6
1
High tax countries
Medium tax countries
0
Low tax countries
-0.5
-1
-1.7
-2
European Commission /
Taxation and Customs Union
Growth-adjusted figures do not show 2004-2007
increase
42
41
40
%
39
38
37
1998
1999
2000
EU-27
2001
2002
2003
2004
2005
2006
EU-27 cyclically adjusted
2007
2008
European Commission /
Taxation and Customs Union
Share of revenue accruing to sub-central level
11.2
20
11
19
10.8
18
10.6
17
10.4
16
10.2
15
10
14
1995
1996
1997
1998
1999
Local government (left scale)
2000
2001
2002
2003
2004
2005
2006
2007
State government (right scale)
2008
European Commission /
Taxation and Customs Union
Revenue by function
2008
Capital
22.8%
Consumption
27.4%
Labour
49.9%
European Commission /
Taxation and Customs Union
Implicit tax rates (ITRs)
38
ITR Labour
32
%
26
ITR Capital
ITR Consumption
20
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
European Commission /
Taxation and Customs Union
Type of measures adopted: CIT
•
Corporate Income Taxation
Base or special
regimes
▲▲▲▲▲▲▲
Statutory rate
▲▲
Timing (revenue
effect)
◄
•
•
▼▼▼▼▼▼▼▼
▼▼▼▼▼▼▼
▼▼▼▼▼▼▼
▼▼
►►►►►►►
►►
•
•
This table shows the
number of measures
adopted during the
crisis and their impact
(widening or
narrowing of the
base, changes in the
rate, timing of tax
payment)
Most measures in
corporate taxation
involved tax relief
Changes in the rate
have been
overwhelmingly cuts
Most of the time the
reforms have
narrowed the CIT
base although the
opposite took place
too
Many measures
eased the terms for
paying taxes
European Commission /
Taxation and Customs Union
Type of measures adopted: PIT
Personal Income Taxation
Base or special
regimes
Rates
▲▲▲▲▲▲▲▲
▲▲
▲▲▲▲▲▲▲▲
▼▼▼▼▼▼▼▼
▼▼▼▼▼▼▼▼
▼▼▼▼▼▼▼▼
▼▼▼▼
▼▼▼▼▼▼▼▼
▼▼▼▼
Timing (revenue
effect)
•
•
•
►►►►►►►
•
Most measures in
personal taxation
have involved tax
relief, but also many
increases are present
Slightly higher
number of rate cuts
than increases
As in CIT, most
reforms have
narrowed the base
but the opposite has
frequently happened,
too
Many measures
eased the terms of
payment
European Commission /
Taxation and Customs Union
Type of measures adopted: VAT
•
VAT
Base or special
regimes
Rates
Timing (revenue
effect)
▲▲▲
▲▲▲▲▲▲▲▲
◄
▼▼▼▼▼▼▼
▼▼▼▼▼▼
▼▼▼
►►►►►►►►
►►►
•
•
•
VAT stands out for its
clear-cut patterns
Clear prevalence of
rate increases over
cuts
… but also clear use
of base narrowing
measures to favour
particular categories
of goods
Significant recourse
of measures to ease
the business liquidity
European Commission /
Taxation and Customs Union
Type of measures adopted: excise duties
•
Excise duties
Base or special
regimes
▲▲▲▲
▼
Rates
▲▲▲▲▲▲▲▲
▲▲▲▲▲▲▲▲
▲▲
▼▼▼▼
Timing (revenue
effect)
•
•
•
Excise duties
have been
widely used to
raise revenue
Clear
prevalence of
rate increases
over cuts
Limited use of
base measures
– mostly to
widen base
No business
liquidity
measures
European Commission /
Taxation and Customs Union
Corporate income tax rates
40
35
30
25
20
1995
1996
1997
1998
1999
2000
EU-27
2001
2002
2003
2004
EA-16
2005
2006
2007
2008
2009
2010
European Commission /
Taxation and Customs Union
Corporate income tax rates
55
Japan
50
45
United States
40
35
BRIC average
30
EU average
25
20
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
European Commission /
Taxation and Customs Union
Development of top statutory personal
income tax rates
55
50
45
40
35
1995
1996
1997
1998
1999
2000
EU-27
2001
2002
2003
2004
EA-16
2005
2006
2007
2008
2009
2010
European Commission /
Taxation and Customs Union
Development of standard VAT rate
20.5
19.5
18.5
17.5
2000
2001
2002
2003
2004
2005
2006
2007
EU-27
EA-16
EU-27 projection
EA-16 projection
2008
2009
2010
2011
European Commission /
Taxation and Customs Union
Notable increases in VAT standard rates
EE: 18 -> 20
LV: 18 -> 21
LT: 18 -> 21
HU: 20 -> 25
ES: 16 -> 18
FI: 22 -> 23
EL: 19 -> 23
UK: 17.5 -> 20 (2011)
RO: 19 -> 24 (announced)
European Commission /
Taxation and Customs Union
Additional information
• The full report and an executive summary are available at
the following address:
• http://ec.europa.eu/taxtrends