Taxing Wages 2002-2003

STATISTICS/STATISTIQUES 2003

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Taxing Wages provides unique information on income tax paid by workers and social security contributions levied on employees and their employers in OECD countries. In addition, this annual publication specifies family benefits paid as cash transfers. Amounts of taxes and benefits are detailed programme by programme, for eight household types which differ by income level and household composition. Results reported include the marginal and effective tax burden for one- and two-earner families, and total labour costs of employers. These data on tax burdens and cash benefits are widely used in academic research and the preparation and evaluation of social and economic policy-making. This year’s issue includes a Special feature entitled “Thresholds for paying income tax and social security contributions”.

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Taxing Wages

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Taxing Wages SPECIAL FEATURE:

ALSO AVAILABLE ON CD-ROM AND ON LINE An extended version of the database (1979-2003) is available on CD-ROM and on line at www.SourceOECD.org.

THRESHOLDS FOR PAYING INCOME TAX AND SOCIAL SECURITY CONTRIBUTIONS

For further information on this title, please consult: www.oecd.org/ctp/taxingwages.

Les impôts sur les salaires

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Les impôts sur les salaires

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2002-2003

ÉGALEMENT DISPONIBLE SUR CD-ROM ET EN LIGNE Une version plus étendue de la base de données (1979-2003) est disponible sur CD-ROM et en ligne via www.SourceOCDE.org.

Taxing Wages

Les impôts sur les salaires fournissent des données sans équivalent sur l’impôt sur le revenu versé par les ouvriers et sur les cotisations de sécurité sociale qui s’appliquent sur les salariés et les employeurs dans les pays de l’OCDE. Cette publication annuelle précise également les prestations payées en espèces aux familles. Les montants des impôts et des prestations y sont détaillés pour huit types de ménages représentatifs dont la composition et le niveau du salaire diffèrent. Les résultats mettent aussi en évidence la pression fiscale, moyenne et marginale, qui s’exerce sur les ménages disposant d’un ou de deux salaires, ainsi que les coûts de main-d’œuvre pour les employeurs. Les données sur la pression fiscale et les prestations familiales présentées dans cette publication sont largement utilisées pour la recherche universitaire comme pour la préparation et l’évaluation des politiques économiques et sociales. L’édition de cette année inclut une Étude spéciale intitulée « Seuils pour payer l’impôt sur le revenu et cotisations de sécurité sociales ».

2002-2003 Les impôts sur les salaires ÉTUDE SPÉCIALE : SEUILS POUR PAYER L’IMPÔT SUR LE REVENU ET COTISATIONS DE SÉCURITÉ SOCIALE

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2003

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TAXING WAGES Special Feature: Thresholds for Paying Income Tax and Social Security Contributions 2002-2003

LES IMPÔTS SUR LES SALAIRES Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Édition 2003 Edition

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DÉVELOPPEMENT ÉCONOMIQUES

ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996), Korea (12th December 1996) and the Slovak Republic (14th December 2000). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). © OECD 2002 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, tel. (33-1) 44 07 47 70, fax (33-1) 46 34 67 19, for every country except the United States. In the United States permission should be obtained through the Copyright Clearance Center, Customer Service, (508)750-8400, 222 Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: www.copyright.com. All other applications for permission to reproduce or translate all or part of this book should be made to OECD Publications, 2, rue André-Pascal, 75775 Paris Cedex 16, France.

ORGANISATION DE COOPÉRATION ET DE DÉVELOPPEMENT ÉCONOMIQUES En vertu de l’article 1er de la Convention signée le 14 décembre 1960, à Paris, et entrée en vigueur le 30 septembre 1961, l’Organisation de Coopération et de Développement Économiques (OCDE) a pour objectif de promouvoir des politiques visant : – à réaliser la plus forte expansion de l’économie et de l’emploi et une progression du niveau de vie dans les pays Membres, tout en maintenant la stabilité financière, et à contribuer ainsi au développement de l’économie mondiale ; – à contribuer à une saine expansion économique dans les pays Membres, ainsi que les pays non membres, en voie de développement économique ; – à contribuer à l’expansion du commerce mondial sur une base multilatérale et non discriminatoire conformément aux obligations internationales. Les pays Membres originaires de l’OCDE sont : l’Allemagne, l’Autriche, la Belgique, le Canada, le Danemark, l’Espagne, les États-Unis, la France, la Grèce, l’Irlande, l’Islande, l’Italie, le Luxembourg, la Norvège, les Pays-Bas, le Portugal, le Royaume-Uni, la Suède, la Suisse et la Turquie. Les pays suivants sont ultérieurement devenus Membres par adhésion aux dates indiquées ci-après : le Japon (28 avril 1964), la Finlande (28 janvier 1969), l’Australie (7 juin 1971), la Nouvelle-Zélande (29 mai 1973), le Mexique (18 mai 1994), la République tchèque (21 décembre 1995), la Hongrie (7 mai 1996), la Pologne (22 novembre 1996), la Corée (12 décembre 1996) et la République slovaque (14 décembre 2000). La Commission des Communautés européennes participe aux travaux de l’OCDE (article 13 de la Convention de l’OCDE). © OCDE 2004 Les permissions de reproduction partielle à usage non commercial ou destinée à une formation doivent être adressées au Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, tél. (33-1) 44 07 47 70, fax (33-1) 46 34 67 19, pour tous les pays à l’exception des États-Unis. Aux États-Unis, l’autorisation doit être obtenue du Copyright Clearance Center, Service Client, (508)750-8400, 222 Rosewood Drive, Danvers, MA 01923 USA, ou CCC Online : www.copyright.com. Toute autre demande d’autorisation de reproduction ou de traduction totale ou partielle de cette publication doit être adressée aux Éditions de l’OCDE, 2, rue André-Pascal, 75775 Paris Cedex 16, France.

FOREWORD This annual publication provides details of taxes paid on wages in all thirty Member countries of the OECD.* The information contained in the report covers the personal income tax and social security contributions paid by employees and their employers, and cash benefits received by families. The objective of the report is to illustrate how personal income taxes and social security contributions are calculated and to examine how these levies and cash family benefits impact on net household incomes. The results also allow quantitative cross-country comparisons of labour cost levels and of the overall tax and benefit position of single persons and families. The report shows the amounts of taxes, social security contributions and cash benefits for eight family-types, which differ by income level and household composition. It also presents the resulting average and marginal tax rates. Average tax rates show that part of gross wage earnings or total labour costs which is taken in tax (before and after cash benefits) and social security contributions. Marginal tax rates show the part of an increase of gross earnings or total labour costs that is paid in these levies. Starting with last year’s edition, the focus of the report has shifted to presenting accurate estimates of the tax/benefit position of employees in the edition year (2003). It is felt that this change of focus increases the relevance of the report for policy-making. In addition, the report shows definitive data on the tax/benefit position of employees for the year 2002. The report is structured as follows. Part I reviews the main results for 2003 and 2002. Also, Part I offers a Special Feature describing the minimum level of earnings at which tax must be paid – the income tax threshold – providing an update of the Special Feature in the 1992 Edition of the Tax/Benefit Position of Production Workers. The tax threshold is an important policy instrument as it can affect the progressivity of the tax system, have a significant impact on revenues, and influence poverty traps, especially where the marginal tax rate is affected by income-tested reliefs and benefits. The main results are summarised in the comparative tables and charts included in Part II of the report. The methodology used – and its limitations – are set out in Part III. Country tables specifying the wage levels considered and the associated tax burdens for eight separate family-types are found in Part IV. The tax/ benefit system of each country is described in greater detail in Part V. The report has been prepared under the auspices of the Working Party on Tax Policy Analysis and Tax Statistics of the Committee on Fiscal Affairs and has benefited from financial support provided by the Commission of the European Communities. It is published on the responsibility of the SecretaryGeneral of the OECD.

* Previous editions were published under the title The Tax/Benefit Position of Employees (1996–1998 editions) and The Tax/Benefit Position of Production Workers (editions published before 1996).

© OECD/OCDE 2004

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AVANT-PROPOS Cette publication annuelle fournit des informations détaillées sur la situation des salariés au regard de l’impôt et des transferts sociaux dans l’ensemble des trente pays Membres de l’OCDE.* Les informations contenues dans ce rapport couvrent l’impôt sur le revenu des personnes physiques, les cotisations de sécurité sociale payées par les salariés et leurs employeurs ainsi que les allocations reçues par les familles. Son objectif est de montrer comment sont calculés les impôts sur le revenu des personnes physiques et les cotisations de sécurité sociale ainsi que leur impact sur les revenus nets des ménages. De plus les résultats permettent des comparaisons quantitatives entre pays sur les niveaux des coûts du travail et la situation globale des salariés célibataires et des familles au regard de l’impôt et des transferts sociaux. Les montants des impôts, des cotisations de sécurité sociale et des prestations en espèces sont détaillés cas par cas pour huit catégories de ménages qui diffèrent selon le niveau des revenus et la composition familiale. Cette étude présente également les taux d’imposition moyens et marginaux qui en résultent. Les taux moyens d’imposition indiquent la part des salaires qui est prélevée sous forme d’impôts (avant et après les prestations) et de cotisations de sécurité sociale. Les taux marginaux indiquent la part de l’augmentation des salaires bruts ou des coûts totaux du travail qui fait l’objet de ces prélèvements. Depuis l’édition de l’année dernière, le rapport met l'accent sur la présentation d'estimations exactes de la situation des salariés au regard de l'impôt et des prestations sociales pour l'année étudiée (2003). Il semble que ce changement d'orientation soit de nature à rehausser l'intérêt de cette étude pour les décideurs. En outre, l’étude contient des données définitives sur la situation des salariés au regard de l'impôt et des prestations sociales pour l'année 2002. Le plan de cette étude est le suivant. La partie I résume les résultats de 2003 et 2002. Par ailleurs, la partie I contient une étude spéciale concernant le niveau minimum de salaire à partir duquel l’impôt doit être versé – le seuil d’imposition du revenu – étude qui constitue une mise à jour de l’étude spéciale de l’édition de 1992 de la situation des ouvriers au regard de l’impôt et des transferts sociaux. Le seuil d’imposition est un instrument important de la politique fiscale car il peut influer sur la progressivité du système fiscal et il a une incidence importante sur les recettes publiques et les seuils de pauvreté, surtout lorsque le taux marginal d’imposition est affecté par des allègements et prestations accordés en fonction des revenus. Les principaux résultats sont résumés dans les tableaux comparatifs et les graphiques à la partie II de l’étude. La méthodologie utilisée – et ses limites – sont explicitées à la partie III. Les tableaux par pays spécifiant les niveaux des revenus pris en compte et les charges fiscales associées pour huit catégories de ménages se trouvent à la partie IV. Le système d’impôts et de prestations sociales de chaque pays est décrit plus en détail à la partie V. Ce rapport a été réalisé sous l’égide du Groupe de travail sur l’analyse des politiques et les statistiques fiscales du Comité des Affaires Fiscales et il a bénéficié d’un soutien financier accordé par la Commission des Communautés Européennes. Il est publié sous la responsabilité du Secrétaire Général de l’OCDE.

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* Les éditions antérieures de ce rapport étaient publiées sous les titres La situation des salariés au regard de l’impôt et des transferts sociaux (éditions 1996 à 1998) et La situation des ouvriers au regard de l’impôt et des transferts sociaux (éditions avant 1996).

© OECD/OCDE 2004

TABLE OF CONTENTS Part I.

BASIC METHODOLOGY AND MAIN RESULTS ...................................................................................................

11

Basic methodology...................................................................................................................................................... Review of results for 2003........................................................................................................................................... Results for 2002 ........................................................................................................................................................... Historical trends ..........................................................................................................................................................

11 12 21 22

SPECIAL FEATURE: THRESHOLDS FOR PAYING INCOME TAX AND SOCIAL SECURITY CONTRIBUTIONS...........

29

1. 2. 3. 4. 5.

Introduction ................................................................................................................................................................. Defining and measuring the threshold for paying income tax .............................................................................. Personal income tax – thresholds and tax rates...................................................................................................... Social security contributions – thresholds and tax rates ....................................................................................... Conclusions..................................................................................................................................................................

29 30 32 34 35

Part II. COMPARATIVE TABLES AND CHARTS................................................................................................................

85

A.

TAX BURDENS, 2003 (TABLES)..................................................................................................................................

87 88 89 90

8. 9. 10. 11.

Income tax, by family-type and wage level (as % of gross wage), 2003................................................................ Employee contributions, by family-type and wage level (as % of gross wage), 2003......................................... Income tax plus employee contributions, by family-type and wage level (as % of gross wage), 2003 ............ Income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2003........................................................................................................................................... Income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2003 ........................................................................................................................................ Marginal rate of income tax plus employee contributions, by family-type and wage level (as % of gross wage), 2003........................................................................................................................................... Marginal rate of income tax plus employee and employer contributions, by family-type and wage level (as % of labour costs), 2003 ........................................................................................................................................ Increase in net income after 1% increase in gross wage, by family-type and wage level (%), 2003.................. Increase in net income after 1% increase in labour costs, by family-type and wage level (%), 2003 ............... Annual gross wage and net income, by family-type and wage level (in US dollars), 2003................................ Annual labour costs and net income, by family-type and wage level (in US dollars), 2003.............................

B.

TAX BURDENS, 2002 (TABLES).................................................................................................................................. 101

A. B. C. D.

1. 2. 3. 4. 5. 6. 7.

91 92 93 94 95 96 97 99

12. 13. 14. 15.

Income tax, by family-type and wage level (as % of gross wage), 2002................................................................ 102 Employee contributions, by family-type and wage level (as % of gross wage), 2002......................................... 103 Income tax plus employee contributions, by family-type and wage level (as % of gross wage), 2002 ............ 104 Income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2002........................................................................................................................................... 105 16. Income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2002 ........................................................................................................................................ 106 17. Marginal rate of income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2002........................................................................................................................................... 107 18. Marginal rate of income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2002................................................................................... 108

© OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

19. 20. 21. 22.

Increase in net income after 1% increase in gross wage, by family-type and wage level (%), 2002.................. Increase in net income after 1% increase in labour costs, by family-type and wage level (%), 2002 ............... Annual gross wage and net income, by family-type and wage level (in US dollars), 2002................................ Annual labour costs and net income, by family-type and wage level (in US dollars), 2002..............................

C.

TAX BURDENS, 2003 (CHARTS)................................................................................................................................. 115

1. 2. 3. 4.

Income tax, by family-type (as % of gross wage), 2003 ........................................................................................... Employee contributions, by family-type (as % of gross wage), 2003.................................................................... Income tax plus employee contributions less cash benefits, by family-type (as % of gross wage), 2003 ....... Income tax plus employee and employer contributions less cash benefits, by family-type (as % of labour costs), 2003 ........................................................................................................................................ Marginal rate of income tax plus employee contributions less cash benefits, by family-type (as % of gross wage), 2003 .......................................................................................................................................... Marginal rate of income tax plus employee and employer contributions less cash benefits, by family-type (as % of labour costs), 2003..............................................................................................................

5. 6.

109 110 111 113

116 117 118 119 120 121

Part III. METHODOLOGY AND LIMITATIONS ................................................................................................................. 123 METHODOLOGY .................................................................................................................................................................. 123 A. B. C. D. E. F. G. H. I. J. K. L.

Introduction ................................................................................................................................................................. Calculation of gross wage earnings ........................................................................................................................... Estimating gross wage earnings in 2003 ................................................................................................................... Coverage of taxes and benefits................................................................................................................................. Taxpayer characteristics ............................................................................................................................................. Calculation of personal income taxes....................................................................................................................... State and local income taxes..................................................................................................................................... Social security contributions ..................................................................................................................................... Payroll taxes................................................................................................................................................................. Church tax..................................................................................................................................................................... Family cash benefits from general government...................................................................................................... Non-wastable tax credits............................................................................................................................................

123 123 128 128 130 130 131 136 136 137 137 137

LIMITATIONS ........................................................................................................................................................................ 138 A. B. C. D.

General limitations ..................................................................................................................................................... Some specific limitations on the income tax calculation....................................................................................... Limitations to time-series comparisons................................................................................................................... Limitations to marginal rates.....................................................................................................................................

138 139 140 141

A NOTE ON THE TAX EQUATIONS .................................................................................................................................... 141 Part IV. COUNTRY TABLES, 2003 ....................................................................................................................................... 169

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Australia ...................................................................... Austria ......................................................................... Belgium ....................................................................... Canada......................................................................... Czech Republic .......................................................... Denmark...................................................................... Finland ........................................................................ France .......................................................................... Germany...................................................................... Greece ......................................................................... Hungary ....................................................................... Iceland......................................................................... Ireland ......................................................................... Italy ............................................................................. Japan ............................................................................

172 174 176 178 180 182 184 186 188 190 192 194 196 198 200

Korea ........................................................................... Luxembourg................................................................ Mexico ......................................................................... Netherlands ................................................................ New Zealand............................................................... Norway......................................................................... Poland ......................................................................... Portugal ....................................................................... Slovak Republic ......................................................... Spain............................................................................ Sweden........................................................................ Switzerland ................................................................. Turkey .......................................................................... United Kingdom......................................................... United States..............................................................

202 204 206 208 210 212 214 216 218 220 222 224 226 228 230

© OECD/OCDE 2004

Table of Contents/Table des matières

Part V. DESCRIPTION OF TAX/BENEFIT SYSTEMS, 2003 .............................................................................................. 233 Australia....................................................................... Austria.......................................................................... Belgium ....................................................................... Canada......................................................................... Czech Republic........................................................... Denmark...................................................................... Finland ........................................................................ France .......................................................................... Germany...................................................................... Greece ......................................................................... Hungary ....................................................................... Iceland ......................................................................... Ireland ......................................................................... Italy ............................................................................. Japan ............................................................................

235 243 249 257 267 272 278 283 291 299 305 311 317 323 330

Korea ........................................................................... Luxembourg................................................................ Mexico ......................................................................... Netherlands ................................................................ New Zealand............................................................... Norway......................................................................... Poland.......................................................................... Portugal ....................................................................... Spain............................................................................ Slovak Republic.......................................................... Sweden........................................................................ Switzerland ................................................................. Turkey .......................................................................... United Kingdom......................................................... United States ..............................................................

337 344 350 357 363 368 373 379 387 393 398 404 413 418 423

ANNEXES I.

TAX BURDEN TRENDS, 1996-2003............................................................................................................................ 429

I.1. I.2. I.3. I.4. I.5.

Evolution of the tax burden, 1996-2003, single persons without children at 67% of average earnings............ Evolution of the tax burden, 1996-2003, single persons without children at 100% of average earnings.......... Evolution of the tax burden, 1996-2003, single persons without children at 167% of average earnings.......... Evolution of the tax burden, 1996-2003, single parent with two children at 67% of average earnings............. Evolution of the tax burden, 1996-2003, one-earner married couple with two children at 100% of average earnings ..................................................................................................................................................... I.6. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 33%, with two children ................................................................................................................... I.7. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 67%, with two children ................................................................................................................... I.8. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 33%, with no children ..................................................................................................................... II.

430 431 432 433 434 435 436 437

HISTORICAL DATA, 1979-2003 ................................................................................................................................... 439

II.1. Income tax (in % of gross wage), 1979-2003, single persons without children..................................................... II.2. Income tax plus employee contributions (in % of gross wage), 1979-2003, single persons without children . II.3. Income tax plus employee and employer contributions (as % of labour costs), 1979-2003 single persons without children ................................................................................................................................ II.4. Income tax (as % of gross wage), 1979-2003, one-earner family with two children ............................................. II.5. Income tax plus employee contributions less cash benefits (as % of gross wage), 1979-2003 one-earner family with two children ......................................................................................................................... II.6. Income tax plus employee and employer contributions less cash benefits (as % of labour costs), 1979-2003 one-earner family with two children .........................................................................................................................

440 441 442 443 444 445

III.

OVERALL TAX LEVELS AND TAX STRUCTURES IN OECD MEMBER COUNTRIES, 1990-2001 ......................... 447

A. B.

Tax revenues expressed as a percentage of GDP at market prices, 1990-2001 .................................................. 448 Tax revenues from personal income taxes as a percentage of GDP and total taxation, 1990-2001.................. 449

IV.

SOURCE OF EARNINGS DATA................................................................................................................................... 451

V.

EXCHANGE RATES AND PURCHASING POWER PARITIES OF NATIONAL CURRENCIES, 2003 ....................... 455

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© OECD/OCDE 2004

TABLE DES MATIÈRES Partie I. A. B. C. D.

47

Méthodologie de base ............................................................................................................................................... Examen des principaux résultats pour l’année 2003.............................................................................................. Résultats pour l’année 2002....................................................................................................................................... Évolution observée.....................................................................................................................................................

47 48 58 60

ÉTUDE SPÉCIALE : SEUILS D’ASSUJETTISSEMENT À L’IMPÔT SUR LE REVENU ET AUX COTISATIONS DE SÉCURITÉ SOCIALE.............................................................................................................................................

67

1. 2. 3. 4. 5.

Introduction ................................................................................................................................................................. Définition et mesure du seuil d’assujettissement à l’impôt sur le revenu ......................................................... Impôt sur le revenu des personnes physiques – seuils et taux d’imposition .................................................... Cotisations de sécurité sociale – seuils et taux d’imposition ............................................................................... Conclusions..................................................................................................................................................................

67 68 71 73 74

Partie II. TABLEAUX ET GRAPHIQUES COMPARATIFS ..................................................................................................

85

A.

CHARGES D’IMPÔT, 2003 (TABLEAUX)....................................................................................................................

87

1. Impôt sur le revenu, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 ..................... 2. Cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 .............. 3. Impôt sur le revenu et cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003........................................................................................................................................ 4. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 ......................................................... 5. Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2003................................... 6. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003......................................... 7. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2003 ............................................................................................................................................. 8. Augmentation du revenu net après augmentation de 1 % du salaire brut, par catégorie de famille et niveau de salaire (en %), 2003............................................................................................................................... 9. Augmentation du revenu net après augmentation de 1 % des coûts bruts de main-d’œuvre, par catégorie de famille et niveau de salaire (en %), 2003.................................................................................... 10. Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des EU), 2003.......... 11. Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des EU), 2003 ...........................................................................................................................................

88 89

B.

8

MÉTHODOLOGIE DE BASE ET PRINCIPAUX RÉSULTATS.............................................................................

90 91 92 93 94 95 96 97 99

CHARGES D’IMPÔT, 2002 (TABLEAUX).................................................................................................................... 101

12. Impôt sur le revenu, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 ..................... 13. Cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 .............. 14. Impôt sur le revenu et cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002........................................................................................................................................ 15. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 .................................................................................................... 16. Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2002................................... 17. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002.........................................

102 103 104 105 106 107

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Table of Contents/Table des matières

18. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2002................................................................................................................. 19. Augmentation du revenu net après augmentation de 1 % du salaire brut, par catégorie de famille et niveau de salaire (en %), 2002............................................................................................................................... 20. Augmentation du revenu net après augmentation de 1% des coûts bruts de main-d’œuvre, par catégorie de famille et niveau de salaire (en %), 2002 .................................................................................... 21. Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des EU), 2002 ........................................................................................................................................... 22. Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des EU), 2002 ........................................................................................................................................... C. 1. 2. 3. 4. 5. 6.

CHARGES D’IMPÔT (GRAPHIQUES)......................................................................................................................... Impôt sur le revenu, par catégorie de famille (en % du salaire brut), 2003......................................................... Cotisations des salariés, par catégorie de famille (en % du salaire brut), 2003.................................................. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille (en % du salaire brut), 2003 ..................................................................................................................... Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille (en % des coûts de main-d'œuvre), 2003 ...................................................................... Taux marginal applicable à l'impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, par catégorie de famille (en % du salaire brut), 2003 ................................................. Taux marginal applicable à l'impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille (en % des coûts de main-d'œuvre), 2003 .........

108 109 110 111 113 115 116 117 118 119 120 121

Partie III. MÉTHODES ET LIMITES DE L’ÉTUDE.............................................................................................................. 145 LES MÉTHODES................................................................................................................................................................... A. Introduction ................................................................................................................................................................. B. Calcul des salaires bruts ............................................................................................................................................ C. Estimations des salaires bruts en 2003 .................................................................................................................... D. Impôts et prestations sociales versées pris en compte ........................................................................................ E. Caractéristiques des contribuables visés ................................................................................................................ F. Calcul des impôts sur le revenu................................................................................................................................ G. Impôts sur le revenu perçus à un niveau autre que celui de l’administration centrale .................................... H. Cotisations de sécurité sociale.................................................................................................................................. I. Taxes sur les salaires et la main-d’œuvre................................................................................................................ J. Impôt paroissial........................................................................................................................................................... K. Prestations en espèces versées aux familles par l’administration....................................................................... L. Crédits d'impôts récupérables..................................................................................................................................

145 145 145 151 152 153 154 155 160 160 161 161 161

LIMITES DE L’ÉTUDE .......................................................................................................................................................... A. Limites de caractère général ..................................................................................................................................... B. Exemples de limites spécifiques affectant le calcul de l’impôt sur le revenu ................................................... C. Limites relatives aux comparaisons de séries chronologiques ............................................................................ D. Limites relatives aux taux marginaux .......................................................................................................................

163 163 163 164 165

NOTE SUR LES ÉQUATIONS FISCALES ............................................................................................................................ 166 Partie IV. TABLEAUX PAR PAYS, 2003 ................................................................................................................................ Corée ........................................................................... Australie ...................................................................... 172 Luxembourg................................................................ Autriche ....................................................................... 174 Mexique....................................................................... Belgique ...................................................................... 176 Pays-Bas ...................................................................... Canada......................................................................... 178 Nouvelle-Zélande ...................................................... République tchèque ................................................. 180 Norvège ....................................................................... Danemark.................................................................... 182 Pologne........................................................................ Finlande ...................................................................... 184 Portugal ....................................................................... France .......................................................................... 186 République slovaque ................................................ Allemagne ................................................................... 188 Espagne....................................................................... Grèce ........................................................................... 190 Suède........................................................................... Hongrie........................................................................ 192 Suisse........................................................................... Islande ......................................................................... 194 Turquie ........................................................................ Irlande ......................................................................... 196 Royaume-Uni .............................................................. Italie ............................................................................. 198 États-Unis.................................................................... Japon............................................................................ 200

© OECD/OCDE 2004

171 202 204 206 208 210 212 214 216 218 220 222 224 226 228 230

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Partie V. DESCRIPTION DES SYSTÈMES D'IMPÔTS ET DE PRESTATIONS SOCIALES, 2003 ................................... 233 Corée ........................................................................... Luxembourg................................................................ Mexique ...................................................................... Pays-Bas ...................................................................... Nouvelle-Zélande ...................................................... Norvège....................................................................... Pologne ....................................................................... Portugal ....................................................................... Espagne....................................................................... République slovaque................................................ Suède .......................................................................... Suisse .......................................................................... Turquie ........................................................................ Royaume-Uni .............................................................. États-Unis....................................................................

337 344 350 357 363 368 373 379 387 393 398 404 413 418 423

I. ÉVOLUTION DE LA CHARGE FISCALE SUR LES SALAIRES, 1996-2003 .............................................................. I.1. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 67 % du salaire d'un ouvrier moyen..................................................................................................................................................... I.2. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 100 % du salaire d'un ouvrier moyen..................................................................................................................................................... I.3. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 167 % du salaire d'un ouvrier moyen..................................................................................................................................................... I.4. Évolution de la pression fiscale, 1996-2003, parent isolé ayant deux enfants, salaire égal à 67 % du salaire d'un ouvrier moyen .................................................................................................................................. I.5. Évolution de la pression fiscale, 1996-2003, couple marié disposant d'un salaire unique égal à 100 % du salaire d'un ouvrier moyen et ayant deux enfants............................................................................................ I.6. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100 % et l'autre à 33 % du salaire d'un ouvrier moyen, et ayant deux enfants .............................................................. I.7. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100 % et l'autre à 67 % du salaire d'un ouvrier moyen, et ayant deux enfants .............................................................. I.8. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100 % et l'autre à 33 % du salaire d'un ouvrier moyen, et sans enfant............................................................................

429

Australie ...................................................................... Autriche ....................................................................... Belgique ...................................................................... Canada......................................................................... République tchèque ................................................. Danemark.................................................................... Finlande ...................................................................... France .......................................................................... Allemagne ................................................................... Grèce ........................................................................... Hongrie........................................................................ Islande......................................................................... Irlande ......................................................................... Italie............................................................................. Japon............................................................................

235 243 249 257 267 272 278 283 291 299 305 311 317 323 330

ANNEXES

II. II.1. II.2. II.3.

LES DONNÉES HISTORIQUES, 1979-2003............................................................................................................... Impôt sur le revenu (en % du salaire brut), 1979-2003, célibataire sans enfant ................................................. Impôt sur le revenu et cotisations des salariés (en % du salaire brut), 1979-2003, célibataire sans enfant ... Impôt sur le revenu et cotisations des salariés et des employeurs (en % des coûts de main-d'œuvre), 1979-2003 célibataire sans enfant ............................................................................................................................. II.4. Impôt sur le revenu (en % du salaire brut), 1979-2003, couple marié avec un seul salaire et ayant deux enfants ................................................................................................................................................. II.5. Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut), 1979-2003 couple marié avec un seul salaire et ayant deux enfants.................................................................... II.6. Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versées (en % des coûts de main-d'œuvre), 1979-2003, couple marié avec un seul salaire et ayant deux enfants .... III. A. B.

430 431 432 433 434 435 436 437 439 440 441 442 443 444 445

NIVEAU D'IMPOSITION GLOBALE ET STRUCTURE FISCALE DANS LES PAYS MEMBRES DE L'OCDE, 1990-2001...................................................................................................................................................................... 447 Recettes fiscales exprimées en pourcentage du PIB aux prix du marché, 1990-2001........................................ 448 Produit des impôts sur le revenu des personnes physiques en pourcentage du PIB et du total des recettes fiscales,1990-2001 ................................................................................................................................. 449

IV.

SOURCES DES DONNÉES CONCERNANT LES GAINS.......................................................................................... 451

V.

TAUX DE CHANGE ET PARITÉS DE POUVOIR D'ACHAT DES MONNAIES NATIONALES, 2003 ...................... 455

10

© OECD/OCDE 2004

Part I

BASIC METHODOLOGY AND MAIN RESULTS This Report provides unique information for each of the 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 effective tax burden for one- and two earner families, 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 its the thirty Member countries. The methodology followed in this Report is set out briefly in Section A and described in more detail in Part III of this report. The present edition provides estimates of tax burdens and of the tax ‘wedge’ between labour costs and net take-home pay for 2003, summarised in Section B below. Section C in Part III specifies how wage levels of the average production worker in 2003 have been estimated. The report also presents definitive results for 2002 and discusses the changes between 2002 and 2003 (see Section C). Section D reviews historical changes in tax burdens.

A.

BASIC METHODOLOGY

This section briefly introduces the methodology employed for this report, which focuses on employees. It is assumed that their annual income from employment is equal to a given fraction of the average gross wage earnings of adult, full-time workers in the manufacturing sector of each OECD economy also referred to as the APW wage. Additional assumptions are made regarding other relevant personal circumstances of these wage earners to enable their tax/benefit position to be determined. The taxes included in the present report are confined to personal income tax, social security contributions, and payroll taxes, (which, in this report are aggregated with employers’ 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, as well as all other kinds of taxes – e.g. corporate income tax, net wealth tax and consumption taxes – are not taken into account in this report. The benefits included are those paid by general government as cash transfers, usually in respect of dependent children. Personal average tax rate is the term used when personal income tax and/or employees’ social security contributions are expressed as a percentage of gross wage earnings. Net personal average tax rate 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. Tax wedges – a measure of the difference between labour costs to the employer and the corresponding net take-home pay of the employee – are calculated by expressing the sum of personal © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

income tax, employee plus employer social security contributions together with any payroll tax, minus benefits as a percentage of labour costs. To determine a measure of total labour costs, employer social security contributions and – in some countries – payroll taxes are added to gross wage earnings of employees. Of course, it should be recognised that this measure may not reflect the true labour costs faced by employers. Thus, Taxing Wages seeks to determine the combined effect of personal income taxes, social security contributions and family cash benefits on the net incomes of various illustrative family-types and on the labour costs faced by employers. Information is provided on employees at comparable levels of income. Key results are highlighted in the following section. Part II contains detailed results for both 2003 and 2002.

B.

REVIEW OF RESULTS FOR 2003

Table I.1 shows gross wage earnings of the average production worker in each OECD Member country for years 2002 (column 1) and 2003 (column 2). The annual change of the nominal wage of an average

Table I.1. Comparison of wage levels Gross wage in national currency

Australia Austria Belgium Canada Czech Rep. Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

12

Annual change 2003/2002 ( in percentage)

2002 (1)

2003 (2)

Gross Wage (3)

Inflation1 (4)

Real wage before tax (5)

Change in personal Average tax rate2 (6)

48 568 23 881 30 629 38 867 206 412 304 925 27 682 21 978 32 902 11 395 1 077 816 2 567 086 25 477 21 408 4 254 270 22 885 416 31 358 59 702 30 575 39 912 292 200 26 352 8 410 137 316 16 360 237 820 64 169 9 938 274 440 19 420 32 360

50 732 24 405 31 238 40 103 220 773 316 772 28 888 22 533 33 810 11 908 1 164 915 2 694 083 26 939 22 114 4 200 199 24 467 930 32 198 62 687 31 790 41 452 307 307 27 193 8 677 150 000 16 975 247 908 65 256 12 233 294 119 20 276 33 459

4.5 2.2 2.0 3.2 7.0 3.9 4.4 2.5 2.8 4.5 8.1 4.9 5.7 3.3 –1.3 6.9 2.7 5.0 4.0 3.9 5.2 3.2 3.2 9.2 3.8 4.2 1.7 23.1 4.4 3.4

2.5 1.4 1.4 3.7 2.0 2.4 1.4 1.6 0.8 3.4 5.2 2.5 4.1 2.3 –0.9 3.8 2.3 4.4 2.4 2.0 3.2 1.4 3.2 8.7 2.9 2.4 0.7 30.3 3.1 2.4

1.9 0.7 0.6 –0.5 4.9 1.5 2.9 0.9 1.9 1.1 2.7 2.4 1.6 1.0 –0.4 3.0 0.3 0.6 1.5 1.8 1.9 1.7 0.0 0.5 0.8 1.8 0.9 –5.6 1.2 0.9

–0.1 0.3 –0.6 0.2 0.4 0.0 –0.3 –0.4 0.4 –0.4 –3.8 0.2 –0.1 –0.9 0.2 0.0 0.4 0.7 –0.7 0.5 –0.0 0.0 0.1 0.4 –0.8 0.4 –0.0 –0.3 0.2 –0.2

1. Estimated percentage change in the total consumer price index. 2. Difference in the personal average tax rate of the average production worker (single without children) between 2002 and 2003. Sources: Country submissions; OECD Economic Outlook, June 2003.

© OECD/OCDE 2004

Basic Methodology and Main Results

production worker – shown in column 3 – varied between –1.3 per cent (Japan) and 23.1 per cent (Turkey). To a large extent, this significant spread reflects the different inflation levels of individual OECD countries – see column 4 of Table I.1. The annual change of real wage levels (before personal income tax and employee social security contributions) is found to be in the 0–3 per cent range for almost all countries; see column 6 of Table I.1. Only the Czech Republic (4.9 per cent), Japan (–0.4 per cent), Canada (–0.5 per cent) and Turkey (–5.6 per cent) show changes in real wage before tax outside this range. The real disposable wage of the average production worker is also influenced by the change in the personal average tax rate – shown in column 6 of Table I.1. In 2003, in almost all countries the change of this tax burden measure at the average production workers’ wage level remained between minus and plus one per cent. The only exception is in Hungary where the tax burden dropped by 3.8 percentage points. Table I.2 summarises personal average tax rates – defined as income tax plus employee social security contributions as a percentage of gross wage earnings – in 2003. At the average earnings level, single workers without children pay over 40 per cent of their annual wages in personal income tax and employee social security contributions in Belgium, Denmark and Germany. In Greece, Ireland, Japan, Korea, Mexico, Portugal, the Slovak Republic and Spain the personal average tax rate was below 20 per cent. The mix of taxes paid out of gross wage earnings varies greatly between countries. Chart I.1 provides a graphical representation of the personal average tax rate decomposed between income tax and employee social security contributions. Average production workers in Australia, Iceland and New Zealand essentially pay only income tax while their counterpart in Greece is virtually paying only social security contributions. Table I.2. Income tax plus employee social security contributions1 (as% of gross wage), 2003 Country2

Australia Denmark Germany Belgium Switzerland Norway Netherlands Korea United States Canada Luxembourg United Kingdom Japan Finland New Zealand Iceland Italy Austria Ireland Sweden France Spain Greece Czech Republic Turkey Poland Portugal Hungary Mexico Slovak Republic

Income tax (1)

Social securitycontributions (2)

Total payment3 (3)

Gross wage earnings4 (4)

24 32 21 27 10 21 9 2 16 18 9 16 6 25 21 25 18 11 11 24 13 12

0 11 21 14 11 8 25 5 8 7 14 8 12 6 0 0 9 18 5 7 14 6 16 13 15 25 11 13 2 13

24 42 42 41 21 29 34 7 24 25 22 24 17 31 21 25 27 29 16 31 27 19 16 24 30 31 17 26 4 19

37 396 37 243 35 480 34 610 34 543 33 746 33 721 33 620 33 459 32 926 32 873 30 947 29 975 29 255 28 568 28 480 26 819 26 362 25 613 25 111 24 394 21 439 15 494 15 417 15 305 14 511 12 130 9 318 9 298 9 034

0 12 15 6 6 13 3 6

1. Single individual without children at the income of the average production worker. 2. Countries ranked by decreasing gross wage earnings. 3. Due to rounding total may differ one percentage point from aggregate of columns for income tax and social security contributions. 4. Dollars with equal purchasing power. Source : OECD calculations based on country submissions.

© OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Chart I.1. Percentage of gross wage earnings paid in income tax and employees social security contributions, 20031, 2 Income tax

Social security contributions

Denmark Belgium Finland Iceland Australia Sweden Norway Germany New Zealand Canada Italy United States United Kingdom Turkey France Hungary Spain Czech Republic Ireland Austria Switzerland Luxembourg Netherlands Slovak Republic Poland Japan Portugal Mexico Korea Greece 0

14

5

10

15

20

25

30

35 %

1. Countries ranked by decreasing tax burden . 2. Single workers at the income level of the average production worker. Source: OECD calculations based on country submissions.

© OECD/OCDE 2004

Basic Methodology and Main Results

Chart I.2.

Income tax plus employee contributions less cash benefits, by family-type (as % of gross wage), 20031, 2 Single person no child

Married one-earner couple 2 children

Denmark Germany Belgium Netherlands Poland Finland Sweden Turkey Austria Norway Italy France Hungary Iceland Canada United Kingdom Czech Republic United States Australia Luxembourg Switzerland New Zealand Slovark Republic Espagne Japan Portugal Ireland Greece Korea Mexico -5

0

5

1. Countries ranked by decreasing single no child rates. 2. Corresponds to Table 4 , column 2 and 5. Source: OECD calculations based on country submissions.

© OECD/OCDE 2004

10

15

20

25

30

35

40

45

50 %

15

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Many OECD countries provide a fiscal benefit to families with children relative to single individuals through advantageous tax treatment and/or cash transfers. Chart 1.2 provides the burden of income tax plus employee social security contributions less cash benefits for single individuals at 100 per cent of the earnings of an average production worker and for a married one-earner couple with two children at the same earnings level. The savings realised by a one-earner married couple is greater than 20 per cent of earnings in Belgium, Germany, Hungary, Iceland and Luxembourg. In contrast, the burden is virtually the same (the gap is less than 1 per cent of gross earnings) in Greece, Korea, Mexico, New Zealand and Turkey. It is interesting to note that when cash benefits are taken into account, married one-earner couples face a negative burden in Ireland and Luxembourg because cash benefits exceed the income tax and social security payments. In most OECD countries, employers pay significant social security contributions. In addition, some countries impose un-earmarked payroll taxes that are distinguished from social security contributions in that they do not create an entitlement to benefit for the corresponding employees and may not even be used to fund social security contributions. For the purposes of this Report, labour costs are defined as being equal to the gross wages paid to employees plus these employer social security contributions and payroll taxes (if any). In 2003, the tax wedge between total labour costs to the employer and the corresponding net take-home pay to single workers without children, at average earnings levels varied widely across OECD countries (See column 4 in Table I.3). The tax wedge exceeded 50 per cent in Belgium and Germany and was lower than 20 per cent in Korea and Mexico. Table I.3.

Income tax plus employees' and employers' social security contributions (as % of labour costs), 20031 Social security contributions

Country2

Belgium Germany Australia Netherlands Switzerland Norway Denmark Luxembourg Canada Korea Finland United States Italy France Austria United Kingdom Japan Sweden Iceland New Zealand Ireland Spain Czech Republic Greece Turkey Poland Portugal Hungary Slovak Republic Mexico

16

Income tax (1)

employee (2)

Employer (3)

Total3 (4)

Labour costs4 (5)

20 17 23 7 9 19 32 8 16 2 20 15 14 9 8 14 5 18 24 21 10 9 9 0 12 5 5 10 5 2

11 17 0 22 10 7 11 12 6 4 5 7 7 10 14 8 10 5 0 0 5 5 9 12 12 21 9 9 9 1

23 17 6 14 10 11 1 12 10 8 19 7 25 29 23 9 12 25 5 0 10 23 26 22 18 17 19 27 28 13

54 52 28 43 29 37 43 32 32 14 44 29 45 48 45 31 27 48 29 21 25 38 44 34 42 43 33 46 41 17

45 187 42 949 39 639 39 045 38 447 38 065 37 453 37 294 36 694 36 488 36 276 36 019 35 690 34 537 34 068 34 004 33 881 33 352 30 112 28 568 28 367 27 999 20 812 19 825 18 596 17 475 15 011 12 770 12 467 10 743

1. Single individual without children at the income level of the average production worker. 2. Countries ranked by decreasing labour costs. 3. Due to rounding total may differ one percentage point from aggregate of columns for income tax and social security contributions. 4. Dollars with equal purchasing power. Source : OECD calculations based on country submissions.

© OECD/OCDE 2004

Basic Methodology and Main Results

It is interesting to look at the constituent components of the tax wedge shown in Table I.3. The portion of labour costs paid in personal income tax is less than 5 per cent in Greece, Korea and Mexico whereas it exceeds 30 per cent in Denmark. The portion representing employee social security contributions also varies widely, ranging from zero per cent in Australia, Iceland and New Zealand to over 20 per cent in the Netherlands and Poland. Employers pay 29 per cent of total labour costs in social security contributions (including payroll taxes where applicable) in France, 28 per cent in the Slovak Republic, 27 per cent in Hungary and 26 per cent in the Czech Republic. In contrast, employers in New Zealand are not subject to these levies, while in Denmark employer contributions are negligible. As a percentage of labour costs, the total of employee and social security contributions exceed 25 per cent of total labour costs in half of the OECD countries. They exceed one-third of total labour costs in 10 OECD countries: Austria, Belgium, the Czech Republic, France, Germany, Greece, Hungary, Netherlands, Poland and the Slovak Republic. This result is not surprising given that the social security contribution revenues in these countries amounted to more than 25 per cent of their Gross Domestic Product in 2001 (See Annex IV). Clearly, the impact of taxes and benefits on worker’s take-home pay varies greatly among OECD countries. Such wide variations in the size and make-up of tax wedges reflect in part differences in: i) the overall ratio of aggregate tax revenues to Gross Domestic Product (see Annex IV); and, ii) the share of personal income tax and social security contributions in national tax mixes. This Section continues by commenting on Tables 1–11 and Charts 1–6 included in Part II, Sections A and C. All these summary tables show results for eight family-types, characterised by different family status (single/married, 0–2 children), economic status (one-/two-earner household) and wage level (33 per cent, 67 per cent, 100 per cent and 167 per cent of annual gross wage earnings of an average production worker). Table 1 in Part II, Section A shows personal income tax due as a percentage of gross wage earnings. For single persons without children at the wage level of an average production worker (APW) – see column 2 of the table – the average income tax rate varies between 0 per cent (Greece) and 31.8 per cent (Denmark). In most OECD Member countries, at the APW wage level, the income tax burden for one-earner married couples with two children is substantially lower than that faced by single persons (compare columns 2 and 5). This difference is clearly illustrated in Chart 1 (see Part II, Section C). In 9 OECD countries, the income tax burden faced by a one-earner married couple with two children is less than half that faced by a single individual (Germany, Hungary, Ireland, Japan, Luxembourg, Portugal, the Slovak Republic, Spain and the United States). In contrast, there is no difference in Australia, Finland, Greece, Mexico, New Zealand, Sweden and Turkey. Germany is the only OECD Member country where a married average production worker faces a tax burden less than zero. This result is due to a non wastable tax credit, whereby credit amounts in excess of the taxes otherwise due are paid to the family, resulting in a tax burden of –1.5 per cent. Similarly, in four countries – Germany, Mexico, the United Kingdom and the United States – single parents with two children earning two-thirds of the APW wage receive payments corresponding to the portion of their non wastable credits exceeding the taxes otherwise due. As a consequence, for these cases column 4 of Table 1 also shows a negative tax burden. In six other countries – Greece, Hungary, Ireland, Luxembourg, Portugal and Spain – this family-type effectively pays no income tax. A comparison of columns 5 and 6 in Table 1 demonstrates that if the previously non-employed spouse finds a job which pays one-third of the APW wage level, the income tax burden of the family (now expressed as a percentage of 1.33 times the APW wage level) will in most cases (slightly) rise. However, the tax burden actually falls in eleven countries: Korea (–0.2 percentage points), New Zealand and Turkey (–0.9 percentage points), Italy (–1.1 percentage points), Hungary (–1.2 percentage points), Austria (–1.5 percentage points), Sweden (–1.6 percentage points), the Netherlands (–1.7 percentage points), Australia (–3.3 percentage points), Finland (–3.6 percentage points), and Mexico (–4.8 percentage points). © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

An important consideration in the design of an income tax is progressivity – the percentage income tax burden increases with income. By comparing columns 1, 2, and 3 in Table 1, one can gain an insight into how progressive the income tax system is. When one compares the income tax burden of single individuals at 100 per cent of the APW wage level with their counterparts at 167 per cent (columns 2 and 3), the lower paid worker always faces a lower tax burden. Similarly, single individuals at 67 per cent of the APW wage level pay an even lower percentage of their income in income tax (columns 1 and 2). Finally, when one compares the lowest paid single person with the highest paid, the burden faced by single individuals at 67 per cent of the APW wage level is less than one-quarter of the burden faced by their counterparts at 167 per cent in seven OECD countries: Mexico (the burden is negative), Greece (the burden is eliminated), the Netherlands and Portugal (approximately three twentieths) and Hungary, Korea and Luxembourg (approximately one-fifth). Table 2 shows employees’ social security contributions as a percentage of their gross wage earnings. For a single worker without children at the APW wage level (column 2) the rate of contributions varies between zero per cent (Australia and New Zealand) and 25.4 per cent (the Netherlands). Only two OECD Member countries – Australia and New Zealand – levy no social security contributions at all on employees, though they are very low for employees in Iceland and Mexico (less than 2 per cent). Social security contributions are usually levied at a flat rate on all earnings, i.e. without any exempt threshold. In a number of OECD Member countries a ceiling applies. However, this ‘capping’ provision usually applies to wage levels higher than 167 per cent of the APW wage. This particular rate structure is reflected in a roughly constant average burden of employee social security contributions for most countries over the whole range of 33 per cent to 167 per cent of APW earnings as indicated in Table 2. Some typical examples of the proportional burden of employee social security contributions for all family-types at all wage levels considered here, are Poland (25 per cent), Austria (18.1 per cent), Greece (15.9 per cent), Turkey (15 per cent), the Slovak Republic (12.8 per cent), the Czech Republic and Hungary (12.5 per cent), Japan (11.6 per cent), Portugal (11 per cent), Italy (9.2 per cent), Norway (7.8 per cent), and the United States (7.7 per cent). Also, with the exception of the Netherlands, at the 100 per cent APW wage level all OECD Member countries impose the same burden of social security contributions on employees, regardless of their family status (see Chart 2). Table 3 presents the combined burden of the personal income tax (shown in Table 1) and social security contributions (shown in Table 2), again expressed in the form of average tax rates. A single person at the APW wage level without children is liable to an average tax plus contributions burden of over 40 per cent in Denmark (42.4 per cent), Germany (41.9 per cent) and Belgium (40.6 per cent). At the other extreme, the personal average tax rate is below 20 per cent in Mexico (4.4 per cent), Korea (6.8 per cent), Greece (15.9 per cent), Ireland (16.4 per cent), Portugal (16.6 per cent), Japan (17.4 per cent), Spain (18.5 per cent), and the Slovak Republic (19.1 per cent). The addition of social security contributions to the average tax rate reduces the progressivity noted in the discussion of Table 1 as well as the proportional fiscal savings enjoyed by families. The overall tax burden of single individuals at 67% of the APW wage level is, based on the simple average across OECD countries, only one-third lower than their counterparts at 167 per cent rather than the average savings of over one-half noted for personal income taxes alone. The average fiscal savings observed for married one-earner couples with two children at 100 per cent of the APW wage level relative to single individuals falls from two-fifths to one-fifth per cent. These reductions are not unexpected given the observation that the average social security contribution rates tend to be the same across all family types.

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Table 4 exhibits the combined burden of income tax and employee social security contributions, in the form of net personal average tax rates as the levies due have been reduced by the amount of cash benefits each specific family-type is entitled to. Chart 3 illustrates this burden for single individuals without children and married one-earner couples with two children, respectively. Comparing Tables 3 and 4, the average tax rates for families with children (columns 4–7) are lower in Table 4, because many OECD countries support families with children through cash benefits. A lower burden is observed © OECD/OCDE 2004

Basic Methodology and Main Results

for a single individual without children at 67 per cent of the APW only in the case of Canada as this person is entitled a cash transfer as a way of mitigating the burden imposed by the federal consumption tax (further details can be found in the country chapter contained in Part V of this Report). Cash benefits are provided in a majority of OECD countries. For the case of single parents with two children earning 67 per cent of the APW wage level, 22 countries provide benefits that range from 27.8 per cent of income (Austria) to 5.6 per cent (Poland) and average 17.4 per cent. The benefit exceeds 25 per cent of income in 3 other countries: Ireland (27.6 per cent), Australia (26.6 per cent) and Denmark (25.4 per cent). For a one-earner married couple with two children earning 100 per cent of the APW wage level, the number of countries providing benefits falls to 21 and the benefits relative to income are less generous, ranging from 18.5 per cent (Austria) to 0.2 per cent (New Zealand) and averaging 8.7 per cent. This reduction in the importance of cash benefits can be attributed to three reasons: single parents may be eligible for more generous treatment; the benefits themselves may be fixed; and/or the benefits may be subject to income testing. Table 5 and Chart 4 extend the presentation to include employers’ social security contributions. In this case total levies due minus transfers received are expressed as a percentage of total labour costs, defined as gross wage plus employers’ social security contributions (including payroll taxes). The gap between labour costs and the corresponding net take-home pay is also known as the ‘wedge’. In the case of a single person at the APW wage level the wedge ranges from 14.1 per cent (Korea) and 17.3 per cent (Mexico) to 52.0 per cent (Germany) and 54.5 per cent (Belgium). For a one-earner married couple with two children at the same wage level the wedge is lowest in Ireland (7.4 per cent) and Iceland (8.9 per cent) and highest in Poland (41.3 per cent) and Turkey (42.1 per cent). The wedge tends to be lower for a married couple with two-children at this wage level than for single individual without children due to receipt of cash benefits and/or more advantageous tax treatment. It is also interesting to note that the wedge for a single parent with two children earning 67 per cent of the APW wage level is less than zero in Australia (–0.4 per cent), the United Kingdom (–10.8 per cent) and Ireland (–15.3 per cent). This result is due to the fact that the cash benefits received by these families as well as the value of any applicable non wastable tax credits exceed the sum of the tax due and the total contributions. Table 6 and Chart 5 show the incremental change to personal income tax and employee social security contributions less cash benefits when gross wage earnings rise marginally. In most cases, personal income tax and employee social security contributions absorb 25–50 per cent of a worker’s pay rise for single individuals without children at 100 per cent of the APW wage level. However, in two OECD countries these individuals face higher marginal rates – in Belgium (54.8 per cent) and Germany (58.0 per cent). Korea (10.1 per cent), Mexico (15.5 per cent) and Japan (22.9 per cent) have the lowest marginal tax rates. In approximately half the countries, the marginal tax rate for married one-earner couples at the APW wage level is the same as for single persons with no children, or is within 5 percentage points. The marginal rate is more than 5 percentage points lower for the married one-earner couple in 7 countries: Luxembourg (23.2 percentage points lower), France (11.6 percentage points lower), Spain (10 percentage points), the Slovak Republic (8.7 percentage points), Germany (7.2 percentage points), Switzerland (5.8 percentage points) and Denmark (5.5 percentage points). By contrast, in Iceland (6.7 percentage points higher), the Czech Republic (12.9 percentage points higher), the United States (16.0 percentage points), Canada (18.2 percentage points), New Zealand (30 percentage points) and the United Kingdom (37 percentage points), the marginal rate for married one-earner couples with two children is more than 5 percentage points higher than it is for single persons with no children. These higher marginal rates are due to the existence of income-tested tax reliefs and/or cash transfers. When an income-tested measure is being phased out, the reduction in the relief or benefit compounds the increase in the tax otherwise payable. For example, the Earned Income Tax Credit in the United States is an income-tested tax relief and during its’ phase-out, the marginal tax rate is correspondingly increased. These programmes are set out in greater detail in the relevant country chapters, in Part V of the Report. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 7 and Chart 6, which also take into account employers’ social security contributions (including payroll taxes), trace the ‘all-in’ marginal tax rate, or marginal wedge. Assuming a marginal increase in labour costs, Table 7 shows the percentage of the rise in labour costs that ends up in the public sector through the personal income tax and both employee and employer social security contributions. As long as the employer contributions increase with the wage bill, the incorporation of these levies into the marginal rate results in an increase relative to the marginal rate faced by workers. In the case of a single worker without children at the APW wage level, the marginal wedge is more than one and a half times greater than the marginal rate faced by workers in eight countries: the Czech Republic, France, Greece, Korea, Mexico, Portugal, the Slovak Republic and Spain. Table 8 shows the percentage increase in net income when gross wage earnings increase by 1 per cent, i.e. the elasticity of after-tax income. Under a proportional tax system, net income would also increase by 1 percent, in which case the elasticity is equal to 1. When an increase of gross wage by 1 per cent leads to a corresponding rise of net take-home pay by only 0.8 per cent, the elasticity is measured as 0.8. The more progressive the system is – at the income level considered –, the lower this elasticity will be. In the case, for example, of the married one-earner household at the APW wage level, column 5 of Table 8 shows that of all OECD Member countries the United Kingdom (0.33), New Zealand (0.47), Iceland (0.58) and Canada (0.59) have, on this measure, the most progressive system of income tax plus employee social security contributions at this income level. At the other extreme, Japan (0.92), France and Poland (0.93) and Korea and Turkey (0.96) are close to a nearly proportional system of income tax plus employee social security contributions – at least at the wage level of average production workers. In the case of single parents with two children earning two-thirds of the APW wage, extremely low elasticity figures are shown for Ireland (0.31) and the United Kingdom (0.25), reflecting the very high marginal rates and low average rates faced by this family-type in these two countries (refer to column 4 in Tables 4 and 6). It is also interesting to note that the elasticity exceeds one for a single individual at 167% of the average earnings in the United Kingdom (1.05) indicating that the income tax system at this point in the income scale is regressive. In other words, a 1 per cent increase in gross pay leads to an increase in net income in excess of 1 per cent. Table 9 provides a different elasticity measure: the percentage increase in net income when labour costs (i.e. gross wage earnings plus employer social security contributions) rise by 1 per cent. In this case social security contributions paid by employers have also been included in the analysis. In most OECD Member countries the value of this elasticity lies between 0.70 and 0.90 for most of the familytypes considered. For one-earner married households at the APW wage level the elasticity is below 0.6 in the United Kingdom (0.33), New Zealand (0.47) and Iceland (0.58). In contrast, the elasticity is greater than 0.9 in Japan (0.92), France and Poland (0.93) and Korea and Turkey (0.96). Table 10 specifies gross wage earnings and net income for the eight selected family-types. After all amounts have been converted into U.S. dollars with the same purchasing power, single workers with the APW wage take home (see Table 10, column 4) over USD 30 000 in Korea (USD 31 345). Average production workers pocket less than USD 10 000 after taxes in Hungary (USD 6 939), in the Slovak Republic (USD 7 311), in Mexico (USD 8 889) and in Poland (USD 9 984). In the case of a one-earner married couple at the average earnings level, families net over USD 30 000 in five countries – Luxembourg (USD 33 728), Switzerland (USD 31 614), Australia (USD 31 553), Korea (USD 31 535) and the United States (USD 30 420) while families net less than USD 10 000 in three countries – the Slovak Republic (USD 8 440), Hungary (USD 8 872) and Mexico (USD 8 889). It is interesting to observe that with the exception of Mexico and Turkey, the one-earner married couple takes home more than the single individual at the APW wage with the average difference equalling more than USD 3 000. The higher take home pay for the one-earner married couple is due to the favourable tax treatment of this family and/or the cash transfers to which they are entitled.

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Labour costs and net income for the selected eight family-types are shown in Table 11. The ‘net’ columns in Tables 10 and 11 are identical, but in Table 11 the amounts in the ‘gross’ column refer to total labour costs for employers instead of wage earnings of employees. Usually, labour costs are found to be much higher, because any employers’ social security contributions (including payroll taxes) are © OECD/OCDE 2004

Basic Methodology and Main Results

now taken into account, except in the case of New Zealand, where employers pay no such contributions. In Denmark, employer contributions for social security are negligible. If measured in US dollars with equal purchasing power, labour costs for single workers earning average wages are the highest in Belgium (USD 45 187) and Germany (USD 42 949), and the lowest in Mexico (USD 10 743) and the Slovak Republic (USD 12 467).

C. RESULTS FOR 2002 This section reviews very briefly the definitive results for 2002 reported in Tables 12–22 of Section B in Part II of the report and what they show about changes between 2002 and 2003. The format of Tables 12-22 is identical to that of Tables 1-11 reviewed in the preceding Section B. Thus, changes between 2002 and 2003 for the various cases considered can be traced by comparing the same columns in Tables 12-22, to those in Tables 1-11. The following commentary on Tables 12-22 focuses on changes in tax burdens and marginal tax rates for single employees without children at the APW wage level (column 2 of the tables) and for married one-earner families with two children at the APW wage level (column 5 of the tables). Comparing the columns 1, 3–4 and 6–8 of the tables would give the results for the remaining six family-types distinguished in this report. Moreover, generally only changes exceeding 1 percentage point for average effective rates and 5 percentage points for marginal effective rates are flagged. Table 12 provides information on personal income tax due as a percentage of gross wage earnings. In just over half of the OECD Member countries, in year 2003 single persons at average earnings paid (slightly) more in income tax than in year 2002. In contrast, the average income tax rate fell (somewhat) in 10 countries. Changes between 2002 and 2003 in average income tax rates rarely exceeded one percentage point, the exception being Hungary where the burden dropped by 3.9 percentage points; compare column 2 of Tables 1 and 12. The reduction in the income tax burden of one-earner married couples at the APW wage level exceeded one percentage point in the United States (–2.5 percentage points) and Hungary (–3.2 percentage points). Table 13 provides information on employee social security contributions as a percentage of gross wage earnings. For single persons at average earnings, changes between 2002 and 2003 in the average burden of employee social security contributions did not exceed one percentage point, except in the case of the Netherlands where the burden of such contributions increased by 1.6 percentage points and in Japan where the burden declined by 2.0 percentage points; compare column 2 of Tables 2 and 13. The burden of contributions of one-earner married couples at this income level increased by 1.5 percentage points in the Netherlands while it declined by 2.0 percentage points in Japan; compare column 5 of Tables 2 and 13. Table 14 presents the combined burden of income tax and employee social security contributions in the form of personal average tax rates. For single persons at average earning, this fell between 2002 and 2003 in Japan (–1.9 percentage points), and Hungary (–3.9 percentage points). It rose in the United Kingdom (1.1 percentage points). For one earner married couples it fell in Japan (–1.9 percentage points), the United States (–2.4 percentage points) and Hungary (–3.2 percentage points). It rose in the Netherlands (1.1 percentage points) and in Germany (1.2 percentage points). Table 15 provides the combined burden of income tax and social security contributions while levies due have been reduced by the amount of cash family benefits received by each qualifying family-type. For single persons at average earnings, changes between 2002 and 2003 are identical to those reported in Table 14. Reductions in the average tax rate of one-earner married couples exceeding one percentage point are noted for Ireland and Japan (–1.9 percentage points), the United States © OECD/OCDE 2004

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(–2.4 percentage points), and Hungary (–3.7 percentage points). On the other hand, the average tax rate increased in Germany and the Netherlands by 1.2 percentage points, New Zealand (1.6 percentage points), the Czech Republic (2.5 percentage points) and the Slovak Republic (5.7 percentage points); compare column 5 of Tables 4 and 15. Table 16 extends the presentation to include employers’ social security contributions. In this case all amounts due (less transfers received) are expressed as a percentage of total labour costs, that is gross wage plus employers’ social security contributions (including payroll taxes). In most countries, changes in the gap between total labour costs and the corresponding net take-home pay in 2003 as compared to 2002 remain within plus or minus one percentage point. However, for the single average production worker, the wedge in Japan fell by 2.8 percentage points and in Hungary by 3.3 percentage points; compare column 2 of Tables 6 and 16. It increased in Mexico by 1.2 percentage points and in the United Kingdom by 1.6 percentage points. For married one-earner couples (compare column 5 of Tables 5 and 16), the wedge decreased by more than one percentage point in 4 countries: Ireland (1.7 percentage points lower), the United States (2.3 percentage points lower), Japan (3.0 percentage points lower) and Hungary (3.4 percentage points lower). For this family, the wedge increased by more than one percentage point in 5 countries: Mexico (1.2 percentage points), Germany (1.3 percentage points), New Zealand (1.6 percentage points), the Czech Republic (1.9 percentage points), and the Slovak Republic (4.1 percentage points). Table 17 shows the marginal rate of income tax plus employee social security contributions minus benefits by family-type and wage level. Generally, changes between 2002 and 2003 in the marginal rate remain within the range of plus or minus five percentage points. For single workers at average earnings in the Slovak Republic the marginal rate increased by 8.7 percentage points. In Canada their counterparts saw the marginal rate drop by 5.4 percentage points; compare column 2 of Tables 6 and 17. For one-earner married couples with two children at average earnings there are no significant increases. Decreases in excess of 5 percentage points are noted in the United States (–5.2 percentage points), Canada (–6.0 percentage points) and Spain (–9.0 percentage points); compare column 5 of Tables 6 and 17. Table 18 shows the marginal wedge (rate of income tax plus employee and employer social security contributions minus benefits) in 2002. For the two family-types considered here, changes in this marginal wedge are very similar to those reported in Table 17. Therefore, they are not reviewed separately. Table 19 shows the increase in net income (in per cent) after a 1 per cent increase in gross wage for 2002. Table 20 provides the increase in net income given a 1 per cent increase in labour costs for this same year. Given that the results shown in these two tables are directly dependent upon the marginal and average tax rates that have been previously discussed, readers are left to make their own comparsisons. Tables 21 and 22 report background information on levels of labour costs, gross wages and net wages in 2002 and do not require further discussion.

D. HISTORICAL TRENDS

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In previous editions of this Report, historical data dating from 1979 were provided for average productions workers in OECD countries, both for a single individual and a one-earner married couple with two children. Starting with the 1997 Edition, the number of families taken into consideration within this Report was expanded to the eight types that are currently provided. Starting with this Edition, historical data are now provided for these eight family types dating from 1996 and this information is presented in Tables 1 – 8 in Annex I to this Report. For the sake of completeness, Annex 2 to this Report © OECD/OCDE 2004

Basic Methodology and Main Results

continues to provide the updated historical data from 1979 for the average production worker in OECD countries. Evolution of the tax burden, 1996 to 2003 Annex I to this report contains eight tables, each corresponding to one of the family types that are considered in this Report. In each table, information is provided on the change in the burden of income taxes, the burden of income taxes plus employee social security contributions less cash benefits, and the tax wedge that comprises income taxes plus employee and employer social security contributions (including any applicable payroll taxes). Given the wealth of data that these Tables provide, it would not be possible to fully discuss all of the information. Therefore, the discussion will focus on some observable trends over this period and will highlight selected important year-to-year changes. Important trends For OECD countries as a whole, the income tax burden, the net tax burden (personal income tax plus social security contributions less cash benefits) and the tax wedge have all tended to decline when one compares the levels in 2003 with those in 1996 for all of the family types considered in this Report. This observation can be established by calculating the average year-to-year change for OECD countries and then taking the sum of this measure for the entire time period. In terms of the personal income tax burden, it has declined anywhere from 1.4 percentage points (for single parents with two children) to 2.0 percentage points (for married couples with children). The decline in the net tax burden is not as dramatic as it ranges from a fall of 0.4 percentage points (single person at five-thirds of the APW wage level) to a fall of 1.8 percentage points (single parent with two children). The decline in the overall tax wedge is similar ranging from a reduction of 0.4 percentage points (single person at five-thirds of the APW wage level) to a reduction of 1.8 percentage points (single parent with two children). It is also interesting to note that for each of the measures and for each family type, the number of OECD countries where declines are noted is roughly twice as many as the countries for which increases have been observed. Focusing on the personal income tax burden, it is useful to note those countries where there have been the most significant changes. The most significant reductions affecting most or all of the family types are noted in Finland, Hungary, Ireland, Poland, Sweden, Turkey, the United Kingdom and the United States. In the case of Finland, Ireland, Poland, Sweden and Turkey, the reduction in the personal income tax burden is quite consistent across the different family types. When comparing the different family types, the change in burden ranges from –4.0 percentage points to –4.7 percentage points in Finland, –9.4 percentage points to –12.5 percentage points in Ireland, –11.7 percentage points and –12.4 percentage points in Poland, –5.0 percentage points to –6.4 percentage points in Sweden and –7.7 percentage points and –10.0 percentage points in Turkey. In the case of Hungary, the tax reductions have been targeted to lower income earners and families. In the case of single persons, a worker at 167 per cent of the APW wage does not benefit at all from the reduction while their counterparts at 67 per cent and 100 per cent of the APW wage pay 5 percentage points less. For families with children, the tax savings generated from the reduction amounts to over 10 per cent of income. The reductions observed in the United Kingdom and the United States have also been targeted. In the United Kingdom, all families pay less tax as a percentage of income yet, with the exception of single parents with children and a one-earner married couple, the reduction represents no more than 2.5 percentage points. In contrast, the savings to single parents represent 28 percentage points and the savings to a one earner married couple amount to 7 percentage points. In the case of the United States, families with children have been afforded a reduction amounting to between 5.9 and 9.0 percentage points while single persons and a two-earner married couple with no children only save between 2 and 3 percentage points. © OECD/OCDE 2004

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The most significant increases in the personal tax burden are observed in Australia, Austria and Iceland. In Australia, the increase in this measure over the time period in question ranges from 1.3 percentage points (single person at the APW wage level and a two-earner married couple with no children) to 8.4 percentage points (single parent with two children). The increase in Austria affects all family types and varies from a low of plus 0.5 percentage points (single person at two-thirds of the APW wage level) to a high of plus 6.4 percentage points (single parent with two children). In Iceland, the burden has grown for all family types by anywhere between plus 3.6 percentage points (single person at the APW wage level) to plus 7.4 percentage points (single person at two-thirds of the APW wage level and single parents with two children) although some of this increase can be attributed to an upward revision in this year’s Edition to the earnings of the average production worker from 1998 and on. As noted earlier, OECD averages suggest that the net tax burden (personal income tax plus employee social security contributions less cash benefits expressed as a percentage of income) and the tax wedge (net tax burden plus employer social security contributions expressed as a percentage of labour costs) have declined by less than the personal income tax burden. As such, one would expect that changes to social security contributions and cash benefits have mitigated the personal income tax reductions. Looking at changes between these two measures for the various family types and by OECD country, one can observe that in Finland, Sweden, Turkey and the United Kingdom, the reduction in the net tax burden and the wedge are less than that noted for the personal income tax burden. In fact, in Turkey, when social security contributions are taken into account, the tax wedge increases for most family types across the time period in question. It is interesting to note the changes in the net tax burden and the tax wedge for the Netherlands. Employee social security contribution reductions have led to a reduction in the net tax burden for all of the family types considered in this report. The change ranges from minus 4.7 percentage points (oneearner married couple) to minus 11.9 percentage points (single parent with two children). However, increases in employer social security contributions have mitigated the previous gain (the change in the wedge represents between minus 4.3 per cent to plus 0.2 per cent of total labour costs). The changes in social security contributions and cash benefits have had a reverse effect in the case of Australia and Austria where the personal income tax burden has increased. In the case of Australia, when one factors in changes to cash benefits, the previously noted increase in the personal income tax burden has been essentially offset for all family types with the exception of single parents (the net tax burden has increased by 3.8 percentage points). In the case of Austria, when one looks at the wedge, the combined changes in cash benefits and social security contributions have basically eliminated the increase in the personal income tax burden. In comparing the net income tax burden and the wedge, one can observe further increases in the case of Iceland, Japan and Korea. In Iceland, the decline in the value of cash benefits relative to income and increases in employer social security contributions have led to larger increases in these two measures than were noted for the personal income tax burden. For Japan, increased social security contributions have increased the tax wedge by approximately 8 percentage points. In Korea, social security contribution changes have compounded more limited personal income tax increases and, as a result, one can observe that the overall tax wedge has increased by between 7.7 percentage points (single person earning two-thirds of the APW wage and two-earner married couples with no children) to 16.6 percentage points (single parent with two kids). In the discussion of the results for 2003, attention was paid to how the Taxing Wages results could be used to assess the progressivity of personal income taxes as well as evaluating the tax treatment of families versus a single person. The results presented in Appendix I can be used to look at the evolution of these two measures.

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The degree of progressivity of the personal income tax system can be assessed by comparing the burden faced by single persons earning two-thirds of the APW wage with the burden faced by their counterparts earning five-fifths of the APW wage. Hence Annex Table I.1 is compared with Annex Table I.3. For all OECD countries and for all years, the lower paid worker always pays a lower percentage of income in personal income tax than the higher paid worker. © OECD/OCDE 2004

Basic Methodology and Main Results

By comparing the situation in 1996 versus the one in 2003, one can assess whether there has been any change in this measure of progressivity. On average, personal income taxes have become more progressive in OECD countries. In 1996, the personal income tax burden of a single worker earning 67% of the APW wage paid was a little less than one-half that of the worker earning 167% of the APW wage. In 2003, the tax burden of this lower paid worker had fallen to under nine-twentieths of the higher paid worker. When one compares the situation in each OECD country, one observes that personal income taxes have become more progressive in 19 countries although none more so than in Ireland, where the burden of the lower paid person in 1996 was about one-half that of the higher paid worker while in 2003, the burden represents only about one-third. Personal income taxes have become slightly less progressive in 7 OECD countries: Australia, France, Iceland, Japan, Korea, Mexico and the Slovak Republic. The results presented in Annex I Tables I.5 and I.2 can be used to compare the tax burdens faced by a one-earner married couple at the APW wage and the single worker at the same income level. Focusing on the net tax burden (personal income tax plus employee social security contributions less cash benefits), one observes that the average fiscal savings (the difference between the personal income tax rate of a single worker and that of a married one-earner couple) for OECD countries enjoyed by a one-earner married couple relative to a single worker at the APW wage has increased slightly since 1996 from 11.0 per cent of income to 11.4 per cent. The savings for the one-earner married couple has increased in 14 countries and declined in 14 others. In three countries, the fiscal savings has increased by more than 5 percentage points: in Ireland (increasing 7.2 percentage points from 11.8 to 19.0 per cent of income), in the United States (increasing 7.2 percentage points reaching 14.0 per cent of income) and in the United Kingdom (increasing 5.9 percentage points reaching 15 per cent of income). In contrast, the fiscal savings has decreased by more than 5 percentage points in three countries: in Poland (falling 5.7 percentage points from 7.7 to 2.0 per cent of income), in the Slovak Republic (falling 9.5 percentage points since 2000 reaching 12.5 per cent of income in 2003), and Iceland (falling 10.4 percentage points to 21.7 per cent of income). Important year-to-year changes Tax wedges – the difference between labour costs to the employer and the corresponding net takehome pay of the employee – express the sum of personal income tax and all social security contributions minus cash benefits as a percentage of labour costs (see Section A). Generally, changes in the tax wedge between two successive years are limited to between plus and minus three percentage points. Larger changes generally have one of three causes: i) changes in national tax and benefit legislation; ii) the impact of inflation; and, iii) changes in countries reporting practices. In order to better illustrate some of the important year-to-year changes, the discussion will focus on changes in the wedge affecting a one-earner married couple at the APW wage. Since 1996, year-to-year changes exceeding plus or minus 5 percentage points are observed in 8 different OECD countries: Australia (plus 6.2 percentage points in 2002), the Czech Republic (minus 7.8 percentage points in 1998), Iceland (plus 5.9 percentage points in 1998), Italy (minus 5.8 percentage points in 1998), Japan (plus 5.8 percentage points in both 1999 and 2002), Korea (plus 6.3 percentage points in 1997), Mexico (minus 7.8 percentage points in 1999), and Turkey (minus 9.5 percentage points in 1999 and plus 10.1 percentage points in 2000). Among the identified significant year-to-year changes, there are four examples of the impact of major legislative modifications (cause i). The reductions identified in Italy in 1998 and in Turkey in 1999 were caused by significant changes to the personal income tax rate structures in these two countries. The reduction in the wedge noted for the Czech Republic in 1998 can be attributed to the introduction © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

of income tested family benefits in the previous year. The increase in the wedge in Japan in 1999 can be attributed to higher social security contributions. The 10.1 percentage point increase in the wedge in Turkey in 2000 is an example of the impact of inflation (cause ii) where the value of important tax thresholds decline in real terms. The rampant inflation affecting Turkey in the year 2000 led to a significant growth in the APW wage level that in turn led to a greater tax burden for the average production worker. Most of the major year-to-year changes noted here have been caused by changes in country reporting practices (cause iii). The increase in the wedge noted for Korea in 1997 is due to the fact that additional social security contributions have been taken into account as from this year. The higher wedge in Iceland in 1998 can be attributed to the historical revision that has been made to the APW wage level for this Edition that affected every year beginning in this year. The reduction in the wedge noted for Mexico in 1999 is due to the fact that employers’ contributions to privatised social security are no longer reported (see the country chapter in Part 5 for an explanation why this reporting practice was changed). The increases in the wedge noted for Australia and Japan in 2002 are also the result of changes in reporting practices. In the case of Australia, State payroll taxes are included for the first time. Finally, improvements have been made in the reporting of social security contributions for Japan. Historical data, 1979 to 2003 Annex 2 to this report contains six tables showing trends in personal average tax rates and tax wedges for average production workers in OECD countries, as from 1979. Tables 1-3 in Annex I show personal average tax rates and tax wedges for the single average production worker without children over the 1979–2003 period for those countries where data were available. Similarly, Tables 4-6 in Annex I show personal average tax rates and tax wedges for the married average production worker (oneearner household with two young children) over the same period. Single person without children Table II.1 in Annex 2 reveals that over the last twenty-four years the average personal income tax rate has increased in 9 countries and declined in 16 (excluding countries that have become members since 1991). The top increases were found in Belgium (+11.4 percentage points), Iceland (+8.2 percentage points) and Italy (+6.5 percentage points) while the largest reductions were observed in Turkey (–27.4 percentage points), Sweden (–12.7 percentage points) and Ireland (–12.3 percentage points). Over the past 10 years (including all OECD countries), a similar pattern is noted as there have been increases in 10 countries and reductions in 20. The largest increase over this period was recorded in Iceland (+5.3 percentage points) while the most significant declines were observed in Turkey (–12.7 percentage points), Denmark (–12.6 percentage points), Ireland (–12.5 percentage points) and Poland (–11 percentage points). Since the year 2000, the average personal income tax rate has risen in 11 OECD countries and fallen in 19. The largest increase over this period of time has occurred in Iceland (+2.0 percentage points) and Mexico (+1.6 percentage points) while the largest declines have taken place in Hungary (–5.9 percentage points), Luxembourg (–3.9 percentage points) and Ireland (–3.8 percentage points).

26

In order to more fully appreciate changes to a worker’s take-home pay, social security contributions also have to be taken into account. Table II.2 in Annex II presents the burden of income tax plus employees’ social security contributions for a single person at the APW wage level. During this 24-year period the average personal tax rate (including contributions) of single workers without children (excluding countries that have become members since 1991) has increased in 15 OECD countries and declined in only 10. The largest increases are found in Belgium (+15.3 percentage points) and Germany (+10.3 percentage points) while the largest reductions are found in Turkey (–19.4 percentage points) and Ireland (–11.7 percentage points). Over the last 10 years, this measure has increased in 14 countries and fallen in 16 (includes all OECD countries). The most significant increase has occurred in Poland © OECD/OCDE 2004

Basic Methodology and Main Results

(+14.0 percentage points) while the largest declines have been observed in Ireland (–16.3 percentage points), the Netherlands (–7.8 percentage points) and Mexico (–6.9 percentage points). Since the year 2000, there has been a small increase in the burden of income tax plus employee social security contributions in 12 countries (no more than 2 percentage points) and a decline in 18 with the largest declines observed in Hungary (–5.9 percentage points) and Luxembourg (–4.1 percentage points). Table II.3 in Annex II extends the presentation to include employers’ social security contributions – the tax wedge. Over the 1979–2003 period, the tax wedge for a single worker with no children at the APW wage level tended to increase in OECD countries. Since 2000, the tax wedge has increased in 13 OECD countries and declined in 17. Excluding Australia where the significant increase over this period of time is due to a change in reporting practice, increases in excess of 2 percentage points are observed in Iceland and Japan. Declines in excess of 3 percentage points are noted in Hungary, Ireland and Luxembourg. One-earner family with two young children The information in Table II.4 in Annex I parallels that in Table II.1, but now focuses on the oneearner married couple with two children at the average earnings level. Average income tax rate reductions over the time period in question (measured relative to the earliest data point available) exceed 10 percentage points in Turkey (–27.4 percentage points), Hungary (–11.6 percentage points as from 1995), Germany (–11.4 percentage points), Poland (–11.1 percentage points as from 1993), the United Kingdom (–10.7 percentage points) and the United States (–10.2 percentage points). The largest increase occurred in Belgium (+7.8 percentage points). Likewise, the information in Table II.5 in Annex II parallels that in Table II.2 of that annex, but focuses on the married one-earner couple with two children at the APW wage level whereby cash benefits are also taken into account. Trends shown here are largely in line with tax trends for single individuals, but in most countries the net tax and employee contributions burden of one-earner married couples is (much) lower than is the burden of single individuals. In a number of countries, families with children have lower burdens because the cash benefits they receive have offset the tax amounts due. In 1979, the average fiscal savings across OECD countries enjoyed by a one-earner married couple relative to a single person at the same level of earnings amounted to 11.6 per cent of income and decreased slightly to 11.4 per cent of income in 2003. Finally, Table II.6 in Annex II extends the one-earner married couple analysis to include employers’ social security contributions. Over the 1979–2003 period double digit increases (measured relative to the earliest available data point) of the wedge are reported for Greece (+25.0 percentage points), Japan (+12.0 percentage points), Canada (+11.6 percentage points) and New Zealand (+10.0 percentage points). At the other extreme, double digit declines are seen in Ireland (–13.0 percentage points), Turkey (–11.8 percentage points) and Luxembourg (–10.5 percentage points).

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© OECD/OCDE 2004

Chapter 1

SPECIAL FEATURE Thresholds for Paying Income Tax and Social Security Contributions 1.

Introduction

The Tax/benefit position of production workers 1988-1991 included a special feature on tax thresholds for the personal income tax in OECD countries for single persons with only earned income, comparing the situation in 1985 and 1991. This special feature presents updated results for 2003, which are compared to the 1985 figures presented in the previous special feature on income tax thresholds. In addition, it also presents income thresholds and marginal effective tax rates for other family types for 2003, both excluding and including benefits, and thresholds and rates for social security contributions. The minimum level of earnings at which personal income tax must be paid – the income tax threshold – is an important tax policy issue for several reasons. First, it is one of the determinants of the degree of progressivity in an income tax system. Secondly, the threshold where income tax starts being paid may influence the point at which “poverty traps” may become operative, with reference to effective tax rates that take into account both income tax and the means-testing of tax credits and benefits. Thirdly, the tax threshold will impact on the revenue yield from the personal income tax – increasing the threshold is generally costly in terms of revenue forgone. Fourthly, a significant increase in the tax threshold may be used to simplify tax administration by moving a substantial proportion of the population out of the income tax system. On the one hand, this option could greatly reduce aggregate compliance costs of the household sector. On the other hand, as more low-income households find themselves outside the income tax system, it will prove more difficult, for example, to use the income tax as a vehicle for delivering benefits to the needy. In addition to personal income tax, all OECD countries except Australia and New Zealand impose employee social security contributions. These are normally flat rate taxes (although ceilings may apply) and only a few OECD countries apply a threshold. As in the special feature in the Tax/benefit position of production workers 1988-1991, this special feature will mainly focus on the threshold for paying personal income tax, ignoring social security contributions1. This will make the 2003-results comparable to those of 1985. The main reason for ignoring social security contributions is that one otherwise would lose important information about variations in thresholds for paying income tax, as two thirds of the OECD countries do not apply any threshold for social security taxes at all. In addition, marginal personal income tax rates are generally higher than social security contributions in most countries, partly as a result of the higher thresholds for income tax. Furthermore most OECD countries use the income tax system rather than social security contributions as the main vehicle for income redistribution through the tax system. For these reasons, it is interesting to have an analysis of the threshold for paying income tax, although this does not tell the full story. Social security contributions are an important source of revenue in many OECD countries, and thus they can play an important role in labour supply/demand decisions, influence poverty traps and affect the overall progressivity of the tax system. This special feature therefore also includes a separate section on thresholds and rates for the social security contributions made by single individuals without children. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The special feature in the Tax/benefit position of production workers 1988-1991 focused only on single individuals without children and thus also ignored the influence of universal benefits related to children. In recent years many OECD countries have moved from tax allowances to tax credits and, moreover, started to include income testing provisions in the determination of tax reliefs . In an effort to enhance the comparison of personal income tax thresholds across OECD countries, this special feature also reports the thresholds for other family types, both excluding and including (universal) benefits. The calculations are based upon a number of simplifying assumptions which are outlined below. Furthermore, they are consistent with the concepts and data presented elsewhere in Taxing Wages and its predecessor, the Tax/benefit position of production workers. 2.

Defining and measuring the threshold for paying income tax

Measuring the income threshold where personal income tax is first paid raises a number of technical and methodological issues. It is therefore important that the concept and the basis for measuring the income thresholds are clearly defined, even more so when international comparisons are to be made. The income (gross earnings) threshold is defined as that level of gross earnings at which tax is first paid, i.e. the minimum gross earnings level for which there is a positive net income tax liability under the assumption that the taxpayer has no other deductions in measuring taxable income. The level of the income threshold is determined by four factors: • the amount of (standard) tax allowances (SA); • the width of any zero-rated band in the income tax schedule (WZB); • the amount of (standard) tax credits (STC); and • the relevant marginal rate of tax (t). The relationship between these four factors and the level of the gross earning income threshold, Y*, can broadly be measured as: Y* = SA(Y) + WZB + STC(Y)/t, where Y is earned income. This general formula reflects the fact that standard tax allowances and tax credits may be income-related and income-tested. As a simple example, assume the following standard allowances, rate schedule and standard nonincome related tax credits: SA = 1,000 Rate schedule: Income range

0 – 5,000 5,000 – 10,000 10,000 and over

t (%)

0 20 40

STC = 500 Under these assumptions, the income threshold can be calculated as follows: Y* = 1,000 + 5,000 + 500/0.2 = 8,500 The statutory tax rate that applies at the threshold is, as a general rule, the first positive rate, including the rate for central and state/local government income taxes. However, in a situation where tax on the first tax rate band is exhausted by credits, then part of the standard credits will need to be translated into an equivalent threshold amount using the next statutory tax rate. This can be illustrated by the following simple example, assuming the following standard allowances, rate schedule and standard non-income related tax credits: 30

SA = 1,000 © OECD/OCDE 2004

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

Rate schedule: Income range

0 – 1,000 1,000 – 5,000 5,000 and over

t (%)

20 30 40

STC = 300 Under these assumptions, the income threshold can be calculated as follows: Y* = 1,000 + 200/0.2 + 100/0.3 = 2,333, where 200 is the credit that is required to eliminate the tax liability on income falling in the first bracket (0.2 x 1,000) and 100 is the remaining credit which can be used to reduce the tax liability in the second bracket. In order to have a threshold measure that is universally applicable, only standard reliefs as defined in Taxing Wages, are included. In addition to standard reliefs equal to a fixed amount unrelated to income, some countries have income-related standard reliefs. Following the general definition of an income threshold as that level of gross earnings at which tax is first due, the income threshold formula in the case of income-related standard reliefs is given by2: Y* = [1/(1-t*)] x [non-income related SA + WZB + STC/t], where t* is the income-related standard relief rate (not income-tested) – that is the income-related standard relief expressed as a percentage of gross earnings. It is noted that this definition implies a zero threshold in a system with only income-related standard reliefs. If the STC is income-tested, Y* will also depend on phase-out rates etc. All standard allowances and standard credits as defined in Taxing Wages are thus included in the calculations. In some countries, social security contributions are deductible against income tax either as a tax allowance or as a tax credit (or a mixture). This will affect the income thresholds that are calculated in the same manner as any other income-related standard relief 3. This special feature also includes results on the income threshold in cases where cash benefits are provided. The threshold in this case is defined as the income level where income tax ignoring benefits equals the benefits received, which in effect means that benefits are considered as negative income tax. In the case where there is a single statutory tax rate, the income threshold is given by4: Y* = SA + WZB + STC(Y)/t + BEN(Y)/t, where BEN is the amount of (universal) cash benefits. The general formula reflects the fact that both tax credits and cash benefits may be income-related and income-tested. If tax on income falling in the first bracket is exhausted by benefits, then the remaining part is translated into an equivalent threshold amount using the next statutory tax rate in a similar manner as that presented for standard tax credits above. The level of the income threshold, measured in this manner, will vary not only across countries but might also vary within a given country from taxpayer to taxpayer according to such factors as family status; which allowances, credits and benefits are included in the calculation; and, the taxpayer’s marginal (effective) rate of tax. Given the multiplicity of income thresholds for any given country, cross-country comparisons will only be meaningful if both the concept and its constituent components are precisely defined. The basic assumptions applied when calculating the thresholds presented in this special feature are consistent with the methodology adopted in the Taxing Wages report, and may be summarised as follows: • The calculations are made only for taxpayers in the same circumstances based on four chosen family types, e.g. single individuals no children, single individuals two children, one-income earner family no children 5 and one-income earner family two children. © OECD/OCDE 2004

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• All data involved in the calculations are taken from the country chapters and comparative tables (the exceptions being Euro exchange rates, purchasing power parities [PPPs] and consumer price indices [CPIs]). • The base year covered is the same as one of the two in the main text of the report, i.e. 2003. To give an impression of the development in tax thresholds over the past seventeen years, Table 1 presents similar information for the year 1985 for single persons 6 (taken from the 1992 edition of the report, which only presented results for single persons). • All levels of government that levy an income tax or universal cash benefits are covered by the calculations. To the extent that income thresholds as defined above or tax rates differ between central government and state/local government, results for more than one level of government are reported in Table 2. Table 3 reports the combined income tax rates and cash benefits. In addition to the income thresholds at which personal income tax is first paid, both including and excluding benefits, marginal effective tax rates (METRs) at these thresholds (for 2003) are reported. The effective marginal tax rates include both the statutory central and state/local personal income tax rates, and also pick up the effects of income-related and income-tested tax credits and cash benefits. In other words, what is reported is the actual amount of tax paid on the first unit of earned income that exceeds the estimated income threshold 7 . Social security contribution rates are not included in these calculations, but the METRs will be affected to the extent that social security contributions are deductible against income tax. As the calculations are based on a number of simplifying assumptions, care should be exercised when results of the calculations are compared across countries. The main limitations are: • The calculations are subject to the same limitations as the Taxing Wages approach in general. These limitations are describes in Part III of the publication. • Social security contributions are not included in the calculation of income thresholds in Tables 13. As few countries apply a threshold for such contributions, social security contributions would generally be paid at an income level where there is no personal income tax. However, Table 4 reports the effects of including social security contributions. • For reasons of manageability and comparability, a simple and common definition of what is meant by an income threshold has been adopted. This implies that the calculated thresholds do not necessarily apply to all taxpayers in a particular country. 3.

Personal income tax – thresholds and tax rates

Table 1 compares income thresholds where income tax is first paid for single individuals expressed both in local currency units, in purchasing power parity (PPP) terms and as a percentage of earnings of the average production worker (APW). Results are reported for all 30 OECD countries in 2003 and for 23 of the 24 countries that were OECD Members in 1985. Furthermore, CPI-adjusted growth in income thresholds between 1985 and 2003 are presented for each of these 23 OECD countries. The table also gives information about statutory tax rates at the threshold level in 1985 and 20038. Results are reported for both central and state/local tax for the 4 countries where this distinction was reported in 1985, whereas combined rates are reported for all other Member countries.

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The table shows that the CPI-adjusted threshold levels have risen in 14 of the 23 OECD countries between 1985 and 2003 exceeding 40 per cent in 10 countries (Austria, Belgium, Finland, Germany, Iceland, Ireland, Japan, Luxembourg, New Zealand, and the United Kingdom). There has been a real reduction in the threshold level in 7 countries (Australia, Canada, France, Italy, Netherlands, Switzerland, and Turkey)9. For two of the countries where a distinction is made between central and state/local taxes, there is a sharp divergence in the growth of the respective thresholds. For Norway, the threshold for central taxes has fallen in real terms by almost 40 per cent while the threshold for state/ local taxes has increased by over 100 per cent. In contrast, for the United States, the threshold for central taxes has increased in real terms by over 30 per cent while the threshold for state/local taxes has fallen by over 80 per cent. © OECD/OCDE 2004

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

When measuring the thresholds as a percentage of APW earnings in 1985 and 2003, the thresholds have increased in 11 countries while they have decreased in 1010. In the United States the income threshold for central tax increased while the threshold for state/local tax decreased, with the reverse occurring in Norway. Table 1 also shows that the statutory rates at the income thresholds in 2003 are lower than the statutory tax rates in 1985 in 13 countries, while they are higher in 9. In other words, there has been a reduction in tax rates at the threshold levels in most countries. In 7 of 14 the countries where there has been a real growth in threshold levels, the statutory rates in 2003 are lower than the statutory rates in 1985 (Denmark, Germany, Ireland, Japan, Luxembourg, New Zealand and the United Kingdom), while they have increased in 7 countries (Austria, Belgium, Finland, Iceland, Portugal, Spain and Sweden). Of the 7 countries where the threshold levels are reduced, France is the only country where the statutory rate in 2003 is higher than that in 1985. Table 2 reports income thresholds as a percentage of APW earnings and the marginal effective tax rates (METRs) at the threshold level for 2003 for four different family types (single no children, sole parent two children, one-earner family no children11 and one-earner family two children). The results are reported for central tax and state/local tax separately. In 13 of the 30 OECD countries, either tax rates or income thresholds differ between central and state/local tax. In 3 of these countries (Korea, Norway and Spain), the thresholds are the same for central and state/local tax. In the remaining 10 countries, with the exception of Canada and Denmark, the central income tax thresholds are higher than the thresholds applying for state/local tax. In 8 of the 13 countries central rates are higher than local rates, while the opposite is the case in 5 countries. The thresholds for state/local tax are influenced by family type in 9 of the 13 countries, while the state/local METRs are only affected in 4 countries. The central thresholds are influenced by family type in 11 of the 13 countries, while the central METRs are affected in 6 countries. In only 2 of the 13 countries (Finland and Sweden), tax rates and thresholds (both central and state/local) are not affected by family type at all. Table 3 reports income thresholds for income tax (combined central and state/local) and income tax less benefits as a percentage of APW earnings for the four family types mentioned above and the marginal effective tax rates at the corresponding threshold levels for 2003. The reason for comparing income thresholds across countries both including and excluding benefits is that an increasing number of countries provide benefits through the tax system (by non-wasteable tax credits), whereas other countries still mainly provide benefits by the use of cash grants. Such differences in policies are reflected in Table 3, where the income threshold is almost unaltered by the introduction of benefits in some countries whereas the difference is large in other countries. For a single individual without children, the threshold levels in 2003 were 30 per cent of APW earnings on average among the OECD member countries excluding and 31 per cent including benefits, ranging from 0.0 per cent in France, Italy and Turkey and 2.7 per cent in Australia12 to 86.2 per cent in Mexico and 99.9 per cent in Greece (the median being 28 per cent excluding and 29 per cent including benefits). The METRs at the thresholds were 17.1 per cent on average excluding and 18.9 including benefits, ranging from 0.6 per cent in Turkey and 0.8 in Italy to 59 per cent in the United Kingdom and 82.8 per cent in the United States13 (the median being 13.6 per cent excluding and 13.1 per cent including benefits). For a sole parent, the average threshold levels in 2003 were 46.9 per cent of APW earnings excluding and 84.9 per cent including benefits, while the average METRs were 18.1 per cent and 30.4 per cent respectively. The thresholds excluding benefits range from 0.0 per cent in France, Italy and Turkey and 7.5 per cent in Finland to 106.3 per cent in Luxembourg and 108.9 per cent in Greece (the median being 42.3 per cent). Including benefits, the thresholds range from 0.0 per cent in Turkey and 39 per cent in Germany to 138.5 per cent in the Slovak Republic and 155 per cent in Luxembourg (the median being 80.6 per cent). The METRs range from 0.6 per cent in Turkey including and excluding benefits to 59 per cent in the United Kingdom excluding benefits and 61.5 per cent in Australia and 74 per cent in Canada including benefits (the medians being 15 and 30.1 per cent). © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

For a one-income earner family without children, the average threshold levels in 2003 were 41.8 per cent of APW earnings excluding and 43.7 per cent including benefits, while the average METRs were 17.6 per cent and 18.5 per cent respectively. The thresholds range from 0.0 per cent in France, Italy (only excluding benefits) and Turkey and 7.5 per cent in Finland to 86.2 per cent in Mexico and 90.8 per cent in Greece (the medians being 39.2 excluding and 46.6 per cent including benefits). The METRs range from 0.6 per cent in Turkey to 59 per cent in the United Kingdom and 82.9 per cent in the United States both excluding and including benefits (the median being 14 per cent excluding and 15 per cent including benefits). For a one-income earner family with two children, the average threshold levels in 2003 were 53.3 per cent of APW earnings excluding and 91.4 per cent including benefits, while the average METRs were 16.9 per cent and 28.8 per cent respectively. The thresholds range from 0.0 per cent in France, Italy and Turkey and 7.5 per cent in Finland to 99.9 per cent in Germany and 131.6 per cent in Luxembourg excluding benefits. Including benefits the thresholds vary from 0.0 per cent in Turkey and 45.9 per cent in Denmark to 143.3 per cent in Portugal and 211.2 per cent in Luxembourg (the medians being 56.9 excluding and 89.2 per cent including benefits). The METRs range from 0.6 per cent in Turkey both excluding and including benefits to 59 per cent in the United Kingdom excluding benefits and 61.5 per cent in Australia and 74 per cent in Canada including benefits (the median being 14.7 and 28.3 per cent respectively). When comparing single individuals without children and sole parents with two children, the threshold levels are higher for the latter group in 20 countries excluding benefits and 28 countries including benefits while the opposite is not the case in any country. The higher thresholds for sole parents are reflected in higher METRs at these higher thresholds for sole parents in 20 countries including and 9 countries excluding benefits. The United States stands out here, with the METR for singles without children almost double that for sole parents. This is mainly due to the fact that the phase-out rate in the Earned Income Tax Credit is higher for singles without children than for sole parents with two children at the respective thresholds. A similar pattern emerges when comparing one-income earner families with and without children. The threshold levels are higher for families with children in 27 countries including, and 16 countries excluding, benefits. Australia is the only country where the threshold excluding benefits is higher for families without children 14 . The METRs are higher for families with children in 19 of the member countries including benefits, but in only 6 excluding benefits (in this case the METRs are equal in 22 countries). And again, the METR at the threshold level is significantly higher for families without children in the United States. From these comparisons it becomes apparent that income thresholds (and METRs at these thresholds) are higher for families with children, be it sole parents or one-income earner families, than for families without children in most countries. The differences tend to be higher when benefits are included, although the tax system itself favours families with children in several countries in the sense that the income threshold is higher. The income threshold element of tax systems also seems to favour families over single individuals/ parents. If one compares singles without children with one-income earner families without children, the thresholds are higher for the latter group in 22 countries including and 21 countries excluding benefits. Comparing sole parents with two children and one-income earner families with two children, the thresholds are higher for families in about half of the Member countries both including and excluding benefits, whereas the reverse is true in 2 countries excluding benefits (Australia and Netherlands) and 9 countries including benefits (Canada, Denmark, Finland, Greece, Hungary, Netherlands, Norway, the Slovak Republic and the United Kingdom). 4.

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Social security contributions – thresholds and tax rates

The extent to which government social security expenditures are financed by employee social security contributions varies considerably across OECD countries. Australia and New Zealand do not impose employee social security contributions at all, while Iceland has a fairly low fixed amount if wage © OECD/OCDE 2004

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

income is above a certain level. Other countries rely heavily on the use of social security contributions, e.g. Austria, Germany, Netherlands and Poland, where the social security contributions in 2003 are close to or above 20 per cent of gross wage earnings. In addition, the use of social security contributions as a source of revenue has increased over time compared to the use of personal income tax. While total payments of income tax and social security contributions for a single individual at the level of APW earnings fell from about 28 per cent in 1985 to about 25 per cent in 2003 on average among OECD countries, the average rate of employee social security contributions increased from 9 per cent in 1985 to 10.5 per cent in 2003. In fact, Table I.2 in the main publication shows that in 2003 such contributions as a percentage of gross wage earnings are equal to or higher than income tax for a single individual at the level of APW earnings in 14 of the OECD countries. This observation is an indication that one should be careful when comparing the thresholds at which income tax is first paid between countries, as is done in Tables 1-3. Table 4 therefore gives information about thresholds for paying social security contributions and the marginal effective social security contribution rates at these thresholds. In addition, it shows what the total marginal effective tax rates for 2003 are at the thresholds for paying income tax if social security contributions are included. The results are only reported for a single individual at the APW wage level, as payments of social security contributions are generally not influenced by family type. Table 4 shows that in 21 of the 28 OECD countries that collect social security contributions from employees, there is no threshold for paying such contributions (e.g. the tax base is gross wage earnings). Iceland, Ireland and Sweden are the only countries where the thresholds for paying social security contributions are at approximately the same level or higher than the thresholds for paying income tax, whereas the thresholds in Austria, Germany and the United Kingdom are substantially lower than the thresholds for paying income tax (about 50 per cent or more). In some countries, e.g. Canada, Finland, Ireland, Korea and the Netherlands, there is a higher threshold for some elements of social security contributions. Italy, Luxembourg and Mexico have a higher rate at higher income levels, while Belgium has a reduced rate for low wages. Whereas the threshold for paying income tax is about 30 per cent of APW earnings on average among the OECD countries, the average threshold for paying social security contributions is only 5.5 per cent of APW earnings. The marginal effective social security contribution rate at the threshold for paying such contributions is on average 11.3 per cent in the 28 countries that have such contributions, and varies from 1.25 per cent in Mexico and 1.7 per cent in the Netherlands 15 to 25 per cent in Norway and Poland and 38.1 per cent in Germany 16. Table 4 also shows the total marginal effective tax rates, including social security contributions, at the thresholds for paying income tax that were reported in Table 3. The average marginal effective tax rate (METR) increases by almost 12 percentage points, from 16.9 per cent to 28.5 per cent. This means that one should be careful when comparing thresholds for paying income tax and marginal effective tax rates at those thresholds between countries, as the ranking for some countries might be heavily influenced by whether social security contributions are included or not. If Member countries are ranked from the lowest to the highest METR at the threshold for paying income tax, then Australia and New Zealand are ranked as number 20 and 17 if social security contributions are excluded and as number 8 and number 3 if they are included. The opposite is the case for countries that rely heavily on social security contribution, e.g. the Netherlands and Poland are ranked as number 3 and 10 excluding social security contributions and as number 23 and 22 including such contributions. The same applies for the thresholds, where Australia and New Zealand are among the countries with the lowest thresholds for paying income tax when social security contributions are excluded. But as most OECD countries do not apply any thresholds for social security contributions, Australia and New Zealand are of course among the countries with the highest thresholds when such contributions are included in the calculations. 5.

Conclusions

There has been a real growth in the CPI-adjusted thresholds for paying income tax since 1985 in 14 of the 23 countries where comparable results are available, and by more than 40 per cent in 10 of © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

these countries, while they are reduced in 7 countries. The thresholds measured as a percentage of APW have increased in 10 countries and decreased in 10. In addition, statutory tax rates have also fallen in 7 of the 14 countries where the CPI-adjusted thresholds have increased. Statutory tax rates at the threshold level have been reduced in 13 of the 23 countries while they have increased in 9. The results for 2003 illustrate that the tax and benefit systems in most OECD countries provide families with children higher income thresholds than families without children, and, to a somewhat lesser extent, provides families (with and without children) with higher thresholds than single individuals/parents. Except for this, however, there is no clear pattern in OECD countries on the level of the income threshold and the corresponding marginal effective tax rates at the threshold levels. And although a higher threshold usually is reflected in a higher, or at least equal, METR within a specific Member country, there is no such clear link across OECD countries. In other words, the results do not indicate that OECD countries with a high threshold generally impose a high METR at the threshold level, while OECD countries with a low threshold impose a low METR at the threshold level. The extent to which government social security expenditures are financed by employee social security contributions varies considerably across OECD countries. In addition, 21 of the 28 OECD countries that collect such contributions have no threshold for all or some of the elements of the social security contribution. Thus, for some countries the ranking by the threshold level or the marginal effective tax rates at the thresholds for paying income tax might be heavily influenced if social security contributions are included. This means that one should be careful when comparing income thresholds between countries.

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© OECD/OCDE 2004

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

NOTES 1. However, to the extent that social security contributions are deductible against income tax payments, this will be reflected in the marginal effective tax rates at the threshold levels. 2. Y* is equal to the income level Y where (1-t*)Y – non-income related SA – WZB – STC/t = 0. 3. Y* is equal to the income level Y where Y - sY – SA – WZB – STC/t = 0, where sY is the deductible social security contributions. This means that Y* = [1/(1-s)] x [SA + WZB + STC/t]. 4. Y* is equal to the income level Y where t (Y – SA – WZB) – STC = BEN. 5. The one-income earner family no children is not one of the standard family types in the Taxing Wages report. The reason for including this family type is to make the results for families with and without children comparable. 6. Income threshold trends can only be traced in the case of 23 of the 24 countries that were OECD Members in 1985 as 1985 data are not available for Greece. 7. Income thresholds are calculated by finding the first unit of earned income where income tax is paid. The METRs are calculated at the first unit above this level, which in effect will be the second unit of earned income. However, the actual threshold value shown in the Tables is the last currency unit before tax first becomes payable rounded to the nearest 10 currency units. 8. Marginal effective tax rates (METRs) for 2003 are reported in Tables 2 and 3. As METRs capture the effect of e.g. income-tested tax credit schemes, they are more relevant in this context than statutory rates. However, it is not possible to calculate METRs for 1985. 9. In France and Turkey, however, one observes a real growth in the thresholds if one excludes the CSG/CRDS (France) and the stamp tax (Turkey) from the calculations. 10. If the CSG/CRDS is excluded from the calculations, one observes a real growth (not a reduction) in the threshold level of France measured as a percentage of earnings of the APW. 11. See footnote 5. 12. The threshold is due to the Newstart Allowance. Australian employees working less than 35 hours per week on an ongoing basis would be able to qualify for this allowance if they meet the income test and can demonstrate that they are taking steps to seek employment. Due to the nature of this payment and the associated tax offset, a person receiving the Newstart Allowance would be liable to pay tax on a relatively low level of earned income. 13. The high marginal effective tax rates are due to the phase-out rates of the Working Tax Credit in the United Kingdom and the Earned Income Tax Credit in the United States. 14. This is due to a tax offset for maintaining a dependent spouse without children. Other similar tax offsets for maintaining a dependant spouse with children and for sole parent families were replaced by family benefit payments in 2000. 15. Mexico applies a rate of 2.45 per cent for gross wage earnings that are above about 3 times the federal minimum wage, whereas the top social security contribution rate in Netherlands is 38.7 per cent. 16. The high rates in Norway and Germany are due to the fact that social security contributions over the threshold are gradually phased in towards the statutory rates, which are 7.8 per cent in Norway and 21.05 per cent in Germany.

37

© OECD/OCDE 2004

Income tax thresholds Tax rates

© OECD/OCDE 2004

Australia Austria Belgium6 Canada6 Czech Rep. Denmark7 Finland central state and local France8 Germany Greece Hungary Iceland6 Ireland Italy6,9 Japan6 Korea Luxembourg Mexico Netherlands New Zealand10 Norway central state and local Poland Portugal Slovak Rep. Spain6 Sweden central11 state and local Switzerland6 Turkey12 United Kingdom United States central state and local

In local currency3

1985

2003

1985

25.0 21.0 24.1 23.7 n.a. 48.0

17.0 31.0 26.8 22.1 15.0 43.7

13.0 16.0 5.4 22.0 n.a. n.a. 30.8 35.0 12.0 15.0 n.a. 12.0 n.a. 16.0 20.0

PPP-converted4

As percentage of APW

Index for growth in thresholds5

2003

1985

2003

1985

2003

1985-2003

4 600 6 140 3 660 6 270 n.a. 23 640

1 380 13 180 9 230 8 260 43 480 48 170

3 960 5 860 3 710 4 940 n.a. 2 610

1 020 14 240 10 220 6 780 3 040 5 660

22.7 44.2 22.4 24.7 n.a. 14.8

2.7 54.0 29.5 20.6 19.7 15.2

0.15 1.49 1.76 0.80 n.a. 1.27

30.0 18.0 8.0 20.0 15.0 20.0 38.6 20.0 0.9 5.0 9.9 8.2 17.0 1.7 19.5

3 370 820 8 020 3 830 n.a. n.a. 148 640 3 540 1 930 572 180 n.a. 5 300 n.a. 6 120 0

12 810 2 180 0 10 530 11 890 604 200 869 810 11 600 0 1 108 470 10 885 420 13 570 54 030 5 310 4 850

3 530 860 8 120 3 490 n.a. n.a. 3 770 4 020 3 130 2 640 n.a. 5 280 n.a. 5 670 0

12 970 2 200 0 11 050 15 470 4 830 9 190 11 030 0 7 910 14 960 13 850 8 010 5 630 3 350

28.7 7.0 63.2 19.9 n.a. n.a. 47.7 30.8 22.5 18.5 n.a. 31.6 n.a. 34.6 0.0

44.3 7.5 0.0 31.2 99.9 51.9 32.3 43.1 0.0 26.4 44.5 42.1 86.2 16.7 11.7

2.28 1.60 0.00 1.96 n.a. n.a. 1.47 1.91 0.00 1.71 n.a. 1.77 n.a. 0.61 ∞

3.0 22.5 n.a. 4.8 n.a. 8.0

28.0 28.0 19.0 12.0 10.0 14.9

54 600 15 310 n.a. 1 340 n.a. 3 000

63 400 63 400 8 800 4 870 44 450 7 370

5 810 1 630 n.a. 4 270 n.a. 5 550

6 960 6 960 4 690 6 800 2 680 9 310

43.4 12.2 n.a. 66.8 n.a. 47.0

20.6 20.6 32.4 56.1 29.6 43.4

0.64 2.25 n.a. 1.20 n.a. 1.12

30.4 30.4 5.0 25.0 30.0

51.2 31.2 4.4 0.6 22.0

8 400 8 000 7 080 71 160 2 210

301 100 19 100 9 670 0 8 940

1 080 1 030 3 290 310 4 080

30 500 1 930 5 120 0 13 640

8.1 7.7 17.9 5.2 25.8

121.5 7.7 14.8 0.0 44.1

19.07 1.27 0.97 0.00 2.12

11.0 5.3

16.4 2.0

3 430 2 370

7 800 750

3 430 2 370

7 800 750

17.2 11.9

23.3 2.2

1.33 0.18

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

38

Table 1. Income thresholds1 and statutory income tax rates for single individuals. Results for 19852 and 2003

© OECD/OCDE 2004

Table 1.

Income thresholds1 and statutory income tax rates for single individuals. Results for 19852 and 2003 (cont.)

39

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

1. Income thresholds are calculated, using the country calculation files used in producing Taxing Wages, by finding the first unit of earned income where there is payable income tax. 2. Results for 1985 have not been recalculated, but are taken from the Tax/benefit position of production workers 1988-1991 (with the exception of the statutory tax rate for Canada). For some countries the figures for 1985 might therefore be slightly inaccurate. 3. Thresholds rounded to nearest 10. 1985-results converted from local currencies to euro for countries using the euro in 2003. Source of exchange rates: Main Economic Indicators, OECD. 4. Thresholds rounded to nearest 10. Source of PPP: As footnote 3 above. 5. Calculated as 2003 value in local currency divided by the CPI-inflated 1985 value. Source of CPI: As footnote 3 above. 6. For 2003 the results are the combined central and state/local income tax rates and thresholds. 7. In order to have data that is comparable with 1985, the reported tax rate in 2003 is the combined (central+state and local) tax rate plus the labour market contribution of 8 per cent at the threshold for paying state and local tax. The actual threshold for the labour market contribution is zero, but very few actually have an income level where they only pay this tax. The threshold for paying central income tax (excluding the labour market contribution) is 40.100 at a rate of 13.1 per cent. 8. Including CSG and CRDS in 2003. Excluding CSG and CRDS, the threshold is € 15 456 in local currency, 16 733 PPP-converted and 68.6 per cent of APW. The statutory tax rate in 2003 is 27.3 per cent, and the index for growth in thresholds is 1.31 excluding CSG and CRDS. 9. In Italy the threshold in 2003 is 0 for the state and local tax. For central tax the threshold is €8 260 (37.4 per cent of APW) and the statutory rate at that threshold is 23.9 per cent. 10. The threshold is due to the Transitional Tax Allowance rebate, which has full time employment criteria and is fully abated at incomes of NZ$ 9 880. Most employed people have a qualifying income that exceeds this level, and tax is paid from the first unit of earned income. 11. The calculated central tax threshold (which is gross income) in 2003 is somewhat higher than SEK 284 300, which is the taxable income at which central tax is paid according to the tax schedule, due to the effects of the tax credit for social security contributions and the basic allowance. 12. Including the stamp tax in 2003. Excluding the stamp tax, the threshold in 2003 is TL 635 294 117 in local currency, 794 PPP-converted and 5.2 per cent of APW. The statutory tax rate in 2003 is 15.6 per cent and the index for growth in thresholds is 1.29 excluding the stamp tax. Source : OECD the Tax/benefit Position of Production Workers, 1988-1991, and OECD calculations based on country submissions.

Single, no children

© OECD/OCDE 2004

Australia Austria Belgium central state and local3 Canada central4 state and local Czech Rep. Denmark5 central state and local Finland central state and local France6 Germany Greece Hungary Iceland central state and local3 Ireland Italy central state and local Japan central state and local Korea central state and local Luxembourg Mexico Netherlands New Zealand Norway central state and local Poland Portugal Slovak Rep.

Single parent, two children

One-income earner family, no children

One-income earner family, two children

METR

Threshold

METR

Threshold

METR

Threshold

METR

Threshold

17.0 21.1

2.7 54.0

17.7 33.5

15.1 63.5

17.0 33.5

32.4 63.5

17.0 33.5

2.7 63.5

19.6 1.4

29.8 25.6

33.0 2.3

40.7 38.1

23.5 1.4

39.7 35.9

20.9 1.2

53.9 49.0

14.9 11.2 13.1

20.3 28.5 19.7

14.9 11.2 13.1

38.0 76.0 44.0

14.9 11.2 13.1

38.0 46.3 30.9

14.9 11.2 13.1

38.0 76.0 55.3

5.0 30.3

12.7 15.2

5.0 30.3

12.7 15.2

5.0 30.3

25.0 27.6

5.0 30.3

25.0 27.6

11.4 20.6 7.6 15.8 12.6 17.9

44.3 7.5 0.0 31.2 99.9 51.9

11.4 20.6 7.6 19.5 12.6 27.9

44.3 7.5 0.0 39.0 108.9 82.8

11.4 20.6 7.6 15.8 12.6 17.9

44.3 7.5 0.0 58.4 90.8 51.9

11.4 20.6 7.6 15.8 12.6 27.9

44.3 7.5 0.0 58.4 99.9 82.8

24.7 12.3 20.0

48.3 0.0 43.1

24.7 12.3 20.0

48.3 0.0 71.3

24.7 12.3 20.0

96.7 0.0 71.3

24.7 12.3 20.0

96.7 0.0 85.6

26.9 0.8

37.4 0.0

26.9 0.8

55.2 0.0

26.9 0.8

46.5 0.0

26.9 0.8

63.9 0.0

7.1 3.8

27.7 26.4

4.7 2.5

53.8 47.7

4.7 2.5

53.8 47.7

4.7 2.5

84.8 74.6

2.2 0.2 7.1 13.0 1.7 15.0

44.5 44.5 42.1 86.2 16.7 11.7

2.2 0.2 29.5 13.0 5.3 15.0

57.3 57.3 106.3 86.2 46.8 11.7

2.2 0.2 7.1 13.0 1.2 15.0

48.7 48.7 76.9 86.2 37.3 11.7

3.6 0.4 14.3 13.0 5.3 15.0

61.4 61.4 131.6 86.2 46.8 11.7

11.8 16.2 9.1 12.0 8.7

20.6 20.6 32.4 56.1 29.6

11.8 16.2 9.1 14.0 8.7

30.9 30.9 32.4 89.4 55.3

11.8 16.2 9.1 12.0 8.7

30.9 30.9 53.7 74.0 38.8

11.8 16.2 9.1 12.0 8.7

30.9 30.9 53.7 97.2 64.5

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

40

Table 2. Income thresholds1 for central and state and local taxes as a percentage of APW, and marginal effective income tax rates (METR)2 at the threshold. Results for 2003

© OECD/OCDE 2004

Table 2. Income thresholds1 for central and state and local taxes as a percentage of APW, and marginal effective income tax rates (METR)2 at the threshold. Results for 2003 (cont.) Single, no children

One-income earner family, no children

One-income earner family, two children

METR

Threshold

METR

Threshold

METR

Threshold

METR

Threshold

9.0 5.0

43.4 43.4

11.0 7.0

70.8 70.8

10.0 7.0

62.3 62.3

11.0 7.0

77.2 77.2

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

0.7 3.9 0.6 59.0

33.1 14.8 0.0 44.1

0.8 3.9 0.6 59.0

64.9 34.7 0.0 85.3

0.8 3.9 0.6 59.0

55.3 25.4 0.0 56.6

0.8 3.9 0.6 59.0

66.6 35.8 0.0 85.3

10.0 2.0

23.3 2.2

36.1 2.0

99.6 6.7

10.0 2.0

46.6 4.5

15.0 2.0

118.7 9.0

1. Income thresholds are calculated, using the country files in Taxing wages, by finding the first unit of earned income where there is payable income tax. 2. The marginal effective tax rates (METR) are calculated as the payable income tax as a percentage of the first unit of earned income above the threshold as defined in footnote 1. 3. For Belgium, Iceland and the United States, the state/local income thresholds do not imply that the taxpayers actually have to pay any income tax at that income level. In Belgium this is due to a nonwasteable tax credit, in Iceland because there is a negative central tax that offsets the positive local tax and in the United States because of the Earned Income Tax Credit. The combined income thresholds for these three countries are reported in Table 3. 4. The central income threshold in Canada is somewhat lower than the combined threshold reported in Table 3 for single, no children and one-income earner family, two children, which is due to a nonwasteable provincial tax credit which offsets central tax. 5. The labour market contribution of 8 per cent is not included in these calculations. 6. Including CSG and CRDS. Excluding CSG and CRDS, the threshold is 68.6 per cent of APW for single persons without children. For the other three family types the threshold are 111.4 per cent, 96.6 per cent and 127.0 per cent of APW respectively. The METRs are 26.4 per cent, 6.2 per cent, 6.2 per cent and 6.2 per cent respectively. 7. The tax credit for social security contributions is attributed to local taxes. This tax credit is therefore reflected in the METR for state and local tax and not in the METR for central tax. 8. Including the stamp tax. Excluding the stamp tax, the thresholds are 5.2 per cent of APW and the METRs 13.4 per cent for all family types. Source : OECD calculations based on country submissions.

41

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

Spain central state and local Sweden7 central state and local Switzerland central state and local Turkey8 United Kingdom United States central state and local3

Single parent, two children

Single, no children METR

© OECD/OCDE 2004

Australia income tax income tax less benefits Austria income tax income tax less benefits Belgium income tax income tax less benefits Canada income tax income tax less benefits Czech Rep. income tax income tax less benefits Denmark3 income tax income tax less benefits Finland income tax income tax less benefits France income tax4 income tax less benefits5 Germany income tax income tax less benefits Greece income tax income tax less benefits Hungary income tax income tax less benefits Iceland income tax income tax less benefits Ireland income tax income tax less benefits Italy income tax income tax less benefits

Single, two children

Threshold

METR

Threshold

One-income earner family, no children METR

Threshold

One-income earner family, two children METR

Threshold

17.0 75.1

2.7 28.5

17.7 61.5

15.1 71.1

17.0 17.0

32.4 32.4

17.0 61.5

2.7 71.1

21.1 21.1

54.0 54.0

33.5 31.7

63.5 137.2

33.5 33.5

63.5 63.5

33.5 31.7

63.5 137.2

20.9 20.9

29.5 29.5

35.3 46.2

40.5 68.0

25.2 25.2

39.5 39.5

22.1 32.0

53.6 82.1

16.9 12.9

20.6 25.0

14.9 74.0

38.0 85.3

14.9 14.9

38.0 45.5

16.9 74.0

39.1 84.6

13.1 13.1

19.7 19.7

13.1 37.7

44.0 101.5

13.1 13.1

30.9 30.9

13.1 33.8

55.3 119.4

5.0 5.0

12.7 12.7

5.0 35.3

12.7 62.9

5.0 5.0

25.0 25.0

5.0 35.3

25.0 45.9

20.6 20.6

7.5 7.5

20.6 33.0

7.5 62.1

20.6 20.6

7.5 7.5

20.6 29.2

7.5 53.5

7.6 7.6

0.0 0.0

7.6 16.6

0.0 81.4

7.6 7.6

0.0 0.0

7.6 16.6

0.0 82.7

15.8 15.8

31.2 31.2

19.5 19.5

39.0 39.0

15.8 15.8

58.4 58.4

15.8 15.8

58.4 58.4

12.6 12.6

99.9 99.9

12.6 12.6

108.9 108.9

12.6 12.6

90.8 90.8

12.6 12.6

99.9 99.9

17.9 17.9

51.9 51.9

27.9 55.9

82.8 125.4

17.9 17.9

51.9 51.9

27.9 55.9

82.8 121.8

37.0 37.0

32.3 32.3

37.0 43.7

32.3 72.5

37.0 37.0

64.6 64.6

37.0 43.7

64.6 92.1

20.0 20.0

43.1 43.1

20.0 42.0

71.3 121.1

20.0 20.0

71.3 71.3

20.0 42.0

85.6 137.6

0.8 0.8

0.0 0.0

0.8 27.7

0.0 79.8

0.8 27.7

0.0 49.7

0.8 27.7

0.0 92.1

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

42

Table 3. Income thresholds1 including and excluding benefits as a percentage of APW, and marginal effective income tax rates (METR)2 at the threshold. Results for 2003

© OECD/OCDE 2004

Table 3. Income thresholds1 including and excluding benefits as a percentage of APW, and marginal effective income tax rates (METR)2 at the threshold. Results for 2003 (cont.) Single, no children METR

Threshold

METR

One-income earner family, no children

Threshold

METR

Threshold

One-income earner family, two children METR

Threshold

3.8 3.8

26.4 26.4

2.5 2.5

47.7 47.7

2.5 2.5

47.7 47.7

2.5 2.5

74.6 74.6

2.4 2.4

44.5 44.5

2.4 2.4

57.3 57.3

2.4 2.4

48.7 48.7

4.0 4.0

61.4 61.4

7.1 7.1

42.1 42.1

29.5 33.9

106.3 155.0

7.1 7.1

76.9 76.9

14.3 26.8

131.6 211.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

1.7 1.7

16.7 16.7

5.3 39.4

46.8 93.2

1.2 1.2

37.3 37.3

5.3 39.6

46.8 92.8

15.0 15.0

11.7 11.7

15.0 39.0

11.7 60.9

15.0 15.0

11.7 11.7

15.0 39.0

11.7 60.9

28.0 28.0

20.6 20.6

28.0 28.0

30.9 76.1

28.0 28.0

30.9 30.9

28.0 28.0

30.9 62.5

9.1 9.1

32.4 32.4

9.1 9.1

32.4 73.4

9.1 9.1

53.7 53.7

9.1 9.1

53.7 94.7

12.0 12.0

56.1 56.1

14.0 24.0

89.4 121.3

12.0 12.0

74.0 74.0

12.0 14.0

97.2 143.3

8.7 8.7

29.6 29.6

8.7 17.4

55.3 138.5

8.7 8.7

38.8 38.8

8.7 17.4

64.5 136.2

14.0 14.0

43.4 43.4

18.0 18.0

70.8 70.8

17.0 17.0

62.3 62.3

18.0 18.0

77.2 77.2

25.4 25.4

7.7 7.7

25.4 28.5

7.7 48.7

25.4 25.4

7.7 7.7

25.4 28.5

7.7 48.7

3.9 3.9

14.8 14.8

3.9 16.0

34.7 117.7

3.9 3.9

25.4 25.4

3.9 14.8

35.8 120.9

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

43

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

Japan income tax income tax less benefits Korea income tax income tax less benefits Luxembourg income tax income tax less benefits Mexico income tax income tax less benefits Netherlands income tax income tax less benefits New Zealand income tax income tax less benefits Norway income tax income tax less benefits Poland income tax income tax less benefits Portugal income tax income tax less benefits Slovak Rep. income tax income tax less benefits Spain income tax income tax less benefits Sweden income tax income tax less benefits Switzerland income tax income tax less benefits Turkey6 income tax income tax less benefits

Single, two children

Single, no children METR

United Kingdom income tax income tax less benefits United States income tax income tax less benefits OECD-unweigthed average income tax income tax less benefits OECD-median value income tax income tax less benefits 1. 2. 3. 4.

Single, two children

Threshold

METR

Threshold

One-income earner family, no children METR

Threshold

One-income earner family, two children METR

Threshold

59.0 59.0

44.1 44.1

59.0 59.0

85.3 97.6

59.0 59.0

56.6 56.6

59.0 59.0

85.3 97.0

82.8 82.8

19.2 19.2

42.5 42.5

87.7 87.7

82.9 82.9

22.4 22.4

37.5 37.5

96.2 96.2

17.1 18.9

30.0 31.0

18.1 30.4

46.9 84.9

17.6 18.5

41.8 43.7

16.9 28.8

53.3 91.4

13.6 13.1

28.0 29.0

15.0 30.1

42.3 80.6

14.0 15.0

39.2 46.6

14.7 28.3

56.9 89.2

Income thresholds are calculated, using the country calculation files used in producing Taxing Wages, by finding the first unit of earned income where there is payable income tax. The marginal effective tax rates (METR) are calculated as the payable income tax as a percentage of the first unit of earned income above the threshold as defined in footnote 1. The labour market contribution of 8 per cent is not included in these calculations. Including CSG and CRDS. Excluding CSG and CRDS, the thresholds are 68.6 per cent, 111.4 per cent, 96.6 per cent and 127.0 per cent of APW respectively for the four family types excluding benefits. The METRs are 26.4 per cent, 6.2 per cent, 6.2 per cent and 6.2 per cent respectively. 5. Including CSG and CRDS. Excluding CSG and CRDS, the respective thresholds are 68.6 per cent, 175.0 per cent, 96.6 per cent and 200.8 per cent of APW. The METRs in this case are 26.4 per cent, 12.1 per cent, 6.2 per cent and 12.1 per cent. 6. Including the stamp tax. Excluding the stamp tax, the thresholds are 5.2 per cent of APW and the METRs 13.4 per cent for all family types. Source : OECD calculations based on country submissions.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

44

Table 3. Income thresholds1 including and excluding benefits as a percentage of APW, and marginal effective income tax rates (METR)2 at the threshold. Results for 2003 (cont.)

© OECD/OCDE 2004

Special Features: Thresholds for Paying Income Tax and Social Security Contributions

Table 4.

Marginal effective tax rates at the thresholds for social security contributions and income tax. Single individuals 2003. Social security contributions Threshold as a percentage of APW

Australia Austria Belgium Canada Czech Rep. Denmark3 Finland France4 Germany5 Greece Hungary Iceland Ireland Italy6 Japan Korea Luxembourg Mexico7 Netherlands New Zealand Norway5 Poland Portugal Slovak Rep. Spain Sweden Switzerland Turkey8 United Kingdom United States OECD - unweighted average OECD-median

SSC-METR

Income tax Threshold as a percentage of APW1

Total METR2

n.a. 17.8 0.0 0.0 0.0 0.0 0.0 0.0 14.2 0.0 0.0 31.0 55.4 0.0 0.0 0.0 0.0 0.0 0.0 n.a. 7.5 0.0 0.0 0.0 0.0 6.6 0.0 0.0 22.8 0.0

n.a. 18.1 13.1 2.1 12.5 8.0 4.8 13.6 38.1 15.9 12.5 0.0 4.0 9.2 11.6 4.5 12.9 1.3 1.7 n.a. 25.0 25.0 11.0 12.8 7.0 7.0 11.3 15.0 11.0 7.7

2.7 54.0 29.5 20.6 19.7 15.2 7.5 0.0 31.2 99.9 51.9 32.3 43.1 0.0 26.4 44.5 42.1 86.2 16.7 11.7 20.6 32.4 56.1 29.6 43.4 7.7 14.8 0.0 44.1 19.2

17.0 39.2 34.0 23.9 25.6 38.3 27.1 21.2 36.8 28.5 30.4 37.0 20.0 10.0 15.3 6.9 21.0 15.5 35.0 15.0 35.8 34.2 23.0 21.5 20.0 32.4 15.2 15.6 70.0 90.4

5.5 0.0

11.3 11.2

30.1 28.0

28.5 24.8

1. The thresholds for paying income tax as reported in Table 3. 2. The marginal effective tax rate on income as reported in Table 3 plus the marginal effective social security contribution METR at the threshold for paying income tax. 3. The income threshold and total METR are at the threshold for paying state and local income tax, which is somewhat higher than the threshold for paying central tax. 4. The income threshold and total METR are including CSG and CRDS 5. The high SSC METRs at the threshold level are due to the fact that social security contributions over the threshold are gradually phased in towards the statutory rates, which are 7.8 per cent in Norway and 21.05 per cent in Germany. 6. The income threshold and METRs are for state and local tax. Both are higher for central tax. 7. The rate is 2.45 per cent for earnings that are above about 3 times the federal minimum wage. 8. The income threshold and total METR are including the stamp duty. Source : OECD calculations based on country submissions.

45

© OECD/OCDE 2004

Partie I

MÉTHODOLOGIE DE BASE ET PRINCIPAUX RÉSULTATS Cette publication contient pour chacun des pays de l’OCDE des renseignements sans équivalents sur les impôts sur le revenu versés par les salariés, leurs cotisations de sécurité sociale, les prestations familiales qu’ils perçoivent sous forme de transferts en espèces ainsi que les cotisations de sécurité sociale et taxes sur les salaires versées par leurs employeurs. Les résultats communiqués comprennent la charge fiscale marginale et effective pour les familles disposant d’un seul et de deux salaires et les coûts totaux de main d’œuvre qui en résultent pour les employeurs. Ces données sont largement utilisées dans les recherches universitaires et dans la formulation et l’évaluation des politiques sociales et économiques. Les données spécifiques figurant dans cette étude permettent de compléter les renseignements donnés chaque année dans les statistiques des recettes publiques, publication qui contient des données comparatives internationales sur les niveaux d’imposition et les structures fiscales dans les 30 pays membres. La méthodologie utilisée dans cette étude est exposée brièvement à la Section A et décrite plus en détail dans la partie III de cette publication. Cette édition présente des estimations de la charge fiscale et du « coin fiscal » entre les coûts de main-d'œuvre et le revenu disponible net après impôt pour 2003, ces résultats étant résumés dans la section B. La section C de la partie III précise comment on a estimé les niveaux de salaire de l'ouvrier moyen pour 2003. Ce rapport présente également les résultats définitifs pour 2002 et commente l'évolution intervenue entre 2002 et 2003 (voir section C). La section D retrace l'évolution de la charge fiscale intervenue jusqu’à présent.

A.

MÉTHODOLOGIE DE BASE

Cette section expose brièvement la méthodologie utilisée en vue du présent rapport, qui n’est consacré qu’aux salariés. Par hypothèse, leur revenu annuel d’activité est égal à une fraction donnée du salaire brut moyen des travailleurs adultes à temps complet des industries manufacturières de chaque économie de l'OCDE, désigné également sous le nom de salaire de l’ouvrier moyen. Des hypothèses additionnelles sont formulées concernant d'autres éléments de la situation personnelle de ces salariés, afin de permettre la détermination de leur situation au regard de l'impôt et des transferts sociaux. Les impôts pris en compte dans le présent rapport se limitent à l'impôt sur le revenu des personnes physiques, aux cotisations de sécurité sociale et, aux taxes sur les salaires (regroupées dans le présent rapport avec les cotisations patronales de sécurité sociale pour le calcul des taux d'imposition), payables sur le salaire brut. Par conséquent, aucun impôt sur le revenu pouvant être dû au titre des revenus non salariaux, de même qu’aucun autre type d'impôt – par exemple, l'impôt sur les sociétés, l'impôt sur le patrimoine net et les impôts sur la consommation – n’est pris en compte dans le présent rapport. Les prestations prises en compte sont celles versées par les administrations publiques sous la forme de transferts en espèces, généralement au titre des enfants à charge. © OECD/OCDE 2004

47

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Les taux moyens de l’impôt sur le revenu des personnes physiques sont calculés en exprimant le montant de l’impôt sur le revenu et les cotisations de sécurité sociale à la charge des salariés en pourcentage des salaires bruts. On utilise le terme taux moyen d’imposition nette des revenus des personnes physiques lorsqu’on exprime l’impôt sur le revenu des personnes physiques et les cotisations salariales de sécurité sociale nettes des transferts en espèces en pourcentage des salaires bruts. Le coin fiscal – qui indique l’écart entre les coûts de main-d'œuvre pour l'employeur et le salaire net disponible après impôt du salarié – est calculé en exprimant la somme de l'impôt sur le revenu des personnes physiques, des cotisations salariales et patronales de sécurité sociale et des éventuelles taxes sur les salaires, diminuée des prestations, en pourcentage des coûts de main-d'œuvre. Pour déterminer un indicateur des coûts totaux de main-d'œuvre, on ajoute au salaire brut du salarié les cotisations patronales de sécurité sociale et, dans certains pays, les taxes sur les salaires. Certes, il faut reconnaître que cet indicateur ne traduit pas les coûts réels de main d’œuvre auxquels sont confrontés les employeurs. Par conséquent, Les impôts sur les salaires s'efforcent de déterminer l'effet conjugué de l’impôt sur le revenu des personnes physiques, des cotisations de sécurité sociale et des prestations familiales en espèces sur le revenu net de certaines catégories de ménages représentatifs et sur les coûts de main d’œuvre pour les employeurs. Les informations concernent les salariés ayant des niveaux comparables de revenu. Les principaux résultats sont indiqués à la section suivante. La partie II contient des résultats détaillés pour 2003 et 2002.

B.

EXAMEN DES PRINCIPAUX RÉSULTATS POUR L’ANNÉE 2003

Le tableau I.1 indique le salaire brut de l'ouvrier moyen dans chaque pays membre de l'OCDE pour les années 2002 (colonne 1) et 2003 (colonne 2). La variation annuelle du salaire nominal de l'ouvrier moyen – indiquée à la colonne 3 – oscillait entre –1.3 pour cent (Japon) et +23.1 pour cent (Turquie). Dans une large mesure, cet écart très marqué reflète les niveaux différents d'inflation dans les pays de l'OCDE ; voir la colonne 4 du tableau I.1. La variation annuelle des niveaux de salaire réel (avant impôt sur le revenu des personnes physiques et cotisations salariales de sécurité sociale) se situe entre 0 et 3 pour cent pour presque tous les pays ; voir la colonne 6 du tableau I.1. Seuls la République tchèque (+4.9 pour cent), le Japon (–0.4 pour cent), le Canada (–0.5 pour cent) et la Turquie (–5.6 pour cent) présentent une variation du salaire réel avant impôt qui n'entre pas dans cette fourchette. Le salaire réel disponible de l'ouvrier moyen est également influencé par la variation du taux moyen d'imposition des personnes physiques, qui apparaît à la colonne 6 du tableau I.1. En 2003, dans presque tous les pays, la variation de cet indicateur de la charge fiscale au niveau du salaire de l'ouvrier moyen s'est maintenue entre plus ou moins un pour cent. La seule exception est constituée par la Hongrie, où la charge fiscale a baissé de 3.8 points.

48

Le tableau I.2 présente le taux moyen d'imposition des personnes physiques (impôt sur le revenu et cotisations salariales de sécurité sociale) en pourcentage du salaire brut en 2003. Au niveau du salaire moyen, les célibataires sans enfant paient plus de 40 pour cent de leur salaire annuel en impôt sur le revenu des personnes physiques et en cotisations salariales de sécurité sociale en Allemagne, en Belgique et au Danemark. En Corée, en Espagne, en Grèce, en Irlande, au Japon, au Mexique, au Portugal et en République slovaque, le taux moyen d'imposition des personnes physiques était inférieur à 20 pour cent. © OECD/OCDE 2004

Méthodologie de base et principaux résultats

Tableau I.1.

Comparaison des niveaux de salaires

Salaires bruts en monnaie nationale

2002 (1)

Australie Autriche Belgique Canada République tchèque Danemark Finlande France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas Nouvelle-Zélande Norvège Pologne Portugal République slovaque Espagne Suède Suisse Turquie Royaume-Uni États-Unis

2003 (2)

Accroissement annuel 2003/2002 (en pourcentage)

Salaire Brut (3)

Inflation1 (4)

Salaire réel avant impôt (5)

Variation du taux moyen d’imposition des personnes pysiques2 (6)

48 568 23 881 30 629 38 867

50 732 24 405 31 238 40 103

4.5 2.2 2.0 3.2

2.5 1.4 1.4 3.7

1.9 0.7 0.6 –0.5

–0.1 0.3 –0.6 0.2

206 412 304 925 27 682 21 978 32 902 11 395 1 077 816 2 567 086 25 477 21 408 4 254 270 22 885 416 31 358 59 702 30 575 39 912 292 200 26 352 8 410

220 773 316 772 28 888 22 533 33 810 11 908 1 164 915 2 694 083 26 939 22 114 4 200 199 24 467 930 32 198 62 687 31 790 41 452 307 307 27 193 8 677

7.0 3.9 4.4 2.5 2.8 4.5 8.1 4.9 5.7 3.3 –1.3 6.9 2.7 5.0 4.0 3.9 5.2 3.2 3.2

2.0 2.4 1.4 1.6 0.8 3.4 5.2 2.5 4.1 2.3 –0.9 3.8 2.3 4.4 2.4 2.0 3.2 1.4 3.2

4.9 1.5 2.9 0.9 1.9 1.1 2.7 2.4 1.6 1.0 –0.4 3.0 0.3 0.6 1.5 1.8 1.9 1.7 0.0

0.4 0.0 –0.3 –0.4 0.4 –0.4 –3.8 0.2 –0.1 –0.9 0.2 0.0 0.4 0.7 –0.7 0.5 –0.0 0.0 0.1

137 316 16 360 237 820 64 169 9 938 274 440 19 420 32 360

150 000 16 975 247 908 65 256 12 233 294 119 20 276 33 459

9.2 3.8 4.2 1.7 23.1 4.4 3.4

8.7 2.9 2.4 0.7 30.3 3.1 2.4

0.5 0.8 1.8 0.9 –5.6 1.2 0.9

0.4 –0.8 0.4 –0.0 –0.3 0.2 –0.2

1. Pourcentage de variation de l’indice total de prix à la consommation estimé. 2. Différence de taux moyen d'imposition sur le salaire de l'ouvrier moyen (célibataire sans enfant) de 2003 et 2002. Sources: Soumissions nationales ; OCDE, Persectives économiques, Juin 2003.

La structure des impôts acquittés sur le salaire brut est très variable d'un pays à l'autre. Le graphique I.1 donne une représentation graphique du taux moyen d’imposition des personnes physiques décomposé entre l’impôt sur le revenu et les cotisations de sécurité sociale. En Australie, en Islande et en Nouvelle-Zélande, l’ouvrier moyen ne paie pratiquement que l’impôt sur le revenu alors que son homologue grec ne paie pratiquement que des cotisations de sécurité sociale. Beaucoup de pays de l’OCDE avantagent fiscalement les familles ayant des enfants à charge par rapport aux personnes seules au moyen d’un régime fiscal favorable et/ou de prestations en espèces. Le graphique I.2. indique la charge de l’impôt sur le revenu majoré des cotisations salariales de sécurité sociale et diminué des prestations en espèces pour les personnes seules dont le salaire est égal à 100 pour cent de celui d’un ouvrier moyen et pour les couples mariés ayant deux enfants et disposant d’un seul revenu du même montant. Les économies réalisées par un couple marié disposant d’un seul revenu sont supérieures à 20 pour cent du salaire en Allemagne, en Belgique, en Hongrie, en Islande et au Luxembourg. Au contraire, la charge est pratiquement la même (l’écart est inférieur à 1 pour cent du salaire brut) en Corée, en Grèce, au Mexique, en Nouvelle-Zélande et en Turquie. Il est intéressant de noter que lorsqu’on tient compte des prestations en espèces, les couples mariés disposant d’un seul salaire ont une charge fiscale négative en Irlande et au Luxembourg du fait que les prestations en espèces excèdent l’impôt sur le revenu et les cotisations de sécurité sociale. © OECD/OCDE 2004

49

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Tableau I.2.

Pays2

Australie Danemark Allemagne Belgique Suisse Norvège Pays-Bas Corée États-Unis Canada Luxembourg Royaume-Uni Japon Finlande Nouvelle-Zélande Islande Italie Autriche Irlande Suède France Espagne Grèce République tchèque Turquie Pologne Portugal Hongrie Mexique République slovaque

Impôt sur le revenu et cotisations de sécurité sociale des salariés1 (en pourcentage des salaires bruts), 2003

Impôt sur le revenu (1)

Cotisations de sécurité sociale (2)

Paiement total3 (3)

24 32 21 27 10 21 9 2 16 18 9 16 6 25 21 25 18 11 11 24 13 12 0 12 15 6 6 13 3 6

0 11 21 14 11 8 25 5 8 7 14 8 12 6 0 0 9 18 5 7 14 6 16 13 15 25 11 13 2 13

24 42 42 41 21 29 34 7 24 25 22 24 17 31 21 25 27 29 16 31 27 19 16 24 30 31 17 26 4 19

Salaires bruts4 (4)

37 396 37 243 35 480 34 610 34 543 33 746 33 721 33 620 33 459 32 926 32 873 30 947 29 975 29 255 28 568 28 480 26 819 26 362 25 613 25 111 24 394 21 439 15 494 15 417 15 305 14 511 12 130 9 318 9 298 9 034

1. Célibataire disposant d'un salaire unique égal à celui de l'ouvrier moyen. 2. Pays classés par ordre décroissant des salaires bruts. 3. En raison de l'arrondi le total peut différer d'un point par rapport à la somme des colonnes impôt sur le revenu et cotisations de sécurité sociale. 4. Dollars convertis à l'aide des parités de pouvoir d'achat. Source : Calculs de l’OCDE basés sur les soumissions nationales.

Dans la plupart des pays de l’OCDE, les employeurs paient des cotisations de sécurité sociale importantes. En outre, certains pays appliquent des taxes sur les salaires non affectées que l’on distingue des cotisations de sécurité sociale par le fait qu’elles ne donnent pas droit à prestations aux salariés concernés et ne peuvent même pas être utilisées pour financer les cotisations de sécurité sociale. Aux fins de cette étude, les coûts de main d’œuvre sont définis comme étant égaux aux salaires bruts versés aux salariés majorés des cotisations patronales de sécurité sociale et des taxes sur les salaires (éventuelles). En 2003, le coin fiscal entre les coûts totaux de main d’œuvre pour l’employeur et le revenu net disponible correspondant des salariés célibataires sans enfant, disposant du salaire moyen, variait beaucoup selon les pays de l’OCDE (voir colonne 4 du tableau I.3). Le coin fiscal excédait 50 pour cent en Allemagne et en Belgique et il était inférieur à 20 pour cent en Corée et au Mexique.

50

Il est intéressant d’examiner les éléments constitutifs du coin fiscal qui figurent dans le tableau I.3. La part des coûts de main d’œuvre versée sous forme d’impôts sur le revenu des personnes physiques et inférieure à 5 pour cent en Corée, en Grèce et au Mexique alors qu’elle dépasse 30 pour cent au Danemark. La part correspondant aux cotisations salariales de sécurité sociale varie également beaucoup, entre 0 pour cent en Australie, en Islande et en Nouvelle-Zélande et plus de 20 pour cent aux Pays-Bas et en Pologne. Les employeurs paient 29 pour cent des coûts totaux de main d’œuvre © OECD/OCDE 2004

Méthodologie de base et principaux résultats

Graphique I.1. Pourcentage des salaires bruts payés en impôts sur le revenu et en cotisations salariales de sécurité sociale, 20031, 2 Cotisations de sécurité sociale

Impôt sur le revenu

Danemark Belgique Finlande Islande Australie Suède Norvège Allemagne Nouvelle-Zélande Canada Italie États-Unis Royaume-Uni Turquie France Hongrie Espagne République tchèque Irlande Autriche Suisse Luxembourg Pays-Bas République slovaque Pologne Japon Portugal Mexique Corée Grèce 0

5

10

1. Pays classés par ordre décroissant de l'impôt sur le revenu. 2. Célibataires au niveau de revenu égal au salaire de l'ouvrier moyen. Source: Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

15

20

25

30

35 %

51

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Graphique I.2. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille (en % du salaire brut), 20031, 2 Célibataire sans enfant

Couple marié disposant d’un salaire unique et ayant 2 enfants

Danemark Allemagne Belgique Pays-Bas Pologne Finlande Suède Turquie Autriche Norvège Italie France Hongrie Islande Canada Royaume-Uni République tchèque États-Unis Australie Luxembourg Suisse Nouvelle-Zélande République slovaque Espagne Japon Portugal Irlande Grèce Corée Mexique -5

52

0

5

10

15

20

25

30

35

40

45

50 %

1. Pays classés par ordre décroissant des taux célibataire sans enfant. 2. Correspond au tableau 4, colonnes 2 et 5. Source: Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

Méthodologie de base et principaux résultats

Tableau I.3. Impôt sur le revenu et cotisations de sécurité sociale à la charge des salariés et des employeurs (en % des coûts de main-d'œuvre), 20031 Cotisations de sécurité sociale Pays2

Belgique Allemagne Australie Pays-Bas Suisse Norvège Danemark Luxembourg Canada Corée Finlande États-Unis Italie France Autriche Royaume-Uni Japon Suède Islande Nouvelle-Zélande Irlande Espagne République tchèque Grèce Turquie Pologne Portugal Hongrie République slovaque Mexique

Impôt sur le revenu (1)

20 17 23 7 9 19 32 8 16 2 20 15 14 9 8 14 5 18 24 21 10 9 9 0 12 5 5 10 5 2

Salarié (2)

11 17 0 22 10 7 11 12 6 4 5 7 7 10 14 8 10 5 0 0 5 5 9 12 12 21 9 9 9 1

employeur (3)

23 17 6 14 10 11 1 12 10 8 19 7 25 29 23 9 12 25 5 0 10 23 26 22 18 17 19 27 28 13

Total3 (4)

54 52 28 43 29 37 43 32 32 14 44 29 45 48 45 31 27 48 29 21 25 38 44 34 42 43 33 46 41 17

Coûts de maind'oeuvre4 (5)

45 187 42 949 39 639 39 045 38 447 38 065 37 453 37 294 36 694 36 488 36 276 36 019 35 690 34 537 34 068 34 004 33 881 33 352 30 112 28 568 28 367 27 999 20 812 19 825 18 596 17 475 15 011 12 770 12 467 10 743

1. Célibataire disposant d'un salaire unique égal à celui de l'ouvrier moyen. 2. Pays classés par ordre décroissant des coûts de main-d'oeuvre. 3. En raison de l'arrondi le total peut différer d'un point par rapport à la somme de colonnes impôt sur le revenu et cotisations de sécurité sociale. 4. Dollars convertis à l'aide des parités de pouvoir d'achat. Source : Calculs de l’OCDE basés sur les soumissions nationales.

sous forme de cotisations de sécurité sociale en France, 28 pour cent en République slovaque, 27 pour cent en Hongrie et 26 pour cent en République tchèque. En revanche, les employeurs ne sont pas soumis à ces prélèvements en Nouvelle-Zélande, tandis qu’au Danemark, les cotisations patronales sont négligeables. Le montant total des cotisations salariales de sécurité sociale excède 25 pour cent des coûts totaux de main d’œuvre dans la moitié des pays de l’OCDE. Il excède le tiers des coûts totaux de main d’œuvre dans 10 pays de l’OCDE : Allemagne, Autriche, Belgique, France, Grèce, Hongrie, Pays-Bas, Pologne, République slovaque et République tchèque. Ce résultat n’est pas surprenant étant donné que les recettes des cotisations de sécurité sociale de ces pays a représenté plus de 25 pour cent de leur Produit intérieur brut en 2001 (voir annexe IV). Il est clair que l’incidence de l’impôt et des prestations sociales sur le revenu net disponible du salarié varie beaucoup d’un pays à l’autre de l’OCDE. Ces fortes variations dans le montant de la composition du “coin fiscal” reflètent en partie les différences dans : i) le rapport global entre le total des prélèvements et le Produit intérieur brut (voir annexe IV) ; et ii) la part de l’impôt sur le revenu des personnes physiques et des cotisations de sécurité sociale dans l’ensemble des prélèvements sociaux. © OECD/OCDE 2004

53

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

On commentera maintenant les tableaux 1 à 11 et les graphiques 1 à 6 qui figurent dans la partie II, sections A et C. Tous ces tableaux récapitulatifs font apparaître les résultats pour huit catégories de ménages, dont les caractéristiques diffèrent quant à la situation de famille (célibataire/marié, zéro/ deux enfants), à la situation économique (ménage à un/deux apporteurs de revenu) et au niveau de salaire (33 pour cent, 67 pour cent, 100 pour cent et 167 pour cent du salaire annuel brut de l'ouvrier moyen). Le tableau 1 de la partie II, section A, illustre l'impôt sur le revenu des personnes physiques dû en pourcentage du salaire brut. Pour les célibataires sans enfant dont le niveau de salaire est égal à celui de l'ouvrier moyen (colonne 2), le taux moyen de l'impôt sur le revenu varie entre 0.0 pour cent (Grèce) et 31.8 pour cent (Danemark). Dans la plupart des pays Membres de l'OCDE, l'impôt sur le revenu au niveau de salaire de l'ouvrier moyen est nettement plus faible pour les couples mariés qui ont un seul apporteur de revenu et deux enfants que pour les célibataires (comparer les colonnes 2 et 5). Cette différence ressort clairement du graphique 1 (voir partie II, section C). Dans neuf pays de l’OCDE, la charge d’impôt sur le revenu à laquelle doit faire face un couple marié disposant d’un seul revenu et ayant deux enfants est inférieure à la moitié de celle qui pèse sur une personne seule (Allemagne, Espagne, États-Unis, Hongrie, Irlande, Japon, Luxembourg, Portugal et République slovaque). Au contraire, il n’y a pas de différence en Australie, en Finlande, en Grèce, au Mexique, en NouvelleZélande, en Suède et en Turquie. L’Allemagne est le seul pays membre de l’OCDE où l’ouvrier moyen marié est soumis à une charge fiscale inférieure à zéro. Ce résultat est dû à un crédit d’impôt récupérable dans le cadre duquel le montant du crédit qui excède l’impôt dû par ailleurs est versé à la famille, ce qui aboutit à une charge fiscale de –1.5 pour cent. De même, dans quatre pays – l’Allemagne, les États-Unis, le Mexique et le Royaume-Uni – les personnes seules ayant deux enfants à charge et dont le salaire est égal aux deux tiers de celui de l’ouvrier moyen ont droit à des versements correspondant à la part de leur crédit d’impôt récupérable qui excède le montant des impôts dus par ailleurs. En conséquence, la colonne 4 du tableau 1 fait également apparaître dans ces cas une charge fiscale négative. Dans six autres pays – Espagne, Grèce, Hongrie, Irlande, Luxembourg et Portugal – ce type de ménage ne paie en fait aucun impôt sur le revenu. Une comparaison des colonnes 5 et 6 du tableau 1 montre que si le conjoint précédemment sans emploi trouve un emploi rémunéré au tiers du salaire de l’ouvrier moyen, l’impôt sur le revenu dû par le ménage (exprimé en pourcentage de 1.33 fois le salaire de l’ouvrier moyen) augmente dans la plupart des cas (légèrement). Toutefois, l’impôt diminue en fait dans 11 pays : en Corée (–0.2 point), en Nouvelle-Zélande et en Turquie (–0.9 point), en Italie (–1.1 point) en Hongrie (–1.2 point), en Autriche (–1.5 point), en Suède (–1.6 point), aux Pays-Bas (–1.7 points), en Australie (–3.3 points), en Finlande (–3.6 points) et au Mexique (–4.8 points). Un élément important à prendre en compte dans la conception d’un impôt sur le revenu est sa progressivité – la charge fiscale moyenne augmente avec le revenu. En comparant les colonnes 1, 2 et 3 du tableau 1, on peut avoir un aperçu de la forme que prend le système d’impôt sur le revenu. Lorsqu’on compare la charge de l’impôt sur le revenu des personnes seules dont le salaire est égal à 100 pour cent de celui de l’ouvrier moyen avec celle de leurs homologues dont le salaire est égal à 167 pour cent de ce montant (colonnes 2 et 3), l’ouvrier dont le salaire est faible est toujours soumis à une charge fiscale moindre. De même, les personnes seules dont le salaire est égal à 67 pour cent de celui de l’ouvrier moyen paient un pourcentage encore plus faible de leurs revenus sous forme d’impôt sur le revenu (colonnes 1 et 2). Enfin, lorsqu’on compare le célibataire le moins payé à celui qui est le plus payé, la charge qui pèse sur les personnes seules dont le salaire est égal à 67 pour cent de celui de l’ouvrier moyen représente moins du quart de la charge qui pèse sur leurs homologues dont le salaire est égal à 167 pour cent de ce montant dans sept pays de l’OCDE : Mexique (la charge est négative), Grèce (la charge est supprimée), Pays-Bas et Portugal (environ trois vingtièmes) et Corée, Hongrie et Luxembourg (environ un cinquième). 54

Le tableau 2 fait apparaître les cotisations salariales de sécurité sociale en pourcentage du salaire brut. Pour un salarié seul sans enfant dont le niveau de salaire est celui de l’ouvrier moyen (colonne 2), © OECD/OCDE 2004

Méthodologie de base et principaux résultats

le taux de cotisations varie entre 0 (Australie et Nouvelle-Zélande) et 25.4 pour cent (Pays-Bas). Seuls deux pays de l’OCDE – l’Australie et la Nouvelle-Zélande – ne prélèvent pas du tout de cotisations de sécurité sociale sur les salariés, et ces cotisations sont très faibles pour les salariés en Islande et au Mexique (moins de 2 pour cent). Les cotisations de sécurité sociale sont généralement prélevées à un taux uniforme sur la totalité du salaire, c’est à dire sans seuil d’exonération. Dans un certain nombre de pays membres de l’OCDE, un plafonnement s’applique. Toutefois, ce plafonnement concerne généralement les niveaux de salaire supérieurs à 167 pour cent de celui de l’ouvrier moyen. Cette structure de taux particulière se traduit par une charge moyenne à peu près constante pour la plupart des pays des cotisations salariales de sécurité sociale pour les niveaux de salaire se situant entre 33 et 167 pour cent du salaire de l’ouvrier moyen comme l’indique le tableau 2. On peut citer comme exemples de la charge proportionnelle des cotisations salariales de sécurité sociale pour les catégories de ménages à tous les niveaux de salaires envisagés ici la Pologne (25 pour cent), l’Autriche (18.1 pour cent), la Grèce (15.9 pour cent), la Turquie (15 pour cent), la République slovaque (12.8 pour cent), la République tchèque et la Hongrie (12.5 pour cent), le Japon (11.6 pour cent), le Portugal (11 pour cent), l’Italie (9.2 pour cent), la Norvège (7.8 pour cent) et les États-Unis (7.7 pour cent). Par ailleurs, à 100 pour cent du salaire de l'ouvrier moyen, tous les pays Membres de l'OCDE, à l'exception des Pays-Bas, appliquent les mêmes cotisations de sécurité sociale aux salariés, quelle que soit leur situation de famille (voir le graphique 2). Le tableau 3 fait apparaître la charge cumulée que représentent l'impôt sur le revenu des personnes physiques (tableau 1) et les cotisations de sécurité sociale (tableau 2), exprimée cette fois encore en taux moyen d'imposition. Une personne seule sans enfant ayant le niveau de salaire de l’ouvrier moyen est soumise à une charge moyenne d’impôts et de cotisations sociales de plus de 40 pour cent au Danemark (42.4 pour cent), en Allemagne (41.9 pour cent) et en Belgique (40.6 pour cent). A l’autre extrême, le taux moyen d’imposition des personnes physiques est inférieur à 20 pour cent au Mexique (4.4 pour cent), en Corée (6.8 pour cent), en Grèce (15.9 pour cent), en Irlande (16.4 pour cent), au Portugal (16.6 pour cent), au Japon (17.4 pour cent), en Espagne (18.5 pour cent) et en République slovaque (19.1 pour cent). L’addition des cotisations de sécurité sociale au taux moyen d’imposition réduit la progressivité mentionnée dans les commentaires sur le tableau 1 ainsi que l’économie proportionnelle d’impôt dont bénéficient les familles. La charge fiscale globale applicable aux personnes seules dont le salaire est égal à 67 pour cent de celui de l’ouvrier moyen n’est inférieure, sur le base de la moyenne simple des pays de l’OCDE, que d’un tiers à celui de leurs homologues dont le salaire est égal à 67 pour cent de celui de l’ouvrier moyen, alors que l’économie moyenne d’impôt est supérieure à la moitié si l’on prend seulement en compte les impôts sur le revenu des personnes physiques. L’économie moyenne d’impôt observée pour les couples mariés ayant des enfants et disposant d’un seul revenu égal à 100 pour cent du salaire de l’ouvrier moyen se réduit, par rapport aux personnes seules, des deux cinquièmes au cinquième. Ces réductions ne sont pas surprenantes compte tenu du fait que les taux moyens des cotisations de sécurité sociale sont la plupart du temps les mêmes quels que soient les types de familles. Le tableau 4 illustre, sous la forme de taux moyens nets d’imposition des personnes physiques, la charge cumulée de l’impôt sur le revenu et des cotisations de sécurité sociale car on a retranché des prélèvements le montant des prestations en espèces auxquelles a droit la catégorie de ménage considérée. Le graphique 3 fait apparaître cette charge pour les personnes seules sans enfant et les couples mariés ayant deux enfants et disposant d’un seul revenu. Si l’on compare les tableaux 3 et 4, les taux moyens d’imposition des ménages ayant des enfants (colonnes 4 à 7) sont plus faibles dans le tableau 4 du fait que beaucoup de pays membres de l’OCDE aident les familles qui ont des enfants en leur accordant des prestations en espèces. On n’observe une charge plus faible pour les personnes seules ayant des enfants et dont le salaire est égal à 67 pour cent de celui de l’ouvrier moyen que dans le cas du Canada, car ces personnes ont droit à un transfert en espèces destiné à atténuer la charge qui résulte de l’impôt fédéral sur la consommation (on trouvera plus de précisions dans le chapitre concernant ce pays qui figure à la partie V de la présente étude). © OECD/OCDE 2004

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Des prestations en espèces sont accordées dans la majorité des pays de l’OCDE. Dans le cas des personnes seules ayant deux enfants et percevant un salaire égal à 67 pour cent de celui de l’ouvrier moyen, 22 pays accordent des prestations qui s’échelonnent entre 27.8 pour cent du revenu (Autriche) et 5.6 pour cent (Pologne) avec une moyenne de 17.4 pour cent. La prestation excède 25 pour cent du revenu dans trois autres pays : Irlande (27.6 pour cent), Australie (26.6 pour cent) et Danemark (25.4 pour cent). Pour un couple marié ayant deux enfants et disposant d’un seul revenu égal à 100 pour cent de celui de l’ouvrier moyen, le nombre de pays qui accordent des prestations tombe à 21 et les prestations liées au revenu sont moins généreuses, s’échelonnant entre 18.5 pour cent (Autriche) et 0.2 pour cent (Nouvelle-Zélande) avec une moyenne de 8.7 pour cent. Cette réduction de l’importance des prestations en espèces peut être attribuée à trois raisons : les parents isolés peuvent avoir droit à un traitement plus généreux ; les prestations elles-mêmes peuvent être fixes ; et/ou les prestations peuvent être subordonnées à une condition de ressources. Le tableau 5 et le graphique 4 élargissent cette présentation aux cotisations patronales de sécurité sociale. Dans ce cas, les prélèvements totaux (diminués des prestations reçues) sont exprimés en pourcentage des coûts totaux de main d’œuvre définis comme le salaire brut augmenté des cotisations patronales de sécurité sociale (taxes sur les salaires incluses). On appelle également “coin fiscal” l’écart entre les coûts de main d’œuvre et le salaire net disponible. Pour les personnes seules dont le salaire est égal à celui de l’ouvrier moyen, le coin fiscal va de 14.1 pour cent (Corée) et 17.3 pour cent (Mexique) à 52.0 pour cent (Allemagne) et 54.5 pour cent (Belgique). Pour un couple marié ayant deux enfants et disposant d’un seul salaire égal à celui de l’ouvrier moyen, le coin fiscal est le plus faible en Irlande (7.4 pour cent) et en Islande (8.9 pour cent) et le plus élevé en Pologne (41.3 pour cent) et en Turquie (42.1 pour cent). Le coin fiscal est généralement plus faible à ce niveau de salaire pour un couple marié ayant deux enfants que pour une personne seule sans enfant du fait des prestations en espèces reçues et/ou d’un régime fiscal plus avantageux. Il est également intéressant de noter que pour un parent isolé ayant deux enfants et disposant d’un salaire égal à 67 pour cent de celui de l’ouvrier moyen le coin fiscal est négatif en Australie (–0.4 pour cent), au Royaume-Uni (–10.8 pour cent) et en Irlande (–15.3 pour cent). Ce résultat est dû au fait que les prestations en espèces reçues par ces familles ainsi que la valeur de tous crédits d’impôts récupérables applicables excèdent la somme de l’impôt et de l’ensemble des cotisations qui sont dues. Le tableau 6 et le graphique 5 indiquent l’augmentation de l’impôt sur le revenu des personnes physiques et des cotisations salariales de sécurité sociale diminué des prestations en espèces éventuelles pour une augmentation marginale du salaire brut. Dans la plupart des cas, l’impôt sur le revenu des personnes physiques et les cotisations salariales de sécurité sociale absorbent 25 à 50 pour cent de l’augmentation du salaire pour les personnes seules sans enfant dont le salaire est égal à 100 pour cent de celui de l’ouvrier moyen. Cependant, dans deux pays de l’OCDE, ces personnes sont soumises à des taux marginaux d’imposition plus élevés ; il s’agit de la Belgique (54.8 pour cent) et de l’Allemagne (58.0 pour cent). Ce sont la Corée (10.1 pour cent), le Mexique (15.5 pour cent) et le Japon (22.9 pour cent) qui ont les taux marginaux d’imposition les plus faibles.

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Dans près de la moitié des pays, le taux marginal d’imposition applicable aux couples mariés disposant d’un seul revenu égal à celui de l’ouvrier moyen est le même que celui applicable aux personnes seules sans enfant, ou lui est inférieur de moins de cinq points. Le taux marginal est inférieur de plus de cinq points pour les couples mariés disposant d’un seul revenu dans sept pays : Luxembourg (inférieur de 23.2 points), France (inférieur de 11.6 points), Espagne (inférieur de 10 points), République slovaque (inférieur de 8.7 points), Allemagne (7.2 points), Suisse (5.8 points) et Danemark (5.5 points). En revanche, le taux marginal applicable aux couples mariés disposant d’un seul revenu et ayant deux enfants est supérieur de plus de cinq points à celui des personnes seules sans enfant en Islande (supérieur de 6.7 points), en République tchèque (supérieur de 12.9 points), aux États-Unis (16.0 points), au Canada (18.2 points), en Nouvelle-Zélande (30 points) et au Royaume-Uni (37 points). Ces taux marginaux plus élevés sont dus à l’existence d’allègements fiscaux et/ou de prestations en espèces subordonnés à un critère de revenu. Lorsqu’il est mis fin progressivement à l’application d’un avantage accordé sous condition de ressources, la réduction de l’allègement ou des prestations correspondantes amplifie l’augmentation de l’impôt dû par ailleurs. Par exemple, aux États© OECD/OCDE 2004

Méthodologie de base et principaux résultats

Unis le crédit d’impôt au titre des revenus du travail (“earned income tax credit”) est un allègement fiscal subordonné à des conditions de ressources et lorsqu’il y est mis fin progressivement, le taux marginal d’imposition se trouve majoré en conséquence. Ces programmes sont exposés de manière plus détaillée dans les chapitres par pays de la partie V de la présente étude. Le tableau 7 et le graphique 6 qui prennent également en compte les cotisations patronales de sécurité sociale (y compris les taxes sur les salaires) font apparaître le taux marginal global d’imposition, ou le “coin marginal”. Le tableau 7 indique, en cas d’augmentation marginale des coûts de main-d’œuvre, le pourcentage de l’augmentation de ces coûts qui est prélevé par le secteur public via l’impôt sur le revenu des personnes physique et les cotisations salariales et patronales de sécurité sociale. Dès lors que les cotisations patronales augmentent avec la charge salariale, la prise en compte de ces prélèvements dans le taux marginal aboutit à une augmentation par rapport au taux marginal auquel sont soumis les salariés. Dans le cas d’un salarié célibataire sans enfant disposant du revenu de l’ouvrier moyen, le coin fiscal marginal est supérieur à une fois et demie au taux marginal auxquels sont soumis les salariés dans huit pays : Corée, Espagne, France, Grèce, Mexique, Portugal, République slovaque et République tchèque. Le tableau 8 fait apparaître l’augmentation en pourcentage du revenu net lorsque le salaire brut augmente de 1 pour cent, c'est-à-dire l’élasticité du revenu après impôt. Avec un système d’impôt proportionnel, le revenu net augmente de 1 pour cent, l’élasticité étant alors égale à 1. Lorsqu’une augmentation du salaire brut de 1 pour cent n’induit qu’une hausse correspondante du salaire net disponible de 0.8 pour cent, l’élasticité est de 0.8. Plus le système d’imposition est progressif – au niveau du revenu considéré – plus l’élasticité est faible. Dans le cas, par exemple, du couple marié à un seul apporteur de revenu percevant le salaire de l’ouvrier moyen, la colonne 5 du tableau 8 montre que dans les pays membres de l’OCDE, ce sont le Royaume-Uni (0.33), la Nouvelle-Zélande (0.47), l’Islande (0.58) et le Canada (0.59) qui ont, d’après cet indicateur, le système combiné d’impôt sur le revenu et de cotisations salariales de sécurité sociale le plus progressif à ce niveau de revenu. A l’autre extrême, le Japon (0.92), la France et la Pologne (0.93), la Corée et la Turquie (0.96) sont très proches d’un système proportionnel pour l’impôt sur le revenu et les cotisations salariales de sécurité sociale considérés ensemble, au moins au niveau de salaire de l’ouvrier moyen. Dans le cas des parents isolés ayant deux enfants et disposant des deux tiers du salaire de l’ouvrier moyen, on observe une élasticité extrêmement faible pour l’Irlande (0.31) et le Royaume-Uni (0.25), ce qui s’explique par les taux marginaux très élevés et le faibles taux moyens auxquels est soumis ce type de ménages dans ces deux pays (voir colonne 4 des tableaux 4 et 6). Il est également intéressant de noter que l’élasticité dépasse 1 pour une personne seule dont le salaire est égal à 167 pour cent du salaire moyen au Royaume-Uni (1.05), ce qui indique que le système d’impôt sur le revenu est régressif à ce point de l’échelle des revenus. En d’autres termes, une augmentation de 1 pour cent du salaire brut aboutit à une augmentation du revenu net de plus de 1 pour cent. Le tableau 9 propose une autre mesure de l'élasticité du revenu après impôt : le pourcentage d'augmentation du revenu net lorsque les coûts de main-d'œuvre (salaire brut, plus cotisations patronales de sécurité sociale) augmentent de 1 pour cent. Dans ce cas, les cotisations patronales de sécurité sociale ont été également prises en compte. Dans la plupart des pays Membres de l'OCDE, l'élasticité se situe entre 0.70 et 0.90 pour la plupart des types de ménages considérés. Pour les couples mariés qui ont un seul apporteur de revenu percevant le niveau de salaire de l'ouvrier moyen, cette élasticité est inférieure à 0.6 au Royaume-Uni (0.33), en Nouvelle-Zélande (0.47) et en Islande (0.58). Au contraire, l’élasticité est supérieure à 0.9 au Japon (0.92), en France et en Pologne (0.93) ainsi qu’en Corée et en Turquie (0.96). Le tableau 10 indique le salaire brut et le revenu net pour les huit catégories de ménages. Après conversion de tous les montants en dollars des États-Unis à parité de pouvoir d’achat, les salariés célibataires percevant les revenus de l’ouvrier moyen ont un salaire net disponible (voir tableau 10 colonne 4) supérieur à 30 000 dollars des États-Unis en Corée (31 345 dollars des États-Unis). L’ouvrier moyen perçoit moins de 10 000 dollars des États-Unis après impôt en Hongrie (6 939 dollars des ÉtatsUnis), en République slovaque (7 311 dollars des États-Unis), au Mexique (8 889 dollars des États-Unis) et © OECD/OCDE 2004

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en Pologne (9 984 dollars des États-Unis). Dans le cas d’un couple marié disposant d’un seul revenu égal au revenu moyen, les ménages perçoivent un revenu net supérieur à 30 000 dollars des États-Unis dans cinq pays – Luxembourg (33 828 dollars des États-Unis), Suisse (31 614 dollars des États-Unis), Australie (31 553 dollars des États-Unis) Corée (31 535 dollars des États-Unis) et États-Unis (30 420 dollars des États-Unis), tandis que les ménages disposent d’un revenu net de moins de 10 000 dollars des États-Unis dans trois pays – République slovaque (8 440 dollars des États-Unis), Hongrie (8 872 dollars des ÉtatsUnis) et Mexique (8 889 dollars des États-Unis). Il est intéressant d’observer que sauf dans le cas du Mexique et de la Turquie, le revenu net disponible du couple marié disposant d’un seul salaire est supérieur à celui d’une personne seule percevant le salaire de l’ouvrier moyen, la différence moyenne étant égale à plus de 3 000 dollars des États-Unis. Cela s’explique par le régime fiscal favorable applicable à cette catégorie de ménages et/ou par les prestations en espèces auxquelles elle a droit. Le tableau 11 illustre les coûts de main-d'œuvre et le revenu net pour les huit catégories de ménages retenues. Les colonnes « net » des tableaux 10 et 11 sont identiques, mais les montants qui figurent dans la colonne « brut » du tableau 11 ne correspondent plus au salaire perçu, mais aux coûts de main-d'œuvre pour l'employeur. Généralement, les coûts de main-d'œuvre sont bien supérieurs, parce que les cotisations patronales de sécurité sociale (y compris les taxes sur les salaires) sont maintenant prises en compte. Tel n'est pas le cas en Nouvelle-Zélande, où l'employeur n'acquitte pas de telles cotisations. Au Danemark, les cotisations patronales de sécurité sociale sont négligeables. En dollars des États-Unis à parité de pouvoir d'achat, les coûts de main-d'œuvre pour un travailleur célibataire percevant le salaire moyen sont les plus élevés en Belgique (45 187 dollars des États-Unis) et en Allemagne (42 949 dollars des États-Unis), et c'est au Mexique (10 743 dollars des États-Unis) et en République slovaque (12 467 dollars des États-Unis) qu'ils sont les plus faibles.

C.

RÉSULTATS POUR L’ANNÉE 2002

On commentera maintenant très brièvement les résultats définitifs pour 2002 qui figurent dans les tableaux 12 à 22 de la section B de la partie II de l’étude et l'évolution intervenue entre 2002 et 2003. La présentation des tableaux 12 à 22 est identique à celle des tableaux 1 à 11 commentés dans la section B qui précède. Par conséquent, pour savoir quels sont les changements intervenus entre 2002 et 2003 pour les divers cas considérés, il faux comparer les colonnes des tableaux 12 à 22 avec celles des tableaux 1 à 11. Les commentaires qui suivent sur les tableaux 12 à 22 ne concernent que l'évolution de la charge fiscale et du taux marginal d'imposition pour les salariés célibataires sans enfant percevant le salaire de l'ouvrier moyen (colonne 2 des tableaux) et pour les couples mariés qui ont deux enfants et un seul apporteur de revenu percevant le salaire de l'ouvrier moyen (colonne 5 des tableaux). En comparant les colonnes 1, 3 et 4 et 6 à 8 des tableaux, on obtiendra les résultats pour les six autres catégories de ménages retenues dans la présente étude. De plus, on ne signalera généralement que les changements dépassant 1 point (pour les taux effectifs moyens) et 5 points (pour les taux effectifs marginaux). Le tableau 12 fait apparaître l'impôt sur le revenu des personnes physiques en pourcentage du salaire brut. Dans un peu plus de la moitié des pays Membres de l'OCDE, les célibataires percevant le salaire moyen ont payé (légèrement) plus d'impôt sur le revenu en 2003 qu'en 2002. En revanche, le taux moyen de l’impôt sur le revenu a diminué (légèrement) dans 10 pays. La variation du taux moyen de l’impôt sur le revenu entre 2002 et 2003 dépasse rarement un point, sauf pour la Hongrie où la charge a baissé de 3.9 points ; voir la colonne 2 des tableaux 1 et 12.

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La diminution de l’impôt sur le revenu pour des couples mariés disposant d’un seul revenu et percevant le salaire de l’ouvrier moyen a été supérieure d’un point aux États-Unis (–2.5 points) et en Hongrie (–3.2 points). © OECD/OCDE 2004

Méthodologie de base et principaux résultats

Le tableau 13 indique les cotisations salariales de sécurité sociale en pourcentage du salaire brut. Pour les célibataires percevant le salaire moyen, la variation des cotisations salariales moyennes de sécurité sociale n’a pas dépassé un point entre 2002 et 2003, sauf dans le cas des Pays-Bas, où l’augmentation a été de 1.6 point et au Japon où la charge a diminué de 2.0 points ; voir la colonne 2 des tableaux 2 et 13. Pour les couples mariés disposant d’un seul revenu égal au salaire moyen, les cotisations ont augmenté de 1.5 point aux Pays-Bas alors qu’elles ont baissé de 2.0 points au Japon ; voir la colonne 5 des tableaux 2 et 13. Le tableau 14 illustre la charge combinée de l’impôt sur le revenu et des cotisations de sécurité sociale sous la forme de taux moyens d’imposition personnelle. Pour les personnes seules disposant d’un salaire moyen, cette charge a baissé entre 2002 et 2003 au Japon (–1.9 point) et en Hongrie (–3.9 points). Elle a augmenté au Royaume-Uni (1.1 point). Pour les couples mariés disposant d’un seul revenu elle a baissé au Japon (–1.9 point), aux États-Unis (–2.4 points) et en Hongrie (–3.2 points). Elle a augmenté aux Pays-Bas (1.1 point) et en Allemagne (1.2 point). Le tableau 15 fait apparaître la charge cumulée de l’impôt sur le revenu des personnes physiques et des cotisations de sécurité sociale une fois retranché le montant des prestations familiales en espèces perçues par chaque type de ménages remplissant les conditions requises. Pour les personnes seules percevant le salaire moyen, les variations entre 2002 et 2003 sont identiques à celles indiquées dans le tableau 14. La diminution du taux moyen d’imposition des couples mariés disposant d’un seul revenu a dépassé un point en Irlande et au Japon (1.9 point), aux États-Unis (2.4 points) et en Hongrie (3.7 points). En revanche, le taux moyen d’imposition a augmenté de 1.2 point en Allemagne et aux Pays-Bas, de 1.6 point en Nouvelle-Zélande, de 2.5 points en République tchèque, et de 5.7 points en République slovaque (voir la colonne 5 des tableaux 4 et 15). Le tableau 16 élargit la présentation en prenant en compte les cotisations patronales de sécurité sociale. Dans ce cas, toutes les sommes dues (diminuées des transferts reçus) sont exprimées en pourcentage des coûts totaux de main d‘œuvre, c'est-à-dire du salaire brut majoré des cotisations patronales de sécurité sociale (taxes sur les salaires incluses). Dans la plupart des pays, les variations de l’écart entre les coûts totaux de main d’œuvre et le salaire net disponible, si l’on compare 2003 à 2002, restent comprises dans un intervalle de plus ou moins un point. Cependant, pour l’ouvrier moyen célibataire, le coin fiscal a baissé de 2.8 points au Japon et de 3.3 points en Hongrie. Il a augmenté de 1.2 point au Mexique et de 1.6 point au Royaume-Uni. Pour les couples mariés disposant d’un seul revenu (comparer colonne 5 des tableaux 5 et 16), le coin fiscal a baissé de plus d’un point dans quatre pays : Irlande (–1.7 point), États-Unis (–2.3 points), Japon (–3.0 points) et Hongrie (–3.4 points). Pour ce type de ménages, le coin fiscal a augmenté de plus d’un point dans cinq pays : Mexique (1.2 point), Allemagne (1.3 point), Nouvelle-Zélande (1.6 point), République tchèque (1.9 point) et République slovaque (4.1 points). Le tableau 17 illustre le taux marginal cumulé de l’impôt sur le revenu et des cotisations salariales de sécurité sociale, moins les prestations familiales, par type de ménage et niveau de salaire. En général, les variations de ce taux marginal entre 2002 et 2003 restent comprises dans un intervalle de plus ou moins cinq points. Pour les personnes seules percevant le salaire moyen, le taux marginal a augmenté de 8.7 points en République slovaque. Au Canada, il a baissé de 5.4 points ; voir la colonne 2 des tableaux 6 et 17. Dans le cas des couples mariés ayant deux enfants et disposant d’un seul revenu égal à celui de l’ouvrier moyen, on n’observe pas d’augmentation significative. Des baisses supérieures à cinq points sont observées aux États-Unis (–5.2 points), au Canada (–6.0 points) et en Espagne (–9.0 points). Voir la colonne 5 des tableaux 6 et 17. Le tableau 18 présente le coin fiscal marginal (taux de l’impôt sur le revenu plus les cotisations patronales et salariales de sécurité sociale moins les prestations familiales en 2002). Pour les deux catégories de ménages considérées ici, les variations de ce coin marginal sont très voisines de celles qui figurent dans le tableau 17. On ne les examinera donc pas spécifiquement. Le tableau 19 illustre l’augmentation du revenu net (en pourcentage) lorsque le salaire brut augmente de 1 pour cent pour l’année 2002. Le tableau 20 indique l’augmentation du revenu net © OECD/OCDE 2004

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lorsque les coûts de main d’oeuvre augmentent de 1 pour cent pour la même année. Étant donné que les résultats indiqués dans ces deux tableaux dépendent directement des taux marginaux et moyens d’imposition et ont été examinés précédemment, les lecteurs sont invités à faire eux-mêmes les comparaisons. Les tableaux 21 et 22 présentent des informations de base sur le niveau des coûts de main d’oeuvre, du salaire brut et du salaire net en 2002 et n’exigent donc pas de commentaires.

D.

ÉVOLUTION OBSERVÉE

Dans les éditions précédentes de cette étude, des données rétrospectives remontant à 1979 ont été communiquées pour les ouvriers moyens des pays de l’OCDE, aussi bien en ce qui concerne les personnes seules que les couples mariés disposant d’un seul revenu et ayant deux enfants. A partir de l’édition de 1997, le nombre de familles prises en compte dans cette étude a été élargi aux huit catégories qui sont actuellement prises en compte. A partir de cette édition, des données chronologiques remontant à 1996 sont désormais fournies pour ces huit catégories de familles et ces informations sont présentées dans les tableaux 1 à 8 à l’annexe I de ce rapport. Dans un souci d’exhaustivité, l’annexe 2 de ce rapport continue à fournir les données historiques mises à jour depuis 1979 pour les salariés moyens des pays de l’OCDE. Évolution de la charge fiscale, 1996 à 2003 L’annexe I à ce rapport contient huit tableaux correspondant chacun aux catégories de ménages qui sont étudiées dans cette publication. Dans chaque tableau, des informations sont fournies sur la variation de la charge des impôts sur le revenu, de la charge des impôts sur le revenu majorée des cotisations salariales de sécurité sociale et diminuée des prestations en espèces et sur le coin fiscal, qui comprend les impôts sur le revenu plus les cotisations salariales et patronales de sécurité sociale (y compris les taxes sur les salaires éventuellement applicables). Étant donné la richesse des données que ces tableaux contiennent, il serait impossible d’examiner entièrement l’ensemble de ces informations. Par conséquent, on mettra l’accent sur certaines tendances observables sur cette période en mettant en lumière certaines variations importantes d’une année sur l’autre. Faits marquants

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Pour l’ensemble des pays de l’OCDE, la charge de l’impôt sur le revenu, la charge fiscale nette (impôt sur le revenu des personnes physiques plus cotisations de sécurité sociale moins prestations en espèces) et le coin fiscal ont eu tendance à diminuer si l’on compare les niveaux observés en 2003 avec ceux de 1996 pour toutes les catégories de ménages envisagées dans ce rapport. Cette observation peut être confirmée en calculant la variation moyenne d’une année sur l’autre pour les pays de l’OCDE puis en prenant en compte cet indicateur pour l’ensemble de la période. Pour ce qui est de la charge de l’impôt sur le revenu des personnes physiques, elle a baissé partout de 1.4 point (pour les parents isolés ayant deux enfants) à 2.0 points (pour les couples mariés ayant deux enfants). La baisse de la charge fiscale nette est moins spectaculaire puisqu’elle s’échelonne entre une baisse de 0.4 point (personne seule disposant d’un salaire égal aux cinq tiers de celui de l’ouvrier moyen) et une baisse de 1.8 points (parent isolé ayant deux enfants). La baisse du coin fiscal global est similaire puisqu’elle varie entre une réduction de 0.4 point (personne seule dont le salaire est égal aux cinq tiers de celui de l’ouvrier moyen) et une réduction de 1.8 point (personne seule ayant deux enfants). Il est également intéressant de noter que pour chacun des indicateurs considérés et pour chaque catégorie de ménages, les pays de l’OCDE dans lesquels on observe des baisses sont à peu près deux fois plus nombreux que ceux où l’on observe des augmentations. © OECD/OCDE 2004

Méthodologie de base et principaux résultats

Si l’on s’intéresse plus particulièrement à la charge de l’impôt sur le revenu des personnes physiques, il y a lieu de mentionner les pays qui ont connu les changements les plus importants. C’est en Finlande, en Hongrie, en Irlande, en Pologne, en Suède, en Turquie, au Royaume-Uni et aux ÉtatsUnis que l’on observe les réductions les plus importantes affectant la plupart des catégories de ménages ou la totalité d’entre elles. Dans le cas de la Finlande, de l’Irlande, de la Pologne, de la Suède et de la Turquie, la réduction de la charge de l’impôt sur le revenu des personnes physiques ne varie guère selon les catégories de ménages. Si l’on compare ces différentes catégories, la variation de la charge s’échelonne entre –4.0 points et –4.7 points en Finlande, entre –9.4 points et –12.5 en Irlande, –11.7 points et –12.4 en Pologne, –5.0 points et –6.4 points en Suède et –7.7 points et –10.0 points en Turquie. Dans le cas de la Hongrie, les réductions d’impôts ont été ciblées sur les titulaires de faibles revenus et leurs familles. Dans le cas des personnes seules, un salarié dont le revenu est égal à 167 pour cent de celui de l’ouvrier moyen ne bénéficie pas du tout de la réduction alors que ses collègues dont le revenu est égal à 67 pour cent et à 100 pour cent de celui de l’ouvrier moyen paie 5 points de moins. Pour les familles ayant des enfants, l’économie d’impôt générée par la réduction dépasse 10 pour cent du revenu. Les réductions observées au Royaume-Uni et aux États-Unis ont également été ciblées. Au Royaume-Uni, tous les ménages paient moins d’impôts en pourcentage du revenu mais à l’exception des parents isolés ayant des enfants et des couples mariés disposant d’un seul revenu, la réduction ne représente pas plus de 2.5 points. Au contraire, pour les parents isolés l’économie représente 28 points et pour un couple marié disposant d’un seul revenu elle représente 7 points. Dans le cas des ÉtatsUnis, les ménages ayant des enfants se sont vu attribuer une réduction comprise entre 5.9 et 9.0 points tandis que les personnes seules et les couples mariés disposant de deux revenus et n’ayant pas d’enfants ne réalisent qu’une économie comprise entre 2 et 3 points. Les augmentations les plus importantes de la charge de l’impôt sur le revenu des personnes physiques sont observées en Australie, en Autriche et en Islande. En Australie, l’augmentation de cet indicateur sur la période observée varie entre 1.3 point (personne seule disposant du salaire de l’ouvrier moyen et couple marié sans enfant disposant de deux revenus) et 8.4 points (parent isolé ayant deux enfants). En Autriche, l’augmentation touche toutes les catégories de ménages et varie d’un minimum de +0.5 point (personne seule disposant d’un salaire égal aux deux tiers de celui de l’ouvrier moyen) à un maximum de +6.4 points (parent isolé ayant deux enfants). En Islande, la charge a augmenté pour toutes les catégories de familles d’un montant compris entre +3.6 points (personne seule disposant du salaire de l’ouvrier moyen) et +7.4 points (personne seule disposant d’un revenu égal aux deux tiers de celui de l’ouvrier moyen et personne seule ayant deux enfants) bien qu’une partie de cette augmentation puisse être attribuée à une révision en hausse dans l’édition de cette année du salaire de l’ouvrier moyen à partir de 1998. Comme on l’a noté précédemment, les moyennes observées pour les pays de l’OCDE montrent que la charge fiscale nette (impôt sur le revenu des personnes physiques plus cotisations salariales de sécurité sociale moins prestations en espèces exprimées en pourcentage du revenu) et le coin fiscal (charge fiscale nette plus cotisations patronales de sécurité sociale exprimées en pourcentage des coûts de main d’œuvre) ont moins diminué que la charge de l’impôt sur le revenu des personnes physiques. On pourrait s’attendre à ce que les variations des cotisations de sécurité sociale et des prestations en espèces aient en fait atténué les réductions d’impôt sur le revenu des personnes physiques. Si l’on examine les différences entre ces deux indicateurs pour les diverses catégories de ménages et les divers pays de l’OCDE, on peut constater qu’en Finlande, en Suède, en Turquie et au Royaume-Uni, la réduction de la charge fiscale nette et celle du coin fiscal sont inférieures à celle qui a été observée pour la charge de l’impôt sur le revenu des personnes physiques. En fait, en Turquie, si l’on tient compte des cotisations de sécurité sociale, le coin fiscal augmente pour la plupart des catégories de ménages au cours de la période considérée. Il est intéressant de noter les différences observées dans la charge fiscale nette et dans le coin fiscal pour les Pays-Bas. Les réductions des cotisations salariales de sécurité sociale ont abouti à une © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

réduction de la charge fiscale nette pour toutes les catégories de ménages envisagées dans ce rapport. La variation va de –4.7 points (couple marié disposant d’un seul salaire) à –11.9 points (parent isolé ayant deux enfants). Cependant, les augmentations des cotisations patronales de sécurité sociale ont réduit le gain précédent (la variation du coin fiscal s’échelonne entre –4.3 pour cent et +0.2 pour cent des coûts totaux de main d’oeuvre). Les variations des cotisations de sécurité sociale et des prestations en espèces ont eu un effet inverse dans le cas de l’Australie et de l’Autriche où la charge de l’impôt sur le revenu des personnes physiques a augmenté. Dans le cas de l’Australie, si l’on prend en compte les variations des prestations en espèces, l’augmentation de la charge de l’impôt sur le revenu des personnes physiques précédemment constatée a été pratiquement compensée pour toutes les catégories de ménages à l’exception des parents isolés (la charge fiscale nette a augmenté de 3.8 points). Dans le cas de l’Autriche, si l’on examine le coin fiscal, les variations combinées des prestations en espèces et des cotisations de sécurité sociale ont dans l’ensemble annulé l’augmentation de la charge de l’impôt sur le revenu des personnes physiques. Si l’on compare la charge nette de l’impôt sur le revenu et le coin fiscal, on peut observer d’autres augmentations dans le cas de l’Islande, du Japon et de la Corée. En Islande, la baisse de la valeur des prestations en espèces par rapport au revenu et les augmentations des cotisations patronales de sécurité sociale ont abouti pour ces deux indicateurs à des augmentations plus importantes que celles que l’on a observées pour la charge de l’impôt sur le revenu des personnes physiques. Au Japon, l’augmentation des cotisations de sécurité sociale a accru le coin fiscal d’environ 8 points. En Corée, les variations des cotisations de sécurité sociale se sont ajoutées à des augmentations plus limitées de l’impôt sur le revenu des personnes physiques et de ce fait, on peut constater que le coin fiscal global a augmenté d’un montant compris entre 7.7 points (personne seule disposant d’un salaire égal aux deux tiers de celui de l’ouvrier moyen et couple marié sans enfant disposant de deux revenus) et 16.6 points (personne seule ayant deux enfants). Dans l’examen des résultats pour 2003, l’on s’est efforcé de rechercher comment les résultats de l’étude des impôts sur les salaires pourraient être utilisés pour déterminer la progressivité des impôts sur le revenu des personnes physiques ainsi que pour procéder à une évaluation comparative du régime fiscal des ménages et des personnes seules. Les résultats présentés en annexe I peuvent être utilisés pour examiner l’évolution de ces deux indicateurs. Le degré de progressivité de l’impôt sur le revenu des personnes physiques peut être évalué en comparant la charge qui pèse sur les personnes seules dont la rémunération est égale aux deux tiers du salaire de l’ouvrier moyen à la charge qui pèse sur leurs collègues rémunérés aux cinq cinquièmes du salaire de l’ouvrier moyen. C’est pourquoi le tableau I. 1 de l’annexe I est comparé au tableau I. 3. Pour tous les pays de l’OCDE et pour toutes les années, le salarié le moins bien rémunéré paie toujours un impôt sur le revenu des personnes physiques plus faible en pourcentage que le salarié le mieux payé. En comparant la situation de 1996 à celle de 2003, on peut déterminer s’il y a eu un changement dans cet indicateur de progressivité. En moyenne, les impôts sur le revenu des personnes physiques sont devenus plus progressifs dans les pays de l’OCDE. En 1996, la charge d’impôts sur le revenu des personnes physiques qui pèse sur un salarié célibataire rémunéré à 67 pour cent du salaire de l’ouvrier moyen représentait environ un peu moins de la moitié de celle du salarié qui gagnait 167 pour cent du salaire de l’ouvrier moyen. En 2003, la charge fiscale de ce salarié le moins bien payé avait été ramenée à moins des neuf vingtièmes de celle du salarié le mieux payé. Si l’on compare la situation des différents pays de l’OCDE, on observe que les impôts sur le revenu des personnes physiques sont devenus plus progressifs dans 19 pays mais c’est en Irlande que cette évolution a été la plus marquée. La charge de la personne la moins bien payée était en 1996 d’environ la moitié de celle du salaire le mieux payé alors qu’en 2003 cette charge n’en représentait plus que le tiers. 62

Les impôts sur le revenu des personnes physiques sont devenus légèrement moins progressifs dans sept pays de l’OCDE : Australie, Corée, France, Islande, Japon, Mexique et République slovaque. © OECD/OCDE 2004

Méthodologie de base et principaux résultats

Les résultats présentés en annexe I dans les tableaux I. 5 et I. 2 peuvent être utilisés pour comparer les charges fiscales pesant sur un couple marié disposant d’un seul salaire égal a celui de l’ouvrier moyen et sur le salarié célibataire disposant du même revenu. Si l’on met l’accent sur la charge fiscale nette (impôt sur le revenu des personnes physiques plus cotisations salariales de sécurité sociale moins prestations en espèces) on observe que l’économie moyenne d’impôt (la différence entre le taux d’impôt sur le revenu des personnes physiques d’un salarié célibataire et celui d’un couple marié) dont bénéficiait dans les pays de l’OCDE un couple marié disposant d’un seul revenu par rapport à un salarié célibataire rémunéré au salaire de l’ouvrier moyen a légèrement augmenté depuis 1996, passant de 11.0 pour cent du revenu à 11.4 pour cent. L’économie réalisée par le couple marié disposant d’un seul revenu a augmenté dans 14 pays et diminué dans 14 autres. Dans trois pays, l’économie d’impôt a augmenté de plus de cinq points : en Irlande (augmentation de 7.2 points, de 11.8 à 19.0 pour cent du revenu), aux États-Unis (augmentation de 7.2 points, pour atteindre 14.0 pour cent du revenu) et au Royaume-Uni (augmentation de 5.9 points pour atteindre 15 pour cent du revenu). Au contraire, l’économie d’impôt a diminué de plus de cinq points dans trois pays : en Pologne (baisse de plus de 5.7 points, de 7.7 à 2.0 pour cent du revenu), en République slovaque (baisse de 9.5 points depuis 2000, pour aboutir à 12.5 pour cent du revenu en 2003) et en Islande (baisse de 10.4 points pour aboutir à 21.7 pour cent du revenu). Variations annuelles importantes Le coin fiscal – la différence entre les coûts de main d’œuvre pour l’employeur et le revenu net disponible du salarié – représente la somme de l’impôt sur le revenu des personnes physiques et de l’ensemble des cotisations de sécurité sociale diminuées des prestations en espèces en pourcentage des coûts de main d’œuvre (voir Section A). En général, les variations du coin fiscal entre deux années successives se limitent à trois points en plus ou en moins. Des variations plus importantes s’expliquent en général par l’une des trois causes suivantes : i) modifications de la législation nationale en matière d’impôts et de prestations ; ii) incidence de l’inflation; et iii) modification des pratiques des pays en matière de communication des données. Afin de mieux faire apparaître certaines variations annuelles importantes, la discussion mettra l’accent sur les variations du coin fiscal applicables à un couple marié disposant d’un seul salaire égal à celui de l’ouvrier moyen. Depuis 1996, des variations annuelles dépassant plus ou moins 5 points sont observées dans huit pays différents de l’OCDE : Australie (+6.2 points en 2002), République tchèque (–7.8 points en 1998), Islande (+5.9 points en 1998), Italie (–5.8 points en 1998), Japon (+5.8 points en 1999 comme en 2002), Corée (+6.3 points en 1997), Mexique (–7.8 points en 1999) et Turquie (–9.5 points en 1999 et +10.1 poins en 2000). Parmi les variations annuelles importantes qui ont été identifiées, on observe quatre exemples de l’incidence de modifications législatives importantes (cause i.). Les réductions identifiées en Italie en 1998 et en Turquie en 1999 ont été provoquées par des modifications importantes des structures de taux de l’impôt sur le revenu des personnes physiques dans ces deux pays. La réduction du coin fiscal observée pour la République tchèque en 1998 peut être attribuée à l’instauration l’année précédente de prestations familiales soumises à des conditions de ressources. L’augmentation du coin fiscal au Japon en 1999 peut être attribuée à l’augmentation des cotisations de sécurité sociale. L’augmentation de 10.1 points du coin fiscal en Turquie en 2000 constitue un exemple de l’incidence de l’inflation (cause ii.) qui a pour effet de faire baisser en termes réels la valeur des seuils d’imposition importants. L’inflation rampante qui a affecté la Turquie en 2000 a abouti à une progression notable du salaire de l’ouvrier moyen qui s’est traduite à son tour par un alourdissement de la charge fiscale pesant sur ce dernier. La plupart des variations importantes d’une année sur l’autre qui ont été constatées ici ont été provoquées par des changements dans les pratiques des pays en matière de communication des données (cause iii.). L’augmentation du coin fiscal constatée pour la Corée en 1997 est due au fait que © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

les cotisations additionnelles de sécurité sociale ont été prises en compte à compter de cette année. Le coin fiscal plus élevé observé en Islande en 1998 peut être attribué à la révision historique du niveau de salaire de l’ouvrier moyen qui a été effectuée pour cette édition et qui a eu une incidence sur chaque année depuis cette date. La réduction du coin fiscal observée pour le Mexique en 1999 est due au fait que les cotisations patronales au système privatisé de sécurité sociale ne sont plus déclarées (voir le chapitre par pays à la partie V pour une explication des raisons pour lesquelles cette pratique en matière de communication de données a été modifiée). Les augmentations du coin fiscal observées pour l’Australie et le Japon en 2002 résultent également des changements dans les pratiques en matière de communication des données. Dans le cas de l’Australie, les taxes sur les salaires perçues par les États sont indiquées pour la première fois. Enfin, des améliorations ont été apportées à la déclaration des cotisations de sécurité sociale pour le Japon. Données chronologiques, 1979-2003 L'annexe II du présent rapport contient six tableaux qui font apparaître l'évolution, depuis 1979, des taux moyens d'imposition des personnes physiques et des coins fiscaux pour l'ouvrier moyen dans les pays de l'OCDE. Les tableaux 1 à 3 de l'annexe I présentent les taux moyens d'imposition des personnes physiques et les coins fiscaux pour l'ouvrier moyen célibataire sans enfant au cours de la période 1979-2003 dans les pays pour lesquels des données étaient disponibles. De même, les tableaux 4 à 6 de l'annexe I indiquent les taux moyens d'imposition et les coins fiscaux pour l'ouvrier moyen marié (ménages n'ayant qu'un seul apporteur de revenu et deux enfants) au cours de la même période. Célibataires sans enfant Le tableau II.1 de l’annexe II montre qu’au cours de ces 24 dernières années le taux moyen de l’impôt sur le revenu a augmenté dans 9 pays et diminué dans 16 (si l’on exclut les pays qui sont devenus membres depuis 1991). Les plus fortes augmentations ont été enregistrées en Belgique (+11.4 points), en Islande (+8.2 points) et en Italie (+6.5 points), alors que les réductions les plus importantes ont été observées en Turquie (–27.4 points), en Suède (–12.7 points) et en Irlande (–12.3 points). Au cours des dix dernières années (pour tous les pays de l’OCDE), on observe un schéma similaire dans la mesure où il y a eu des augmentations dans 10 pays et des réductions dans 20. L’augmentation la plus importante au cours de cette période a été enregistrée en Islande (+5.3 points) tandis que les baisses les plus importantes ont été observées en Turquie (–12.7 points), au Danemark (–12.6 points), en Irlande (–12.5 points) et en Pologne (–11 points). Depuis l’année 2000, le taux moyen de l’impôt sur le revenu des personnes physiques a augmenté dans 11 pays de l’OCDE et diminué dans 19. L’augmentation la plus importante au cours de cette période a été observée en Islande (+2.0 points) et au Mexique (+1.6 point) tandis que les baisses les plus importantes ont eu lieu en Hongrie (–5.9 points), au Luxembourg (–3.9 points) et en Irlande (–3.8 points).

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Afin de mieux apprécier les variations du revenu net disponible des salariés, il faut également tenir compte des cotisations de sécurité sociale. Le tableau II.2 de l’annexe I indique la charge cumulée de l’impôt sur le revenu des personnes physiques et des cotisations salariales de sécurité sociale pour un célibataire dont le salaire est égal à celui de l’ouvrier moyen. Durant cette période de 24 ans, le taux moyen d’imposition (y compris les cotisations de sécurité sociale) des célibataires sans enfant (si l’on exclut les pays qui sont devenus membres depuis 1991) a augmenté dans 15 pays de l’OCDE et diminué dans 10 d’entre eux seulement. On observe les plus fortes augmentations en Belgique (+15.3 points) et en Allemagne (+10.3 points) alors que les plus fortes réductions sont enregistrées en Turquie (–19.4 points) et en Irlande (–11.7 points). Au cours des 10 dernières années, ce chiffre a augmenté dans 14 pays et diminué dans 16 (pour l’ensemble des pays de l’OCDE). L’augmentation la plus importante s’est produite en Pologne (+14.0 points) alors que les baisses les plus importantes ont été observées en Irlande (–16.3 points), aux Pays-Bas (–7.8 points) et au Mexique (–6.9 points). Depuis l’année 2000, on a observé une faible augmentation de la charge cumulée de l’impôt sur le revenu et © OECD/OCDE 2004

Méthodologie de base et principaux résultats

des cotisations salariales de sécurité sociale dans 12 pays (cette augmentation n’a pas dépassé 2 points) et une baisse dans 18 pays, les diminutions les plus importantes étant observées en Hongrie (–5.9 points) et au Luxembourg (–4.1 points). Le tableau II.3 de l’annexe II élargit la présentation aux cotisations patronales de sécurité sociale – le coin fiscal. Entre 1979 et 2003, le coin fiscal pour un célibataire sans enfant percevant le salaire de l’ouvrier moyen a eu tendance à augmenter dans les pays de l’OCDE. Depuis 2000, le coin fiscal a augmenté dans 13 pays de l’OCDE et diminué dans 17. Si l’on exclut l’Australie et le Canada où la forte augmentation observée au cours de cette période est due à un changement des pratiques en matière de communication de données, on observe des augmentations supérieures à 2 points en Islande et au Japon. Des diminutions supérieures à 3 points sont enregistrées en Hongrie, en Irlande et au Luxembourg. Couple marié disposant d’un seul salaire et ayant deux enfants Les informations du tableau II.4 de l’annexe I correspondent à celles du tableau II.1 mais en mettant désormais l’accent sur le cas d’un couple marié ayant deux enfants et disposant d’un seul revenu. La baisse du taux moyen de l’impôt sur le revenu au cours de la période considérée (évaluée par rapport aux dernières données disponibles) excède 10 points en Turquie (–27.4 points), en Hongrie (–11.6 points depuis 1995), en Allemagne (–11.4 points), en Pologne (–11.1 points depuis 1993), au Royaume-Uni (–10.7 points) et aux États-Unis (–10.2 points). La plus forte augmentation a été observée en Belgique (+7.8 points). De même, les informations du tableau II.5 de l’annexe II correspondent à celles du tableau II.2 de cette annexe, mais en examinant le cas d’un couple marié ayant deux enfants et disposant d’un seul revenu égal à celui de l’ouvrier moyen et en prenant également en compte les prestations en espèces. L’évolution indiquée correspond largement à celle observée pour les célibataires, mais dans la plupart des pays la charge que représente l’impôt et les cotisations salariales de sécurité sociale est (nettement) plus faible pour les couples mariés disposant d’un seul revenu que pour les célibataires. Dans un certain nombre de pays, les familles ayant des enfants subissent une charge fiscale plus faible parce que les prestations en espèces qu’ils ont perçues ont compensé le montant des impôts qu’ils avaient à verser. En 1979, l’économie moyenne d’impôt dont bénéficiait dans les pays de l’OCDE un couple marié disposant d’un seul revenu par rapport à un célibataire disposant du même niveau de revenu s’élevait à 11.6 pour cent des revenus et a légèrement diminué pour être ramenée à 11.4 pour cent du revenu en 2003. Enfin, le tableau II.6 de l’annexe II élargit l’analyse portant sur les couples mariés disposant d’un seul revenu en prenant en compte les cotisations patronales de sécurité sociale. Entre 1979 et 2003, on observe des augmentations à deux chiffres (évaluées par rapport aux dernières données disponibles) du coin fiscal en Grèce (+25.0 points), au Japon (+12.0 points), au Canada (+11.6 points) et en NouvelleZélande (+10.0 points). A l’autre extrême, des diminutions à deux chiffres sont observées en Irlande (–13.0 points), en Turquie (–11.8 points) et au Luxembourg (–10.5 points).

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© OECD/OCDE 2004

ÉTUDE SPÉCIALE : Chapter 1

Seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale 1.

Introduction

La situation des ouvriers au regard de l’impôt et des transferts sociaux 1988-1991 comportait une étude spéciale sur les seuils d’assujettissement à l’impôt sur le revenu, dans les pays de l’OCDE, des célibataires ne percevant que des revenus du travail, ainsi qu'une comparaison de la situation entre 1985 et 1991. La présente étude spéciale contient des chiffres actualisés pour 2003, les résultats étant comparés aux chiffres de 1985 présentés dans la précédente étude spéciale sur les seuils d'imposition du revenu. Elle indique également les seuils de revenu et les taux marginaux effectifs d’imposition pour d’autres catégories de familles en 2003, avec et sans les prestations sociales, ainsi que les seuils et les taux applicables aux cotisations de sécurité sociale. Le niveau minimal de revenus à compter duquel les particuliers doivent s’acquitter de l’impôt sur le revenu – le seuil de l’impôt sur le revenu – constitue un aspect important de la politique fiscale à plusieurs égards. Premièrement, il est l’un des facteurs déterminants de la progressivité d’un système d’impôt sur le revenu. Deuxièmement, le seuil d’assujettissement à l’impôt sur le revenu peut avoir une incidence sur le moment à partir duquel apparaît « le piège de la pauvreté », en ce qui concerne les taux effectifs d’imposition qui tiennent compte à la fois de l’impôt sur le revenu et de l’octroi sous conditions de ressources des crédits d’impôt et des prestations sociales. Troisièmement, le niveau du seuil d’imposition détermine le rendement de l’impôt sur le revenu des personnes physiques – un relèvement de ce seuil s’avère le plus souvent coûteux en termes de perte de recettes fiscales. Quatrièmement, les pouvoirs publics peuvent décider de relever fortement le seuil d’imposition pour simplifier l’administration de l'impôt en « excluant » une partie importante de la population du champ de l’impôt sur le revenu. D'une part, cette possibilité peut contribuer à réduire considérablement le coût total de la discipline fiscale dans le secteur des ménages. D'autre part, dans la mesure où l’on augmente le nombre de ménages à faibles revenus qui se trouvent en dehors du système d'imposition du revenu, il devient plus difficile, par exemple, d’utiliser cette forme de fiscalité comme moyen de fournir des prestations sociales aux personnes dans le besoin. Outre l’impôt sur le revenu des personnes physiques, tous les pays de l’OCDE, à l’exception de l’Australie et de la Nouvelle-Zélande, ont un système obligatoire de cotisations salariales de sécurité sociale. Il s’agit généralement de prélèvements à taux uniforme (même s’il existe parfois des plafonds) et seuls quelques pays de l’OCDE appliquent un seuil. Comme dans l'étude spéciale de la Situation des ouvriers au regard de l'impôt et des transferts sociaux 1988-1991, la présente étude spéciale est essentiellement axée sur le seuil à partir duquel les personnes physiques sont assujetties à l’impôt sur le revenu, sans qu’il soit tenu compte des cotisations de sécurité sociale1. Les résultats de 2003 sont donc comparables à ceux de 1985. La raison principale pour laquelle il a été décidé de ne pas tenir compte des cotisations de sécurité sociale tient au fait qu’elles auraient occulté des informations importantes sur la variation des seuils de paiement de l’impôt sur le revenu, les deux tiers des pays de l’OCDE n’appliquant aucun seuil aux cotisations de sécurité sociale. De plus, les taux marginaux d’imposition des revenus des personnes physiques sont généralement supérieurs aux cotisations de sécurité sociale dans la plupart des pays, en partie du fait de seuils plus élevés d’assujettissement à l’impôt sur le revenu. En outre, la plupart des © OECD/OCDE 2004

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pays de l’OCDE préfèrent le système de l’impôt sur le revenu à celui des cotisations de sécurité sociale comme principal instrument de redistribution des revenus par la fiscalité. Telles sont les raisons pour lesquelles il est intéressant de procéder à une analyse du seuil d’assujettissement à l’impôt sur le revenu, même si elle ne donne pas toutes les indications souhaitées. Les cotisations de sécurité sociale constituant une source considérable de recettes dans beaucoup de pays de l’OCDE, elles peuvent avoir une incidence importante sur les décisions d’offre et de demande de main-d’œuvre, sur les « pièges de la pauvreté » et sur la progressivité du système fiscal dans son ensemble. Cette étude spéciale comporte, par conséquent, une section distincte sur les seuils et les taux de cotisations de sécurité sociale applicables aux personnes seules sans enfant. L'édition de 1992 ne visait que les personnes seules sans enfant et ne tenait donc pas compte de l’influence des prestations d’application générale au titre des enfants à charge. Ces dernières années, de nombreux pays de l’OCDE ont remplacé les abattements fiscaux par des crédits d’impôt, et en outre ils ont commencé à assujettir l’attribution des allègements fiscaux à des conditions de ressources. Afin d’améliorer la comparabilité entre pays de l’OCDE des seuils d’assujettissement à l’impôt sur le revenu des personnes physiques, la présente étude indique également les seuils applicables à d’autres catégories de familles, avec et sans prestations (d’application générale). Les calculs reposent sur un certain nombre d’hypothèses simplificatrices énoncées ci-après. Qui plus est, ils concordent avec les concepts et les données présentés dans d'autres parties des Impôts sur les salaires et de la publication qui l'a précédée, La situation des salariés au regard de l’impôt et des transferts sociaux. 2.

Définition et mesure du seuil d’assujettissement à l’impôt sur le revenu

La détermination du seuil de revenu à compter duquel les personnes physiques sont redevables de l’impôt sur le revenu soulève un certain nombre de questions d’ordre technique et méthodologique. Il est donc important que les principes et les fondements de la détermination de ce seuil soient clairement définis, et ce d’autant plus lors de comparaisons internationales. Le seuil de revenu (salaire brut) est défini comme étant le niveau de salaire brut à partir duquel un montant d’impôt donné est dû, c'est-àdire le niveau minimum de salaire brut pour lequel il existe un assujettissement positif net à l’impôt sur le revenu, dans l’hypothèse où le contribuable n’a pas d’autres déductions dans le calcul de son revenu imposable. Le niveau du seuil de revenu est déterminé par quatre facteurs : • le montant des abattements fiscaux forfaitaires (SA) ; • la largeur de toute tranche à taux zéro quelle qu’elle soit dans le barème de l’impôt sur le revenu (WZB) ; • le montant des crédits d’impôt forfaitaires (STC) ; et • le taux marginal d’imposition (t) applicable. La relation entre ces quatre facteurs et le niveau du seuil de revenu brut, Y*, peut être approximativement mesurée de la manière suivante : Y* = SA(Y) + WZB + STC(Y)/t, où Y correspond aux revenus du travail. Cette formule générale tient compte du fait que les crédits d’impôt forfaitaires peuvent être liés aux revenus et octroyés sous conditions de ressources. Pour donner un exemple simple, supposons que les abattements forfaitaires, le barème d’imposition et les crédits d’impôt forfaitaires non liés aux revenus soient les suivants : SA = 1 000 Barème d’imposition : Tranche de revenu

0-5 000 5 000-10 000 10 000 et plus 68

t (%)

0 20 40

STC = 500 © OECD/OCDE 2004

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Dans ces conditions, le seuil de revenu peut être calculé comme suit : Y* = 1 000 + 5 000 + 500/0.2 = 8 500 Le taux d’imposition légal qui s’applique au niveau du seuil est, en règle générale, le premier taux positif, y compris en ce qui concerne le taux des impôts sur le revenu des personnes physiques perçus par l’État et par les collectivités locales. Toutefois, dans le cas où l’impôt exigible sur la première tranche d’imposition est épuisé par les crédits d’impôt, une partie des crédits d'impôt forfaitaires devra être convertie en un montant de seuil équivalent à partir du taux d’imposition légal suivant. C’est ce qu’illustre l’exemple simple ci-dessous, où l'on suppose que les abattements forfaitaires, le barème d’imposition et les crédits d’impôt forfaitaires, non liés aux revenus sont les suivants : SA = 1 000 Barème d’imposition : Tranche de revenu

0-1 000 1 000-5 000 5 000 et plus

t (%)

20 30 40

STC = 300 Dans ces conditions, le seuil de revenu peut être calculé comme suit : Y* = 1 000 + 200/0.2 + 100/0.3 = 2 333, où 200 est le crédit nécessaire pour supprimer l’impôt sur le revenu dû au titre de la première tranche (0,2 x 1 000) et 100 est le crédit restant qui peut servir à réduire la somme à payer au titre de la deuxième tranche. Afin de disposer d’une mesure de seuil qui soit universellement applicable, seuls ont été utilisés des allègements forfaitaires tels que définis dans Les impôts sur les salaires. Outre les allègements forfaitaires égaux à un montant fixe indépendant du revenu, certains pays disposent également d’allègements forfaitaires liés au revenu. Si l’on reprend la définition générale du seuil de revenu comme étant le niveau de salaire brut à partir duquel une personne physique est assujettie à l’impôt sur le revenu, la formule du seuil de revenu dans le cas des allègements forfaitaires liés au revenu est donnée par2 : Y* = [1/(1-t*)] x [SA non lié au revenu + WZB + STC/t], où t* est le taux d’allègement forfaitaire lié au revenu (mais non subordonné à une condition de ressources) – soit l’allègement forfaitaire lié au revenu exprimé en pourcentage du salaire brut. On notera que cette définition suppose un seuil nul dans un système ne comportant que des allègements forfaitaires liés aux revenus. Si le STC est subordonné à une condition de ressources, Y* dépendra aussi des taux dégressifs, etc. Tous les abattements et crédits d'impôt forfaitaires tels que définis dans Les impôts sur les salaires sont donc inclus dans les calculs. Dans certains pays, les cotisations de sécurité sociale sont déductibles de l’impôt sur le revenu soit sous la forme d’un abattement, soit sous la forme d’un crédit d’impôt (ou d’une combinaison des deux), ce qui aura une incidence sur les seuils de revenu calculés comme tout autre allègement forfaitaire lié au revenu3. Cette étude spéciale présente également des résultats concernant le seuil de revenu lorsque des prestations en espèces d’application générale sont octroyées. Dans ce cas, le seuil est défini comme le niveau de revenu auquel l’impôt sur le revenu, sans tenir compte des prestations, est égal aux prestations perçues, ce qui revient à dire que les prestations sont assimilées à un impôt négatif sur le revenu. Lorsqu’il n'existe qu’un seul taux d’imposition légal, le seuil de revenu est donné par4 : Y* = SA + WZB + STC(Y)/t + BEN(Y)/t, où BEN est le montant des prestations en espèces (d’application générale). La formule générale reflète le fait que, non seulement les crédits d’impôt, mais aussi les prestations en espèces, peuvent être liés au revenu et assujetties à une condition de ressources. Si l’impôt sur le revenu dû au titre de la © OECD/OCDE 2004

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première tranche est épuisé par les prestations, le solde est alors converti en un montant de seuil équivalent grâce au taux d’imposition légal suivant, comme on l’a vu ci-dessus pour les crédits d’impôt forfaitaires. Le niveau de seuil de revenu ainsi mesuré varie non seulement d’un pays à l’autre, mais peut également varier à l’intérieur d’un même pays d’un contribuable à l’autre, en fonction de facteurs tels que la situation de famille, les abattements, les crédits d'impôt et les prestations inclus dans le calcul et le taux marginal (effectif) d’imposition du contribuable. Compte tenu de la multiplicité de seuils de revenu au sein d’un même pays, les comparaisons internationales n’auront de sens que si les principes utilisés et leurs composantes sont définis avec précision. Les hypothèses fondamentales employées pour le calcul des seuils présentés dans cette étude spéciale correspondent à la méthodologie adoptée dans Les impôts sur les salaires et peuvent se résumer comme suit : • Les calculs n’ont été effectués que pour les contribuables dont les situations sont équivalentes à celles des quatre catégories de familles retenues, par exemple, les personnes seules sans enfant, les célibataires ayant deux enfants, une famille à un seul apporteur de revenu et sans enfant 5 et une famille à seul un apporteur de revenu et ayant deux enfants. • Toutes les données utilisées pour les calculs sont extraites des chapitres nationaux et des tableaux comparatifs [à l’exception des taux de change de l’euro, des parités de pouvoir d’achat (PPA) et des indices des prix à la consommation (IPC)]. • L’année de référence est identique à l’une des deux années utilisées dans le corps du rapport, soit 2003. Pour donner une idée de l’évolution des seuils d’imposition au cours des dix-sept dernières années, le tableau 1 présente des informations analogues pour 1985 concernant les célibataires6 (extraites de l’édition 1992 du rapport, qui ne donnait de résultats que pour les célibataires). • Tous les niveaux d'administration prélevant un impôt sur le revenu ou octroyant des prestations en espèces d’application générale sont pris en compte dans les calculs. Dans la mesure où les seuils de revenu tels que définis ci-dessus ou les taux d’imposition varient d’un niveau d’administration à l’autre, les résultats concernant plus d’un niveau d'administration figurent au tableau 2. Le tableau 3 donne des résultats regroupant à la fois taux d’imposition du revenu et prestations en espèces. Outre les seuils de revenu à partir desquels les personnes physiques sont assujetties à l’impôt, avec ou sans prestations, le rapport donne également les taux marginaux effectifs d’imposition à ces seuils de revenu (pour 2003). Il s'agit à la fois des taux légaux de l'impôt sur le revenu perçu par l'Administration centrale et des taux légaux de l’impôt sur le revenu perçu par les collectivités territoriales, et ils reflètent les effets des crédits d’impôt et des prestations en espèces liées au revenu et subordonnés à des conditions de ressources. En d’autres termes, on trouvera le montant effectif d’impôt payé sur la première unité de revenu du travail qui dépasse le seuil de revenu estimé7. Les taux des cotisations de sécurité sociale ne sont pas inclus dans ces calculs, mais les taux marginaux effectifs d'imposition en subiront l’influence dans la mesure où les cotisations de sécurité sociale sont déductibles de l’impôt sur le revenu. Étant donné que les calculs reposent sur un certain nombre d’hypothèses simplificatrices, il convient de faire preuve de prudence en ce qui concerne les comparaisons internationales de résultats. Les principales réserves à cet égard sont les suivantes : • Les calculs sont soumis aux mêmes limites que la démarche adoptée dans Les impôts sur les salaires d’une manière générale. Ces réserves sont développées dans la partie III de la publication.

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• Les cotisations de sécurité sociale ne sont pas incluses dans le calcul des seuils de revenu aux tableaux 1 à 3. Comme peu de pays leur appliquent un seuil, elles sont généralement exigibles à un niveau de revenu auquel aucun impôt n’est dû. Toutefois, le tableau 4 montre ce qui se produit lorsque l’on inclut les cotisations de sécurité sociale. © OECD/OCDE 2004

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

• Pour des raisons de commodité et de comparabilité, il a été décidé de retenir une définition simple et courante de la notion de seuil de revenu. Par conséquent, les seuils calculés ne s’appliquent pas nécessairement à tous les contribuables d’un pays donné. 3.

Impôt sur le revenu des personnes physiques – seuils et taux d’imposition

Le tableau 1 compare les seuils de revenu à partir desquels les célibataires sont redevables de l’impôt sur le revenu, seuils exprimés à la fois en unités monétaires locales, en parités de pouvoir d’achat (PPA) et en pourcentage du salaire de l’ouvrier moyen. Les résultats concernent les 30 pays de l’OCDE en 2003 et 23 des 24 pays qui faisaient partie de l’Organisation en 1985. De plus, la progression des seuils de revenu entre 1985 et 2003, corrigée de l’IPC, est présentée pour chacun de ces 23 pays de l’OCDE. Le tableau donne également des informations sur les taux légaux d’imposition au niveau du seuil, pour 1985 et 20038. Les résultats concernent à la fois les impôts de l’administration centrale et les impôts locaux pour les 4 pays où cette distinction a été faite en 1985, alors que les autres pays membres ont fourni des taux globaux. Le tableau montre que les niveaux de seuil corrigés de l’IPC ont progressé dans 14 des 23 pays de l’OCDE entre 1985 et 2003, dépassant 40 pour cent dans 10 d’entre eux (Allemagne, Autriche, Belgique, Finlande, Irlande, Islande, Japon, Luxembourg, Nouvelle-Zélande et Royaume-Uni). On a constaté une réduction réelle du niveau de seuil dans 7 pays (Australie, Canada, France, Italie, Pays-Bas, Suisse et Turquie)9. Pour deux des pays qui font une distinction entre impôts de l’État central et impôts locaux, on note une forte divergence de croissance des seuils respectifs. En Norvège, le seuil applicable aux impôts de l’État central a chuté en valeur réelle de près de 40 pour cent, celui des impôts locaux ayant progressé de plus de 100 pour cent. Aux États-Unis par contre, le seuil applicable aux impôts fédéraux a progressé en termes réels de plus de 30 pour cent, tandis que celui qui concerne les impôts locaux a baissé de plus de 80 pour cent. Lorsque l’on mesure les seuils en pourcentage du salaire de l’ouvrier moyen en 1985 et en 2003, on constate une progression dans 11 pays et une baisse dans 10 autres10. Aux États-Unis, le seuil de revenu applicable aux impôts nationaux a augmenté, tandis que celui des impôts locaux a baissé, alors que c’est l’inverse qui s’est produit en Norvège. Le tableau 1 montre également que les taux légaux applicables aux seuils de revenu étaient inférieurs en 2003 à ceux de 1985 dans 13 pays et plus élevés dans 9 autres. En d’autres termes, on constate une baisse des taux d’imposition aux niveaux de seuil dans la plupart des pays. Dans 7 des 14 pays où l’on a enregistré une élévation réelle des niveaux de seuil, les taux légaux étaient inférieurs en 2003 à ceux de 1985 (Allemagne, Danemark, Irlande, Japon, Luxembourg, Nouvelle-Zélande et Royaume-Uni), tandis qu’ils ont augmenté dans 7 pays (Autriche, Belgique, Espagne, Finlande, Islande, Portugal et Suède). Parmi les 7 pays où les niveaux de seuil ont baissé, la France est le seul où les taux légaux de 2003 dépassent ceux de 1985. Le tableau 2 indique les seuils de revenu en pourcentage du salaire de l’ouvrier moyen et les taux marginaux effectifs d’imposition au niveau de seuil pour 2003, pour quatre catégories de familles différentes (personne seule sans enfant, parent isolé avec deux enfants, famille disposant d'un seul revenu et sans enfant11 et famille disposant d'un seul revenu et ayant deux enfants). Les résultats sont donnés séparément pour les impôts nationaux et pour les impôts locaux. Dans 13 des 30 pays de l’OCDE, on constate une différence entre impôts nationaux et impôts locaux, s’agissant soit des taux d’imposition, soit des seuils de revenu. Dans 3 de ces pays (Corée, Espagne et Norvège), les seuils sont identiques pour les impôts nationaux et pour les impôts locaux. Dans les dix autres pays sauf au Canada et au Danemark, les seuils d'imposition des revenus des personnes physiques applicables au niveau national dépassent les seuils applicables aux impôts locaux. Dans 8 pays sur 13, les taux des impôts nationaux sont supérieurs à ceux des impôts locaux, alors que c'est le contraire dans les 5 autres pays. Les seuils applicables aux impôts locaux dépendent de la catégorie de famille dans 9 des 13 pays envisagés alors que les taux marginaux effectifs d'imposition locaux n'en dépendent que dans 4 pays. Les seuils applicables aux impôts nationaux dépendent de la catégorie de famille dans 11 des 13 pays, © OECD/OCDE 2004

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alors que les taux marginaux effectifs d'imposition nationaux n'en dépendent que dans 6 pays. Dans deux des 13 pays mentionnés ci-dessus (Finlande et Suède), la catégorie de famille n’a aucune incidence ni sur les taux d’imposition (impôts nationaux ou locaux) ni sur les seuils. Le tableau 3 indique les seuils applicables à l’impôt sur le revenu (national et local) et à l’impôt sur le revenu diminué des prestations, en pourcentage du salaire de l’ouvrier moyen, pour les quatre catégories de familles susmentionnées et les taux marginaux effectifs d’imposition aux niveaux de seuil correspondants pour 2003. Il a été décidé de comparer les seuils de revenu d’un pays à l’autre, avec et sans les prestations dans la mesure où un nombre croissant de pays octroient des prestations par le biais du système fiscal (par des crédits d’impôt récupérables), alors que d’autres continuent d’acheminer leurs prestations essentiellement par le biais des prestations en espèces. Le tableau 3 montre ces différences de politiques, puisqu’il permet de voir que le seuil de revenu n’est pour ainsi dire pas modifié par l’introduction de prestations dans certains pays, alors que la différence est grande dans d’autres. En 2003, pour une personne seule sans enfant, les niveaux de seuil étaient en moyenne de 30 pour cent du salaire de l’ouvrier moyen dans les pays de l’OCDE sans les prestations et de 31 pour cent avec les prestations. Les chiffres vont de 0.0 pour cent en France, en Italie et en Turquie à 2.7 pour cent en Australie12, 86.2 pour cent au Mexique et 99.9 pour cent en Grèce (la médiane étant de 28 pour cent sans les prestations et de 29 pour cent avec les prestations). Les taux marginaux effectifs d'imposition aux seuils étaient de 17.1 pour cent en moyenne sans les prestations et de 18.9 pour cent avec les prestations, variant de 0.6 pour cent en Turquie et 0.8 en Italie à 59 pour cent au Royaume-Uni et 82.8 pour cent aux États-Unis13 (la médiane étant de 13.6 pour cent sans les prestations et de 13.1 pour cent avec). Pour un parent isolé, les niveaux de seuil moyens étaient, en 2003, de 46.9 pour cent du salaire de l’ouvrier moyen sans les prestations et de 84.9 pour cent avec celles-ci, tandis que les taux marginaux effectifs d'imposition moyens étaient respectivement de 18.1 et 30.4 pour cent selon que l’on tient ou non compte des prestations. Les seuils sans prestations vont de 0.0 pour cent en France, en Italie et en Turquie et de 7.5 pour cent en Finlande à 106.3 pour cent au Luxembourg et 108.9 pour cent en Grèce (la médiane étant de 42.3 pour cent). Avec les prestations, les seuils varient de 0.0 pour cent en Turquie et 39 pour cent en Allemagne à 138.5 pour cent en République slovaque et 155 pour cent au Luxembourg (la médiane étant de 80.6 pour cent). Les taux marginaux effectifs d'imposition vont de 0.6 pour cent en Turquie avec ou sans les prestations, 59 pour cent au Royaume-Uni sans les prestations, 61.5 pour cent en Australie et 74 pour cent au Canada avec les prestations (les médianes étant respectivement de 15 et 30.1 pour cent). Pour une famille disposant d'un seul revenu et sans enfant, les niveaux moyens de seuil en 2003 étaient de 41.8 pour cent du salaire de l’ouvrier moyen sans les prestations et de 43.7 pour cent avec les prestations, tandis que les taux marginaux effectifs d'imposition moyens étaient respectivement de 17.6 pour cent et de 18.5 pour cent. Les seuils vont de 0.0 pour cent en France, en Italie (uniquement sans les prestations) et en Turquie et de 7.5 pour cent en Finlande à 86.2 pour cent au Mexique et 90.8 pour cent en Grèce (les médianes étant de 39.2 sans les prestations et de 46.6 pour cent avec celles-ci). Les taux marginaux effectifs d'imposition vont de 0.6 pour cent en Turquie à 59 pour cent au Royaume-Uni et à 82.9 pour cent aux États-Unis avec ou sans les prestations (la médiane étant de 14 pour cent sans les prestations et de 15 pour cent avec elles).

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Pour une famille disposant d'un seul revenu et ayant deux enfants, les niveaux moyens de seuil en 2003 étaient de 53.3 pour cent du salaire de l’ouvrier moyen sans les prestations et de 91.4 pour cent avec celles-ci, les taux marginaux effectifs d'imposition moyens étant respectivement de 16.9 pour cent et 28.8 pour cent. Les seuils vont de 0.0 pour cent en France, en Italie et en Turquie et de 7.5 pour cent en Finlande à 99.9 pour cent en Allemagne et 131.6 pour cent au Luxembourg sans les prestations. Avec les prestations, les seuils vont de 0.0 pour cent en Turquie et de 45.9 pour cent au Danemark à 143.3 pour cent au Portugal et 211.2 pour cent au Luxembourg (les médianes étant respectivement de 56.9 pour cent sans les prestations et de 89.2 pour cent avec elles). Les taux marginaux effectifs d'imposition vont de 0.6 pour cent en Turquie avec ou sans les prestations, à 59 pour cent au Royaume© OECD/OCDE 2004

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Uni sans les prestations, 61.5 pour cent en Australie et 74 pour cent au Canada avec les prestations (les médianes se situant respectivement à 14.7 et 28.3 pour cent). Lorsque l’on compare les personnes seules sans enfant aux parents isolés ayant deux enfants, les niveaux de seuil sont plus élevés pour cette dernière catégorie dans 20 pays sans les prestations et dans 28 autres si l’on inclut les prestations, alors que l'on n'observe le contraire dans aucun pays. Les seuils plus élevés pour les parents se traduisent par des taux marginaux effectifs d'imposition supérieurs pour les parents isolés dans 20 pays avec les prestations et dans 9 autres sans les prestations. Les États-Unis se trouvent ici dans une position particulière, puisque les taux marginaux effectifs d'imposition pour les personnes seules sans enfant sont près de deux fois supérieurs à ceux qui concernent les parents isolés. Cette situation s’explique principalement par le fait que le taux de dégressivité du crédit d’impôt au titre des revenus du travail (« Earned Income Tax Credit ») est plus élevé pour les personnes seules sans enfant que pour les parents isolés avec deux enfants aux seuils correspondants. On constate un schéma similaire lorsque l’on compare les familles disposant d'un seul revenu avec enfants à charge aux familles disposant d'un seul revenu sans enfant. Les niveaux de seuil sont plus élevés pour les familles avec enfants dans 27 pays avec les prestations et dans 16 pays si l’on n’en tient pas compte. L’Australie est le seul pays où le seuil sans les prestations soit plus élevé pour les familles sans enfant14. Les taux marginaux effectifs d'imposition sont plus élevés pour les familles avec enfants dans 19 pays membres si l’on tient compte des prestations, mais dans 6 uniquement si l’on n’en tient pas compte (dans ce cas, les taux marginaux effectifs d'imposition sont égaux dans 22 pays). Encore une fois, le taux marginal effectif d'imposition au niveau de seuil est nettement plus élevé pour les familles sans enfant aux États-Unis. Il ressort de ces comparaisons que, dans la plupart des pays, les seuils de revenu (et les taux marginaux effectifs d'imposition à ces seuils) sont plus élevés pour les ménages avec enfants (parents isolés ou familles à un seul apporteur de revenu) que pour les familles sans enfant. Les différences tendent à être encore plus marquées lorsque l’on tient compte des prestations, bien que le système fiscal lui-même favorise les familles avec enfants dans plusieurs pays dans la mesure où le seuil de revenu est plus élevé. L’élément des systèmes fiscaux lié au seuil de revenu semble par ailleurs favoriser les familles par rapport aux personnes seules et aux parents isolés. Si l’on compare les personnes seules sans enfant aux familles à un seul apporteur de revenu et sans enfant, les seuils sont plus élevés pour cette dernière catégorie dans 22 pays avec les prestations et dans 21 pays si l’on ne tient pas compte des prestations. Quand on compare les parents isolés ayant deux enfants aux familles disposant d'un seul revenu et ayant deux enfants, les seuils sont plus élevés pour les familles dans la moitié environ des pays membres, avec ou sans les prestations, l’inverse n’étant vrai que dans 2 pays sans les prestations (Australie et Pays-Bas) et dans 9 pays avec les prestations (Canada, Danemark, Finlande, Hongrie, Norvège, Pays-Bas, République slovaque et Royaume-Uni). 4.

Cotisations de sécurité sociale – seuils et taux d’imposition

On constate d’importantes différences entre les pays de l’OCDE s’agissant de la part des cotisations salariales de sécurité sociale dans le financement des dépenses publiques de sécurité sociale. L’Australie et la Nouvelle-Zélande ne prélèvent aucune cotisation sociale sur les salariés, tandis que l’Islande applique un montant fixe relativement faible si le revenu salarial est supérieur à un certain niveau. D’autres pays sont fortement tributaires des cotisations de sécurité sociale, ainsi l’Allemagne, l’Autriche, les Pays-Bas et la Pologne, où elles ont représenté en 2003 au moins 20 pour cent des revenus salariaux bruts. En outre, le recours aux cotisations de sécurité sociale comme source de recettes s’est développé au fil du temps par rapport à celui de l’impôt sur le revenu des personnes physiques. Si les montants totaux d’impôts sur le revenu et de cotisations de sécurité sociale pour un célibataire au niveau du salaire de l’ouvrier moyen sont passés en moyenne d’environ 28 pour cent en 1985 à environ 25 pour cent en 2003 dans les pays de l’OCDE, le taux moyen des cotisations salariales de sécurité sociale est © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

passé de 9 pour cent en 1985 à 10.5 pour cent en 2003. En fait, le tableau I.2 dans le corps de la publication montre qu’en 2003, ces cotisations en pourcentage du salaire brut sont égales ou supérieures à l’impôt sur le revenu pour un célibataire au niveau du salaire de l’ouvrier moyen dans 14 pays de l’OCDE. Il faut donc faire preuve de prudence lorsque l’on procède à des comparaisons internationales du seuil à partir duquel les personnes physiques doivent s’acquitter d’un impôt sur le revenu, comme le font les tableaux 1-3. Le tableau 4 donne donc des informations sur les seuils à partir desquels on paie des cotisations de sécurité sociale, ainsi que les taux marginaux effectifs de prélèvements de sécurité sociale à ces seuils. En outre, il montre ce que sont les taux marginaux effectifs d’imposition totaux pour 2003 correspondant aux seuils de paiement de l’impôt sur le revenu si l’on tient compte des cotisations de sécurité sociale. Les résultats ne sont donnés que pour un célibataire ayant le salaire de l’ouvrier moyen, puisque les paiements de cotisations de sécurité sociale ne sont en général pas liés à la catégorie de famille envisagée. Le tableau 4 montre que, dans 21 des 28 pays de l’OCDE qui prélèvent des cotisations de sécurité sociale sur les salariés, il n’existe pas de seuil, à partir duquel le paiement de telles cotisations est obligatoire (leur assiette est donc le salaire brut). L’Irlande, l’Islande et la Suède sont les seuls pays où les seuils de paiement des cotisations de sécurité sociale sont sensiblement égaux ou supérieurs aux seuils de paiement de l’impôt sur le revenu, alors qu’en Allemagne, en Autriche, en Norvège et au Royaume-Uni, ils sont nettement inférieurs à ces seuils (d'au moins 50 pour cent). Dans certains pays comme au Canada, en Corée, en Finlande, en Irlande et aux Pays-Bas, il existe un seuil plus élevé pour certains éléments de cotisations de sécurité sociale. L’Italie, le Luxembourg et le Mexique appliquent un taux plus élevé aux revenus élevés alors que la Belgique applique un taux réduit aux bas salaires. Alors que le seuil de paiement de l’impôt sur le revenu est en moyenne d’environ 30 pour cent du salaire de l’ouvrier moyen dans les pays de l’OCDE, le seuil moyen de paiement des cotisations de sécurité sociale n’est que de 5.5 pour cent de ce salaire. Le taux marginal effectif des cotisations de sécurité sociale au seuil de paiement de ces cotisations est en moyenne de 11.3 pour cent dans les 28 pays disposant de telles cotisations et varie de 1.25 pour cent au Mexique et 1.7 pour cent aux PaysBas15 à 25 pour cent en Norvège et en Pologne et 38.1 pour cent en Allemagne16. Le tableau 4 montre également les taux marginaux effectifs d’imposition, cotisations de sécurité sociale incluses, aux seuils de paiement de l’impôt sur le revenu indiqués au tableau 3. Le taux marginal effectif d’imposition moyen augmente de près de 12 points, passant de 16.9 à 28.5 pour cent. Il faut donc faire preuve de prudence lorsque l’on compare d’un pays à l’autre les seuils de paiement de l’impôt sur le revenu et les taux marginaux effectifs d’imposition à ces seuils, puisque le classement peut être fortement influencé par la question de savoir si les cotisations sociales sont ou non incluses pour certains pays. Si l’on classe les pays membres de l’OCDE par ordre de taux marginaux effectifs d’imposition croissants au seuil de paiement de l’impôt sur le revenu, l’Australie et la NouvelleZélande se classent respectivement aux 20ème et 17ème rangs sans les cotisations de sécurité sociale et aux 8ème et 3ème rangs avec ces mêmes cotisations. C'est l’inverse pour les pays qui ont fortement recours aux cotisations de sécurité sociale, comme les Pays-Bas et la Pologne qui se classent aux 3ème et 10ème rangs sans les cotisations de sécurité sociale et aux 23ème et 22ème rangs avec ces cotisations. Il en va de même pour les seuils, l’Australie et la Nouvelle-Zélande étant parmi les pays dont les seuils de paiement de l’impôt sur le revenu sont les plus faibles lorsque l’on exclut les cotisations de sécurité sociale. Mais comme la plupart des pays de l’OCDE n’appliquent aucun seuil aux cotisations de sécurité sociale, l’Australie et la Nouvelle-Zélande figurent évidemment parmi les pays dont les seuils sont les plus élevés lorsque ces cotisations sont incluses dans les calculs. 5.

74

Conclusions

Depuis 1985, on a observé une progression réelle des seuils d'imposition du revenu ajustés en fonction de l'indice des prix à la consommation dans 14 des 23 pays pour lesquels on dispose de résultats comparables, et cette progression a dépassé 40 pour cent des 10 de ces pays, alors que ces seuils ont été réduits dans 7 pays. Les seuils, évalués en pourcentage du salaire de l'ouvrier moyen, © OECD/OCDE 2004

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

ont augmenté dans 10 pays et diminué dans 10 autres. En outre, les taux légaux d'imposition ont baissé dans 7 des 14 pays où les seuils ajustés en fonction de l'indice des prix à la consommation ont augmenté. Les taux légaux d'imposition au niveau du seuil ont été réduits dans 13 des 23 pays, alors qu'ils ont augmenté dans 9 pays. Les résultats pour 2003 montrent que les systèmes d’impôt et de prestations sociales de la plupart des pays de l’OCDE accordent aux familles avec enfants des seuils d'imposition du revenu plus élevés qu’aux familles sans enfant et, dans une moindre mesure, accordent aux familles (avec et sans enfant) des seuils plus élevés qu’aux personnes seules et parents isolés. A cette exception près toutefois, il ne se dégage aucune tendance nette dans les pays de l’OCDE s’agissant du seuil d'imposition du revenu et des taux marginaux effectifs d’imposition correspondant à ces seuils. Bien qu’un seuil plus élevé se traduise généralement par un taux marginal effectif d'imposition supérieur ou au moins égal dans un pays donné, on ne constate aucune corrélation claire à l’échelle des pays de l’OCDE. En d’autres termes, les résultats ne montrent pas que les pays de l’OCDE où le seuil est élevé appliquent généralement un taux marginal effectif d'imposition élevé au niveau du seuil, ni que les pays de l’OCDE où le seuil est faible appliquent un taux marginal effectif d'imposition faible à ce niveau. On constate d’importantes différences entre les pays de l’OCDE s’agissant de la part des cotisations salariales de sécurité sociale dans le financement des dépenses publiques de sécurité sociale. En outre, dans 21 des 28 pays de l’OCDE qui prélèvent de telles cotisations, il n'existe pas de seuil, pour tout ou partie des éléments de la cotisation de sécurité sociale. Ainsi, pour certains pays, le classement en fonction du niveau de seuil ou de taux marginal effectif d’imposition aux seuils de paiement de l’impôt sur le revenu peut fortement varier selon que l'on inclut ou non les cotisations de sécurité sociale. Il faut donc être prudent lorsque l’on compare les seuils de revenu entre pays.

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© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

NOTES 1. Toutefois, dans la mesure où les cotisations de sécurité sociale sont déductibles des montants dus au titre de l’impôt sur le revenu, elles auront une incidence sur les taux marginaux effectifs d'imposition aux niveaux fixés comme seuils. 2. Y* est égal au niveau de revenu Y où (1-t*)Y – SA non liés au revenu – WZB – STC/t = 0. 3. Y* est égal au niveau de revenu Y où Y - sY – SA – WZB – STC/t = 0, où sY correspond aux cotisations de sécurité sociale déductibles. Ainsi, Y* = [1/(1-s)] x [SA + WZB + STC/t]. 4. Y* est égal au niveau de revenu Y où t (Y – SA – WZB) – STC = BEN. 5. La famille à un seul apporteur de revenu et sans enfant n’est pas l’une des catégories de familles types dans Les impôts sur les salaires. La présence de cette catégorie tient à la nécessité de rendre comparables les résultats concernant les familles avec et sans enfant. 6. L'évolution des seuils de revenu ne peut être indiquée que pour 23 des 24 pays qui étaient membres de l’OCDE en 1985, puisque l’on ne dispose pas de données concernant la Grèce en 1985. 7. Les seuils de revenu sont calculés en recherchant la première unité de revenu du travail pour laquelle le particulier s’acquitte d’un impôt sur le revenu. Les taux marginaux effectifs d'imposition sont calculés à la première unité au-dessus de ce niveau, qui sera en fait la deuxième unité de revenu du travail gagnée. Cependant, le seuil de revenu presenté dans les tableaux est la dernière unité de revenu avant que le particulier s’acquitte d’un impôt sur le revenu arrondi aux dix unités de revenu les plus proches. 8. Les taux marginaux effectifs d’imposition pour 2003 figurent aux tableaux 2 et 3. Comme ces taux intègrent l’effet, par exemple, des dispositifs de crédits d’impôt octroyés sous condition de ressources, ils sont plus significatifs ici que les taux légaux. Toutefois, il n’est pas possible de calculer les taux marginaux effectifs d'imposition pour 1985. 9. En France et en Turquie, toutefois, on enregistre une croissance réelle des seuils si l’on exclut des calculs la CSG/CRDS (France) et le droit de timbre (Turquie). 10. Si l’on exclut des calculs la CSG/CRDS, on note une croissance réelle (et pas une réduction) du niveau de seuil en France mesuré en pourcentage des gains de l’ouvrier moyen. 11. Voir la note de bas de page n° 5. 12. Le seuil est dû à la Newstart Allowance (allocation pour un nouveau départ). Les salariés australiens qui travaillent en permanence moins de 35 heures par semaine ont droit à cette allocation s'ils remplissent la condition de ressources et peuvent prouver qu'ils font des démarches pour rechercher un emploi. En raison de la nature de ce versement et de la compensation fiscale correspondante, une personne bénéficiaire de cette allocation est imposable à partir d'un niveau de salaire relativement faible. 13. Les taux marginaux effectifs élevés s'expliquent par les taux dégressifs du Working Tax Credit au Royaume-Uni et de l'Earned Income Tax Credit aux États-Unis. 14. Ceci s’explique par une déduction fiscale pour conjoint à charge sans enfant. D’autres déductions fiscales analogues pour conjoint à charge avec enfants et parents isolés ont été remplacées par des allocations familiales en 2000. 15. Le Mexique applique un taux de 2.45 pour cent aux salaires bruts supérieurs au triple du salaire minimum fédéral, tandis que le taux maximal de cotisation à la sécurité sociale aux Pays-Bas est de 38.7 pour cent. 16. Les taux élevés en Norvège et en Allemagne s’expliquent par le fait que les cotisations de sécurité sociale audelà du seuil se sont progressivement rapprochées des taux légaux, qui sont de 7.8 pour cent en Norvège et de 21.05 pour cent en Allemagne.

76

© OECD/OCDE 2004

© OECD/OCDE 2004

Tableau 1.

Seuils de revenu1 et taux légaux de l'impôt sur le revenu pour un célibataire. Résultats pour 19852 et 2003 Seuils d'assujettissement à l'impôt sur le revenu Taux d'imposition

Convertis en PPA4

En % du salaire de l'OM

Indice de progression des seuils5

1985

2003

1985

2003

1985

2003

1985

2003

1985-2003

25.0 21.0 24.1 23.7 n.d. 48.0

17.0 31.0 26.8 22.1 15.0 43.7

4 600 6 140 3 660 6 270 n.d. 23 640

1 380 13 180 9 230 8 260 43 480 48 170

3 960 5 860 3 710 4 940 n.d. 2 610

1 020 14 240 10 220 6 780 3 040 5 660

22.7 44.2 22.4 24.7 n.d. 14.8

2.7 54.0 29.5 20.6 19.7 15.2

0.15 1.49 1.76 0.80 n.d. 1.27

13.0 16.0 5.4 22.0 n.d. n.d. 30.8 35.0 12.0 15.0 n.d. 12.0 n.d. 16.0 20.0

30.0 18.0 8.0 20.0 15.0 20.0 38.6 20.0 0.9 5.0 9.9 8.2 17.0 1.7 19.5

3 370 820 8 020 3 830 n.d. n.d. 148 640 3 540 1 930 572 180 n.d. 5 300 n.d. 6 120 0

12 810 2 180 0 10 530 11 890 604 200 869 810 11 600 0 1 108 470 10 885 420 13 570 54 030 5 310 4 850

3 530 860 8 120 3 490 n.d. n.d. 3 770 4 020 3 130 2 640 n.d. 5 280 n.d. 5 670 0

12 970 2 200 0 11 050 15 470 4 830 9 190 11 030 0 7 910 14 960 13 850 8 010 5 630 3 350

28.7 7.0 63.2 19.9 n.d. n.d. 47.7 30.8 22.5 18.5 n.d. 31.6 n.d. 34.6 0.0

44.3 7.5 0.0 31.2 99.9 51.9 32.3 43.1 0.0 26.4 44.5 42.1 86.2 16.7 11.7

2.28 1.60 0.00 1.96 n.d. n.d. 1.47 1.91 0.00 1.71 n.d. 1.77 n.d. 0.61 ∞

3.0 22.5 n.d. 4.8 n.d. 8.0

28.0 28.0 19.0 12.0 10.0 14.9

54 600 15 310 n.d. 1 340 n.d. 3 000

63 400 63 400 8 800 4 870 44 450 7 370

5 810 1 630 n.d. 4 270 n.d. 5 550

6 960 6 960 4 690 6 800 2 680 9 310

43.4 12.2 n.d. 66.8 n.d. 47.0

20.6 20.6 32.4 56.1 29.6 43.4

0.64 2.25 n.d. 1.20 n.d. 1.12

30.4 30.4 5.0 25.0 30.0

51.2 31.2 4.4 0.6 22.0

8 400 8 000 7 080 71 160 2 210

301 100 19 100 9 670 0 8 940

1 080 1 030 3 290 310 4 080

30 500 1 930 5 120 0 13 640

8.1 7.7 17.9 5.2 25.8

121.5 7.7 14.8 0.0 44.1

19.07 1.27 0.97 0.00 2.12

11.0 5.3

16.4 2.0

3 430 2 370

7 800 750

3 430 2 370

7 800 750

17.2 11.9

23.3 2.2

1.33 0.18

77

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Australie Autriche Belgique6 Canada6 Rép. tchèque Danemark7 Finlande central régional et local France8 Allemagne Grèce Hongrie Islande6 Irlande Italie6,9 Japon6 Corée Luxembourg Mexique Pays-Bas Nouvelle-Zélande10 Norvège central régional et local Pologne Portugal Rép. slovaque Espagne6 Suède central11 régional et local Suisse6 Turquie12 Royaume-Uni États-Unis central Régional et local

En monnaie locale3

1. Les seuils de revenu sont calculés à partir des fichiers de calcul par pays créés pour la préparation de la publication Les impôts sur les salaires en recherchant la première unité de revenu du travail pour laquelle l'impôt sur le revenu est dû. 2. Les résultats pour 1985 n'ont pas été recalculés ; ils sont repris de la publication La situation des salariés au regard de l'impôtet des transferts sociaux 1988-1991 (sauf dans le cas du taux légal d'imposition pour le Canada). Pour certains pays, les chiffres pour 1985 peuvent donc être légèrement inexacts. 3. Seuils arrondis à la dizaine supérieure. Les résultats pour 1985 ont été calculés en convertissant la monnaie locale en euro pour les pays utilisant l'euro en 2003. Source des taux de change : Principaux indicateurs économiques, OCDE. 4. Seuils arrondis à la dizaine supérieure. Source des PPA : Principaux indicateurs économiques, OCDE. 5. Calculé en valeur 2003 en monnaie locale divisée par la valeur 1985 corrigée de l'IPC. Source de l'IPC : Principaux indicateurs économiques, OCDE. 6. Pour 2003, les résultats correspondent aux taux de l'impôt sur le revenu et aux seuils d'assujettissement globaux (central et régional/local). 7. Pour que les données soient comparables à celles pour 1985, le taux d'imposition pour 2003 est le taux d'imposition global (central+régional et local), plus la cotisation du marché du travail de 8 pour cent au seuil d'assujettissement à l'impôt régional et local. Le seuil effectif pour la cotisation du marché du travail est égal à zéro, mais très peu de personnes ont un niveau de revenu pour lequel elles paient uniquement cet impôt. Le seuil d'assujettissement à l'impôt central sur le revenu (hors cotisation du marché du travail) est de 40 100 au taux de 13.1 pour cent. 8. Y compris la CSG et la CRDS en 2003. Hors CSG et CRDS, le seuil est de 15 456 € en monnaie locale, 16 733 avec conversion en PPA et 68.6 pour cent du salaire de l'OM. Le taux légal d'imposition en 2003 est de 27.3 pour cent et l'indice de progression des seuils est de 1.31 hors CSG et CRDS. 9. En Italie, le seuil pour 2003 est de 0 pour l'impôt régional et local. Pour l'impôt central, le seuil est de 8 260 € (37.4 pour cent du salaire de l'OM) et le taux légal à ce seuil est de 23.9 pour cent. 10. Le seuil est dû à l'abattement fiscal transitoire, qui suppose un emploi à plein temps et n'est applicable qu'à hauteur de 9 880 NZ$. La plupart des salariés ont un revenu qui dépasse ce niveau et acquittent donc l'impôt à partir de la première unité de revenu du travail. 11. Le seuil calculé pour l'impôt central (en revenu brut) en 2003 dépasse légèrement 284 300 SEK, revenu auquel l'impôt central est dû conformément au barème, en raison de l'incidence du crédit d'impôt au titre des cotisations de sécurité sociale et en raison de l'abattement à la base. 12. Y compris le droit de timbre en 2003. Hors droit de timbre, le seuil en 2003 est de TL 635 294 117 en monnaie locale, 794 converti en PPA et 5.2 pour cent du salaire de l'OM. Le taux légal d'imposition en 2003 est de 15.6 pour cent et l'indice de progression des seuils est de 1.29 hors droit de timbre. Source : OCDE, la situation des ouvriers au regard des impôts et des transferts sociaux, 1988-1991, et calculs de l’OCDE sur les soumissions nationales.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

78

Tableau 1. Seuils de revenu1 et taux légaux de l'impôt sur le revenu pour un célibataire. Résultats pour 19852 et 2003 (suite)

© OECD/OCDE 2004

© OECD/OCDE 2004

Tableau 2. Seuils de revenu1 pour l'impôt central, régional et local en pourcentage du salaire de l'OM et taux marginaux effectifs d'imposition du revenu (TME)2 au seuil. Résultats pour 2003 Célibataire, sans enfant

Famille disposant d’un seul revenu, sans enfant

Famille disposant d’un seul revenu, deux enfants

TME

Seuil

TME

Seuil

TME

Seuil

TME

Seuil

17.0 21.1

2.7 54.0

17.7 33.5

15.1 63.5

17.0 33.5

32.4 63.5

17.0 33.5

2.7 63.5

19.6 1.4

29.8 25.6

33.0 2.3

40.7 38.1

23.5 1.4

39.7 35.9

20.9 1.2

53.9 49.0

14.9 11.2 13.1

20.3 28.5 19.7

14.9 11.2 13.1

38.0 76.0 44.0

14.9 11.2 13.1

38.0 46.3 30.9

14.9 11.2 13.1

38.0 76.0 55.3

5.0 30.3

12.7 15.2

5.0 30.3

12.7 15.2

5.0 30.3

25.0 27.6

5.0 30.3

25.0 27.6

11.4 20.6 7.6 15.8 12.6 17.9

44.3 7.5 0.0 31.2 99.9 51.9

11.4 20.6 7.6 19.5 12.6 27.9

44.3 7.5 0.0 39.0 108.9 82.8

11.4 20.6 7.6 15.8 12.6 17.9

44.3 7.5 0.0 58.4 90.8 51.9

11.4 20.6 7.6 15.8 12.6 27.9

44.3 7.5 0.0 58.4 99.9 82.8

24.7 12.3 20.0

48.3 0.0 43.1

24.7 12.3 20.0

48.3 0.0 71.3

24.7 12.3 20.0

96.7 0.0 71.3

24.7 12.3 20.0

96.7 0.0 85.6

26.9 0.8

37.4 0.0

26.9 0.8

55.2 0.0

26.9 0.8

46.5 0.0

26.9 0.8

63.9 0.0

7.1 3.8

27.7 26.4

4.7 2.5

53.8 47.7

4.7 2.5

53.8 47.7

4.7 2.5

84.8 74.6

2.2 0.2 7.1 13.0 1.7 15.0

44.5 44.5 42.1 86.2 16.7 11.7

2.2 0.2 29.5 13.0 5.3 15.0

57.3 57.3 106.3 86.2 46.8 11.7

2.2 0.2 7.1 13.0 1.2 15.0

48.7 48.7 76.9 86.2 37.3 11.7

3.6 0.4 14.3 13.0 5.3 15.0

61.4 61.4 131.6 86.2 46.8 11.7

11.8 16.2 9.1 12.0 8.7

20.6 20.6 32.4 56.1 29.6

11.8 16.2 9.1 14.0 8.7

30.9 30.9 32.4 89.4 55.3

11.8 16.2 9.1 12.0 8.7

30.9 30.9 53.7 74.0 38.8

11.8 16.2 9.1 12.0 8.7

30.9 30.9 53.7 97.2 64.5

79

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Australie Autriche Belgique central régional et local3 Canada central4 régional et local Rép. tchèque Danemark5 central régional et local Finlande central régional et local France6 Allemagne Grèce Hongrie Islande central régional et local3 Irlande Italie central régional et local Japon central régional et local Corée central régional et local Luxembourg Mexique Pays-Bas Nouvelle-Zélande Norvège central régional et local Pologne Portugal Rép. slovaque

Parent isolé, deux enfants

Célibataire, sans enfant

Espagne central régional et local Suède7 central régional et local Suisse central régional et local Turquie8 Royaume-Uni États-Unis central régional et local3

Parent isolé, deux enfants

Famille disposant d’un seul revenu, sans enfant

Famille disposant d’un seul revenu, deux enfants

TME

Seuil

TME

Seuil

TME

Seuil

TME

Seuil

9.0 5.0

43.4 43.4

11.0 7.0

70.8 70.8

10.0 7.0

62.3 62.3

11.0 7.0

77.2 77.2

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

19.6 25.4

121.5 7.7

0.7 3.9 0.6 59.0

33.1 14.8 0.0 44.1

0.8 3.9 0.6 59.0

64.9 34.7 0.0 85.3

0.8 3.9 0.6 59.0

55.3 25.4 0.0 56.6

0.8 3.9 0.6 59.0

66.6 35.8 0.0 85.3

10.0 2.0

23.3 2.2

36.1 2.0

99.6 6.7

10.0 2.0

46.6 4.5

15.0 2.0

118.7 9.0

1. Les seuils de revenu sont calculés à partir des tableaux par pays de la publication « Les impôts sur les salaires » en recherchant la première unité de revenu du travail pour laquelle l'impôt sur le revenu est dû. 2. Les taux marginaux effectifs d'imposition (TME) correspondent à l'impôt sur le revenu dû en pourcentage de la première unité de revenu du travail supérieure au seuil tel que défini à la note 1. 3. Pour la Belgique, les États-Unis et l'Islande, les seuils régional/local n'impliquent pas que le contribuable ait effectivement à payer l'impôt sur le revenu à ce niveau de revenu. En Belgique, cela s'explique par un crédit d'impôt remboursable, en Islande par un impôt central négatif qui compense l'impôt local positif et aux États-Unis par le crédit d'impôt pour les revenus du travail. Les seuils de revenu globaux pour ces trois pays figurent au tableau 3. 4. Le seuil de revenu au niveau central au Canada est légèrement inférieur au seuil global indiqué au tableau 3 pour les célibataires sans enfant et pour les familles disposant d’un seul revenu et deux enfants, en raison d'un crédit d'impôt provincial remboursable qui compense l'impôt central. 5. La cotisation du marché du travail de 8 pour cent n'est pas comprise dans ces calculs. 6. Y compris la CSG et la CRDS. Hors CSG et CRDS, le seuil est de 68.6 pour cent du salaire de l'OM pour les célibataires sans enfant. Pour les trois autres catégories de famille, le seuil est respectivement de 111.4 pour cent du salaire de l'OM, 96.6 pour cent et 127.0 pour cent. Les TME sont de 26.4 pour cent, 6.2 pour cent, 6.2 pour cent et 6.2 pour cent. 7. Le crédit d'impôt pour les cotisations de sécurité sociale s’applique à l’impôt local. Ce crédit d'impôt se reflète donc dans le TME pour l'impôt régional et local, et pas dans le TME pour l'impôt central. 8. Y compris le droit de timbre. Hors droit de timbre, les seuils sont de 5.2 pour cent du salaire de l'OM et les TME de 13.4 pour cent pour toutes les catégories de famille. Source : Calculs de l’OCDE basés sur les soumissions nationales.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

80

Tableau 2. Seuils de revenu1 pour l'impôt central, régional et local en pourcentage du salaire de l'OM et taux marginaux effectifs d'imposition du revenu (TME)2 au seuil. Résultats pour 2003 (suite)

© OECD/OCDE 2004

© OECD/OCDE 2004

Tableau 3. Seuils de revenu1 avec et sans prestations en pourcentage du salaire de l'OM et taux marginaux effectifs d'imposition du revenu (TME)2 au seuil. Résultats pour 2003 Famille disposant d’un seul revenu, deux enfants

Parent isolé, deux enfants

TME

Seuil

TME

Seuil

TME

Seuil

TME

Seuil

17.0 75.1

2.7 28.5

17.7 61.5

15.1 71.1

17.0 17.0

32.4 32.4

17.0 61.5

2.7 71.1

21.1 21.1

54.0 54.0

33.5 31.7

63.5 137.2

33.5 33.5

63.5 63.5

33.5 31.7

63.5 137.2

20.9 20.9

29.5 29.5

35.3 46.2

40.5 68.0

25.2 25.2

39.5 39.5

22.1 32.0

53.6 82.1

16.9 12.9

20.6 25.0

14.9 74.0

38.0 85.3

14.9 14.9

38.0 45.5

16.9 74.0

39.1 84.6

13.1 13.1

19.7 19.7

13.1 37.7

44.0 101.5

13.1 13.1

30.9 30.9

13.1 33.8

55.3 119.4

5.0 5.0

12.7 12.7

5.0 35.3

12.7 62.9

5.0 5.0

25.0 25.0

5.0 35.3

25.0 45.9

20.6 20.6

7.5 7.5

20.6 33.0

7.5 62.1

20.6 20.6

7.5 7.5

20.6 29.2

7.5 53.5

7.6 7.6

0.0 0.0

7.6 16.6

0.0 81.4

7.6 7.6

0.0 0.0

7.6 16.6

0.0 82.7

15.8 15.8

31.2 31.2

19.5 19.5

39.0 39.0

15.8 15.8

58.4 58.4

15.8 15.8

58.4 58.4

12.6 12.6

99.9 99.9

12.6 12.6

108.9 108.9

12.6 12.6

90.8 90.8

12.6 12.6

99.9 99.9

17.9 17.9

51.9 51.9

27.9 55.9

82.8 125.4

17.9 17.9

51.9 51.9

27.9 55.9

82.8 121.8

37.0 37.0

32.3 32.3

37.0 43.7

32.3 72.5

37.0 37.0

64.6 64.6

37.0 43.7

64.6 92.1

20.0 20.0

43.1 43.1

20.0 42.0

71.3 121.1

20.0 20.0

71.3 71.3

20.0 42.0

85.6 137.6

0.8 0.8

0.0 0.0

0.8 27.7

0.0 79.8

0.8 27.7

0.0 49.7

0.8 27.7

0.0 92.1

81

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Australie impôt sur le revenu impôt sur le revenu moins prestations Autriche impôt sur le revenu impôt sur le revenu moins prestations Belgique impôt sur le revenu impôt sur le revenu moins prestations Canada impôt sur le revenu impôt sur le revenu moins prestations Rép. tchèque impôt sur le revenu impôt sur le revenu moins prestations Danemark3 impôt sur le revenu impôt sur le revenu moins prestations Finlande impôt sur le revenu impôt sur le revenu moins prestations France impôt sur le revenu4 impôt sur le revenu moins prestations5 Allemagne impôt sur le revenu impôt sur le revenu moins prestations Grèce impôt sur le revenu impôt sur le revenu moins prestations Hongrie impôt sur le revenu impôt sur le revenu moins prestations Islande impôt sur le revenu impôt sur le revenu moins prestations Irlande impôt sur le revenu impôt sur le revenu moins prestations Italie impôt sur le revenu impôt sur le revenu moins prestations

Famille disposant d’un seul revenu, sans enfant

Célibataire, sans enfant

© OECD/OCDE 2004

Japon impôt sur le revenu impôt sur le revenu moins prestations Corée impôt sur le revenu impôt sur le revenu moins prestations Luxembourg impôt sur le revenu impôt sur le revenu moins prestations Mexique impôt sur le revenu impôt sur le revenu moins prestations Pays-Bas impôt sur le revenu impôt sur le revenu moins prestations Nouvelle-Zélande impôt sur le revenu impôt sur le revenu moins prestations Norvège impôt sur le revenu impôt sur le revenu moins prestations Pologne impôt sur le revenu impôt sur le revenu moins prestations Portugal impôt sur le revenu impôt sur le revenu moins prestations Rép. slovaque impôt sur le revenu impôt sur le revenu moins prestations Espagne impôt sur le revenu impôt sur le revenu moins prestations Suède impôt sur le revenu impôt sur le revenu moins prestations Suisse impôt sur le revenu impôt sur le revenu moins prestations Turquie6 impôt sur le revenu impôt sur le revenu moins prestations

Famille disposant d’un seul revenu, sans enfant

Famille disposant d’un seul revenu, deux enfants

Célibataire, sans enfant

Parent isolé, deux enfants

TME

Seuil

TME

Seuil

TME

Seuil

TME

Seuil

3.8 3.8

26.4 26.4

2.5 2.5

47.7 47.7

2.5 2.5

47.7 47.7

2.5 2.5

74.6 74.6

2.4 2.4

44.5 44.5

2.4 2.4

57.3 57.3

2.4 2.4

48.7 48.7

4.0 4.0

61.4 61.4

7.1 7.1

42.1 42.1

29.5 33.9

106.3 155.0

7.1 7.1

76.9 76.9

14.3 26.8

131.6 211.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

13.0 13.0

86.2 86.2

1.7 1.7

16.7 16.7

5.3 39.4

46.8 93.2

1.2 1.2

37.3 37.3

5.3 39.6

46.8 92.8

15.0 15.0

11.7 11.7

15.0 39.0

11.7 60.9

15.0 15.0

11.7 11.7

15.0 39.0

11.7 60.9

28.0 28.0

20.6 20.6

28.0 28.0

30.9 76.1

28.0 28.0

30.9 30.9

28.0 28.0

30.9 62.5

9.1 9.1

32.4 32.4

9.1 9.1

32.4 73.4

9.1 9.1

53.7 53.7

9.1 9.1

53.7 94.7

12.0 12.0

56.1 56.1

14.0 24.0

89.4 121.3

12.0 12.0

74.0 74.0

12.0 14.0

97.2 143.3

8.7 8.7

29.6 29.6

8.7 17.4

55.3 138.5

8.7 8.7

38.8 38.8

8.7 17.4

64.5 136.2

14.0 14.0

43.4 43.4

18.0 18.0

70.8 70.8

17.0 17.0

62.3 62.3

18.0 18.0

77.2 77.2

25.4 25.4

7.7 7.7

25.4 28.5

7.7 48.7

25.4 25.4

7.7 7.7

25.4 28.5

7.7 48.7

3.9 3.9

14.8 14.8

3.9 16.0

34.7 117.7

3.9 3.9

25.4 25.4

3.9 14.8

35.8 120.9

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

0.6 0.6

0.0 0.0

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

82

Tableau 3. Seuils de revenu1 avec et sans prestations en pourcentage du salaire de l'OM et taux marginaux effectifs d'imposition du revenu (TME)2 au seuil. Résultats pour 2003 (suite)

© OECD/OCDE 2004

Tableau 3. Seuils de revenu1 avec et sans prestations en pourcentage du salaire de l'OM et taux marginaux effectifs d'imposition du revenu (TME)2 au seuil. Résultats pour 2003 (suite) Famille disposant d’un seul revenu, deux enfants

Parent isolé, deux enfants

TME

Seuil

TME

Seuil

TME

Seuil

TME

Seuil

59.0 59.0

44.1 44.1

59.0 59.0

85.3 97.6

59.0 59.0

56.6 56.6

59.0 59.0

85.3 97.0

82.8 82.8

19.2 19.2

42.5 42.5

87.7 87.7

82.9 82.9

22.4 22.4

37.5 37.5

96.2 96.2

17.1 18.9

30.0 31.0

18.1 30.4

46.9 84.9

17.6 18.5

41.8 43.7

16.9 28.8

53.3 91.4

13.6 13.1

28.0 29.0

15.0 30.1

42.3 80.6

14.0 15.0

39.2 46.6

14.7 28.3

56.9 89.2

1. Les seuils de revenu sont calculés à partir des fichiers de calcul par pays créés pour la préparation de la publication Les impôts sur les salaires en recherchant la première unité de revenu du travail pour laquelle l'impôt sur le revenu est dû. 2. Les taux marginaux effectifs d'imposition (TME) correspondent à l'impôt sur le revenu dû en pourcentage de la première unité de revenu du travail supérieure au seuil tel que défini à la note 1. 3. La cotisation du marché du travail de 8 pour cent n'est pas comprise dans ces calculs. 4. Y compris la CSG et la CRDS. Hors CSG et CRDS, les seuils sont de 68.6 pour cent, 111.4 pour cent, 96.6 pour cent et 127.0 pour cent du salaire de l'OM pour les quatre catégories de famille, hors prestations. Les TME sont de 26.4 pour cent, 6.2 pour cent, 6.2 pour cent et 6.2 pour cent. 5. Y compris la CSG et la CRDS. Hors CSG et CRDS, les seuils sont respectivement de 68.6 pour cent, 175.0 pour cent, 96.6 pour cent et 200.8 pour cent du salaire de l'OM. Les TME sont respectivement de 26.4 pour cent, 12.1 pour cent, 6.2 pour cent et 12.1 pour cent. 6. Y compris le droit de timbre. Hors droit de timbre, les seuils sont de 5.2 pour cent du salaire de l'OM et les TME de 13.4 pour cent pour toutes les catégories de famille. Source : Calculs de l’OCDE basés sur les soumissions nationales.

83

Étude spéciale : seuils d’assujettissement à l’impôt sur le revenu et aux cotisations de sécurité sociale

Royaume-Uni impôt sur le revenu impôt sur le revenu moins prestations États-Unis impôt sur le revenu impôt sur le revenu moins prestations Moyenne OCDE non pondérée impôt sur le revenu impôt sur le revenu moins prestations Valeur médiane OCDE impôt sur le revenu impôt sur le revenu moins prestations

Famille disposant d’un seul revenu, sans enfant

Célibataire, sans enfant

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Tableau 4. Taux marginaux effectifs d'imposition au seuil d'assujettissement aux cotisations de sécurité sociale et à l'impôt sur le revenu. Célibataires, 2003 Cotisations de sécurité sociale

Australie Autriche Belgique Canada Rép. tchèque Danemark3 Finlande France4 Allemagne5 Grèce Hongrie Islande Irlande Italie6 Japon Corée Luxembourg Mexique7 Pays-Bas Nouvelle-Zélande Norvège5 Pologne Portugal Rép. slovaque Espagne Suède Suisse Turquie8 Royaume-Uni États-Unis Moyenne OCDE non pondérée Médiane OCDE

Impôt sur le revenu

Seuil en pourcentage du salaire de l'OM

TME-CSS

Seuil en pourcentage du salaire de l'OM1

TME total2

n.d. 17.8 0.0 0.0 0.0 0.0 0.0 0.0 14.2 0.0 0.0 31.0 55.4 0.0 0.0 0.0 0.0 0.0 0.0 n.d. 7.5 0.0 0.0 0.0 0.0 6.6 0.0 0.0 22.8 0.0

n.d. 18.1 13.1 2.1 12.5 8.0 4.8 13.6 38.1 15.9 12.5 0.0 4.0 9.2 11.6 4.5 12.9 1.3 1.7 n.d. 25.0 25.0 11.0 12.8 7.0 7.0 11.3 15.0 11.0 7.7

2.7 54.0 29.5 20.6 19.7 15.2 7.5 0.0 31.2 99.9 51.9 32.3 43.1 0.0 26.4 44.5 42.1 86.2 16.7 11.7 20.6 32.4 56.1 29.6 43.4 7.7 14.8 0.0 44.1 19.2

17.0 39.2 34.0 23.9 25.6 38.3 27.1 21.2 36.8 28.5 30.4 37.0 20.0 10.0 15.3 6.9 21.0 15.5 35.0 15.0 35.8 34.2 23.0 21.5 20.0 32.4 15.2 15.6 70.0 90.4

5.5 0.0

11.3 11.2

30.1 28.0

28.5 24.8

1. Les seuils d'assujettissement à l'impôt sur le revenu figurent au tableau 3. 2. Le taux marginal effectif d'imposition du revenu tel qu'indiqué au tableau 3, plus le TME pour les cotisations de sécurité sociale au seuil d'assujettissement à l'impôt sur le revenu. 3. Le seuil de revenu et le TME total se situent au seuil d'assujettissement à l'impôt régional et local sur le revenu, qui est légèrement supérieur au seuil d'assujettissement à l'impôt central. 4. Le seuil de revenu et le TME comprennent la CSG et la CRDS. 5. Les TME élevés pour les cotisations de sécurité sociale au niveau du seuil s’appliquent progressivement jusqu’au taux légal, qui est de 7.8 pour cent en Norvège et de 21.05 pour cent en Allemagne. 6. Les seuils de revenu et les TME concernent l'impôt régional et local. Ils sont plus élevés pour l'impôt central. 7. Le taux est de 2.45 pour cent pour les revenus supérieurs à 3 fois le salaire minimum fédéral. 8. Le seuil de revenu et le TME total comprennent le droit de timbre. Source : Calculs de l’OCDE basés sur les soumissions nationales.

84

© OECD/OCDE 2004

Part II Chapter 1

COMPARATIVE TABLES AND CHARTS Partie II

TABLEAUX ET GRAPHIQUES COMPARATIFS

A. A.

TAX BURDENS, 2003 (TABLES)

CHARGES D’IMPÔT, 2003 (TABLEAUX)

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 1. Income tax, by family-type and wage level (as % of gross wage), 2003 Tableau 1. Impôt sur le revenu, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 Family-type:

single

single

single

Wage level (% of APW):

no ch 67 (1)

no ch 100 (2)

no ch 167 (3)

2 ch 67 (4)

20.2

24.0

32.9

20.2

4.6

10.8

17.6

1.6

9.3

7.8

8.3

7.8

19.4 14.2 9.2 27.4 18.9 6.8 14.4 0.0 5.6 19.1 7.1 12.7 4.9 0.9 3.7 -3.6 2.7 18.9 17.4 4.7 1.9 4.8 5.8 21.4 7.0 13.2 12.7 13.9

26.6 18.1 11.6 31.8 25.1 13.2 20.8 0.0 13.0 25.1 11.4 18.0 5.8 2.3 8.7 2.9 8.5 20.6 21.0 6.2 5.6 6.3 12.2 23.8 9.9 14.7 15.8 16.4

33.5 23.8 14.8 40.6 32.3 17.7 29.9 7.5 27.5 34.8 23.1 24.5 8.9 5.2 17.8 9.6 20.2 26.4 28.3 7.4 12.5 10.7 17.3 31.2 14.6 17.5 18.3 21.9

13.2 6.4 4.5 27.4 18.9 4.8 -5.6 0.0 0.0 19.1 0.0 5.4 1.8 7.5 0.0 -3.6 2.0 18.9 13.1 4.7 0.0 1.5 0.0 21.4 2.9 13.2 -16.5 -11.6

15.8 14.3 5.9 25.7 25.1 7.1 -1.5 0.0 4.8 13.1 2.9 11.1 1.6 1.7 0.0 2.9 8.2 20.6 18.1 4.2 0.3 3.1 3.4 23.8 5.2 14.7 8.7 1.4

19.6 15.4 6.9 27.4 21.5 7.1 5.8 0.0 3.6 19.1 7.1 10.0 3.4 1.5 0.0 -1.9 6.5 19.7 18.4 4.7 0.3 3.2 7.6 22.2 5.9 13.8 10.7 6.8

23.1 16.6 8.1 30.0 22.6 8.3 11.0 0.0 5.1 22.7 9.7 13.1 4.2 1.5 1.1 0.3 6.2 19.9 19.5 5.6 2.4 4.3 7.5 22.9 8.1 14.1 13.0 9.7

21.7 15.4 10.0 27.4 21.5 9.4 14.4 0.9 9.8 19.1 7.1 13.5 4.9 1.7 2.2 -1.9 6.6 19.7 18.4 4.7 2.7 4.9 9.1 22.2 7.4 13.8 12.7 13.9

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

single married married 2 ch 2 ch 100-0 100-331 (5) (6) 24.0

20.7

married

married

2 ch 1 100-67 (7)

no ch 1 100-33 (8)

22.4

20.7

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

88

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 2. Employee contributions, by family-type and wage level (as % of gross wage), 2003 Tableau 2. Cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 Family-type: Wage level (% of APW): Australia

single

single

single

no ch

no ch

no ch

67 (1)

100 (2)

167 (3)

single married married married married 2 ch 67 (4)

2 ch

2 ch

2 ch

1

1

no ch

100-0 100-33 100-67 100-331 (5) (6) (7) (8)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Austria

18.1

18.1

18.1

18.1

18.1

18.1

18.1

18.1

Belgium

13.1

13.9

14.0

13.1

13.9

14.0

14.0

14.0

Canada

6.4

6.5

3.9

6.4

6.5

6.3

6.5

6.3

Czech Republic

12.5

12.5

12.5

12.5

12.5

12.5

12.5

12.5

Denmark

11.9

10.6

9.6

11.9

10.6

11.9

11.1

11.9

Finland

6.0

6.1

6.2

6.0

6.1

6.0

6.1

6.0

France

13.6

13.6

12.8

13.6

13.6

13.6

13.6

13.6

Germany

21.1

21.1

18.9

21.1

21.1

21.1

21.1

21.1

Greece

15.9

15.9

15.9

15.9

15.9

15.9

15.9

15.9

Hungary

12.5

12.5

12.5

12.5

12.5

12.5

12.5

12.5

Iceland

0.3

0.2

0.1

0.3

0.2

0.3

0.2

0.3

Ireland

2.5

5.0

5.1

2.5

5.0

3.8

4.0

3.8

Italy

9.2

9.2

9.2

9.2

9.2

9.2

9.2

9.2

11.6

11.6

11.6

11.6

11.6

11.6

11.6

11.6

Japan Korea

4.5

4.5

6.9

6.9

4.5

4.5

4.5

4.5

13.7

13.8

13.8

13.7

13.8

13.7

13.7

13.7

1.3

1.5

1.9

1.3

1.5

1.5

1.4

1.5

Netherlands

24.9

25.4

14.9

11.0

20.4

22.5

24.4

23.5

New Zealand

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Luxembourg Mexico

Norway

7.8

7.8

7.8

7.8

7.8

7.8

7.8

7.8

Poland

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

Portugal

11.0

11.0

11.0

11.0

11.0

11.0

11.0

11.0

Slovak Republic

12.8

12.8

12.8

12.8

12.8

12.8

12.8

12.8

6.4

6.3

6.3

6.4

6.3

6.3

6.3

6.3

Spain Sweden

7.0

7.0

5.6

7.0

7.0

7.0

7.0

7.0

Switzerland

11.3

11.3

11.3

11.3

11.3

11.3

11.3

11.3

Turkey

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

United Kingdom

7.2

8.5

8.6

7.2

8.5

7.2

8.0

7.2

United States

7.7

7.7

7.7

7.7

7.7

7.7

7.7

7.7

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

89

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 3. Income tax plus employee contributions, by family-type and wage level (as % of gross wage), 2003 Tableau 3. Impôt sur le revenu et cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003 Family-type:

single no ch 67 (1)

single no ch 100 (2)

single no ch 167 (3)

Australia Austria Belgium Canada Czech Republic Denmark

20.2 22.7 32.5 20.6 21.7 39.3

24.0 28.9 40.6 24.6 24.1 42.4

32.9 35.7 47.6 27.7 27.3 50.1

20.2 19.6 26.3 12.8 17.0 39.3

24.0 27.4 29.7 20.9 18.4 36.3

20.7 25.8 33.6 21.8 19.4 39.3

22.4 26.4 37.1 23.0 20.6 41.1

20.7 25.8 35.6 21.8 22.5 39.3

Finland France Germany Greece

24.9 20.4 35.5 15.9

31.2 26.8 41.9 15.9

38.5 30.5 48.8 23.4

24.9 18.4 15.4 15.9

31.2 20.7 19.5 15.9

27.5 20.7 26.9 15.9

28.7 21.9 32.1 15.9

27.5 23.0 35.5 16.8

Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico

18.1 19.4 9.6 21.8 16.5 5.4 17.4 -2.4

25.5 25.3 16.4 27.2 17.4 6.8 22.5 4.4

40.0 35.0 28.2 33.7 20.5 12.1 31.6 11.5

12.5 19.4 2.5 14.6 13.3 14.4 13.7 -2.4

17.3 13.3 7.9 20.3 13.2 6.2 13.8 4.4

16.1 19.4 10.8 19.2 14.9 6.0 13.7 -0.4

17.6 22.9 13.7 22.3 15.8 6.0 14.8 1.7

22.3 19.4 10.8 22.7 16.5 6.2 15.9 -0.4

Netherlands New Zealand Norway

27.6 18.9 25.2

34.0 20.6 28.8

35.1 26.4 36.1

13.0 18.9 20.9

28.6 20.6 25.9

29.0 19.7 26.2

30.6 19.9 27.3

30.1 19.7 26.2

Poland Portugal Slovak Republic Spain

29.7 12.9 17.6 12.2

31.2 16.6 19.1 18.5

32.4 23.5 23.5 23.6

29.7 11.0 14.3 6.4

29.2 11.3 15.9 9.7

29.7 11.3 16.0 13.9

30.6 13.4 17.1 13.9

29.7 13.7 17.7 15.5

Sweden Switzerland Turkey United Kingdom United States

28.4 18.3 28.2 20.0 21.5

30.8 21.2 29.7 24.3 24.1

36.7 25.9 32.5 26.9 29.6

28.4 14.2 28.2 -9.3 -4.0

30.8 16.5 29.7 17.1 9.1

29.3 17.2 28.8 18.0 14.4

29.9 19.4 29.1 21.0 17.3

29.3 18.7 28.8 20.0 21.6

Wage level (% of APW):

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 67 100-0 100-331 100-671 100-331 (4) (5) (6) (7) (8)

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

90

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 4. Income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2003 Tableau 4. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2003

Family-type: Wage level (% of APW):

single no ch 67 (1)

single no ch 100 (2)

single no ch 167 (3)

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 67 100-0 100-331 100-671 100-331 (4) (5) (6) (7) (8)

Australia

20.2

24.0

32.9

-6.4

15.6

17.5

19.9

20.7

Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway

22.7 32.5 19.4 21.7 39.3 24.9 20.4 35.5 15.9 18.1 19.4 9.6 21.8 16.5 5.4 17.4 -2.4 27.6 18.9 25.2

28.9 40.6 24.6 24.1 42.4 31.2 26.8 41.9 15.9 25.5 25.3 16.4 27.2 17.4 6.8 22.5 4.4 34.0 20.6 28.8

35.7 47.6 27.7 27.3 50.1 38.5 30.5 48.8 23.4 40.0 35.0 28.2 33.7 20.5 12.1 31.6 11.5 35.1 26.4 36.1

-8.1 12.1 -9.8 -7.1 13.9 8.3 9.9 15.4 15.9 -9.3 -3.5 -25.1 1.2 13.3 14.4 -10.9 -2.4 5.0 3.7 3.8

8.9 20.3 14.5 6.3 29.7 22.8 15.1 19.5 15.9 4.8 3.6 -2.6 14.2 13.2 6.2 -2.6 4.4 23.3 20.4 18.3

12.0 26.5 18.2 14.3 34.4 21.3 16.5 26.9 15.9 6.7 13.7 3.0 17.6 14.9 6.0 1.4 -0.4 25.0 19.7 20.5

15.3 31.4 21.0 18.6 37.1 23.7 18.5 32.1 15.9 10.1 19.7 7.4 21.4 15.8 6.0 5.0 1.7 27.3 19.9 22.8

25.8 35.6 21.8 22.5 39.3 27.5 23.0 35.5 16.8 22.3 19.4 10.8 22.7 16.5 6.2 15.9 -0.4 30.1 19.7 26.2

Poland Portugal Slovak Republic Spain Sweden

29.7 12.9 17.6 12.2 28.4

31.2 16.6 19.1 18.5 30.8

32.4 23.5 23.5 23.6 36.7

24.1 -0.1 0.3 6.4 14.7

29.2 5.6 6.6 9.7 21.6

29.7 6.9 9.0 13.9 22.4

30.6 10.0 13.8 13.9 24.4

29.7 13.7 17.7 15.5 29.3

Switzerland Turkey United Kingdom United States

18.3 28.2 20.0 21.5

21.2 29.7 24.3 24.1

25.9 32.5 26.9 29.6

2.2 28.2 -20.2 -4.0

8.5 29.7 10.3 9.1

11.2 28.8 12.8 14.4

14.6 29.1 16.8 17.3

18.7 28.8 20.0 21.6

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

91

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 5. Income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2003 Tableau 5. Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2003

Family-type:

single no ch 67 (1)

single no ch 100 (2)

single no ch 167 (3)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway

24.7 40.2 47.5 27.6 42.0 39.9 39.5 37.6 46.7 34.3 41.0 23.8 16.7 41.3 26.1 12.9 27.3 12.4 37.6 18.9 33.7

28.3 45.0 54.5 32.4 43.8 42.7 44.5 48.3 52.0 34.3 45.7 29.3 24.5 45.3 27.0 14.1 31.7 17.3 43.0 20.6 36.8

36.7 50.2 60.3 33.3 46.2 50.3 50.4 50.7 57.0 40.2 55.8 38.5 35.2 50.2 29.6 19.0 39.6 23.0 39.9 26.4 43.3

-0.4 16.3 31.7 1.4 20.7 14.6 26.0 29.4 30.1 34.3 21.3 2.1 -15.3 25.8 23.3 21.1 2.5 12.4 18.0 3.7 14.7

20.4 29.5 39.0 23.3 30.6 30.1 37.8 40.0 33.5 34.3 30.5 8.9 7.4 35.5 23.2 13.6 9.6 17.3 33.7 20.4 27.6

22.2 31.9 41.0 26.5 36.5 34.9 36.5 39.0 39.6 34.3 32.8 18.4 12.0 38.1 24.8 13.4 13.2 14.5 35.2 19.7 29.5

24.4 34.4 47.2 29.1 39.7 37.5 38.4 40.1 43.9 34.3 34.8 24.0 15.7 40.9 25.5 13.4 16.3 15.3 37.3 19.9 31.6

25.2 42.6 48.3 29.7 42.6 39.9 41.6 43.8 46.7 35.0 44.0 23.8 19.1 41.9 26.2 13.6 26.0 14.5 39.6 19.7 34.6

Poland Portugal Slovak Republic Spain Sweden

41.6 29.6 40.3 32.8 44.8

42.9 32.6 41.4 37.6 46.6

43.9 38.1 44.6 41.5 51.2

37.0 19.1 27.8 28.3 34.1

41.3 23.7 32.3 30.9 39.5

41.6 24.8 34.0 34.1 40.1

42.4 27.3 37.5 34.1 41.6

41.6 30.3 40.4 35.3 45.4

Switzerland Turkey United Kingdom United States

26.6 40.9 26.2 27.1

29.2 42.1 31.1 29.4

33.4 44.5 34.2 34.6

12.1 40.9 -10.8 3.4

17.8 42.1 18.3 15.5

20.2 41.4 19.6 20.5

23.3 41.6 23.9 23.2

27.0 41.4 26.2 27.2

Wage level (% of APW):

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 1 1 67 100-0 100-33 100-67 100-331 (4) (5) (6) (7) (8)

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

92

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 6. Marginal rate of income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2003 1 Tableau 6. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, 1 par catégorie de famille et niveau de salaire (en % du salaire brut), 2003

Family-type:

single no ch 67 (1)

single no ch 100 (2)

single no ch 167 (3)

Australia

31.5

31.5

48.5

58.9

31.5

31.5

31.5

31.5

Austria Belgium Canada

42.1 59.3 27.5

42.6 54.8 31.1

49.8 59.3 39.4

51.6 59.3 52.6

42.6 50.7 49.3

42.6 54.8 35.2

42.6 54.8 35.2

42.6 54.8 31.2

Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy

25.6 43.3 39.3 47.6 51.3 15.9 40.4 37.0 24.0 36.9

30.0 48.8 45.0 32.8 58.0 28.5 40.4 37.0 26.0 43.9

34.4 62.3 50.7 35.6 63.2 41.1 68.4 42.0 44.5 55.6

47.1 43.3 39.3 30.2 48.5 15.9 12.5 43.7 61.6 36.9

42.9 43.3 45.0 21.2 50.8 28.5 40.4 43.7 26.0 43.9

25.6 43.3 45.0 27.4 51.2 28.5 40.4 43.7 26.0 43.9

25.6 48.8 45.0 27.4 54.5 28.5 40.4 43.7 26.0 43.9

30.0 43.3 45.0 32.8 51.3 28.5 40.4 37.0 26.0 43.9

Japan Korea Luxembourg Mexico

18.7 8.5 28.2 8.9

22.9 10.1 37.1 15.5

32.0 23.4 47.8 27.0

18.7 23.4 13.9 8.9

20.0 10.1 13.9 15.5

20.0 10.1 13.9 15.5

20.0 10.1 30.0 15.5

22.9 10.1 24.6 15.5

Netherlands New Zealand

46.3 21.0

45.4 33.0

52.0 39.0

41.9 51.0

45.4 63.0

45.4 33.0

45.4 33.0

45.4 33.0

Norway Poland Portugal Slovak Republic

35.8 34.2 23.0 21.5

35.8 34.2 25.0 30.2

49.3 34.2 35.0 30.2

35.8 34.2 11.0 21.5

35.8 34.2 23.0 21.5

35.8 34.2 23.0 21.5

35.8 34.2 23.0 21.5

35.8 34.2 23.0 30.2

Spain Sweden Switzerland Turkey United Kingdom United States

34.0 35.5 23.4 32.6 33.0 29.1

30.0 35.5 29.7 32.6 33.0 29.1

33.0 51.2 35.5 36.8 23.0 39.1

6.0 35.5 19.6 32.6 70.0 25.1

20.0 35.5 23.9 32.6 70.0 45.1

30.0 35.5 27.7 32.6 33.0 29.1

30.0 35.5 28.6 32.6 33.0 29.1

30.0 35.5 27.7 32.6 33.0 29.1

Wage level (% of APW):

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 2 2 67 100-0 100-33 100-67 100-332 (4) (5) (6) (7) (8)

Note : ch = children / enfants. 1. Assumes a rise in gross earnings of the principal earner in the household. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually. On suppose que le revenu brut principal du ménage augmente. Le résultat peut être différent si le salaire du conjoint augmente, surtout si les deux conjoints sont imposés séparément. 2. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

93

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 7. Marginal rate of income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2003

1

Tableau 7. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2003 1

Family-type:

single no ch 67 (1)

single no ch 100 (2)

single no ch 167 (3)

Australia Austria

35.4 55.2

35.4 55.6

51.4 61.1

61.2 62.6

35.4 55.6

35.4 55.6

35.4 55.6

35.4 55.6

Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey

69.7 35.3 44.9 43.3 51.1 74.1 59.8 34.3 55.3 40.4 30.0 52.6 28.1 15.7 36.5 17.4 54.1 21.0 43.1 45.3 37.8 43.1 49.6 51.4 31.2 44.5

66.4 33.9 48.1 48.8 55.7 52.5 65.3 44.1 55.3 40.4 33.2 57.9 31.8 17.1 44.4 25.8 50.4 33.0 43.1 45.3 39.4 49.4 46.6 51.4 36.8 44.5

69.7 40.6 51.4 62.3 60.3 53.8 67.4 54.0 76.3 45.2 49.9 66.7 39.8 29.4 53.8 35.9 52.0 39.0 55.1 45.3 47.5 49.4 48.9 63.2 41.7 48.0

69.7 57.7 60.8 43.3 51.1 65.5 57.4 34.3 34.5 46.8 64.6 52.6 28.1 29.4 23.8 17.4 50.4 51.0 43.1 45.3 28.1 43.1 28.2 51.4 27.7 44.5

63.4 51.3 57.7 43.3 55.7 44.3 59.4 44.1 55.3 46.8 33.2 57.9 29.2 17.1 23.8 25.8 50.4 63.0 43.1 45.3 37.8 43.1 38.9 51.4 31.7 44.5

66.4 37.7 44.9 43.3 55.7 48.7 59.7 44.1 55.3 46.8 33.2 57.9 29.2 17.1 23.8 25.8 50.4 33.0 43.1 45.3 37.8 43.1 46.6 51.4 35.1 44.5

66.4 37.7 44.9 48.8 55.7 48.7 62.4 44.1 55.3 46.8 33.2 57.9 29.2 17.1 38.0 25.8 50.4 33.0 43.1 45.3 37.8 43.1 46.6 51.4 35.9 44.5

66.4 33.9 48.1 43.3 55.7 52.5 59.8 44.1 55.3 40.4 33.2 57.9 31.8 17.1 33.3 25.8 50.4 33.0 43.1 45.3 37.8 49.4 46.6 51.4 35.1 44.5

United Kingdom United States

40.6 34.1

40.6 34.1

31.7 43.4

73.4 30.5

73.4 49.0

40.6 34.1

40.6 34.1

40.6 34.1

Wage level (% of APW):

94

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 67 100-0 100-332 100-672 100-332 (4) (5) (6) (7) (8)

Note : ch = children / enfants. 1. Assumes a rise in gross earnings of the principal earner in the household. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually. On suppose que le revenu brut principal du ménage augmente. Le résultat peut être différent si le salaire du conjoint augmente, surtout si les deux conjoints sont imposés séparément. 2. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 8. Increase in net income 1 after 1% increase in gross wage, by family-type and wage level (%), 2003 Tableau 8. Augmentation du revenu net 1 après augmentation de 1% du salaire brut, par catégorie de famille et niveau de salaire (en %), 2003

Family-type:

single

single

single

no ch

no ch

no ch

2 ch

67 (1)

100 (2)

167 (3)

67 (4)

Australia

0.86

0.90

0.77

0.39

0.81

0.83

0.85

0.86

Austria

0.75

0.81

0.78

0.45

0.63

0.65

0.68

0.77

Belgium

0.60

0.76

0.78

0.46

0.62

0.62

0.66

0.70

Canada

0.90

0.91

0.84

0.43

0.59

0.79

0.82

0.88

Czech Republic

0.95

0.92

0.90

0.49

0.61

0.87

0.91

0.90

Denmark

0.93

0.89

0.76

0.66

0.81

0.86

0.81

0.93

Finland

0.81

0.80

0.80

0.66

0.71

0.70

0.72

0.76

France

0.66

0.92

0.93

0.78

0.93

0.87

0.89

0.87

Germany

0.75

0.72

0.72

0.61

0.61

0.67

0.67

0.75

Greece

1.00

0.85

0.77

1.00

0.85

0.85

0.85

0.86

Hungary

0.73

0.80

0.53

0.80

0.63

0.64

0.66

0.77

Iceland

0.78

0.84

0.89

0.54

0.58

0.65

0.70

0.78

Ireland

0.84

0.89

0.77

0.31

0.72

0.76

0.80

0.83

Italy

0.81

0.77

0.67

0.64

0.65

0.68

0.71

0.73

Japan

0.97

0.93

0.86

0.94

0.92

0.94

0.95

0.92

Korea

0.97

0.96

0.87

0.90

0.96

0.96

0.96

0.96

Luxembourg

0.87

0.81

0.76

0.78

0.84

0.87

0.74

0.90

Mexico

0.89

0.88

0.83

0.89

0.88

0.84

0.86

0.84

Netherlands

0.74

0.83

0.74

0.61

0.71

0.73

0.75

0.78

New Zealand

0.97

0.84

0.83

0.51

0.47

0.83

0.84

0.83

Norway

0.86

0.90

0.79

0.67

0.79

0.81

0.83

0.87

Poland

0.94

0.96

0.97

0.87

0.93

0.94

0.95

0.94

Portugal

0.88

0.90

0.85

0.89

0.82

0.83

0.86

0.89

Slovak Republic

0.95

0.86

0.91

0.79

0.84

0.86

0.91

0.85

Spain

0.75

0.86

0.88

1.00

0.89

0.81

0.81

0.83

Sweden

0.90

0.93

0.77

0.76

0.82

0.83

0.85

0.91

Switzerland

0.94

0.89

0.87

0.82

0.83

0.81

0.84

0.89

Turkey

0.94

0.96

0.94

0.94

0.96

0.95

0.95

0.95

United Kingdom

0.84

0.89

1.05

0.25

0.33

0.77

0.81

0.84

United States

0.90

0.93

0.87

0.72

0.60

0.83

0.86

0.90

Wage level (% of APW):

single married married married married 2 ch

2 ch

2 ch

no ch

100-0 100-332 100-672 100-332 (5) (6) (7) (8)

Note : ch = children /enfants. 1. Net income is calculated as gross earnings minus personal income tax and employees’ social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. Le revenu net est calculé à partir des revenus bruts diminués de l'impôt sur le revenu des personnes physiques, des cotisations de sécurité sociale et augmentés des prestations versées aux familles. L'augmentation qui est rapportée dans le tableau représente une sorte d'élasticité. Dans un système fiscal proportionnel, l'élasticité serait égale à 1. A ces niveaux de revenu, plus le système est progressif plus l'élasticité est faible. 2. Two-earner family. Assumes a rise in gross earnings of the principal earner in the household. Famille avec deux revenus. On fait l'hypothèse que le revenu brut principal du ménage augmente.

© OECD/OCDE 2004

95

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 9. Increase in net income 1 after 1% increase in labour costs, by family-type and wage level (%), 2003 Tableau 9. Augmentation du revenu net 1 après augmentation de 1% des coûts bruts de main-d’œuvre, par catégorie de famille et niveau de salaire (en %), 2003

Family type: Wage level (% of APW):

96

single

single

single

no ch

no ch

no ch

single married married married married 2 ch

2 ch

2 ch

2 ch

2

2

no ch

100-0 100-33 100-67 100-332 (5) (6) (7) (8)

67 (1)

100 (2)

167 (3)

67 (4)

Australia

0.86

0.90

0.77

0.39

0.81

0.83

0.85

0.86

Austria

0.75

0.81

0.78

0.45

0.63

0.65

0.68

0.77

Belgium

0.58

0.74

0.76

0.44

0.60

0.57

0.64

0.65

Canada

0.89

0.98

0.89

0.43

0.63

0.85

0.88

0.94

Czech Republic

0.95

0.92

0.90

0.49

0.61

0.87

0.91

0.90

Denmark

0.94

0.89

0.76

0.66

0.81

0.87

0.82

0.94

Finland

0.81

0.80

0.80

0.66

0.71

0.70

0.72

0.76

France

0.42

0.92

0.94

0.49

0.93

0.84

0.86

0.84

Germany

0.75

0.72

0.76

0.61

0.61

0.67

0.67

0.75

Greece

1.00

0.85

0.77

1.00

0.85

0.85

0.85

0.86

Hungary

0.76

0.82

0.54

0.83

0.64

0.66

0.68

0.80

Iceland

0.78

0.84

0.89

0.54

0.58

0.65

0.70

0.78

Ireland

0.84

0.89

0.77

0.31

0.72

0.76

0.79

0.83

Italy

0.81

0.77

0.67

0.64

0.65

0.68

0.71

0.73

Japan

0.97

0.93

0.86

0.94

0.92

0.94

0.95

0.92

Korea

0.97

0.96

0.87

0.90

0.96

0.96

0.96

0.96

Luxembourg

0.87

0.81

0.76

0.78

0.84

0.88

0.74

0.90

Mexico

0.94

0.90

0.83

0.94

0.90

0.87

0.88

0.87

Netherlands

0.74

0.87

0.80

0.61

0.75

0.76

0.79

0.82

New Zealand

0.97

0.84

0.83

0.51

0.47

0.83

0.84

0.83

Norway

0.86

0.90

0.79

0.67

0.79

0.81

0.83

0.87

Poland

0.94

0.96

0.97

0.87

0.93

0.94

0.95

0.94

Portugal

0.88

0.90

0.85

0.89

0.82

0.83

0.86

0.89

Slovak Republic

0.95

0.86

0.91

0.79

0.84

0.86

0.91

0.85

Spain

0.75

0.86

0.87

1.00

0.88

0.81

0.81

0.83

Sweden

0.88

0.91

0.75

0.74

0.80

0.81

0.83

0.89

Switzerland

0.94

0.89

0.88

0.82

0.83

0.81

0.84

0.89

Turkey

0.94

0.96

0.94

0.94

0.96

0.95

0.95

0.95

United Kingdom

0.80

0.86

1.04

0.24

0.33

0.74

0.78

0.80

United States

0.90

0.93

0.87

0.72

0.60

0.83

0.86

0.90

Note : ch = children /enfants. 1. Net income is calculated as gross earnings minus personal income tax and employees’ social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. Le revenu net est calculé à partir des revenus bruts diminués de l'impôt sur le revenu des personnes physiques, des cotisations de sécurité sociale et augmentés des prestations versées aux familles. L'augmentation qui est rapportée dans le tableau représente une sorte d'élasticité. Dans un système fiscal proportionnel, l'élasticité serait égale à 1. A ces niveaux de revenu, plus le système est progressif plus l'élasticité est faible. 2. Two-earner family. Assumes a rise in the labour costs associated with the principal earner in the household. Famille avec deux revenus. On fait l'hypothèse que les coûts de main d'œuvre associés au revenu principal du ménage augmentent.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 10. Annual gross wage and net income, by family-type and wage level (in US dollars), 2003 Tableau 10. Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2003

Family-type: Wage level (% of APW):

single no ch 67 gross (1)

single no ch net (2)

100 gross (3)

single no ch net (4)

167 gross (5)

single 2 ch net (6)

67 gross (7)

net (8)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea

24 930 17 575 23 073 21 951 10 278 24 829 19 503 16 263 23 653 10 329 6 212 18 987 17 076 17 879 19 983 22 413

19 899 13 593 15 579 17 701 8 043 15 060 14 639 12 939 15 266 8 687 5 087 15 305 15 434 13 974 16 683 21 199

37 396 26 362 34 610 32 926 15 417 37 243 29 255 24 394 35 480 15 494 9 318 28 480 25 613 26 819 29 975 33 620

28 438 18 750 20 561 24 810 11 704 21 467 20 138 17 847 20 629 13 027 6 939 21 285 21 411 19 525 24 749 31 345

62 326 43 937 57 683 54 877 25 694 62 072 48 758 40 657 59 133 25 823 15 529 47 466 42 689 44 698 49 959 44 827

41 823 28 270 30 242 39 683 18 670 30 960 30 007 28 256 30 270 19 769 9 318 30 872 30 657 29 642 39 734 39 384

24 930 17 575 23 073 21 951 10 278 24 829 19 503 16 263 23 653 11 362 6 212 18 987 17 076 17 879 19 983 56 034

26 527 19 001 20 270 24 091 11 006 21 374 17 893 14 647 20 010 9 555 6 787 19 649 21 355 17 660 17 317 47 972

Luxembourg Mexico Netherlands New Zealand Norway

21 915 6 199 22 481 19 046 22 497

18 101 6 347 16 270 15 439 16 820

32 873 9 298 33 721 28 568 33 746

25 478 8 889 22 264 22 676 24 042

54 788 15 497 56 202 47 614 56 243

37 460 13 714 36 464 35 061 35 943

21 915 6 199 22 481 19 046 22 497

24 293 6 347 21 365 18 346 21 634

9 674

6 799

14 511

9 984

24 184

16 353

9 674

7 343

Portugal Slovak Republic Spain

8 087 6 023 14 293

7 043 4 960 12 552

12 130 9 034 21 439

10 117 7 311 17 472

20 217 15 056 35 732

15 475 11 512 27 296

8 087 6 023 14 293

8 095 6 004 13 385

Sweden Switzerland Turkey

16 741 23 029 10 203

11 978 18 823 7 325

25 111 34 543 15 305

17 371 27 229 10 764

41 851 57 572 25 509

26 483 42 682 17 216

16 741 23 029 10 203

14 287 22 520 7 325

United Kingdom

20 631

16 509

30 947

23 420

51 579

37 679

20 631

24 794

United States

22 306

17 501

33 459

25 411

55 765

39 276

22 306

23 189

Poland

Note : ch = children / enfants.

97

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 10 (cont’d). Annual gross wage and net income, by family-type and wage level (in US dollars), 2003 Tableau 10 (suite). Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2003

Family-type: Wage level (% of APW)

married 2 ch 100-0 gross (9)

net (10)

married 2 ch 1 100-33 gross net (11) (12)

married 2 ch 100-671 gross net (13) (14)

married no ch 100-331 gross net (15) (16)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand

37 396 26 362 34 610 32 926 15 417 37 243 29 255 24 394 35 480 18 592 9 318 28 480 25 613 26 819 29 975 33 620 32 873 9 298 33 721 28 568

31 553 24 022 27 585 28 159 14 441 26 179 22 574 20 716 28 549 15 633 8 872 27 440 26 271 23 003 26 018 31 535 33 728 8 889 25 875 22 726

49 861 35 150 46 146 43 901 20 555 49 657 39 006 32 526 47 307 23 757 12 423 37 973 34 151 35 758 39 967 44 827 43 831 12 398 44 962 38 091

41 136 30 948 33 903 35 901 17 625 32 576 30 702 27 167 34 591 19 976 11 589 32 755 33 130 29 459 33 992 42 142 43 204 12 449 33 725 30 592

62 326 43 937 57 683 54 877 25 694 62 072 48 758 40 657 59 133 28 921 15 529 47 466 42 689 44 698 49 959 56 034 54 788 15 497 56 202 47 614

49 951 37 221 39 546 43 355 20 924 39 031 37 214 33 134 40 160 24 319 13 959 38 127 39 528 35 127 42 067 52 672 52 036 15 236 40 844 38 115

49 861 35 150 46 146 43 901 20 555 49 657 39 006 32 526 47 307 22 207 12 423 37 973 34 151 35 758 39 967 44 827 43 831 12 398 44 962 38 091

39 522 26 069 29 696 34 340 15 925 30 119 28 266 25 056 30 531 18 478 9 657 30 611 30 447 27 643 33 357 42 047 36 855 12 449 31 415 30 592

Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

33 746 14 511 12 130 9 034 21 439 25 111 34 543 15 305 30 947 33 459

27 575 10 267 11 454 8 440 19 358 19 680 31 614 10 764 27 769 30 420

44 995 19 348 16 174 12 045 28 585 33 481 46 058 20 407 41 263 44 612

35 774 13 598 15 053 10 964 24 604 25 993 40 885 14 520 35 977 38 183

56 243 24 184 20 217 15 056 35 732 41 851 57 572 25 509 51 579 55 765

43 423 16 783 18 198 12 981 30 766 31 658 49 156 18 089 42 888 46 094

44 995 19 348 16 174 12 045 28 585 33 481 46 058 20 407 41 263 44 612

33 213 13 598 13 954 9 908 24 164 23 684 37 437 14 520 33 017 34 984

Note : ch = children /enfants.

98

1. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 11. Annual labour costs and net income, by family-type and wage level (in US dollars), 2003 Tableau 11. Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2003

Family-type: Wage level (% of APW):

single

single

single

single

no ch

no ch

no ch

2 ch

67 gross (1)

net (2)

100 gross (3)

net (4)

167 gross (5)

net (6)

67 gross (7)

net (8)

Australia

26 426

19 899

39 639

28 438

66 066

41 823

26 426

26 527

Austria

22 712

13 593

34 068

18 750

56 780

28 270

22 712

19 001

Belgium

29 661

15 579

45 187

20 561

76 239

30 242

29 661

20 270

Canada

24 438

17 701

36 694

24 810

59 520

39 683

24 438

24 091

Czech Republic

13 875

8 043

20 812

11 704

34 687

18 670

13 875

11 006

Denmark

25 039

15 060

37 453

21 467

62 282

30 960

25 039

21 374

Finland

24 184

14 639

36 276

20 138

60 460

30 007

24 184

17 893

France

20 752

12 939

34 537

17 847

57 372

28 256

20 752

14 647

Germany

28 632

15 266

42 949

20 629

70 318

30 270

28 632

20 010

Greece

13 217

8 687

19 825

13 027

33 042

19 769

14 539

9 555

Hungary

8 624

5 087

12 770

6 939

21 063

9 318

8 624

6 787

Iceland

20 074

15 305

30 112

21 285

50 186

30 872

20 074

19 649

Ireland

18 527

15 434

28 367

21 411

47 278

30 657

18 527

21 355

Italy

23 794

13 974

35 690

19 525

59 484

29 642

23 794

17 660

Japan

22 587

16 683

33 881

24 749

56 468

39 734

22 587

17 317

Korea

24 325

21 199

36 488

31 345

48 651

39 384

60 813

47 972

Luxembourg

24 911

18 101

37 294

25 478

62 060

37 460

24 911

24 293

7 245

6 347

10 743

8 889

17 803

13 714

7 245

6 347

Netherlands

26 058

16 270

39 045

22 264

60 640

36 464

26 058

21 365

New Zealand

19 046

15 439

28 568

22 676

47 614

35 061

19 046

18 346

Norway

25 377

16 820

38 065

24 042

63 442

35 943

25 377

21 634

Poland

11 650

6 799

17 475

9 984

29 125

16 353

11 650

7 343

Portugal

10 008

7 043

15 011

10 117

25 019

15 475

10 008

8 095

Mexico

Slovak Republic

8 311

4 960

12 467

7 311

20 778

11 512

8 311

6 004

Spain

18 666

12 552

27 999

17 472

46 666

27 296

18 666

13 385

Sweden

22 235

11 978

33 352

17 371

55 587

26 483

22 235

14 287

Switzerland

25 631

18 823

38 447

27 229

64 070

42 682

25 631

22 520

Turkey

12 397

7 325

18 596

10 764

30 993

17 216

12 397

7 325

United Kingdom

22 368

16 509

34 004

23 420

57 277

37 679

22 368

24 794

United States

24 012

17 501

36 019

25 411

60 031

39 276

24 012

23 189

Note : ch = children / enfants.

© OECD/OCDE 2004

99

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 11 (cont’d). Annual labour costs and net income, by family-type and wage level (in US dollars), 2003 Tableau 11 (suite). Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2003

Family-type: Wage level (% of APW):

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

married 2 ch 100-0 gross net (9) (10) 39 639 34 068 45 187 36 694 20 812 37 453 36 276 34 537 42 949 23 791 12 770 30 112 28 367 35 690 33 881 36 488 37 294 10 743 39 045 28 568 38 065 17 475 15 011 12 467 27 999 33 352 38 447 18 596 34 004 36 019

31 553 24 022 27 585 28 159 14 441 26 179 22 574 20 716 28 549 15 633 8 872 27 440 26 271 23 003 26 018 31 535 33 728 8 889 25 875 22 726 27 575 10 267 11 454 8 440 19 358 19 680 31 614 10 764 27 769 30 420

married 2 ch 100-331 gross net (11) (12) 52 852 45 424 57 449 48 841 27 750 50 078 48 368 44 570 57 265 30 399 17 248 40 149 37 630 47 587 45 175 48 651 49 771 14 569 52 022 38 091 50 754 23 300 20 015 16 622 37 333 44 470 51 262 24 794 44 736 48 025

41 136 30 948 33 903 35 901 17 625 32 576 30 702 27 167 34 591 19 976 11 589 32 755 33 130 29 459 33 992 42 142 43 204 12 449 33 725 30 592 35 774 13 598 15 053 10 964 24 604 25 993 40 885 14 520 35 977 38 183

married 2 ch 100-671 gross net (13) (14) 66 066 56 780 74 848 61 132 34 687 62 492 60 460 55 289 71 581 37 008 21 394 50 186 46 894 59 484 56 468 60 813 62 204 17 989 65 103 47 614 63 442 29 125 25 019 20 778 46 666 55 587 64 078 30 993 56 372 60 031

49 951 37 221 39 546 43 355 20 924 39 031 37 214 33 134 40 160 24 319 13 959 38 127 39 528 35 127 42 067 52 672 52 036 15 236 40 844 38 115 43 423 16 783 18 198 12 981 30 766 31 658 49 156 18 089 42 888 46 094

married no ch 100-331 gross net (15) (16) 52 852 45 424 57 449 48 841 27 750 50 078 48 368 44 570 57 265 28 417 17 248 40 149 37 630 47 587 45 175 48 651 49 771 14 569 52 022 38 091 50 754 23 300 20 015 16 622 37 333 44 470 51 262 24 794 44 736 48 025

39 522 26 069 29 696 34 340 15 925 30 119 28 266 25 056 30 531 18 478 9 657 30 611 30 447 27 643 33 357 42 047 36 855 12 449 31 415 30 592 33 213 13 598 13 954 9 908 24 164 23 684 37 437 14 520 33 017 34 984

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

100

© OECD/OCDE 2004

B. B.

TAX BURDENS, 2002 (TABLES) Chapter 1

CHARGES D’IMPÔT, 2002 (TABLEAUX)

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 12. Income tax, by family-type and wage level (as % of gross wage), 2002 Tableau 12. Impôt sur le revenu, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 Family-type: Wage level (% of APW): Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

single

single

single

no ch

no ch

no ch

single married married married married 2 ch

67 (1)

100 (2)

167 (3)

67 (4)

20.3

24.0

32.9

20.2

2 ch

2 ch

2 ch

1

1

20.8

22.6

no ch

100-0 100-33 100-67 100-331 (5) (6) (7) (8) 24.0

20.8

4.3

10.5

17.3

0.9

9.0

7.5

8.0

7.5

20.5 14.2 9.0 27.4 19.2 6.8 14.0 0.0 11.3 18.8 7.2 14.5 4.7 0.9 3.4 -4.1 3.6 18.9 17.5 4.6 1.8 4.5 7.5 21.0 7.0 13.6 12.4 14.1

27.2 17.9 11.2 31.7 25.4 13.6 20.4 0.4 16.9 24.8 11.4 18.9 5.6 2.2 8.3 2.1 9.2 20.1 21.0 6.1 5.5 5.9 13.0 23.4 9.9 15.0 15.6 16.6

34.2 23.5 14.3 40.5 32.6 18.3 29.3 7.3 28.0 36.7 22.4 24.1 8.5 7.2 17.4 9.3 20.8 25.9 28.4 7.3 12.4 10.1 17.9 30.5 14.6 17.3 18.2 22.7

13.9 6.3 3.9 27.4 19.2 4.5 -6.6 0.0 0.0 18.8 0.0 7.0 1.6 0.3 0.0 -4.1 2.3 18.9 13.2 4.6 0.0 0.8 0.0 21.0 2.8 13.6 -15.7 -9.7

16.7 14.1 5.4 25.7 25.4 7.1 -2.4 0.9 8.0 13.3 2.5 11.8 1.4 1.6 0.0 2.1 8.7 20.1 18.1 4.2 0.3 2.6 4.2 23.4 5.1 15.0 9.3 3.9

21.0 15.3 6.4 27.4 21.9 7.2 5.2 0.7 7.3 18.8 7.2 12.4 3.2 1.4 0.0 -2.6 7.1 19.3 18.3 4.6 0.2 2.7 8.2 22.1 5.8 14.2 10.4 9.2

24.3 16.4 7.8 29.9 22.9 8.3 10.4 0.6 9.3 22.4 9.7 14.2 4.0 1.4 0.7 -0.4 6.9 19.6 19.6 5.5 2.4 3.9 8.5 22.4 8.0 14.4 12.7 11.7

23.1 15.3 9.6 27.4 21.9 9.5 14.0 1.2 14.0 18.8 7.2 14.8 4.7 1.7 2.0 -2.6 7.2 19.3 18.3 4.6 2.7 4.5 9.7 22.1 7.4 14.2 12.4 14.7

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

102

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 13. Employee contributions, by family-type and wage level (as % of gross wage), 2002 Tableau 13. Cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 Family-type: Wage level (% of APW): Australia

single

single

single

no ch

no ch

no ch

67 (1)

100 (2)

167 (3)

single married married married married 2 ch 67 (4)

2 ch

2 ch

2 ch

1

1

no ch

100-0 100-33 100-67 100-331 (5) (6) (7) (8)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Austria

18.1

18.1

18.1

18.1

18.1

18.1

18.1

18.1

Belgium

13.1

13.9

14.0

13.1

13.9

14.0

14.0

14.0

Canada

6.3

6.5

3.9

6.3

6.5

6.3

6.4

6.3

Czech Republic

12.5

12.5

12.5

12.5

12.5

12.5

12.5

12.5

Denmark

11.9

10.6

9.6

11.9

10.6

11.9

11.2

11.9

Finland

6.0

6.1

6.2

6.0

6.1

6.0

6.1

6.0

France

13.3

13.3

12.5

13.3

13.3

13.3

13.3

13.3

Germany

20.7

20.7

18.4

20.7

20.7

20.7

20.7

20.7

Greece

15.9

15.9

15.9

15.9

15.9

15.9

15.9

15.9

Hungary

12.5

12.5

12.5

12.5

12.5

12.5

12.5

12.5

Iceland

0.3

0.2

0.1

0.3

0.2

0.3

0.3

0.3

Ireland

2.4

5.0

5.1

2.4

5.0

3.7

4.0

3.7

Italy

9.2

9.2

9.2

9.2

9.2

9.2

9.2

9.2

13.6

13.6

13.6

13.6

13.6

13.6

13.6

13.6

Japan Korea

4.5

4.5

6.7

4.5

4.5

4.5

4.5

4.5

13.7

13.8

13.8

13.7

13.8

13.7

13.7

13.7

1.3

1.6

2.0

1.3

1.6

1.5

1.4

1.5

Netherlands

23.3

23.8

14.1

10.5

18.9

20.9

22.9

21.9

New Zealand

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Luxembourg Mexico

Norway

7.8

7.8

7.8

7.8

7.8

7.8

7.8

7.8

Poland

25.0

25.0

25.0

25.0

25.0

25.0

25.0

25.0

Portugal

11.0

11.0

11.0

11.0

11.0

11.0

11.0

11.0

Slovak Republic

12.8

12.8

12.8

12.8

12.8

12.8

12.8

12.8

6.3

6.4

6.3

6.3

6.4

6.4

6.3

6.4

Spain Sweden

7.0

7.0

5.5

7.0

7.0

7.0

7.0

7.0

Switzerland

11.6

11.6

11.5

11.6

11.6

11.6

11.6

11.6

Turkey

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

United Kingdom

6.4

7.6

8.0

6.4

7.6

6.4

7.1

6.4

United States

7.7

7.7

7.7

7.7

7.7

7.7

7.7

7.7

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

103

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 14. Income tax plus employee contributions, by family-type and wage level (as % of gross wage), 2002 Tableau 14. Impôt sur le revenu et cotisations des salariés, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 Family-type:

single

single

single

Wage level (% of APW):

no ch 67 (1)

no ch 100 (2)

no ch 167 (3)

single married married married married 2 ch 67 (4)

Australia Austria Belgium

20.3 22.3 33.6

24.0 28.6 41.2

32.9 35.4 48.2

20.2 18.9 27.0

24.0 27.1 30.6

20.8 25.6 35.0

22.6 26.1 38.3

20.8 25.6 37.0

Canada Czech Republic Denmark Finland France Germany Greece

20.4 21.5 39.3 25.2 20.0 34.6 15.9

24.4 23.7 42.3 31.5 26.8 41.0 16.3

27.5 26.8 50.1 38.8 30.8 47.8 23.2

12.5 16.4 39.3 25.2 17.8 14.1 15.9

20.5 17.9 36.3 31.5 20.3 18.3 16.8

21.6 18.9 39.3 28.0 20.4 25.8 16.6

22.8 20.3 41.1 29.0 21.6 31.1 16.5

21.6 22.1 39.3 28.0 22.8 34.6 17.1

Hungary Iceland Ireland Italy Japan

23.8 19.1 9.6 23.7 18.3

29.4 25.1 16.4 28.1 19.3

40.5 36.8 27.4 33.3 22.1

12.5 19.1 2.4 16.2 15.2

20.5 13.5 7.4 20.9 15.1

19.8 19.1 10.9 21.6 16.8

21.8 22.7 13.7 23.4 17.6

26.5 19.1 10.9 24.0 18.4

Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland

5.4 17.1 -2.9 26.8 18.9 25.3 29.6 12.8 17.3 13.8 28.0 18.5

6.7 22.1 3.7 33.1 20.1 28.8 31.1 16.5 18.7 19.3 30.4 21.4

13.9 31.2 11.3 34.9 25.9 36.2 32.4 23.4 22.9 24.2 36.0 26.2

4.8 13.7 -2.9 12.7 18.9 21.0 29.6 11.0 13.6 6.3 28.0 14.4

6.1 13.8 3.7 27.5 20.1 25.9 29.2 11.3 15.4 10.5 30.4 16.6

5.9 13.7 -1.1 28.1 19.3 26.1 29.6 11.2 15.5 14.6 29.1 17.4

5.9 14.4 1.1 29.8 19.6 27.4 30.5 13.4 16.7 14.9 29.4 19.6

6.2 15.7 -1.1 29.1 19.3 26.1 29.6 13.7 17.3 16.1 29.1 18.9

Turkey

28.6

30.0

32.3

28.6

30.0

29.2

29.4

29.2

United Kingdom United States

18.8 21.8

23.2 24.3

26.1 30.3

-9.3 -2.0

16.9 11.5

16.8 16.8

19.8 19.3

18.8 22.4

2 ch 2 ch 2 ch no ch 100-0 100-331 100-671 100-331 (5) (6) (7) (8)

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

104

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Table 15. Income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2002 Tableau 15. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002

Family-type:

single no ch

single no ch

single no ch

67 (1)

100 (2)

167 (3)

67 (4)

Australia Austria

20.3 22.3

24.0 28.6

32.9 35.4

-6.7 -8.3

15.6 8.9

17.5 12.0

19.9 15.2

20.8 25.6

Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea

33.6 19.1 21.5 39.3 25.2 20.0 34.6 15.9 23.8 19.1 9.6 23.7 18.3 5.4

41.2 24.4 23.7 42.3 31.5 26.8 41.0 16.3 29.4 25.1 16.4 28.1 19.3 6.7

48.2 27.5 26.8 50.1 38.8 30.8 47.8 23.2 40.5 36.8 27.4 33.3 22.1 13.9

12.6 -9.9 -10.7 13.8 7.8 9.2 14.1 15.9 -8.3 -5.1 -22.4 2.4 15.2 4.8

21.0 14.3 3.8 29.7 22.8 14.6 18.3 16.8 8.5 3.2 -0.7 14.7 15.1 6.1

27.8 18.4 12.9 34.4 21.4 16.1 25.8 16.6 10.8 13.0 4.8 19.9 16.8 5.9

32.6 21.3 18.1 37.1 23.8 18.1 31.1 16.5 14.6 19.1 8.8 22.6 17.6 5.9

37.0 21.6 22.1 39.3 28.0 22.8 34.6 17.1 26.5 19.1 10.9 24.0 18.4 6.2

Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal

17.1 -2.9 26.8 18.9 25.3 29.6 12.8

22.1 3.7 33.1 20.1 28.8 31.1 16.5

31.2 11.3 34.9 25.9 36.2 32.4 23.4

-11.5 -2.9 4.6 2.0 3.0 23.9 -0.2

-3.0 3.7 22.1 18.8 17.9 29.2 5.4

1.1 -1.1 24.0 19.3 20.1 29.6 6.8

4.3 1.1 26.5 19.6 22.6 30.5 9.9

15.7 -1.1 29.1 19.3 26.1 29.6 13.7

Slovak Republic Spain Sweden

17.3 13.8 28.0

18.7 19.3 30.4

22.9 24.2 36.0

-8.1 6.3 13.6

0.9 10.5 20.8

4.6 14.6 21.9

10.5 14.9 23.7

17.3 16.1 29.1

Switzerland

18.5

21.4

26.2

2.3

8.6

11.3

14.8

18.9

Turkey United Kingdom United States

28.6 18.8 21.8

30.0 23.2 24.3

32.3 26.1 30.3

28.6 -20.6 -2.0

30.0 9.9 11.5

29.2 11.5 16.8

29.4 15.6 19.3

29.2 18.8 22.4

Wage level (% of APW):

single married married married married 2 ch 2 ch 2 ch 2 ch no ch 100-0 100-331 100-671 100-331 (5) (6) (7) (8)

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

105

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 16. Income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2002 Tableau 16. Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2002

Family-type:

single no ch

single no ch

single no ch

67 (1)

100 (2)

167 (3)

67 (4)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway

24.8 39.9 48.5 27.3 41.8 39.9 40.2 37.6 45.8 34.3 46.0 23.1 16.7 42.6 29.0 12.9 27.1 11.3 37.0 18.9 33.8

28.3 44.7 55.1 32.2 43.5 42.7 45.2 48.2 51.1 34.6 49.0 28.8 24.5 46.0 29.8 14.1 31.3 16.1 42.5 20.1 36.9

36.7 50.0 60.9 33.1 45.8 50.3 51.1 50.8 55.9 40.0 56.4 40.0 34.5 49.9 32.3 20.7 39.3 22.4 40.3 25.9 43.5

16.2 32.3 1.2 18.0 14.5 26.3 29.1 28.8 34.3 23.2 0.1 -12.8 26.6 26.3 12.4 1.9 11.3 17.8 2.0 14.0

20.4 29.5 39.7 23.1 28.7 30.1 38.3 39.5 32.2 35.0 33.9 8.0 9.1 35.9 26.2 13.6 9.2 16.1 33.1 18.8 27.2

22.2 31.9 44.1 26.6 35.5 34.9 37.2 38.6 38.5 34.8 36.7 17.3 13.6 39.8 27.7 13.4 12.9 13.4 34.5 19.3 29.2

24.5 34.4 48.2 29.3 39.3 37.5 39.0 39.8 42.9 34.7 38.8 23.1 17.0 41.8 28.4 13.4 15.8 14.2 36.8 19.6 31.4

25.3 42.4 51.2 29.5 42.3 39.9 42.4 43.4 45.8 35.2 47.9 23.1 19.1 42.9 29.1 13.6 25.7 13.4 38.9 19.3 34.5

Poland Portugal Slovak Republic Spain Sweden

41.6 29.6 40.1 34.0 45.8

42.8 32.6 41.1 38.2 47.6

43.8 38.1 44.1 42.0 51.8

36.8 19.0 21.6 28.3 35.0

41.2 23.6 28.2 31.5 40.3

41.6 24.7 30.8 34.6 41.2

42.3 27.2 35.1 34.8 42.5

41.6 30.2 40.1 35.7 46.6

Switzerland Turkey United Kingdom United States

26.9 41.3 24.5 27.3

29.6 42.4 29.5 29.7

33.8 44.3 32.9 35.3

12.4 41.3 -12.1 5.2

18.1 42.4 17.3 17.8

20.5 41.7 17.7 22.7

23.6 41.9 22.1 25.1

27.3 41.7 24.6 27.9

Wage level (% of APW):

single married married married married 2 ch 2 ch 2 ch 2 ch no ch

-0.7

100-0 100-331 100-671 100-331 (5) (6) (7) (8)

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

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Table 17. Marginal rate of income tax plus employee contributions less cash benefits, by family-type and wage level (as % of gross wage), 2002 1 Tableau 17. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, par catégorie de famille et niveau de salaire (en % du salaire brut), 2002 1

Family-type:

single no ch

single no ch

single no ch

married 2 ch

married 2 ch

married no ch

67 (1)

100 (2)

167 (3)

67 (4)

2

2

2

Australia Austria

31.5 36.8

31.5 42.6

48.5 49.8

50.0 51.6

31.5 42.6

31.5 42.6

31.5 42.6

31.5 42.6

Belgium Canada Czech Republic Denmark

55.6 27.4 25.6 43.3

54.8 36.5 30.0 48.8

59.7 39.4 34.4 62.4

55.6 52.3 25.6 43.3

50.7 55.3 42.9 43.3

55.1 41.5 42.9 43.3

55.1 41.5 25.6 48.8

55.1 36.5 30.0 43.3

Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg

40.0 48.4 50.6 15.9 40.5 37.0 24.0 31.8 20.5 8.9 26.4

45.7 33.2 57.0 28.5 40.5 37.0 26.0 39.1 21.8 10.1 37.1

51.4 36.5 49.3 41.1 50.5 44.0 44.6 45.4 27.1 23.2 47.8

40.0 29.9 47.7 15.9 12.5 43.7 61.6 31.8 20.5 8.9 13.9

45.7 20.8 50.1 28.5 40.5 43.7 26.0 39.1 21.8 10.1 13.9

45.7 27.5 50.4 28.5 40.5 43.7 26.0 39.1 21.8 10.1 13.9

45.7 27.5 53.6 28.5 40.5 43.7 26.0 39.1 21.8 10.1 30.0

45.7 33.2 50.6 28.5 40.5 37.0 26.0 39.1 21.8 10.1 24.6

Mexico Netherlands New Zealand Norway

8.9 45.0 21.0 35.8

15.6 44.9 33.0 35.8

27.1 52.0 39.0 49.3

8.9 40.6 39.0 35.8

15.6 44.9 63.0 35.8

15.6 44.9 33.0 35.8

15.6 44.9 33.0 35.8

15.6 44.9 33.0 35.8

Poland Portugal

34.2 23.0

34.2 25.0

34.2 35.0

34.2 11.0

34.2 23.0

34.2 23.0

34.2 23.0

34.2 23.0

Slovak Republic

21.5

21.5

30.2

21.5

21.5

21.5

21.5

21.5

Spain Sweden Switzerland Turkey

33.0 34.8 23.9 32.6

29.0 31.7 30.2 32.6

34.0 50.5 34.4 36.8

7.0 34.8 20.0 32.6

29.0 31.7 23.5 32.6

28.0 31.7 28.3 32.6

28.0 31.7 29.1 32.6

29.0 31.7 28.3 32.6

United Kingdom

32.0

32.0

22.0

69.4

69.4

32.0

32.0

32.0

United States

29.3

29.3

41.3

45.3

50.3

29.3

29.3

29.3

Wage level (% of APW):

single married 2 ch 2 ch

100-0 100-33 100-67 100-33 (5) (6) (7) (8)

Note : ch = children / enfants. 1. Assumes a rise in gross earnings of the principal earner in the household. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually. On suppose que le revenu brut principal du ménage augmente. Le résultat peut être différent si le salaire du conjoint augmente, surtout si les deux conjoints sont imposés séparément. 2. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

107

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 18. Marginal rate of income tax plus employee and employer contributions less cash benefits, by family-type and wage level (as % of labour costs), 2002 1 Tableau 18. Taux marginal applicable à l’impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille et niveau de salaire (en % des coûts de main-d'œuvre), 2002 1

Family-type:

single no ch

single no ch

single no ch

married 2 ch

married 2 ch

married no ch

67 (1)

100 (2)

167 (3)

67 (4)

2

2

2

Australia Austria

35.4 51.1

35.4 55.6

51.4 61.1

52.8 62.6

35.4 55.6

35.4 55.6

35.4 55.6

35.4 55.6

Belgium Canada Czech Republic Denmark

67.0 35.1 44.9 43.3

66.4 43.2 48.1 48.8

70.1 40.6 51.4 62.4

67.0 57.3 44.9 43.3

63.4 60.0 57.7 43.3

66.7 47.7 57.7 43.3

66.7 47.7 44.9 48.8

66.7 43.2 48.1 43.3

Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg

52.0 74.5 59.0 34.3 55.4 40.1 30.0 48.8 30.9 16.1 34.9

56.6 52.7 64.4 44.1 55.4 40.1 33.2 54.2 32.0 17.2 44.4

61.1 54.3 49.3 54.0 62.9 46.8 49.9 59.0 31.5 29.3 53.8

52.0 65.2 56.7 34.3 34.5 46.5 64.6 48.8 30.9 16.1 23.8

56.6 43.9 58.6 44.1 55.4 46.5 33.2 54.2 32.0 17.2 23.8

56.6 48.6 58.9 44.1 55.4 46.5 33.2 54.2 32.0 17.2 23.8

56.6 48.6 61.6 44.1 55.4 46.5 33.2 54.2 32.0 17.2 38.0

56.6 52.7 59.0 44.1 55.4 40.1 33.2 54.2 32.0 17.2 33.3

Mexico Netherlands New Zealand Norway

16.9 53.6 21.0 43.1

25.8 50.9 33.0 43.1

35.9 52.0 39.0 55.1

16.9 49.9 39.0 43.1

25.8 50.9 63.0 43.1

25.8 50.9 33.0 43.1

25.8 50.9 33.0 43.1

25.8 50.9 33.0 43.1

Poland Portugal

45.3 37.8

45.3 39.4

45.3 47.5

45.3 28.1

45.3 37.8

45.3 37.8

45.3 37.8

45.3 37.8

Slovak Republic

43.1

43.1

49.4

43.1

43.1

43.1

43.1

43.1

Spain Sweden Switzerland Turkey

48.9 50.9 31.8 44.5

45.8 48.6 37.5 44.5

49.6 62.7 40.9 48.0

29.0 50.9 28.2 44.5

45.8 48.6 31.4 44.5

45.0 48.6 35.7 44.5

45.0 48.6 36.5 44.5

45.8 48.6 35.7 44.5

Wage level (% of APW):

108

single married 2 ch 2 ch

100-0 100-33 100-67 100-33 (5) (6) (7) (8)

United Kingdom

39.2

39.2

30.2

72.6

72.6

39.2

39.2

39.2

United States

34.3

34.3

45.4

49.2

53.9

34.3

34.3

34.3

Note : ch = children / enfants. 1. Assumes a rise in gross earnings of the principal earner in the household. The outcome may differ if the wage of the spouse goes up, especially if partners are taxed individually. On suppose que le revenu brut principal du ménage augmente. Le résultat peut être différent si le salaire du conjoint augmente, surtout si les deux conjoints sont imposés séparément. 2. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 19. Increase in net income 1 after 1% increase in gross wage, by family-type and wage level (%), 2002 Tableau 19. Augmentation du revenu net 1 après augmentation de 1% du salaire brut, par catégorie de famille et niveau de salaire (en %), 2002

Family-type:

single

single

single

no ch

no ch

no ch

2 ch

67 (1)

100 (2)

167 (3)

67 (4)

Australia

0.86

0.90

0.77

0.47

0.81

0.83

0.86

0.87

Austria

0.81

0.80

0.78

0.45

0.63

0.65

0.68

0.77

Belgium

0.67

0.77

0.78

0.51

0.62

0.62

0.67

0.71

Canada

0.90

0.84

0.84

0.43

0.52

0.72

0.74

0.81

Czech Republic

0.95

0.92

0.90

0.67

0.59

0.66

0.91

0.90

Denmark

0.93

0.89

0.75

0.66

0.81

0.86

0.81

0.93

Finland

0.80

0.79

0.79

0.65

0.70

0.69

0.71

0.75

France

0.64

0.91

0.92

0.77

0.93

0.86

0.89

0.86

Germany

0.76

0.73

0.97

0.61

0.61

0.67

0.67

0.76

Greece

1.00

0.85

0.77

1.00

0.86

0.86

0.86

0.86

Hungary

0.78

0.84

0.83

0.81

0.65

0.67

0.70

0.81

Iceland

0.78

0.84

0.89

0.54

0.58

0.65

0.70

0.78

Ireland

0.84

0.89

0.76

0.31

0.74

0.78

0.81

0.83

Italy

0.89

0.85

0.82

0.70

0.71

0.76

0.79

0.80

Japan

0.97

0.97

0.94

0.94

0.92

0.94

0.95

0.96

Korea

0.96

0.96

0.89

0.96

0.96

0.96

0.96

0.96

Luxembourg

0.89

0.81

0.76

0.77

0.84

0.87

0.73

0.89

Mexico

0.89

0.88

0.82

0.89

0.88

0.83

0.85

0.83

Netherlands

0.75

0.82

0.74

0.62

0.71

0.73

0.75

0.78

New Zealand

0.97

0.84

0.82

0.62

0.46

0.83

0.83

0.83

Norway

0.86

0.90

0.80

0.66

0.78

0.80

0.83

0.87

Poland

0.94

0.96

0.97

0.87

0.93

0.94

0.95

0.94

Portugal

0.88

0.90

0.85

0.89

0.81

0.83

0.85

0.89

Slovak Republic

0.95

0.97

0.91

0.73

0.79

0.82

0.88

0.95

Spain

0.78

0.88

0.87

0.99

0.79

0.84

0.85

0.85

Sweden

0.91

0.98

0.77

0.76

0.86

0.87

0.89

0.96

Switzerland

0.93

0.89

0.89

0.82

0.84

0.81

0.83

0.88

Turkey

0.94

0.96

0.93

0.94

0.96

0.95

0.96

0.95

United Kingdom

0.84

0.89

1.06

0.25

0.34

0.77

0.81

0.84

United States

0.90

0.93

0.84

0.54

0.56

0.85

0.88

0.91

Wage level (% of APW):

single married married married married 2 ch

2 ch

2 ch

no ch

100-0 100-332 100-672 100-332 (5) (6) (7) (8)

Note : ch = children /enfants. 1. Net income is calculated as gross earnings minus personal income tax and employees’ social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. Le revenu net est calculé à partir des revenus bruts diminués de l'impôt sur le revenu des personnes physiques, des cotisations de sécurité sociale et augmentés des prestations versées aux familles. L'augmentation qui est rapportée dans le tableau représente une sorte d'élasticité. Dans un système fiscal proportionnel, l'élasticité serait égale à 1. A ces niveaux de revenu, plus le système est progressif plus l'élasticité est faible. 2. Two-earner family. Assumes a rise in gross earnings of the principal earner in the household. Famille avec deux revenus. On fait l'hypothèse que le revenu brut principal du ménage augmente.

© OECD/OCDE 2004

109

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 20. Increase in net income 1 after 1% increase in labour costs, by family-type and wage level (%), 2002 Tableau 20. Augmentation du revenu net 1 après augmentation de 1% des coûts bruts de main-d’œuvre, par catégorie de famille et niveau de salaire (en %), 2002

Family type: Wage level (% of APW):

110

single

single

single

no ch

no ch

no ch

single married married married married 2 ch

2 ch

2 ch

2 ch

2

2

no ch

100-0 100-33 100-67 100-332 (5) (6) (7) (8)

67 (1)

100 (2)

167 (3)

67 (4)

Australia

0.86

0.90

0.77

0.47

0.81

0.83

0.86

0.87

Austria

0.81

0.80

0.78

0.45

0.63

0.65

0.68

0.77

Belgium

0.64

0.75

0.77

0.49

0.61

0.60

0.64

0.68

Canada

0.89

0.84

0.89

0.43

0.52

0.71

0.74

0.80

Czech Republic

0.95

0.92

0.90

0.67

0.59

0.66

0.91

0.90

Denmark

0.94

0.89

0.76

0.66

0.81

0.87

0.82

0.94

Finland

0.80

0.79

0.79

0.65

0.70

0.69

0.71

0.75

France

0.41

0.91

0.93

0.49

0.93

0.84

0.85

0.84

Germany

0.76

0.73

1.15

0.61

0.61

0.67

0.67

0.76

Greece

1.00

0.85

0.77

1.00

0.86

0.86

0.86

0.86

Hungary

0.82

0.87

0.85

0.85

0.67

0.70

0.73

0.85

Iceland

0.78

0.84

0.89

0.54

0.58

0.65

0.70

0.78

Ireland

0.84

0.89

0.76

0.31

0.74

0.77

0.81

0.83

Italy

0.89

0.85

0.82

0.70

0.71

0.76

0.79

0.80

Japan

0.97

0.97

1.01

0.94

0.92

0.94

0.95

0.96

Korea

0.96

0.96

0.89

0.96

0.96

0.96

0.96

0.96

Luxembourg

0.89

0.81

0.76

0.78

0.84

0.87

0.74

0.90

Mexico

0.94

0.88

0.83

0.94

0.88

0.86

0.86

0.86

Netherlands

0.74

0.85

0.80

0.61

0.73

0.75

0.78

0.80

New Zealand

0.97

0.84

0.82

0.62

0.46

0.83

0.83

0.83

Norway

0.86

0.90

0.80

0.66

0.78

0.80

0.83

0.87

Poland

0.94

0.96

0.97

0.87

0.93

0.94

0.95

0.94

Portugal

0.88

0.90

0.85

0.89

0.81

0.83

0.85

0.89

Slovak Republic

0.95

0.97

0.91

0.73

0.79

0.82

0.88

0.95

Spain

0.77

0.88

0.87

0.99

0.79

0.84

0.84

0.84

Sweden

0.91

0.98

0.77

0.76

0.86

0.87

0.89

0.96

Switzerland

0.93

0.89

0.89

0.82

0.84

0.81

0.83

0.88

Turkey

0.94

0.96

0.93

0.94

0.96

0.95

0.96

0.95

United Kingdom

0.81

0.86

1.04

0.24

0.33

0.74

0.78

0.81

United States

0.90

0.93

0.84

0.54

0.56

0.85

0.88

0.91

Note : ch = children /enfants. 1. Net income is calculated as gross earnings minus personal income tax and employees’ social security contributions plus family benefits. The increase reported in the Table represents a form of elasticity. In a proportional tax system the elasticity would equal 1. The more progressive the system at these income levels, the lower is the elasticity. Le revenu net est calculé à partir des revenus bruts diminués de l'impôt sur le revenu des personnes physiques, des cotisations de sécurité sociale et augmentés des prestations versées aux familles. L'augmentation qui est rapportée dans le tableau représente une sorte d'élasticité. Dans un système fiscal proportionnel, l'élasticité serait égale à 1. A ces niveaux de revenu, plus le système est progressif plus l'élasticité est faible. 2. Two-earner family. Assumes a rise in the labour costs associated with the principal earner in the household. Famille avec deux revenus. On fait l'hypothèse que les coûts de main d'œuvre associés au revenu principal du ménage augmentent.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 21. Annual gross wage and net income, by family-type and wage level (in US dollars), 2002 Tableau 21. Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2002

Family-type: Wage level (% of APW):

single no ch 67 gross (1)

single no ch net (2)

100 gross (3)

single no ch net (4)

167 gross (5)

single 2 ch net (6)

67 gross (7)

net (8)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea

23 911 17 216 22 702 21 658 9 690 24 094 18 659 15 848 22 840 10 071 6 058 18 302 16 527 17 495 19 490 20 738

19 052 13 368 15 085 17 513 7 608 14 614 13 949 12 672 14 932 8 470 4 616 14 809 14 939 13 356 15 918 19 625

35 867 25 824 34 053 32 488 14 534 36 142 27 988 23 771 34 260 15 107 9 087 27 453 24 791 26 242 29 235 31 108

27 242 18 445 20 026 24 552 11 094 20 837 19 170 17 389 20 204 12 645 6 419 20 575 20 723 18 871 23 607 29 012

59 778 43 040 56 756 54 146 24 224 60 236 46 647 39 619 57 100 25 178 15 145 45 755 41 318 43 737 48 726 51 846

40 105 27 825 29 373 39 281 17 720 30 058 28 535 27 420 29 834 19 332 9 014 28 902 29 980 29 157 37 953 44 658

23 911 17 216 22 702 21 658 9 690 24 094 18 659 15 848 22 840 11 078 6 058 18 302 16 527 17 495 19 490 20 738

25 523 18 649 19 842 23 793 10 725 20 775 17 197 14 397 19 623 9 317 6 559 19 237 20 233 17 082 16 529 19 736

Luxembourg Mexico Netherlands New Zealand Norway

21 130 6 050 21 831 18 241 21 608

17 510 6 225 15 971 14 801 16 143

31 696 9 075 32 747 27 361 32 412

24 693 8 741 21 916 21 849 23 079

52 826 15 126 54 578 45 602 54 021

36 339 13 416 35 542 33 802 34 451

21 130 6 050 21 831 18 241 21 608

23 562 6 225 20 829 17 871 20 959

9 318

6 555

13 976

9 623

23 294

15 758

9 318

7 090

Portugal Slovak Republic Spain

7 991 5 827 13 964

6 965 4 820 12 037

11 987 8 740 20 946

10 005 7 106 16 899

19 978 14 567 34 911

15 313 11 228 26 447

7 991 5 827 13 964

8 010 6 301 13 078

Sweden Switzerland Turkey

16 173 22 468 10 292

11 642 18 309 7 344

24 259 33 702 15 438

16 895 26 479 10 812

40 432 56 169 25 729

25 874 41 467 17 421

16 173 22 468 10 292

13 968 21 946 7 344

United Kingdom

19 800

16 077

29 701

22 809

49 501

36 571

19 800

23 872

United States

21 573

16 874

32 360

24 503

53 933

37 569

21 573

22 015

Poland

Note : ch = children / enfants.

111

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 21 (cont’d). Annual gross wage and net income, by family-type and wage level (in US dollars), 2002 Tableau 21 (suite). Salaire brut annuel et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2002

Family-type: Wage level (% of APW)

married 2 ch 100-0 gross (9)

net (10)

married 2 ch 1 100-33 gross net (11) (12)

married 2 ch 100-671 gross net (13) (14)

married no ch 100-331 gross net (15) (16)

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand

35 867 25 824 34 053 32 488 14 534 36 142 27 988 23 771 34 260 18 128 9 087 27 453 24 791 26 242 29 235 31 108 31 696 9 075 32 747 27 361

30 272 23 533 26 887 27 849 13 985 25 421 21 603 20 300 28 006 15 083 8 319 26 579 24 956 22 387 24 829 29 201 32 659 8 741 25 508 22 215

47 822 34 432 45 405 43 317 19 379 48 189 37 317 31 695 45 680 23 164 12 116 36 604 33 054 34 990 38 981 41 477 42 261 12 101 43 662 36 482

39 431 30 312 32 784 35 350 16 882 31 623 29 317 26 584 33 891 19 318 10 808 31 855 31 460 28 017 32 429 39 009 41 795 12 230 33 189 29 445

59 778 43 040 56 756 54 146 24 224 60 236 46 647 39 619 57 100 28 199 15 145 45 755 41 318 43 737 48 726 51 846 52 826 15 126 54 578 45 602

47 863 36 508 38 271 42 627 19 846 37 896 35 552 32 430 39 356 23 553 12 935 37 023 37 667 33 873 40 136 48 769 50 528 14 967 40 113 36 650

47 822 34 432 45 405 43 317 19 379 48 189 37 317 31 695 45 680 21 653 12 116 36 604 33 054 34 990 38 981 41 477 42 261 12 101 43 662 36 482

37 863 25 617 28 585 33 968 15 099 29 228 26 884 24 482 29 865 17 959 8 907 29 619 29 455 26 579 31 819 38 915 35 634 12 230 30 963 29 445

Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

32 412 13 976 11 987 8 740 20 946 24 259 33 702 15 438 29 701 32 360

26 602 9 898 11 337 8 664 18 746 19 221 30 801 10 812 26 758 28 634

43 217 18 635 15 983 11 654 27 929 32 345 44 936 20 584 39 601 43 147

34 526 13 111 14 893 11 121 23 854 25 271 39 843 14 583 35 044 35 881

54 021 23 294 19 978 14 567 34 911 40 432 56 169 25 729 49 501 53 933

41 810 16 178 18 004 13 041 29 711 30 863 47 867 18 156 41 787 43 511

43 217 18 635 15 983 11 654 27 929 32 345 44 936 20 584 39 601 43 147

31 938 13 111 13 796 9 639 23 438 22 945 36 437 14 583 32 143 33 497

Note : ch = children /enfants.

112

1. Two-earner family / famille disposant de deux revenus.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Table 22. Annual labour costs and net income, by family-type and wage level (in US dollars), 2002 Tableau 22. Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2002

Family-type: Wage level (% of APW):

single

single

single

single

no ch

no ch

no ch

2 ch

67 gross (1)

net (2)

100 gross (3)

net (4)

167 gross (5)

net (6)

67 gross (7)

net (8)

Australia

25 346

19 052

38 019

27 242

63 364

40 105

25 346

25 523

Austria

22 248

13 368

33 372

18 445

55 620

27 825

22 248

18 649

Belgium

29 307

15 085

44 583

20 026

75 136

29 373

29 307

19 842

Canada

24 085

17 513

36 197

24 552

58 744

39 281

24 085

23 793

Czech Republic

13 081

7 608

19 621

11 094

32 702

17 720

13 081

10 725

Denmark

24 306

14 614

36 354

20 837

60 448

30 058

24 306

20 775

Finland

23 323

13 949

34 985

19 170

58 308

28 535

23 323

17 197

France

20 302

12 672

33 548

17 389

55 723

27 420

20 302

14 397

Germany

27 557

14 932

41 335

20 204

67 608

29 834

27 557

19 623

Greece

12 887

8 470

19 331

12 645

32 218

19 332

14 176

9 317

Hungary

8 543

4 616

12 586

6 419

20 674

9 014

8 543

6 559

Iceland

19 259

14 809

28 889

20 575

48 148

28 902

19 259

19 237

Ireland

17 932

14 939

27 456

20 723

45 759

29 980

17 932

20 233

Italy

23 282

13 356

34 923

18 871

58 206

29 157

23 282

17 082

Japan

22 430

15 918

33 646

23 607

56 070

37 953

22 430

16 529

Korea

22 520

19 625

33 780

29 012

56 300

44 658

22 520

19 736

Luxembourg

24 017

17 510

35 957

24 693

59 837

36 339

24 017

23 562

Mexico

7 020

6 225

10 420

8 741

17 299

13 416

7 020

6 225

Netherlands

25 336

15 971

38 121

21 916

59 509

35 542

25 336

20 829

New Zealand

18 241

14 801

27 361

21 849

45 602

33 802

18 241

17 871

Norway

24 374

16 143

36 561

23 079

60 935

34 451

24 374

20 959

Poland

11 221

6 555

16 832

9 623

28 053

15 758

11 221

7 090

9 889

6 965

14 834

10 005

24 723

15 313

9 889

8 010

Portugal Slovak Republic

8 041

4 820

12 062

7 106

20 103

11 228

8 041

6 301

Spain

18 237

12 037

27 356

16 899

45 593

26 447

18 237

13 078

Sweden

21 481

11 642

32 221

16 895

53 701

25 874

21 481

13 968

Switzerland

25 063

18 309

37 594

26 479

62 657

41 467

25 063

21 946

Turkey

12 505

7 344

18 757

10 812

31 261

17 421

12 505

7 344

United Kingdom

21 302

16 077

32 370

22 809

54 507

36 571

21 302

23 872

United States

23 224

16 874

34 836

24 503

58 059

37 569

23 224

22 015

Note : ch = children / enfants.

© OECD/OCDE 2004

113

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table 22 (cont’d). Annual labour costs and net income, by family-type and wage level (in US dollars), 2002 Tableau 22 (suite). Coûts annuels bruts de main-d’œuvre et revenu net, par catégorie de famille et niveau de salaire (en dollars des ÉU), 2002

Family-type: Wage level (% of APW):

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

married 2 ch 100-0 gross net (9) (10) 38 019 33 372 44 583 36 197 19 621 36 354 34 985 33 548 41 335 23 197 12 586 28 889 27 456 34 923 33 646 33 780 35 957 10 420 38 121 27 361 36 561 16 832 14 834 12 062 27 356 32 221 37 594 18 757 32 370 34 836

30 272 23 533 26 887 27 849 13 985 25 421 21 603 20 300 28 006 15 083 8 319 26 579 24 956 22 387 24 829 29 201 32 659 8 741 25 508 22 215 26 602 9 898 11 337 8 664 18 746 19 221 30 801 10 812 26 758 28 634

married 2 ch 100-331 gross net (11) (12) 50 691 44 496 58 614 48 171 26 162 48 613 46 647 43 289 55 113 29 640 17 086 38 518 36 421 46 564 44 861 45 040 47 988 14 123 50 673 36 482 48 748 22 442 19 778 16 082 36 475 42 961 50 126 25 009 42 603 46 447

39 431 30 312 32 784 35 350 16 882 31 623 29 317 26 584 33 891 19 318 10 808 31 855 31 460 28 017 32 429 39 009 41 795 12 230 33 189 29 445 34 526 13 111 14 893 11 121 23 854 25 271 39 843 14 583 35 044 35 881

married 2 ch 100-671 gross net (13) (14) 63 364 55 620 73 891 60 282 32 702 60 660 58 308 53 850 68 891 36 084 21 129 48 148 45 387 58 206 56 076 56 300 59 974 17 440 63 457 45 602 60 935 28 053 24 723 20 103 45 593 53 701 62 657 31 261 53 672 58 059

47 863 36 508 38 271 42 627 19 846 37 896 35 552 32 430 39 356 23 553 12 935 37 023 37 667 33 873 40 136 48 769 50 528 14 967 40 113 36 650 41 810 16 178 18 004 13 041 29 711 30 863 47 867 18 156 41 787 43 511

married no ch 100-331 gross net (15) (16) 50 691 44 496 58 614 48 171 26 162 48 613 46 647 43 289 55 113 27 707 17 086 38 518 36 421 46 564 44 861 45 040 47 988 14 123 50 673 36 482 48 748 22 442 19 778 16 082 36 475 42 961 50 126 25 009 42 603 46 447

37 863 25 617 28 585 33 968 15 099 29 228 26 884 24 482 29 865 17 959 8 907 29 619 29 455 26 579 31 819 38 915 35 634 12 230 30 963 29 445 31 938 13 111 13 796 9 639 23 438 22 945 36 437 14 583 32 143 33 497

Note : ch = children / enfants. 1. Two-earner family / famille disposant de deux revenus.

114

© OECD/OCDE 2004

C. C.

TAX BURDENS, 2003 (CHARTS) Chapter 1

CHARGES D’IMPÔT, 2003 (GRAPHIQUES)

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Chart 1. Income tax, by family-type (as % of gross wage), 2003 Graphique 1. Impôt sur le revenu, par catégorie de famille (en % du salaire brut), 2003

Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Denmark Belgium Finland Iceland Australia Sweden Norway Germany New Zealand Canada Italy United States United Kingdom Turkey France Hungary Spain Czech Republic Ireland Austria Switzerland Luxembourg Netherlands Slovak Republic Poland Japan Portugal Mexico Korea Greece -5

116

0

5

10

15

20

25

30

35 %

Note: corresponds to Table 1, columns 2 and 5/correspond au tableau 1, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Chart 2. Employee contributions, by family-type (as % of gross wage), 2003 Graphique 2. Cotisations des salariés, par catégorie de famille (en % du salaire brut), 2003

Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Netherlands Poland Germany Austria Greece Turkey Belgium Luxembourg France Slovak Republic Czech Republic Hungary Japan Switzerland Portugal Denmark Italy United Kingdom Norway United States Sweden Canada Spain Finland Ireland Korea Mexico Iceland Australia New Zealand 0

5

10

15

20

25

Note: corresponds to Table 2, columns 2 and 5/correspond au tableau 2, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

30 %

117

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Chart 3. Income tax plus employee contributions less cash benefits, by family-type (as % of gross wage), 2003 Graphique 3. Impôt sur le revenu et cotisations des salariés diminués des prestations versées, par catégorie de famille (en % du salaire brut), 2003 Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Denmark Germany Belgium Netherlands Poland Finland Sweden Turkey Austria Norway Italy France Hungary Iceland Canada United Kingdom Czech Republic United States Australia Luxembourg Switzerland New Zealand Slovak Republic Spain Japan Portugal Ireland Greece Korea Mexico -5

118

0

5

10

15

20

25

30

35

40

45

50 %

Note: corresponds to Table 4, columns 2 and 5/correspond au tableau 4, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Chart 4.

Income tax plus employee and employer contributions less cash benefits, by family-type (as % of labour costs), 2003 Graphique 4. Impôt sur le revenu plus cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille (en % des coûts de main-d'oeuvre), 2003 Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Belgium Germany France Sweden Hungary Italy Austria Finland Czech Republic Netherlands Poland Denmark Turkey Slovak Republic Spain Norway Greece Portugal Canada Luxembourg United Kingdom United States Iceland Switzerland Australia Japan Ireland New Zealand Mexico Korea 0

10

20

30

40

50

Note: corresponds to Table 5, columns 2 and 5/correspond au tableau 5, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

60 %

119

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Chart 5. Marginal rate of income tax plus employee contributions less cash benefits, by family-type (as % of gross wage), 2003 Graphique 5. Taux marginal applicable à l'impôt sur le revenu et aux cotisations des salariés diminués des prestations versées, par catégorie de famille (en % du salaire brut), 2003 Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Germany Belgium Denmark Netherlands Finland Italy Austria Hungary Luxembourg Iceland Norway Sweden Poland New Zealand United Kingdom France Turkey Australia Canada Slovak Republic Spain Czech Republic Switzerland United States Greece Ireland Portugal Japan Mexico Korea 0

120

10

20

30

40

50

60

70

80 %

Note: corresponds to Table 6, columns 2 and 5/correspond au tableau 6, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

Comparative Tables and Charts/Tableaux et graphiques comparatifs

Chart 6. Marginal rate of income tax plus employee and employer contributions less cash benefits, by family-type (as % of labour costs), 2003 Graphique 6. Taux marginal applicable à l'impôt sur le revenu et aux cotisations des salariés et des employeurs diminués des prestations versées, par catégorie de famille (en % des coûts de main-d'oeuvre), 2003 Single person no child Célibataire sans enfant

Married one-earner couple 2 children Couple marié disposant d’un salaire unique et ayant 2 enfants

Belgium Germany Italy Finland Austria Hungary France Sweden Netherlands Slovak Republic Denmark Czech Republic Spain Poland Turkey Luxembourg Greece Norway United Kingdom Iceland Portugal Switzerland Australia United States Canada Ireland New Zealand Japan Mexico Korea 0

10

20

30

40

50

60

70

Note: corresponds to Table 7, columns 2 and 5/correspond au tableau 7, colonnes 2 et 5. Source: OECD calculations based on country submissions/Calculs de l’OCDE basés sur les soumissions nationales.

© OECD/OCDE 2004

80 %

121

METHODOLOGY AND LIMITATIONS METHODOLOGY A.

Introduction

The personal circumstances of taxpayers vary greatly. To identify representative taxpayers and to calculate the amount of their taxes, this report uses a specific methodology. The focus is on employees. It is assumed that their annual income from employment is equal to a given fraction of the average gross wage earnings of adult, full-time production workers in the manufacturing sector of each OECD economy. Additional assumptions are made regarding other relevant personal circumstances of these wage earners to enable their tax/benefit position to be determined. Table III.1 sets out the terminology used in this report. Starting with the 1997 edition, the number of family-types covered has been increased from two to eight in order to enhance the descriptive and analytical value of the report. Taxes paid and cash transfers received by employees are presented for one-earner and two-earner families at various fractions of average gross wage earnings. The number of taxpayers with the defined characteristics and the wage level of average production workers differ significantly between OECD economies. The final two columns of Table III.2 provide a rough indication of the number of wage and salary earners, including white-collar workers, found in the manufacturing sector. The guidelines described in this part of the report have been used by all OECD countries to calculate the figures shown in Parts I, II and IV. Where a country had to depart from the guidelines, this is noted in the text and/or in the country chapters contained in Part V of the Report.. B.

Calculation of gross wage earnings

This section sets out the standard definition of ‘production workers’ for which the average earnings figure is then determined. Table III.2 indicates how countries have implemented the standard definition. Levels of gross wage earnings in 2002 have been established using statistical data. Further information on the calculation of the earnings figure is provided in the country chapters in Part V, and in Annex IV. Earnings levels for the edition year 2003 had to be estimated, as relevant statistical data are not yet available. The estimation procedures followed are explained in Section C below. Sector covered The relevant sector is manufacturing as defined in Division D of the International Standard Industrial Classification of All Economic Activities (ISIC Revision 3, United Nations, New York 1990). Column 1 of Table III.2 shows that a few countries include firms in the mining sector. These differences do not significantly affect the comparability of the data since in most of these countries the mining sector is either very small or has wage levels more or less similar to those in the manufacturing sector. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Table III.1.

Terminology

General terms

Average production worker (APW) An adult full-time production worker in the manufacturing sector whose wage earnings are equal to the average wage earnings of such workers Single persons

Unmarried men and women

Couple with two children

Husband and wife with two dependent children between but not including five and twelve years of age

Labour costs

Gross wage earnings plus employers’ social security contributions and payroll taxes

Net take-home pay

Gross wage earnings less personal income tax and employee social security contributions, plus cash transfers received from general government

Personal average tax rate

Personal income tax plus employee social security contributions expressed as a percentage of gross wage earnings

Tax burden

see Personal average tax rate

Tax wedge

Sum of personal income tax and employee plus employer social security contributions together with any payroll tax, expressed as a percentage of labour costs.

Elasticity of income after tax

Shows percentage change in after-tax income following a 1 per cent change of income before tax (defined more precisely as one minus a marginal tax rate divided by one minus a corresponding average tax rate) Terms used under the income tax

Tax reliefs

A generic term to cover all the means of giving favourable income tax treatment to employees, married couples and parents

Tax allowances

Amounts deducted from gross earnings to arrive at taxable income

Tax credits

Amounts which a taxpayer may subtract from his tax liability. They are described as wastable if they cannot exceed tax liability and non-wastable if they can exceed tax liability (sometimes the terms ‘refundable’ and ‘non-refundable’ are used)

Standard tax reliefs

Reliefs unrelated to the actual expenses incurred by taxpayers and automatically available to all taxpayers who satisfy the eligibility rules specified in the legislation are counted as standard reliefs, including also deductions for compulsory social security contributions

Basic relief

Any standard tax relief which is available irrespective of marital or family status

Marriage allowance

Additional tax relief given to married couples. (In some countries, this is not distinguished from the basic relief which may be doubled on marriage)

Non-standard tax reliefs

Reliefs wholly determined by reference to actual expenses incurred

Average rate of income tax

Amount of income tax payable after accounting for any reliefs calculated on the basis of the tax provisions covered in this report, divided by gross wage earnings

Schedule rate

The rate which appears in the schedule of the income tax and in the schedule of social security contributions Terms used under cash transfers

Cash transfers

Cash payments made by general government (agencies) paid to families usually in respect of dependent children.

Geographical coverage The data relate to average earnings in the manufacturing sector for the country as a whole. Type of worker

124

The type of worker referred to is an adult worker directly engaged in a production activity. This definition includes manual workers and minor shop-floor supervisory workers. White-collar workers are excluded, except in New Zealand – where the inclusion of this group of workers probably increases the earnings level by between 5 per cent to 10 per cent – and in the Netherlands. © OECD/OCDE 2004

© OECD/OCDE 2004

Table III.2. Identification of an average production worker and number of employees in the manufacturing sector, 2002 Wage- and salary-earners in manufacturing (including white-collar workers) 2002

Identification of an Average Production Worker

Sector

Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing

Finland France Germany Greece Hungary Iceland

Manufacturing including mining Manufacturing including mining Manufacturing Manufacturing Manufacturing Manufacturing

Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway

Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing

Poland Portugal

Manufacturing Manufacturing

Slovak Rep. Spain Sweden Switzerland Turkey United Kingdom

Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing

United States

Manufacturing

Whole country Whole country Whole country Whole country Whole country (Members of employers Whole country federation) Whole country Whole country Whole country (Above 10 employees) Whole country (Above 5 employees) Whole country (Members of employers Whole country federation) Whole country Whole country (Above 10 employees) Whole country (Above 5 employees) Whole country Whole country Whole country Whole country Whole country (Members of employers Whole country federation) Whole country Excludes the Azores and Madeira Whole country Whole country Whole country Whole country (Above 25 employees) Whole country Excludes Northern Ireland Whole country

Thousands

Percentage of all employees

Male and female Male and female Male and female Male and female Male and female Male and female

1039 7093 637 21903 1 3404 441

13 22 18 17 30 18

Production workers1 Production workers Production workers Production workers Production workers Production workers

Male and female Male and female Male and female Male and female Male and female Male and female

436 3756 8 1574 397 707 20

21 17 26 17 26 15

Production workers1 Production workers2 Production workers Production workers Production workers Production workers All workers All workers Production workers

Male and female Male and female Male and female Male and female Male and female Male and female Male and female Male and female Male and female

261 4103 11 8503 3521 34 5312 1041 2843 296

18 26 22 25 13 22 15 14 13

Production workers Production workers

Male and female Male and female

2635 917

26 25

Production workers Production workers Production workers Production workers Production workers1 Production workers

Male and female Male and female Male and female Male and female Male and female Male and female

9233 2 3125 709 1 0325 29543 4300

44 21 18 26 30 16

Production workers

Male and female

17 6953

16

Type of work

Sex

Production workers Production workers Production workers Production workers Production workers Production workers

1. The data are not limited to adult full-time workers since part-time production workers and youths are also included. 2. As from 1990 on, data on wages have been revised to include only production workers (excluding employees). 3. Year 2001. 4. Year 1998. 5. Year 2000. Source : National sources and OECD, Main Economic Indicators.

125

Methodology and Limitations

Australia Austria Belgium Canada Czech Republic Denmark

Geographical coverage

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Sex The earnings data refer to the average earnings of all production workers, both male and female. Full-time worker The worker is assumed to be fully employed during the year, although Finland, Ireland and Turkey are unable to separate and exclude part-time workers. Sickness and unemployment The worker is assumed not to be sick or unemployed during the year. Determination of earnings The ways in which earnings data are built up in each country are set out in Table III.3. In most of the OECD countries where sickness payments are made by the employer, either on behalf of the government or on behalf of private sickness schemes, these amounts are included in the wage calculations. It is unlikely that these differences have a marked impact on the results since employers usually make these payments during a short period and the amounts usually correspond very closely to normal hourly wages. Average amounts of overtime and regular cash supplements (e.g. Christmas bonuses, thirteenth month) paid to workers with characteristics similar to those defined above are included in the earnings calculation, as are vacation payments typically paid to production workers. Profit-sharing schemes which take the form of dividend distributions are excluded from the calculations. Calculation method used Table III.3 notes the calculation method used in each country and more details are provided in Part V. It was suggested that countries calculate annual earnings by referring to the average of hourly earnings in the manufacturing sector in each quarter or month, weighted by the hours worked during each period, and multiplied by the average number of hours worked during the year, assuming that the worker is neither unemployed nor sick and including periods of paid vacation. A similar procedure was recommended to calculate overtime earnings. However, most countries cannot follow this procedure because of the ways in which the earnings samples are constructed. In practice, the differences in calculation methods do not influence the results unduly. The sources of the earnings data are provided in Annex IV. The treatment of fringe benefits Fringe benefits – which include, for example, provision of food, housing or clothing by the employer either free of charge or at below market-price – are, where possible, excluded from the calculation of average earnings. This decision was taken because these types of benefits would be difficult to evaluate in a consistent way (they may be valued at the actual cost to the employer, their taxable value to the employee or their fair market value) and in most countries are of slight importance for production workers at the average wage level. Generally, such benefits rarely account for more than 1 per cent of gross wage earnings.

126

However, in the case of employers’ contributions to private pension, family allowance or health and life insurance schemes, the amounts involved can be significant. In the United States, for example, these contributions would typically account for more than 5 per cent of the earnings of production workers. While these contributions are excluded from the earnings base (and therefore do not affect the tax calculation), in a number of cases country chapters provide an indication of the schemes which may be relevant for an average production worker. These schemes are excluded from the present report, because if they act as substitutes for compulsory state social security schemes their inclusion would © OECD/OCDE 2004

© OECD/OCDE 2004

Table III.3. Method used to calculate average earnings Items included and exluded from the earnings base Sickness1

Vacations

Overtime

Recurring cash Fringe benefits payments

Australia Austria Belgium

Exc Exc Exc

Inc Exc Exc

Inc Inc Inc

Inc Inc Inc

Inc Inc Inc

Exc Taxable value inc Taxable value inc

Canada Czech Republic Denmark

Exc Exc Exc

Exc Exc Exc

Inc Inc Inc

Inc Inc Exc

Inc Inc Inc

Exc Inc Exc

Finland France Germany Greece Hungary Iceland Ireland

Exc Exc Exc Exc Exc Exc Exc

Exc Exc Exc Exc Exc Exc Exc

Inc Inc Inc Inc Inc Inc Inc

Inc Inc Inc Inc Inc Inc Inc

Inc Inc Inc Inc2 Inc Inc Inc

Exc Exc Exc Inc Exc Exc Exc

Italy Japan Korea Luxembourg Mexico Netherlands

Exc Exc Exc Exc Exc Exc

Inc Exc Exc Exc Exc Exc

Inc Inc Inc Inc Inc Inc

Inc Inc Inc Inc Inc Exc

Inc Inc Inc Inc Inc Inc

Exc Exc Exc Exc Exc Exc

New Zealand Norway Poland Portugal Slovak Republic Spain

Exc Exc Exc Exc Exc Exc

Exc Exc Exc Exc Exc Exc

Inc Exc Inc Inc Inc Inc

Inc Inc Inc Inc Inc Inc

Inc Inc Inc Inc Inc Inc

Exc Exc Exc Taxable value inc Inc Exc

Sweden Switzerland

Exc Exc

Exc Exc

Inc Inc

Inc Inc

Inc Inc

Actual value inc Exc

Turkey

Exc

Exc

Inc

Inc

Inc

Actual value inc

United Kingdom

Exc

Exc

Inc

Inc

Inc

Exc

United States

Exc

Exc

Inc

Inc

Inc2

Exc

Income tax year ends

Average weekly earnings x 52 30th June Average annual earnings 31st December Daily average x days worked 31st December Average weekly hours x average hourly earnings x 52 31st December Average monthly earnings x 12 31st December Hourly earnings x hours worked 31st December Hourly wages x usual working time + vacation payments+periodic bonuses 31st December Annual earnings 31st December Hourly earnings x hours worked 31st December Hourly earnings x hours worked 31st December Average monthly earnings x 12 31st December Hourly earnings x hours worked x 12 31st December Hourly earnings x hours worked x 52 5th April Average monthly earnings in each quarter x 12 31st December Monthly earnings in June x 12 31st December Average monthly earnings x 12 31st December Hourly earnings x hours worked 31st December Average monthly earnings x 12.5 31st December 90 per cent of annual gross earnings 31st December Average weekly earnings in each quarter x 13 31st March Annual wages + estimated overtime 31st December Average monthly earnings x 12 31st December Weighted monthly average x 12 31st December Average monthly earnings x 12 31st December Weighted monthly average x 12 31st December Average hourly earnings in September x hours worked 31st December Monthly earnings x 12 31st December Monthly earnings x 12 (observed quarterly) 31st December Average weekly earnings at beginning and end of fiscal year x 52 5th April Weekly average hourly earnings x 52 + average overtime hours x 50 31st December

Note: Exc = Excluded Inc = Included 1. Usually includes compensation paid by employer whether paid on behalf of the government or as part of a private sickness scheme. 2. In the United States, end of the year bonuses and profit sharing bonuses are excluded. In Greece, Christmas and Easter bonuses are excluded.

Period to which the earnings calculation refers

Tax year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Tax year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Tax year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Calendar year Tax year Calendar year

127

Methodology and Limitations

Unemployment

Basic method of calculation used

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

require employers’ contributions to these schemes to be also taken into account for reasons of consistency. Furthermore, the tax treatment of both contributions and benefits paid out would have to be included, which is beyond the scope of this report. C.

Estimating gross wage earnings in 2003

Statistical data on average gross wage earnings in 2003 are not presently available. Still, it is felt that including estimates of the tax/benefit position of employees in the edition year increases the relevance of the report for policy-making. Therefore, starting with the 1999 edition, the report presents preliminary data for the current edition year. Estimates of gross wage earnings of average production workers in 2003 were derived by the Secretariat on the basis of a uniform approach: all year 2002 earnings levels are multiplied by the country-specific annual percentage change of wages reported in the most recently published edition of the OECD Economic Outlook.1 This transparent procedure is intended to avoid any bias in the results. Only in the cases of the Slovak Republic and Turkey are national estimates used as the necessary inputs for Secretariat estimates do not sufficiently reflect wage changes in the manufacturing sector. There are gaps between wage levels reported in this publication and those contained in the OECD Analytical Data Base (ADB) corresponding to what is shown in the Economic Outlook. Presumably, a gap of up to 15–25 per cent might satisfactorily be explained by different definitions used. Data in the ADB include (1) all employees in the business sector, (2) wages in cash and in kind, (3) fringe benefits and profit sharing schemes and (4) allowances to cover certain costs, notably to commute to work. In contrast, this report includes (1) only employees in the manufacturing sector, (2) cash wages, (3) generally, no fringe benefits and no profit sharing schemes and (4) generally, no allowances to cover costs. In addition, for a number of countries the methodology for determining the average wage level is different. For year 2001, the gap between average wage levels reported in Taxing Wages and in the Analytical Data Base, respectively, exceeded 25 per cent in the case of six countries: Germany, Hungary, Mexico, New Zealand, Portugal, and Turkey. For the current exercise the most relevant comparison is not between levels of average earnings but between the annual change of wage levels reported in both statistics. A comparison of the wage rises between 2000 and 2001 using data from both sources shows that growth rates differed by more than 2.5 percentage points only in the case of six countries: the Czech Republic, Mexico, Norway, Turkey, the United Kingdom and the United States. It may therefore be concluded that the procedure for estimating wage levels for the year of publication of this report results in an acceptable approximation of actual wage increases and does not significantly distort the results. In this connection, it is important to realise that – given the rate structure of the personal income tax (brackets taxed at flat rates) and social security contributions (flat rates, with caps that generally only apply to wage levels higher than 167 per cent of average wages) – the impact of a difference of a few percentage points between estimates of wage increases based on sample data and found in the Analytical Data Base, respectively, on measured marginal and average tax rates will generally be negligible, except in the case of marginal rates where the employee’s taxable wage is close to the upper limit of an income tax bracket. About one-half of the OECD countries have opted to provide national estimates of the level of gross wage earnings of average production workers in 2003. These estimates were not used as they may not be consistent, but they are included in Table III.4 to allow a comparison to be made of estimates by applying the Secretariat formula and those from national sources. In all cases, Secretariat estimates of wage levels in 2003 and wage levels provided by national respondents are (fairly) close. D. Coverage of taxes and benefits

128

The report is concerned with personal income tax and employee and employer social security contributions payable on wage earnings. In addition, payroll taxes (see Section I below) and in one case church tax (see Section J below) are included in the calculation of the total wedge between labour costs to the employer and the corresponding net take-home pay of the employee. © OECD/OCDE 2004

Methodology and Limitations

Table III.4. Estimated gross wage earnings, 2002-2003 (in national currencies) APW 2002

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey UK USA

48 568 23 881 30 629 38 867 206 412 304 925 27 682 21 978 32 902 11 395 1 077 816 2 567 086 25 477 21 408 4 254 270 22 885 416 31 358 59 702 30 575 39 912 292 200 26 352 8 410 137 316 16 360 237 820 64 169 9 938 274 440 19 420 32 360

APW 2003 (Secret. estim.)

APW 2003 (country estim.)

50 732 24 405 31 238 40 103 220 773 316 772 28 888 22 533 33 810 11 908 1 164 915 2 694 083 26 939 22 114 4 200 199 24 467 930 32 198 62 687 31 790 41 452 307 307 27 193 8 677 150 000 16 975 247 908 65 256 12 233 294 119 20 276 33 032

50 409 31 353 40 111 220 000

21 686

62 830 32 156 306 500 8 599 150 000

12 233 294 119 20 010

EO73 forecasted rates for 20031in percentage

4.5 2.2 2.0 3.2 7.0 3.9 4.4 2.5 2.8 4.5 8.1 4.9 5.7 3.3 –1.3 6.9 2.7 5.0 4.0 3.9 5.2 3.2 3.2 n.a 3.8 4.2 1.7 n.a 4.4 3.4

1. Increase of compensation per employee in the business sector. (EO73 Annex table 12)

The calculation of the after-tax income includes family benefits paid by general government as cash transfers (see Section K below). Income tax due on capital income and non-wage labour income, several direct taxes (net wealth tax, corporate income tax) and all indirect taxes are not considered in this report. However, all central, state and local government income taxes are included in the data.2 In exceptional cases, the coverage of taxes and benefits in the report may change, basically for one of two reasons. One reason is a change in the rules determining which government programmes should be taken into account. Such a change must explicitly have been agreed by the Working Party on Tax Policy Analysis and Tax Statistics. The other reason for a change in the taxes and benefits covered is that, upon reconsideration, national correspondents and/or the Working Party may conclude that in the case of a particular country, – applying the existing rules – certain taxes or benefits, which previously had been excluded, should be included (or vice-versa). In recent years, a number of OECD countries have introduced tax concessions for low-wage workers. Typically, such concessions increase net take-home pay (e.g. the Earned Income Tax Credit in the United States) and/or reduce gross labour costs. For example, employers of low-wage workers may be entitled to a credit against wage tax/social security contributions otherwise due. Such credits for employers exist for example in Belgium, France and the Netherlands. Starting with the 1998 edition, tax concessions for low-wage employees – whether they are aimed at employers or their employees – are mostly included in the description of national tax/benefit systems and – where appropriate – in the relevant tax equations. In this study, compulsory social security contributions paid to general government are treated as tax revenues. Being compulsory payments to general government they clearly resemble taxes. They may, © OECD/OCDE 2004

129

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

however, differ from taxes in that the receipt of social security benefits depends, in most countries, upon appropriate contributions having been made, although the size of the benefits is not necessarily related to the amount of the contributions. Countries finance their compulsory public social security programmes to a varying degree from general tax and non-tax revenue and earmarked contributions, respectively. Better comparability between countries is obtained by treating social security contributions as taxes, but they are listed under a separate heading so that their amounts can be identified in any analysis. E.

Taxpayer characteristics

Further assumptions are required to calculate the tax/benefit position of employees. The present report identifies eight types of taxpayers, as set out in Table III.5: • a single individual with no children earning 67 (two-thirds), 100 and 167 (five-thirds) per cent of APW earnings, respectively; • a lone parent with two children earning 67 (two-thirds) per cent of APW earnings; • a married couple with two children and a single earner at the APW level; and • three cases of two-earner married couples, with earnings split between the two partners at 100– 33 (one-third) per cent of APW earnings, both with and without children, and finally a couple with children with the earnings split 100–67 (two-thirds) per cent of APW earnings. In cases of families with children, the children are assumed to be aged between but not including five and twelve. The family is assumed to have no income source other than employment and cash benefits.

Table III.5. Marital status

Children

Single individual Single individual Single individual Single individual Married couple Married couple Married couple Married couple

No children No children No children 2 children 2 children 2 children 2 children No children

F.

Characteristics of taxpayers Principal earner

Secondary earner

67% APW 100% APW 167% APW 67% APW 100% APW 100% APW 100% APW 100% APW

– – – – – 33% APW 67% APW 33% APW

Calculation of personal income taxes

The method by which income tax payments are calculated can be gauged from the country tables in Part IV. First, the tax allowances applicable to a taxpayer with the characteristics and income level related to gross annual wage earnings of an average production worker are determined. Next, the schedule of tax rates is applied and the resulting tax liability is reduced by any relevant tax credits. An important issue that arises in the calculation of personal income tax due involves determining which tax reliefs should be taken into account. Two broad categories of reliefs may be distinguished: • Standard tax reliefs: reliefs which are unrelated to actual expenditures incurred by the taxpayer and are automatically available to all taxpayers who satisfy the eligibility rules specified in the legislation. Standard tax reliefs are usually fixed amounts or fixed percentages of income and are typically the most important set of reliefs in the determination of the income tax paid by workers. Standard reliefs are taken into account in calculating the initial tax position of employees and include: 130

– The basic relief which is fixed and is available to all taxpayers or all wage earners, irrespective of their marital or family status; © OECD/OCDE 2004

Methodology and Limitations

– The standard relief which is available to taxpayers depending on their marital status; – The standard child relief granted to a family with two children between but not including the ages of five and twelve; – The standard relief in respect of work expenses, which is usually a fixed amount or fixed percentage of (gross) wage earnings; and, – Tax reliefs allowed for social security contributions and other (sub-central government) income taxes are also considered as standard reliefs since they apply to all wage earners and relate to compulsory payments to general government.3 • Non-standard tax reliefs: These are reliefs which are wholly determined by reference to actual expenses incurred. They are neither fixed amounts nor fixed percentages of income. Examples of non-standard tax reliefs include reliefs for interest on qualifying loans (e.g. for the purchase of a house), private insurance premiums, contributions to private pension schemes, and charitable donations. Standard reliefs are separately identified and their impact on average tax rates is calculated in the country tables. A brief description of the main non-standard reliefs is provided in most country chapters. A comparison of the effect of these reliefs claimed by an average production worker on effective income tax rates is provided in Table III.6. There are several steps required in calculating the value of non-standard reliefs. First, the reliefs which could be claimed by a taxpayer with the family-type characteristics and income level of an APW, or for a wider group of taxpayers which would include the APW are identified. It follows that allowances that are not consistent with the assumption of an average production worker (e.g. allowances for the self-employed) are not taken into account. Then, for each identified relief measure, the average expense-related relief is determined, taking into account also those who do not have that specific income component (and the related tax relief) to give an average value of that relief for all APW-type taxpayers (in the wider group.) The impact of these different reliefs on the average rate of income tax is then calculated. Consider as an example the case where it is determined that 20 per cent of all taxpayers in the income class that includes the APW owns their own house and on average deduct 10,000 currency units in mortgage interest. In this case, taxpayers in the income class that includes the APW would be assumed on average to deduct 2,000 units in mortgage interest (because one in five actually deducts 10,000 units.) At a typical marginal tax rate of 30 per cent, the resulting tax relief is 600 units, and the average tax rate of the APW would be re-calculated accordingly. Non-standard reliefs which are not related to specific sources of income are wholly offset against the tax liability. In contrast, for reliefs which are related to specific sources of income (e.g. mortgage interest reliefs which in some countries must be offset against imputed rent from home ownership), only the excess over the associated income is taken into account in the calculations shown in Table III.6. G. State and local income taxes Personal income taxes levied by sub-central levels of government – state, provincial, cantonal or local – are included in the scope of this study. State income taxes exist in Canada, Switzerland and the United States. In 1997, Spain introduced an income tax for the Autonomous Regions (see § 1.1 of the country chapter in part V). Local income taxes are imposed in Belgium, Denmark, Finland, Japan, Korea, Norway, Sweden, Switzerland and the United States. In Belgium, Canada (other than Quebec), Denmark, Korea, Norway and Spain they are calculated as a percentage of taxable income or of the tax paid to central government. In Finland, Japan, Sweden and Switzerland, local government provides different tax reliefs from central government. In the United States, the sub-central level of government operates a separate system of income taxation under which it has discretion over both the tax base and tax rates (see Table III.7). Except for Canada, Japan, Switzerland and the United States, the rate schedule of these sub-central taxes consists of a single rate. © OECD/OCDE 2004

131

Average amount of each relief typically received by APW (national currency)1

Single persons

© OECD/OCDE 2004

AUSTRALIA (1999-2000) Work related expenses (TA) Other deductions (TA) AUSTRIA (1994) BELGIUM (2000) CANADA (2000) Registered pension plan (TA) Registered retirement savings plan (TA) Union and professional dues (TA) Charitable donations (TC) Other (TA) DENMARK (2001) Contributions/premiums paid to private pension saving plans (TA) Interest payments (net of interest earned and imputed rent) (TA) Transportation cost (TA) Contributions to trade unions (TA) Other deductions FINLAND (1997) Work related expenses (TA) Credit for interest expenses (TC) HUNGARY (2002) Family tax credit (TC) Heavily disabled persons (TC)° Payments to insurance funds (TC) Supplementary membership dues in private pension fund (TC) Intellectual activities (TC) Amortizing credit related to housing purposes (TC) Tuition fees (TC) Payments to foundations (TC) Insurance contracts (TC) Investment tax credit (TC) ICELAND (1994) Interest paid on personal dwelling (TC) IRELAND (1999) Work-related expenses (TA) Medical insurance relief (TC) Interest paid in full (TC)

Couples

1271 206

Rate of income tax paid by an Average Production Worker

Before taking into account these reliefs

After taking into account these reliefs

Single persons

Couples

Single persons

Couples

22.7

21.5

21.5

21.6

7.5 27.9 19.5

1.9 17.1 9.1

5.9 17.1 17.5

0.3 16.3 6.9

1075 277 1400 8943

2174

1898

17000 –19400 4300 3500 3250

20800 –47300 7400 6400 1650

3402 646

4032 1611

27431 299 1471 101 235 3460 680 171 3664 207

— — — — — — — — — —

11 250

22 000

All non-business income earners around APW's income level Average of all employees All workers APW type taxpayers

All workers around the APW’s income level

28

28

17.1

80 17 75

Calculations refer to following taxpayers2

26.4

25.6

13.5

APW Type All taxpayers around APW's income level

— —

— —

20.5

— — — — — — 3.3

19.6

— — — — — — 1.5

19.3

10.1

18.5

9.4

All wage earners around APW's income level All income earners in the range of IR£ 15 000 - 17 500 of total income in manufacturing sector

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

132

Table III.6. Main non-standard income tax reliefs received by an APW

© OECD/OCDE 2004

Table III.6. Main non-standard income tax reliefs received by an APW (cont.) Average amount of each relief typically received by APW (national currency)1

Single persons

Before taking into account these reliefs

After taking into account these reliefs

Single persons

Couples

Single persons

Couples

19.3

14.9

18.3

13.8

102237 2789 63474 138160 1546 12108 7238 366 459217 2680 1663 7537

Calculations refer to following taxpayers2

All income earners around APW's income level

140070 7092 10.8 75 000 45 000 27 000 45 000

All income earners

75 000 70 000 80 000 180 000 29.5

26.2

All income earners around the APW's income level

3 600 600 2400 400 31100 13.2

6.4

8.9

2.2

123557 33.5 3458 627 2455 11528

31.2

17 per cent of all taxpayers around the APW's income level All income earners around APW's income level

133

Methodology and Limitations

ITALY (2000) Medical expenses (TC) Expenses for disabled persons (TC) Mortgage interest (TC) Payments to insurance funds (TC) Payments to foundations (TC) Expenses to attend school and university (TC) Funeral charges Other (TC) Compulsory contributions (TA) Contributions/premiums paid to private pension saving plans (TA) Charitable donations (TA) Medical and assistance expenses incurred by handicapped persons (TA) Periodical benefits allowed to the spouse fixed by judicial authority (TA) Other deductions (TA) LUXEMBOURG (2001) Work expenses (5 %) (TA) Special allowances (3.5 %) (TA) Exceptional expenses (1.1 %) (TA) Interest on personal dwelling (TA) NORWAY (2000) Travel expenses related to work exceeding NOK 8800 (TA) Labour union fees (TA) Premiums and contributions to occupational pension schemes in the private and public sector (TA) Premiums and contributions to individual pension agreement schemes (TA) Unlimited allowance for interest payments (TA) SPAIN (1995) Mortgage interest (TA) 15 % House depreciation (TC) SWEDEN (2001) Travel expenses to work, exceeding Skr 7000 (TA) Other work-related expenses (TA) Premiums to pension schemes (TA) Allowances for interest payments (TC)

Couples

Rate of income tax paid by an Average Production Worker

Average amount of each relief typically received by APW (national currency)1

Single persons

Couples

Rate of income tax paid by an Average Production Worker

Before taking into account these reliefs Single persons

SWITZERLAND (1994) Work-related expenses (TA) UNITED KINGDOM (2002-2003) Work-related expenses (TA) UNITED STATES (2000) Medical expenses (TA) Taxes paid (TA) Interest paid (TA) Contributions (TA)

Couples

After taking into account these reliefs Single persons

Couples

10.2

5

9.1

4.3

15.6

10.4

15.6

10.4

n.a.

n.a.

3 200 10

10 18 376 1 116 1 972 596

Calculations refer to following taxpayers2

All income earners around APW's income level All wage earners around APW's income level All taxpayers around APW's wage level

TA = Tax Allowance; TC = Tax Credit 1. Relates to the non-standard tax reliefs typically claimed by taxpayers around the APW's income level. The value of each relief is calculated by dividing the total amount received by APW-type taxpayers by the total number of such taxpayers, including those who do not claim the relief. Calculated this way the amounts of all the separate reliefs are then added up to arrive at the total relief by the APW. 2. Within APW's income range can be taken to mean in most countries within +/- 5 per cent of APW's income.

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Table III.6. Main non-standard income tax reliefs received by an APW (cont.)

© OECD/OCDE 2004

© OECD/OCDE 2004

Table III.7.

State and local personal income taxes, 2003 Schedule rate variation within a country or region selected

Tax base

Single rate schedule minimum and maximum rate within country

Progressive rate schedule as applied in region selected

Region or rate selected here

Belgium Canada1 (excluding Quebec)

Central income tax paid Central taxable income

Up to maximum of 8 %

Denmark Finland Iceland Italy Japan

Central taxable income Adjusted central taxable income2 Central taxable income Central taxable income Adjusted central taxable income2

30.00 % to 36.68 % 15.5 % to 20.00 % Up to maximum of 12.04 % 0.9 % to 1.9 %

Korea Norway

Central income tax paid Central taxable income (minus one special deduction) Central taxable income Central taxable income Adjusted central taxable income2

5.0 % to 15.0 % 28 % throughout the country

10% 28%

3 % to 8.4 % throughout the country Max. 33.72 % , min. 28.90 %

Standard schedule 31.17 % (weighted average rate) Zurich (progressive rate schedule) Michigan and Detroit (flat rate 4.2 % and 2.75 % respectively)

Spain Sweden Switzerland United States

See Part V

Standard schedule applies throughout the country (5 % to 15 % + fixed amount)

Adjusted central taxable income of separate tax bases

0 % to 30.55 % (Zurich) 0 % to 10 %

7% Ontario (progressive rate schedule) Weighted average (33.3 %) Weighted average (18.03 %) Weighted average (12.79 %) 0.90% Standard schedule

1. Quebec operates a separate personal income tax system. Provincial tax is calculated as a percentage of taxable income. 2. Income subject to tax is usually the same as under the central government income tax, but tax reliefs are not the same.

Methodology and Limitations

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When tax rates and/or the tax base of sub-central government income taxes vary within a country, it is sometimes assumed that the average production worker lives in a typical manufacturing area. The income taxes (and benefits) applicable in this area are presented. This is the procedure followed in Canada, Switzerland and the United States where the tax base and tax rates vary very widely throughout the country. Denmark, Finland and Sweden have preferred to select the average rate of sub-central government income taxes for the country as a whole. No problem arises in Norway where the local rate does not vary. Japan has used the widely prevalent standard schedule and Belgium the widely prevalent rate of local income tax. Table III.7 summarises the ways in which these taxes are calculated and the method used to determine the amount of state and local income taxes paid by an average production worker. H. Social security contributions Compulsory social security contributions paid by employees and employers to general government or to social security funds under the effective control of government are included in the coverage of this report. In most countries, contributions are levied on gross earnings and earmarked to provide social security benefits. In Finland, France, the Netherlands and Norway, some contributions are levied as a function of taxable income (i.e. gross wage earnings after most/all tax reliefs). Contributions to social security schemes outside the general government sector are not included in the calculations. I.

Payroll taxes

The tax base of payroll taxes is either a proportion of the payroll or a fixed amount per employee. In the OECD Revenue Statistics payroll taxes are reported under heading 3000.4 Fourteen OECD countries report revenue from payroll taxes: Australia, Austria, Canada, the Czech Republic, Denmark, France, Greece, Hungary, Ireland, Korea, Mexico, New Zealand, Poland and Sweden. In principle, payroll taxes are included in total tax wedges reported in this publication, given that they increase the gap between gross labour costs and net take-home pay in the same way as income tax and social security contributions do. The main difference with the latter is that in the case of payroll taxes a less direct link exists between payment of the tax and the constituent components of individual worker’s labour compensation. Also, the tax base of payroll taxes may differ from the tax base of employer social security contributions. For example, certain fringe benefits may only be liable to payroll tax. Because this report presents the standard case, the payroll tax base is – depending on the relevant legislation – gross wage (excluding fringe benefits and other items of compensation that vary per employee), gross wage plus employer social security contributions, or a fixed amount per employee. Starting with the 1998 edition, Austria has included its payroll tax in the tax/benefit calculations. For a variety of reasons, several countries reporting payroll tax revenue in Revenue Statistics have not included these taxes in the calculations for the present report. In the case of the Czech Republic, Greece, Ireland and Poland revenues reported in Revenue Statistics are of no quantitative importance or are linked to taxes that are no longer imposed. In Denmark, employers pay a fixed amount per employee. Tax revenues thus collected are fed into a fund. This fund provides subsidies to employers hiring medium and low-skilled trainees. This payroll tax is not included in the tax equations for Denmark. Hungary does take into account the employer lump sum health insurance contribution. However, the communal tax on corporations is not included, since not all municipalities levy the tax. Korea does not take into account the Business Office Tax that is imposed on employers with over 150 employees (see § 5.4 of the country chapter in part V).

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New Zealand has not included its payroll taxes in the tax calculations, mainly because its Fringe Benefit Tax is not a function of the employee’s income and the authorities have inadequate information to allocate the tax to all employees, pro-rated by income (see Note after § 5.2 of the country chapter in part V). An added argument is that probably not all employees in the manufacturing sector receive © OECD/OCDE 2004

Methodology and Limitations

taxable fringe benefits. It follows that the Fringe Benefit Tax is not a ‘standard’ item; therefore, it should not be included in the tax/benefit calculations. J.

Church tax

Several OECD Member countries impose a levy known as ‘church tax’. With one exception, countries do not report revenues from the church tax in the OECD Revenue Statistics. Denmark does report revenues from its Church tax since the Danish State Church is classified as a part of general government. Denmark argues that this inclusion of the church in general government is appropriate because of the high degree of control that the government exercises over the church. Since the Working Party on Tax Policy Analysis and Tax Statistics has agreed that church taxes should be treated consistently in its two main statistical publications, only the Danish church tax is included in the calculations for Taxing Wages. K.

Family cash benefits from general government

Tax reliefs and family cash transfers universally paid in respect of dependent children between but not including five and twelve years of age who are attending school are included in the scope of the study. It follows that only children of age 6, 7, 8, 9, 10 and 11 are relevant in determining the tax relief for children and/or the amount of child benefit. If tax reliefs or cash transfers vary within this age range, the most generous provisions are taken. The case of twins is explicitly disregarded. Suppose the child benefit programme of a country is structured as follows:

Age group

Children 6-8 Childre 9-10 Children 11-14

Benefits per child

100 units 120 units 150 units

The most favourable outcome arises in the case of 11-year old twins: 300 units. However, as the case of twins is excluded, the best outcome now becomes 270 units (one child 11 years old, one child 9 or 10 years old). This amount would be included in the country table. Often, the amount in benefits is raised once children become one year older. By assuming that children have been born on the first of January, the annual amount received in child benefits may be calculated from the benefit schedule that is in place at the start of the year. Revisions of these amounts during the year are taken into account. Relevant cash payments include those made by central, state and local governments. For most of the families in this study, these constitute the only major cash transfer received from general government. In some cases, the cash benefits include amounts that are paid without consideration to the number of children. L.

Non-wastable tax credits

The 2001 edition of Taxing Wages introduced a minor change to include memorandum item reporting of non-wastable tax credits. Non-wastable tax credits are tax credits that can exceed tax liability, where the excess, if any, can be paid as a cash transfer to the taxpayer. In principle, these credits can be treated in different ways according to whether they are regarded as tax provisions or cash transfers or a combination of these. A Special Feature in the 2001 edition of Revenue Statistics discusses these alternative treatments and the conceptual and practical difficulties that arise in deciding which is the most appropriate approach for the purpose of reporting internationally comparable tax revenue figures.5 Based on this review and assessment, editions of the Revenue Statistics from 2002 continue to follow the Interpretative Guide which requires that only the tax expenditure component of nonwastable tax credits be taken into account when measuring tax revenues (see below). However, © OECD/OCDE 2004

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additional information is provided in Revenue Statistics on aggregate tax expenditure components and aggregate transfer components of non-wastable tax credits to show the effect of alternative treatments.6 Beginning with the 2001 edition, the treatment of non-wastable tax credits in Taxing Wages is also being modified to include memorandum item reporting of tax expenditure and cash transfer components. However, aside from the memorandum reporting, both the treatment of such credits and their impact on figures reported in Taxing Wages will remain unchanged. In particular, the taxpayer calculations in the country tables continue to apply the full amount of non-wastable tax credits against personal income tax. As noted above, the Interpretative Guide of the Revenue Statistics requires that i) only the portion of a non-wasteable tax credit that is claimed to reduce or eliminate a taxpayer’s liability (the ‘tax expenditure’ component)7 should be deducted in the reporting of tax revenues; ii) the part of the tax credit that exceeds a taxpayer’s tax liability and is paid to him (the ‘cash transfer’ component) should be treated as an expenditure item and not deducted in the reporting of tax revenues. Strict consistency with the Interpretative Guide to the Revenue Statistics would require that only the tax expenditure component derived in Taxing Wages be offset against derived income tax, with the excess (if any) treated as a cash transfer. However, this approach would diminish rather than strengthen the informational content of the derived results. In particular, limiting tax credit claims to tax expenditure amounts would yield a zero income tax liability and zero average income tax rate where cash refunds are provided. Where tax credits claims are not constrained in this way, negative income tax liabilities and negative average income tax rates would result where cash transfers are provided. Arguably, these negative amounts more clearly convey the taxpayer’s position (which is improved relative to the no-tax situation). Also, not including the cash transfer portion of non-wastable tax credits in the section (11) of the country tables focusing on ‘pure’ cash transfers permits greater transparency of the latter amounts Thus, in order to improve the informational content of country tables as regards non-wastable tax credits, the memorandum item reporting at the bottom of the relevant country tables shows tax expenditure amounts on one line, with a second line showing cash transfer amounts. Where more than one non-wastable tax credit program applies, the figures show aggregate tax expenditure and aggregate cash transfer amounts (rather than separate amounts for each program). Total program costs in each of the household cases considered can be derived by adding the tax expenditure and cash transfer amounts.

LIMITATIONS A.

General limitations

The simple approach of comparing the tax/benefit position of example families avoids many of the conceptual and definitional problems involved in more complex international comparisons of tax burdens and transfer programmes. However, a drawback of this methodology is that the earnings of an average production worker will usually occupy a different position in the overall income distribution in different economies, although the earnings relate to workers in similar jobs in various OECD Member countries.

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Because of the limitations on the taxes and benefits covered in the report, the data cannot be taken as an indication of the overall impact of the government sector on the welfare of taxpayers and their families. Complete coverage would require studies of the impact of indirect taxes, the treatment of non-wage labour income and other income components under personal income taxes and the effect of other tax allowances and cash benefits. Complete coverage would also require that consideration be given to the effect on welfare of services provided by the state, either free or below cost, and the incidence of corporate and other direct taxes on earnings and prices. Such a broad coverage is not possible in an international comparison of all OECD countries. The differences between the results © OECD/OCDE 2004

Methodology and Limitations

shown here and those of a full study of the overall impact on employees of government interventions in the economy would vary from one country to another. They would depend on the relative shares of different kinds of taxes in government revenues (see Annex III) and on the scope and nature of government social expenditures. The report shows only the formal incidence of taxes on employees and employers. The final, economic incidence of taxes may be quite different, because the tax burden may be shifted from employers onto employees and vice versa by market adjustments to gross wages. The income left at the disposal of a taxpayer may represent different standards of living in various countries because the range of goods and services on which the income is spent and their relative prices differ as between countries. In those countries where the general government sector provides a wide range of goods and services (generous basic old age pension, free health services, public housing, university education, etcetera), the taxpayer may be left with less cash income but may enjoy the same living standards as a taxpayer receiving a higher cash income but living in a country where there are fewer publicly provided goods and services. B.

Some specific limitations on the income tax calculation

The exclusion of non-wage income and the limited number of tax reliefs covered imply that the average rates of income tax in the tables in this publication will not necessarily reflect the actual rates confronting taxpayers at these levels of earnings. Actual rates may be lower than the calculated rates because the latter do not take into account non-standard expense-related reliefs (see Table III.6). On the other hand, actual rates may be higher than calculated rates because the latter do not take into account tax on non-wage income received by employees. The decision to exclude non-wage income (e.g. dividends, interest) was taken because the main focus of this study is on the tax treatment of wage income. For taxpayers at the income level of average production workers (APW), non-wage income is generally not significant. In Australia, Austria, Finland and Ireland, for example, non-wage income constitutes less than 0.5 per cent of the average production worker’s total earnings. There are, however, some countries where APW-type taxpayers do typically have non-wage income. In the United States, for example, over 60 per cent of such taxpayers have non-wage income which accounts, on average, for about 5 per cent of their incomes. The decision not to calculate separately average rates of income tax taking into account the effect of non-standard tax reliefs was taken because: • In many cases, expense-related reliefs are substitutes for direct cash subsidies. To take into account these reliefs while ignoring any corresponding direct subsidies would distort comparisons of take-home pay plus cash transfers; • The special tax treatment of certain expenses may be linked to special treatment of any income associated with these expenses (e.g. the tax treatment of social security contributions and pension income) which is beyond the scope of this study; • A few countries were unable to estimate the value of these reliefs and even those countries which could do so could not limit their estimates to taxpayers with the characteristics assumed in Sections B, D and E in the above part on methodology; • In the majority of countries these reliefs do not significantly affect the income tax rates shown in this publication and in most cases only a minority of APW-type taxpayers receive a particular relief; and, • Not all countries could calculate separately the reliefs available to different family-types. Where a split is provided between single individuals and families with children, there are large differences in the value of the reliefs typically received by these two categories of households. Table III.6, which was introduced earlier, shows that for most of the countries which can provide information on these reliefs their inclusion would have significantly reduced the income tax rates, notably in Luxembourg and Spain. © OECD/OCDE 2004

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When comparisons are made of income tax rates, some readers may prefer to use the sort of rates shown in columns five and six of Table III.6 for countries like Luxembourg and Spain where an APW would typically be able to claim large amounts of non-standard reliefs. Nevertheless, tax rates have been calculated for all countries using the standard methodology and these are the figures used in the main comparative tables and graphs. C.

Limitations to time-series comparisons

It should be noted that previous editions of this publication up to and including the 1995 edition covered just two family-types: single individuals without children and married one-earner couples with two children. The earnings were the same in both cases and equal to those of an average production worker. This limited coverage can explain why the tables in Annex II report figures over the 1979– 2003 period for these two family-types only. There are also a number of limitations which apply to the interpretation of the results over time. Any dynamic analysis of the results has to take into account the following qualifications: • The earnings data do not necessarily relate to the same taxpayer throughout the period. The average earnings in manufacturing industry are calculated for each year. As such, the results do not refer to the changing earnings and tax position of particular individuals over time but rather to the position of workers earning a wage equal to average earnings in the manufacturing industry in each particular year. This, in turn, may mean that the earnings levels referred to may be at different points in the income distribution over the period covered and changes in tax rates may be influenced by these trends. • For technical reasons, the procedures countries follow to determine the benchmark earnings level of the national average production worker may change over time. For example, as from the 1998 edition France establishes the APW wage level on the basis of improved statistical data; as a consequence, the report registers for 1997 a one-off additional increase in the APW wage level of 5 to 7 per cent (see for details Section 5 of the country Chapter in part V). In the same vein, § 5.1 of the country chapter for the Netherlands sets out that since 1994 its Central Bureau of Statistics no longer reports separate earnings data for manual workers. Starting with the 1999 edition, the Netherlands assumes that the wage for manual workers in industry is on average equal to 90 per cent of the wage for all industrial workers, including white collar workers and supervisors. • In certain cases, the taxes covered in the report for a given country may differ over the years. For example, starting with the 1998 edition, Korea has extended the coverage of its social security contributions. This extended coverage largely explains why the wedge between labour costs and net take-home pay of a single average production worker in the case of Korea doubles from 6.3 per cent (1996) to 12.4 per cent (1997). • In three (Canada, Switzerland and the United States) of the twelve countries with state and/or local income taxes, the rates of tax applied to an APW refer to a typical manufacturing region (see Table III.7). Consequently, if movements in tax rates in this region are unrepresentative of changes in income taxes elsewhere in the country, they will provide a poor indication of how country-wide average rates of taxes are evolving. Particular care is required in interpreting the results where many of the limitations set out above apply to one particular country since, while taken individually, each limitation may not significantly distort the results, cumulatively the impact may be important.

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To conclude, the data are comparable for the specific situations referred to and the results show the proportion of gross wage earnings retained. This net cash income (including universal cash benefits) is the amount over which the household is able to exercise a free choice in the allocation of its expenditure. © OECD/OCDE 2004

Methodology and Limitations

D. Limitations to marginal rates In the calculation of marginal tax wedges for the spouse, editions before the 1998 edition considered the situation where the spouse upon entering the labour market saw his or her income increase from zero to one currency unit of employment income. This case seems to be hardly representative and therefore less interesting, given that typically a spouse entering the workforce will experience a more significant (discrete) jump in earnings than of just one single currency unit. Moreover, the former approach disregarded discrete jumps in social security contributions and wastable tax credits that occur in certain tax/benefit systems when the spouse’s employment income increases from zero to one currency unit. Such payments/transfers which are not proportional to income were not factored into spousal marginal tax rates in the (100–0) case, given that their inclusion would result in misleadingly large (positive/negative) tax wedge values (e.g. in excess of 1,000 per cent). To avoid the necessity of ‘fudging’ the approach in this way, it has been decided – starting with the 1998 edition – to reconstruct the calculation of the marginal tax wedge in the (100–0) case to reflect the situation where the spouse, upon entering the workforce, experiences an increase in labour income from zero monetary units to 33 per cent of the gross wage earnings of an average production worker. Also, it is important to note that a number of OECD Member countries means-test cash benefits and/or tax reliefs: the benefit of these measures is reduced as income increases. For employees the benefit reduction is equivalent to an additional tax, which raises their combined (explicit and implicit) marginal rate.

A NOTE ON THE TAX EQUATIONS Each country chapter contains a section that describes the of equations in a standard format which show the calculations required to derive the amounts of income tax, social security contributions and cash transfers. These algorithms represent in algebraic form the legal provisions described in the chapter and are consistent with the figures shown in the country and comparative tables. This section describes the conventions used in the definition of the equations and how they could be used by those wishing to implement the equations for their own research. The earlier sections of the country chapters describe how the tax and other systems work and present the values of the parameters of those systems such as the levels of allowances and credits, and the schedule of tax rates. In the first part of the equations section is a table showing a brief description of each parameter (such as “Basic tax credit”), the name of the parameter as used in the algebraic equation (“Basic_cred”) and the actual value for the relevant year (such as “1098”). Where there is a table of values – for example a schedule of tax rates and the associated thresholds of taxable income – a name is given to the entire table (for example “tax_sch”). These variable names are those used in the equations. After the table of parameters is the table of equations. The four columns contain information as follows: • The first two columns give a description and a variable name for the result of the equation on that row of the table. These always include the thirteen main financial value entries in the country tables. Additional rows define any intermediate values which are calculated either to show the detail included in the tables (such as the subdivision of total tax allowances into the different categories) or values which make the calculation clearer. • The third column shows the range of the calculation in that row. This is necessary to allow for the different way that tax may be calculated for married couples. The options are: – B The calculation is carried out separately for both the principal earner and the spouse using their individual levels of earnings. This applies in the case of independent income tax and usually also in respect of social security contributions. © OECD/OCDE 2004

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– P The calculation applies for the principal earner only. An example is where the principal earner can use any of the basic tax allowance of the spouse which cannot be set against the income of the spouse. – S The calculation applies for the lower earning spouse only. – J The calculation is carried out only once on the basis of joint income. This applies to systems of joint or family taxation and is also usual for the calculation of cash transfers in respect of children. • The final column contains the equation itself. The equation may refer to the variables in the parameters table and to variables which result from one of the rows of the equations table itself. Use is also made of the two standard variables “Married”, which has the value 1 if the family consists of a married couple and 0 in the case of a single individual, and “Children” which denotes the number of children. Sometimes there is a reference to a variable with the affix “_total” which indicates the sum of the relevant variable values for the principal earner and the spouse. Similarly, the affixes “_princ” and “_spouse” indicate the value for the principal earner and spouse, respectively. In the equations a number of functions are used. Some of these are used in the same way as in a number of widely available ‘spreadsheet’ computer packages. For example, MAX(X,Y) and MIN(X,Y) find the maximum and minimum of the two values, respectively. IF(condition X,Y) chooses the expression X if the condition is true and the expression Y if it is false. Boolean expressions are also used and are taken to have the value 1 if true and 0 if false. As an example, (Children=2*CB_2 is equivalent to IF(Children=2, CB_2,0). There are also three special functions commonly used which denote calculations often required in tax and social security systems. These are: • Tax (taxinc, tax_sch) : This calculates the result of applying the schedule of tax rates and thresholds in “tax_sch” to the value of taxable income represented by “taxinc”. This function may be used in any part of the equations, not just in the income tax calculation. For some countries it is used for social security contributions or even for allowance levels which may be income dependent. • Positive (X) : This gives the result X when this value is positive and zero otherwise. It is therefore equivalent to MAX(0,X). • Taper (value, income, threshold, rate): This gives the amount represented by “value” if “income” is less than “threshold”. Otherwise, it gives “value” reduced by “rate” multiplied by (incomethreshold), unless this produces a negative result in which case zero is returned. This provides the calculation which is sometimes required when a tax credit, for example, is available in full provided that total income is below a threshold but is then withdrawn at a given rate for each currency unit in excess of the threshold until it is withdrawn completely. In some circumstances, there are country specific special functions. These functions involve programming that is designed to simplify the tax calculations. The programming underlying these functions is based on the description of the particular measure given in the relevant country chapter found in Part V. For example, the Earned Income Credit in the United States is calculated using the function called EIC. Anyone wishing to make their own implementation of the equations will have to write functions corresponding to these special functions or make appropriate modifications to any equations that use them.

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NOTES 1. Wage estimates reported in the Economic Outlook are consistent with information in the Analytical Data Base (ADB) of the Economics Department (ECO) of the OECD. These estimates are prepared by the ECO country desks. Data in the ADB/EO71 are consistent with the June 2003 issue (nr. 73) of the Economic Outlook, at the moment this report was drafted being the most recent issue. 2. Information on the fiscal powers of sub-central governments may be found in the publication Taxing powers of state and local government, OECD Tax Policy Studies No.1 (Paris, 1999). 3. In this case, the amount of tax relief is related to actual social security contributions paid by the employee or withheld from his wage – thus in this respect this item deviates from the general definition of standard tax relief under which relief is unrelated to actual expenses incurred. 4. OECD, Revenue Statistics 1965–2002, p. 291. 5. OECD, Revenue Statistics1965–2000, p. 28-31. 6. OECD, Revenue Statistics 1965–2002, Table D, p. 23. 7. This characterisation must be viewed as informal, as the determination of tax expenditures requires the identification of a benchmark tax system for each country, or preferably, a common international benchmark. In practice it has not been possible to reach agreement on a common international benchmark for such purposes.

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Partie III

MÉTHODES ET LIMITES DE L’ÉTUDE LES MÉTHODES A.

Introduction

La situation personnelle des contribuables est très variable. Par conséquent, la manière dont il faut identifier un contribuable représentatif ou typique et calculer les impôts qu’il paye n’apparaît pas immédiatement. Pour identifier les contribuables représentatifs et calculer le montant d’impôt qu’ils payent, ce rapport utilise une méthodologie spécifique. L’accent est mis sur les salariés. Par hypothèse, leur rémunération annuelle est égale à une fraction donnée des salaires bruts moyens d’ouvriers adultes travaillant à temps complet dans le secteur manufacturier de chaque économie de l’OCDE. Des hypothèses supplémentaires sont formulées concernant d’autres éléments significatifs de la situation personnelle de ces salariés, afin de permettre la détermination de leur situation au regard de l’impôt et des prestations sociales. Le tableau III.1 indique la terminologie utilisée dans le présent rapport. A partir de l’édition de 1997, le nombre de catégories de famille envisagées a été porté de deux à huit afin de rehausser l’intérêt des descriptions et des analyses qui figurent dans le rapport. Les impôts payés et les prestations sociales reçues par les salariés sont indiqués pour les familles disposant d’un salaire unique et de deux salaires et dont les revenus sont égaux à divers pourcentages du revenu moyen. Le nombre de contribuables qui présentent ces caractéristiques et le niveau de salaire de l’ouvrier moyen diffèrent sensiblement selon les économies des pays l’OCDE. Les deux dernières colonnes du tableau III.2 donnent une indication approximative du nombre de titulaires de salaires et traitements, y compris les employés, dans le secteur manufacturier. Les orientations indiquées dans cette section ont été utilisées par tous les pays pour calculer les données figurant dans les parties I, II et IV de ce rapport. Lorsqu’il a été nécessaire qu’un pays s’écarte de ces principes, cela est indiqué dans le texte et/ou dans les chapitres par pays dans la partie V de ce rapport. B.

Calcul des salaires bruts

Cette section expose la définition normalisée de « l’ouvrier » dont on calcule le salaire moyen. Le tableau III.2 indique comment les pays ont mis en application cette définition normalisée. Les niveaux des salaires bruts en 2002 ont été etablis à partir de données statistiques. D’autres informations sur le calcul des revenus sont indiquées dans les chapitres par pays de la partie V et de l’annexe III. Les montants des salaires bruts pour 2003, année d’édition, ont dû être estimés, dans la mesure où les données statistiques ne sont pas encore disponibles. Les procédures d’estimation suivies sont exposées à la Section C ci-dessous. Secteur couvert Il s’agit de l’industrie manufacturière telle qu’elle est définie dans la Division D de la classification internationale type par industrie (CITI Revision 3, Nations Unies, New York 1990). Il ressort de la colonne 1 du tableau III.2 que quelques pays incluent les entreprises du secteur des industries © OECD/OCDE 2004

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Tableau III.1. Termes utilisés Termes d’utilisation générale

Ouvrier moyen (OM)

Ouvrier adulte employé à plein temps dans l’industrie manufacturière et dont le salaire est égal au salaire des ouvriers en cause

Célibataire

Hommes et femmes non mariés

Couple avec deux enfants

Mari et femme avec deux enfants à charge âgés de plus de 5 ans et moins de 12 ans

Coûts bruts de main-d’oeuvre

Salaire brut plus cotisations patronale de sécurité sociale

Rémunération nette

Rémunération brute après impôt et cotisations obligatoires de sécurité sociale des salariés et augmentée des prestations sociales reçues des administrations publiques

Taux moyen de l’impôt

Le montant de l’impôt sur le revenu et les cotisations de sécurité sociale à la charge des salariés en pourcentage du salaire brut

Coin fiscal

La somme de l’impôt sur le revenu, des cotisations de sécurité sociale à la charge des salariés et des employeurs et des taxes sur les salaires en pourcentage des coûts de main-d’oeuvre

Elasticité du revenu après impôt

Ce terme indique le pourcentage de variation d’un revenu donné après impôt à la suite d’une variation de 1 pour cent d’un revenu donné avant impôt (selon une définition plus précise, ce terme correspond à un moins un taux marginal d’imposition divisé par un moins le taux moyen d’imposition correspondant) Termes utilisés en matière d’impôt sur le revenu

Allégements fiscaux

Terme générique qui couvre l’ensemble des moyens par lesquels est donné un traitement favorable du point de vue de l’impôt sur le revenu aux salariés, aux couples mariés et aux personnes ayant des enfants à charge

Abattements fiscaux

Montants déduits du salaire brut pour obtenir le revenu imposable

Crédits d’impôt

Montant de la déduction que le contribuable peut opérer sur son imposition. Un crédit d’impôt est considéré comme non remboursable s’il ne peut excéder l’impôt dû ; s’il peut excéder l’impôt dû il est considéré comme remboursable (les termes ‘restituable’ et ‘non restituable’ sont parfois utilisés)

Allégements forfaitaires

Les allégements non liés à des dépenses effectivement supportées par le contribuable et accordés automatiquement à tous ceux qui remplissent les conditions requises en vertu de la loi sont également comptés comme allégements forfaitaires, y compris les déductions des cotisations obligatoires de sécurité sociale

Abattement à la base

Tout abattement forfaitaire qui peut être accordé quelle que soit la situation de famille.

Abattement en raison du mariage

Abattement fiscal complémentaire attribué aux couples mariés (dans certains pays, il ne se distingue pas de l’abattement à la base qui peut être doublé en cas de mariage)

Allégements non forfaitaires

Allégements entièrement déterminés par référence à des dépenses réellement effectuées

Taux moyen de l’impôt sur le revenu

Montant de l’impôt sur le revenu à verser, après avoir tenu compte de tout allègement, calculé sur la base des dispositions fiscales envisagées dans cette étude, divisé par le salaire brut

Taux du barème

Taux qui figure dans le barème de l’impôt sur le revenu et des cotisations de sécurité sociale Termes utilisés en matière de prestations en espèces

Prestations sociales

Versements en espèces effectués par les administrations publiques (agences) au profit des familles ayant en général des enfants à charge

extractives. Ces différences n’affectent pas sensiblement la comparabilité des données dès lors que, dans la plupart de ces pays, ce secteur est de très faible importance ou comporte des niveaux de salaires plus ou moins analogues à ceux de l’industrie manufacturière. Zone géographique couverte 146

Les données correspondent à la moyenne des salaires calculés sur l’ensemble du territoire. © OECD/OCDE 2004

© OECD/OCDE 2004

Tableau III.2. Identification d'un ouvrier moyen et nombre de salariés dans le secteur manufacturier, 2002 Salariés des industries manufacturières (y compris les employés), 2002

Identification d'un ouvrier moyen

Secteur

Australie Autriche Belgique Canada Rep. tchèque Danemark Finlande France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas NouvelleZélande Norvège

Extension géographique du secteur retenu

Industries manufacturières Industries manufacturières Industries manufacturières Industries manufacturières Industries manufacturières Industries manufacturières

Ensemble du pays Ensemble du pays Ensemble du pays Ensemble du pays Ensemble du pays (Entreprises affiliées à la Ensemble du pays fédération patronale) Industries manufacturières et Ensemble du pays industrie extractive Industries manufacturières et Ensemble du pays industrie extractive Industries manufacturières Ensemble du pays Industries manufacturières (Entreprises de Ensemble du pays 10 salariés) Industries manufacturières (Entreprises de Ensemble du pays 5 salariés) Industries manufacturières (Entreprises affiliées à la Ensemble du pays fédération patronale) Industries manufacturières Ensemble du pays Industries manufacturières Ensemble du pays Industries manufacturières (Entreprises de Ensemble du pays 10 salariés) Industries manufacturières (Entreprises de Ensemble du pays 5 salariés) Industries manufacturières Ensemble du pays Industries manufacturières Ensemble du pays Industries manufacturières Ensemble du pays Industries manufacturières Ensemble du pays Industries manufacturières

Industries manufacturières Industries manufacturières

Rép. slovaque Espagne Suède Suisse

Industries manufacturières Industries manufacturières Industries manufacturières Industries manufacturières

Sexe

Milliers

Pourcentage de l'ensemble des salariés

Ouvriers Ouvriers Ouvriers Ouvriers Ouvriers Ouvriers

Masculin et féminin Masculin et féminin Masculin et féminin Masculin et féminin Masculin et féminin Masculin et féminin

1 039 7093 637 2 1903 1 3404 441

13 22 18 17 30 18

Ouvriers1

Masculin et féminin

436

21

Ouvriers

Masculin et féminin

3756

17

4

Ouvriers Ouvriers

Masculin et féminin Masculin et féminin

8 157 397

26 17

Ouvriers

Masculin et féminin

707

26

Ouvriers

Masculin et féminin

20

15

Ouvriers1 2

Ouvriers Ouvriers

Masculin et féminin Masculin et féminin Masculin et féminin

261 4 103 11 8503

18 26 22

Ouvriers

Masculin et féminin

3521

25

Ouvriers Ouvriers Ensemble des travailleurs Ensemble des travailleurs

Masculin et féminin Masculin et féminin Masculin et féminin Masculin et féminin

34 5 312 1 041 2843

13 22 15 14

Ouvriers

Masculin et féminin

296

13

Ouvriers Ouvriers

Masculin et féminin Masculin et féminin

2 635 917

26 25

Ouvriers Ouvriers Ouvriers Ouvriers

Masculin et féminin Masculin et féminin Masculin et féminin Masculin et féminin

9233 2 3125 709 1 0325

44 21 18 26

147

Méthodes et limites de l’étude

Pologne Portugal

(Entreprises affiliées à la Ensemble du pays fédération patronale) Ensemble du pays Acores et Madère non compris Ensemble du pays Ensemble du pays Ensemble du pays Ensemble du pays

Catégorie de travailleurs

Salariés des industries manufacturières (y compris les employés), 2002

Identification d'un ouvrier moyen

Secteur

Turquie

Industries manufacturières

Royaume-Uni

Industries manufacturières

États-Unis

Industries manufacturières

(Entreprises de 25 salariés)

Extension géographique du secteur retenu

Catégorie de travailleurs

Sexe

Milliers

Pourcentage de l'ensemble des salariés

Ensemble du pays

Ouvriers1

Masculin et féminin

2 9543

30

Irlande du Nord non compris Ensemble du pays

Ouvriers

Masculin et féminin

4300

16

Ouvriers

Masculin et féminin

1. Les données ne sont pas limitées aux travailleurs adultes à plein-temps. Elles comprennent aussi les travailleurs à temps partiel et les jeunes. 2. A partir de 1990, les données sur les salaires ont été révisées afin de ne prendre en compte que les ouvriers (à l'exclusion des employés). 3. Année 2001. 4. Année 1998. 5. Année 2000. Source : Sources nationales et OECD, Principaux Indicateurs Économiques.

17 695

3

16

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

148

Tableau III.2. Identification d'un ouvrier moyen et nombre de salariés dans le secteur manufacturier, 2002 (suite)

© OECD/OCDE 2004

Méthodes et limites de l’étude

Catégorie de travailleurs retenue On a pris comme référence les travailleurs adultes directement engagés dans une activité de production. Cette définition couvre les travailleurs manuels ainsi que les travailleurs chargés de certaines tâches de petit encadrement au niveau de l’atelier. Les employés (« cols blancs ») sont exclus sauf en Nouvelle-Zélande où leur prise en compte a probablement pour effet d’accroître le niveau des salaires d’environ 5 à 10 pour cent - et aux Pays-Bas. Sexe Les chiffres de salaires bruts indiqués correspondent aux salaires moyens des ouvriers tant masculins que féminins. Emploi à plein temps Le travailleur est supposé être employé à plein temps au cours de l’année, bien que la Finlande, l’Irlande et la Turquie ne soient pas en mesure d’isoler les travailleurs à temps partiel. Maladie et chômage Il est fait l’hypothèse que le travailleur n’est en situation ni de maladie ni de chômage au cours de l’année. Mode de détermination des gains Le tableau III.3 indique la manière dont ont été établies dans chaque pays les données relatives aux revenus du travail. Dans la plupart des pays où les indemnités-maladie sont versées par l’employeur, pour le compte du régime général public ou de régimes privés d’assurance, les montants correspondants sont inclus dans le calcul des salaires. Il est peu vraisemblable que ces divergences puissent avoir un impact sensible sur les résultats obtenus dès lors que les versements ainsi effectués par les employeurs ne couvrent que des périodes de durée limitée et que les montants de ces versements sont en général très proches des salaires horaires normaux. Les montants moyens des heures supplémentaires et des compléments de salaires de caractère régulier (tels que primes de fin d’année, treizième mois) qui sont versés aux salariés présentant des caractéristiques analogues à celles définies ci-dessus sont inclus dans le calcul des rémunérations de même que les indemnités de congés payés normalement versées aux ouvriers. En revanche, les systèmes de participation aux bénéfices sous la forme de distribution de dividendes n’ont pas été pris en compte. Méthode de calcul utilisée Le tableau III.3 indique la méthode de calcul utilisée dans chaque pays qui fait l’objet d’une description plus détaillée dans la partie V. Il a été suggéré que chaque pays calcule les gains annuels en prenant la moyenne mensuelle ou trimestrielle des gains horaires dans l’industrie manufacturière, pondérée par le nombre d’heures travaillées au cours de la période et en la multipliant par le nombre moyen d’heures travaillées au cours de l’année, y compris les périodes de congés payés, en supposant que le travailleur n’a été ni malade ni au chômage. Le recours à une méthode analogue a été recommandé pour le calcul des heures supplémentaires. Toutefois, la plupart des pays ne peuvent suivre cette méthode en raison du mode de construction des échantillons de salaires. En pratique, les différences observées dans les méthodes de calcul n’affectent pas les résultats obtenus. Les sources des données concernant les salaires sont indiquées dans l’Annexe IV. © OECD/OCDE 2004

149

Eléments compris ou non compris dans la base de calcul

Période à Fin de l’exercice laquelle se budgétaire réfère le calcul des gains

© OECD/OCDE 2004

Paiements en Heures espèces Primes Chômage Maladie1 Vacances supplémentaires réguliers

Méthode de base utilisée pour le calcul (1)

Australie Autriche Belgique

NC NC NC

C NC NC

C C C

C C C

C C C

NC C valeur imposable C valeur imposable

Canada

NC

NC

C

C

C

NC

Rep. tchèque Danemark Finlande

NC NC NC

NC NC NC

C C C

C NC C

C C C

C NC NC

France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas Nelle-Zélande

NC NC NC NC NC NC NC NC NC NC NC NC NC

NC NC NC NC NC NC C NC NC NC NC NC NC

C C C C C C C C C C C C C

C C C C C C C C C C C NC C

C C C2 C C C C C C C C C C

NC NC C NC NC NC NC NC NC NC NC NC NC

Norvège Pologne Portugal Rép. Slovaque Espagne Suède

NC NC NC NC NC NC

NC NC NC NC NC NC

NC C C C C C

C C C C C C

C C C C C C

NC NC C valeur imposable C NC C valeur réelle

Suisse Turquie Royaume-Uni

NC NC NC

NC NC NC

C C C

C C C

C C C

NC C valeur réelle NC

États-Unis

NC

NC

C

C

C2

NC

Gain hebdomadaire moyen x 52 30 juin Gain annuel 31 décembre Moyenne journalière x le nombre de journées de 31 décembre travail Moyenne horaire hebdomadaire x gain horaire 31 décembre moyen x 52 Gain mensuel moyen x 12 31 décembre Salaire horaire x nombre d’heures travaillées 31 décembre Salaire horaire x nombre d’heures usuelles 31 décembre travaillées + indemnités de congés payés + primes périodiques Gain annuel 31 décembre Salaire horaire x nombre d’heures travaillées 31 décembre Salaire horaire x nombre d’heures travaillées 31 décembre Salaire mensuel moyen x 12 31 décembre Salaire horaire x nombre d’heures travaillées x 12 31 décembre Salaire horaire x nombre d’heures travaillées x 52 5 avril Salaire mensuel moyen sur chaque trimestre x 12 31 décembre Salaire mensuel en juin x 12 31 décembre Salaire mensuel moyen x 12 31 décembre Salaire horaire x nombre d’heures travaillées 31 décembre Salaire mensuel moyen x 12.5 31 décembre 90 pour cent des gains bruts annuels 31 décembre Gain hebdomadaire moyen pour chaque trimestre 31 mars x 13 Gain annuel + heures supplémentaires estimées 31 décembre Gain mensuel moyen x 12 31 décembre Gain mensuel pondéré x 12 31 décembre Salaire mensuel moyen x 12 31 décembre Gain mensuel pondéré x 12 31 décembre Gain moyen horaire en septembre x nombre 31 décembre d’heures travaillées Gain mensuel x 12 31 décembre Gain mensuel x 12 (observé trimestriellement) 31 décembre Gain hebdomadaire moyen en début et fin 5 avril d’exercice budgétaire x 52 Moyenne hebdomadaire x 52 + moyenne des 31 décembre heures supplémentaires x 50

NC = non compris C = compris 1. Indemnités versées par l’employeur pour le compte du régime général ou d’un régime privé d’assurance maladie. 2. Aux États-Unis, les primes de fin d’année et les primes de participation aux bénéfices ne sont pas prises en compte. En Grèce les primes de Noël et de Pâques sont exclues.

Année fiscale Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année fiscale Année civile Année civile Année civile Année civile Année civile Année civile Année fiscale Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année civile Année fiscale Année civile

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

150

Tableau III.3. Mode de calcul des salaires moyens

Méthodes et limites de l’étude

Le traitement des compléments de salaires Ces avantages, qui consistent, par exemple, dans la fourniture par l’employeur de produits alimentaires, de services (logement) ou de vêtements gratuitement ou à des prix inférieurs à la valeur vénale sont, lorsque cela est possible, exclus du calcul des salaires moyens. Cette décision a été prise en raison de la difficulté d’évaluer les avantages de ce type d’une manière cohérente (ils peuvent être évalués en fonction soit de leur coût réel pour l’employeur soit de leur valeur imposable, soit de leur valeur vénale) et parce que ces avantages ont, dans la plupart des pays, une importance négligeable pour les ouvriers de ce niveau de revenu (rarement plus de 1 pour cent des salaires bruts). S’agissant toutefois des cotisations versées par les employeurs pour le compte de leurs salariés à des caisses de retraites complémentaires ou à des systèmes privés d’allocations familiales, d’assurance-maladie ou d’assurance-vie, les montants en cause peuvent être non négligeables. Aux États-Unis, par exemple, il est courant que ces cotisations représentent 5 pour cent des salaires des ouvriers. Bien que ces cotisations soient exclues de la base salariale (et n’affectent donc pas le calcul de l’impôt) les chapitres par pays donnent une indication des systèmes susceptibles de s’appliquer à un ouvrier moyen. Ces systèmes sont exclus de la présente étude, dans la mesure où, s’ils se substituent à des systèmes publics obligatoires de sécurité sociale, leur inclusion nécessiterait la prise en compte des cotisations patronales à des fins de cohérence. En outre, il faudrait inclure le régime fiscal des cotisations et des prestations versées ce qui sort du cadre de cette étude. C.

Estimations des salaires bruts en 2003

Les données statistiques concernant les salaires bruts moyens en 2003 ne sont pas encore disponibles. Cependant, il semble que l’insertion d’estimations de la situation des salariés au regard de l’impôt et des transferts sociaux au cours de l’année d’édition rehausse l’intérêt du rapport pour les décideurs. Par conséquent, à partir de l’édition de 1999, le rapport présente des données préliminaires concernant l’année d’édition en cours. Des estimations des salaires bruts des ouvriers moyens en 2003 ont été établies par le Secrétariat en adoptant une approche uniforme. L’ensemble des montants des gains enregistrés en 2002 sont multipliés par la variation annuelle des salaires en pourcentage indiquée dans l’édition la plus récente des Perspectives économiques de l’OCDE pour le pays considéré.1 Cette procédure transparente permet de donner des résultats non biaisés. On a utilisé les estimations nationales dans le cas de la République slovaque et de la Turquie, car le Secrétariat ne disposait pas pour ses estimations d’éléments reflétant suffisamment l’évolution des salaires dans le secteur manufacturier. Il existe des écarts entre les niveaux de salaires indiqués dans cette publication et ceux qui figurent dans la base de données analytiques de l’OCDE correspondant aux données qui figurent dans les Perspectives économiques. On peut supposer qu’un écart allant jusqu’à 15 à 25 pour cent pourrait s’expliquer de manière satisfaisante par les différences dans les définitions utilisées. Les données de la base de données analytique incluent 1) tous les salariés du secteur des entreprises, 2) les salaires en espèces et en nature, 3) les avantages accessoires et les systèmes de participation aux bénéfices et 4) les allocations versées pour couvrir certains coûts, notamment les frais de transport pour se rendre au travail. Au contraire, cette étude ne s’applique 1) qu’aux salariés du secteur manufacturier, 2) qu’aux salaires en espèces, 3) en général ni aux avantages accessoires ni aux systèmes de participation aux bénéfices et 4) en général pas aux allocations versées pour couvrir des dépenses. En outre, pour un certain nombre de pays, la méthodologie utilisée pour déterminer le niveau de salaire moyen est différente. En 2001, l’écart entre les niveaux de salaires moyens indiqués respectivement dans Les impôts sur les salaires et dans la Base de données analytique excédait 25 pour cent dans le cas de six pays de l’OCDE : Allemagne, Hongrie, Mexique, Nouvelle-Zélande, Portugal et Turquie. Pour l’exercice en cours, la comparaison la plus significative n’est pas entre les niveaux des gains moyens mais entre la variation annuelle des salaires indiquée dans les deux statistiques. Une comparaison des hausses de salaires entre 2000 et 2001 utilisant des données de ces deux sources montre que les taux de croissance ne diffèrent de plus de 2.5 points que dans le cas de six pays : ÉtatsUnis, Mexique, Norvège, République tchèque, Royaume-Uni et Turquie. On pourrait donc en conclure © OECD/OCDE 2004

151

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

que la procédure d’estimation des niveaux de salaires pour l’année d’édition de cette étude aboutit à une approximation acceptable des augmentations réelles de salaires et ne fausse pas les résultats de manière significative. A cet égard, il est important de tenir compte du fait que – étant donné la structure des taux de l’impôt sur le revenu des personnes physiques (le taux d’imposition est uniforme à l’intérieur d’une tranche) et des cotisations de sécurité sociale (taux uniformes, les plafonds s’appliquant en général qu’aux niveaux de salaires supérieurs à 167 pour cent du salaire moyen) – l’incidence d’une différence de quelques points entre les estimations de hausses de salaire fondées respectivement sur des données d’enquêtes et tirées de la base de données analytique sur les taux d’imposition marginaux et moyens mesurés sera en général négligeable sauf pour les taux marginaux lorsque le salaire imposable est proche de la limite supérieure d’une tranche d’imposition du revenu. Environ la moitié des pays de l’OCDE ont choisi de fournir des estimations nationales du niveau de salaire brut des ouvriers moyens en 2003. Ces estimations – qui n’ont pas été utilisées par le Secrétariat – sont néanmoins indiquées dans le tableau III.4 pour permettre une comparaison entre les estimations du Secrétariat et celles de sources nationales. Dans tous les cas les estimations des niveaux de salaires en 2003 effectuées par le Secrétariat et les niveaux de salaires indiqués par les différents pays sont très proches. D. Impôts et prestations sociales versées pris en compte L’étude traite de l’impôt sur le revenu des personnes physiques et des cotisations de sécurité sociale à la charge des salariés et des employeurs dus sur les salaires. De plus, les taxes sur les salaires (voir section I ci-dessous) et dans un cas l’impôt paroissial (voir section J ci-dessous) sont inclus dans le

Tableau III.4. Revenus salariaux bruts estimés, 2002-2003 (en monnaies nationales) SOM 2002

Australie Autriche Belgique Canada République tchèque Danemark Finlande France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas Nouvelle-Zélande Norvège Pologne Portugal République slovaque Espagne Suède Suisse Turquie Royaume-Uni États-Unis 152

48 568 23 881 30 629 38 867 206 412 304 925 27 682 21 978 32 902 11 395 1 077 816 2 567 086 25 477 21 408 4 254 270 22 885 416 31 358 59 702 30 575 39 912 292 200 26 352 8 410 137 316 16 360 237 820 64 169 9 938 274 440 19 420 32 360

SOM 2003 (Estim. Secrétar.)

50 732 24 405 31 238 40 103 220 773 316 772 28 888 22 533 33 810 11 908 1 164 915 2 694 083 26 939 22 114 4 200 199 24 467 930 32 198 62 687 31 790 41 452 307 307 27 193 8 677 150 000 16 975 247 908 65 256 12 233 294 119 20 276 33 032

SOM 2003 (Estim. pays)

50 409 31 353 40 111 220 000

21 686

62 830 32 156 306 500 8 599 150 000

12 233 294 119 20 010

EO73 taux prévus pour 20031en pourcentage

4.5 2.2 2.0 3.2 7.0 3.9 4.4 2.5 2.8 4.5 8.1 4.9 5.7 3.3 –1.3 6.9 2.7 5.0 4.0 3.9 5.2 3.2 3.2 n.d 3.8 4.2 1.7 n.d 4.4 3.4

1. Accroissement de la rémunération par employé dans le secteur des entreprises. (EO73 Annexe tableau 12).

© OECD/OCDE 2004

Méthodes et limites de l’étude

calcul du « coin fiscal » total entre les coûts de main-d’œuvre pour l’employeur et le revenu net disponible du salarié. Le calcul du revenu après impôt inclut les prestations familiales versées par les administrations publiques sous forme de prestations sociales (voir section K ci-dessous). L’impôt sur les revenus du capital et du travail non salarié, divers impôts directs (impôt sur l’actif net, impôt sur les bénéfices des sociétés), ainsi que l’ensemble des impôts indirects, ne sont pas pris en compte dans ce rapport. Toutefois, tous les impôts sur le revenu prélevés par les administrations centrales et locales sont inclus dans les données.2 Dans certains cas exceptionnels, le champ d’application de l’étude au regard des impôts et transferts sociaux peut se trouver modifié, essentiellement pour l’une des deux raisons suivantes. L’une est un changement dans les règles permettant de déterminer les programmes gouvernementaux qui doivent être pris en compte. Un tel changement doit avoir été approuvé explicitement par le Groupe de travail sur l’analyse des politiques et les statistiques fiscales. L’autre raison d’une modification des impôts et transferts sociaux pris en compte est liée au fait qu’après examen, les correspondants nationaux et/ou le Groupe de travail peuvent conclure que dans le cas d’un pays donné – qui applique les règles existantes – certains impôts ou transferts qui étaient auparavant exclus, doivent être pris en compte (ou vice versa). Ces dernières années, un certain nombre de pays de l’OCDE ont instauré des déductions fiscales au profit des titulaires de faibles salaires. En général, ces avantages fiscaux ont pour effet de majorer le revenu disponible net (c’est le cas par exemple du crédit d’impôt pour les revenus salariaux (« Earned Income Tax Credit ») aux États-Unis) et/ou de réduire les coûts bruts de main-d’œuvre. Par exemple, les employeurs de salariés faiblement rémunérés ont droit à un crédit d’impôt déductible des taxes sur les salaires/des cotisations de sécurité sociale qui seraient normalement dues. Ces crédits au profit des employeurs existent par exemple en Belgique, en France et aux Pays-Bas. A partir de l’édition de 1998, les avantages fiscaux au profit des titulaires de faibles revenus – qu’ils visent les employeurs ou leurs salariés – figurent [dans la plupart des cas] dans la description des systèmes nationaux d’impôts et de transferts sociaux et dans les équations fiscales correspondantes. Dans cette étude, les cotisations de sécurité sociale versées aux administrations publiques sont traitées comme des recettes fiscales. Dans la mesure où elles constituent des paiements obligatoires aux administrations publiques, il est évident qu’elles ressemblent à des impôts. Elles peuvent cependant en différer du fait que, dans la plupart des pays, l’obtention de prestations sociales est subordonnée au versement préalable de cotisations, bien que le montant des prestations ne soit pas nécessairement lié au montant des cotisations. Les pays financent à des degrés divers leurs programmes de sécurité sociale obligatoire à l’aide des recettes fiscales et non fiscales du budget général. On obtient une meilleure comparabilité entre les pays en traitant les cotisations de sécurité sociale comme des impôts mais elles sont énumérées sous une rubrique différente de sorte qu’elles puissent être analysées d’une manière distincte. E.

Caractéristiques des contribuables visés

D’autres hypothèses sont nécessaires pour calculer la situation au regard de l’impôt et des prestations sociales. Huit catégories de contribuables sont identifiées, comme l’indique le tableau III.5: • une personne célibataire sans enfant, gagnant 67 (deux tiers), 100 et 167 pour cent (cinq tiers) du salaire de l’ouvrier moyen ; • un parent isolé ayant deux enfants et dont le salaire est égal à 67 pour cent (deux tiers) de celui de l’ouvrier moyen ; • un couple marié disposant d’un salaire unique du niveau de celui de l’ouvrier moyen ; • trois cas de couples mariés disposant de deux salaires déclarés séparément et égaux respectivement à 100 et à 33 pour cent (un tiers) du salaire de l’ouvrier moyen, avec ou sans enfant, et enfin un couple avec enfant dont les salaires imposés séparément sont égaux respectivement à 100 et à 67 pour cent (deux tiers) de celui de l’ouvrier moyen (OM). © OECD/OCDE 2004

153

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Tableau III.5. Caractéristiques des contribuables étudiés Situation de famille

Enfants

Salaire principal

Salaire d’appoint

Célibataire Célibataire Célibataire Célibataire Couple marié Couple marié Couple marié Couple marié

Pas d’enfant Pas d’enfant Pas d’enfant 2 enfants 2 enfants 2 enfants 2 enfants Pas d’enfant

67% du salaire de l’OM 100% du salaire de l’OM 167% du salaire de l’OM 67% du salaire de l’OM 100% du salaire de l’OM 100% du salaire de l’OM 100% du salaire de l’OM 100% du salaire de l’OM

– – – – – 33% du salaire de l’OM 67% du salaire de l’OM 33% du salaire de l’OM

Dans les cas de familles avec enfants, on admet que l’âge de ceux-ci est compris entre 5 et 12 ans (c'est-à-dire plus de 5 et moins de 12 ans). On suppose que la famille ne dispose pas d’autres sources de revenus que ses salaires et les prestations sociales. F.

Calcul des impôts sur le revenu

Les tableaux par pays de la partie IV indiquent la méthode utilisée pour le calcul des impôts sur le revenu. On détermine d’abord les allégements fiscaux applicables au salaire brut d’un contribuable présentant les caractéristiques et se situant au niveau de revenu de l’ouvrier moyen. En second lieu, on applique le barème d’imposition au revenu imposable et l’impôt exigible ainsi calculé est diminué des crédits d’impôt éventuels. La principale difficulté que soulève ce calcul réside dans la détermination des allégements fiscaux à retenir. On peut distinguer deux grandes catégories d’allégements fiscaux : • Les allégements à caractère forfaitaire : il s’agit de mesures d’allégement fiscal qui sont sans lien avec les dépenses réellement exposées par le contribuable et qui sont automatiquement consentis à tous les contribuables qui remplissent les conditions prévues par la législation. Ils prennent généralement la forme de montants forfaitaires ou de pourcentages fixes du revenu et constituent la principale catégorie d’allégement prise en compte pour déterminer l’impôt sur le revenu versé par les ouvriers. Les allégements forfaitaires sont pris en compte pour le calcul de la situation initiale de l’ouvrier moyen au regard de l’impôt. Ils comprennent : – l’abattement à la base qui est fixe et dont bénéficient tous les contribuables ou tous les salariés quel que soit leur état matrimonial ou leur situation de famille ; – l’abattement forfaitaire accordé aux contribuables en fonction de leur état matrimonial ; – l’abattement forfaitaire accordé aux familles ayant deux enfants de 5 à 12 ans (c'est-à-dire plus de 5 et moins de 12 ans); – l’abattement forfaitaire pour frais professionnels qui est généralement fixe ou déterminé en pourcentage du salaire ; et, – les allégements fiscaux autorisés au titre des cotisations de sécurité sociale et des autres impôts sur le revenu sont également considérés comme des allégements forfaitaires dès lors qu’ils s’appliquent à l’ensemble des salariés et qu’ils concernent des versements obligatoires aux administrations.3 • Déductions non-forfaitaires : Il s’agit de mesures d’allégement fiscal qui sont entièrement déterminées par référence à des charges effectivement supportées. Leur montant n’est ni forfaitaire ni calculé par application de pourcentages fixes du revenu. On peut en donner comme exemples les déductions au titre des intérêts des emprunts remplissant certaines conditions (par exemple pour l’acquisition d’un logement) des primes d’assurance, des cotisations à des régimes de retraite complémentaire et des dons aux organismes de bienfaisance. 154

Les allégements forfaitaires sont appréhendés de manière distincte et leur incidence sur le taux moyen de l’impôt sur le revenu fait l’objet d’un calcul séparé dans les tableaux par pays. Une brève © OECD/OCDE 2004

Méthodes et limites de l’étude

description des principaux allégements non forfaitaires figure dans les chapitres par pays. Une comparaison de l’incidence de ces allégements sur le taux de l’impôt sur le revenu est donnée dans le tableau III.6. Il y a plusieurs étapes requises dans le calcul de la valeur des allégements non forfaitaires. En premier lieu, on identifie les déductions auxquelles peut prétendre un contribuable dont la situation de famille et le niveau de revenu sont ceux d’un ouvrier moyen ou un groupe plus large de contribuables englobant l’ouvrier moyen. Les abattements qui ne correspondent pas aux hypothèses retenues pour un ouvrier moyen (par exemple les abattements accordés aux travailleurs indépendants) ne sont donc pas pris en compte. Par conséquent, pour chaque déduction identifiée, le montant moyen de l’allégement lié aux dépenses est déterminé, compte tenu de celles qui ne correspondent pas à cet élément spécifique de revenu (et à la déduction correspondante) afin d’obtenir une valeur moyenne de cet allégement pour l’ensemble des contribuables qui présentent les caractéristiques de l’ouvrier moyen (dans le groupe plus large). On calcule ensuite l’incidence de ces différents allégements sur le taux moyen de l’impôt sur le revenu. On considère par exemple le cas où l’on estime que 20 pour cent de l’ensemble des contribuables de la tranche de revenu correspondant à celle de l’ouvrier moyen sont propriétaires de leur logement et déduisent en moyenne 10 000 unités monétaires d’intérêts de prêts hypothécaires. Dans ce cas, on admettrait qu’en moyenne les contribuables de la tranche de revenu correspondant à celle de l’ouvrier moyen déduisent 2 000 unités monétaires d’intérêts de prêts hypothécaires (c’est-à-dire le cinquième de 10 000 unités). Au taux marginal type de 30 pour cent, l’allégement fiscal correspondant est de 600 unités, et l’on recalcule en conséquence le taux moyen d’imposition de l’ouvrier moyen. Les allégements fiscaux non forfaitaires qui ne correspondent pas à des sources de revenu spécifiques sont totalement déduits de l’impôt. En revanche, pour les déductions qui ne sont pas liées à des sources de revenu spécifiques (par exemple les déductions d’intérêts de prêts hypothécaires qui doivent être, dans certains pays, déduits des loyers imputés aux propriétaires de leurs logements) seul l’excédent par rapport au revenu correspondant est pris en compte dans les calculs indiqués au tableau III.6. G. Impôts sur le revenu perçus à un niveau autre que celui de l’administration centrale Les impôts sur le revenu perçus par les niveaux intermédiaires d’administration dans les États fédéraux (États, provinces, cantons) et par les collectivités locales sont inclus dans le champ de la présente étude. Des impôts sur le revenu sont perçus à l’échelon des États fédérés au Canada, aux États-Unis et en Suisse. En 1997, l‘Espagne a introduit un impôt sur le revenu pour les régions autonomes. Des taxes sont perçues à l’échelon local en Belgique, en Corée, au Danemark, aux ÉtatsUnis, en Finlande, au Japon, en Norvège, en Suède et en Suisse. En Belgique, au Canada (en dehors du Québec), en Corée, au Danemark, en Espagne et en Norvège, ces impôts sont calculés en pourcentage du revenu imposable ou de l’impôt d’État. En Finlande, au Japon, en Suède et en Suisse, les collectivités décentralisées appliquent des allégements fiscaux différents de ceux applicables dans le cadre du système de l’impôt sur le revenu de l’administration centrale ; aux États-Unis, les niveaux inférieurs d’administration appliquent un système d’imposition du revenu distinct et disposent d’un pouvoir discrétionnaire à l’égard de l’assiette et du taux d’imposition (voir tableau III.7). Sauf au Canada, aux États-Unis, au Japon et en Suisse, où existent des barèmes progressifs ces impôts des niveaux intermédiaires sont perçus sur la base d’un taux unique. En raison des différences pouvant exister à l’intérieur d’un même pays dans le taux et l’assiette des impôts sur le revenu des collectivités décentralisées, il est parfois fait l’hypothèse que le contribuable percevant le salaire moyen de l’industrie manufacturière a son domicile dans une zone où ce secteur est particulièrement important et ce sont les impôts sur le revenu (et les prestations sociales) applicables dans cette zone qui sont indiqués. C’est la formule qui a été adoptée par le Canada, les États-Unis et la Suisse où l’assiette et les taux de l’impôt sont très variables sur l’étendue du territoire. Le Danemark, la Finlande et la Suède ont préféré, pour leur part, retenir le taux moyen des impôts sur le revenu des collectivités décentralisées pour l’ensemble du pays. En Norvège, ce © OECD/OCDE 2004

155

Montant moyen des allégements normalement reçus par l'ouvrier moyen (monnaie nationale)1

Célibataire

Couple

Taux de l'impôt sur le revenu payé par un ouvrier moyen

Avant prise en compte de ces allégements Célibataire

AUSTRALIE (1999-2000) Frais professionnels (AF) Autres déductions (AF)

1271 206

AUTRICHE (1994)

1400 8943

BELGIQUE (2000) CANADA (2000) Système de retraite agréé (AF) Système d’épargne retraite agréé (AF) Cotisations syndicales et professionnelles (AF) Dons aux oeuvres (CI) Autres (AF)

1075 277

2174

1898

DANEMARK (2001) Cotisations/primes versées à des systèmes de retraite privée (AF) 17000 Intérêts versés (nets des intérêts perçus et des loyers imputés) (AF) –19400 Frais de déplacement (AF) 4300 Contisations syndicales (AF) 3500 Autres déductions 3250

20800 –47300 7400 6400 1650

FINLANDE (1997) Frais professionnels (AF) Crédit d’impôt au titre des intérêts versés (CI)

22.7

© OECD/OCDE 2004

4032 1611

HONGRIE (2002) Crédit d'impôt familliaux (CI) Personnes avec un lourd handicap (CI) Cotisations à des fonds d’assurances (CI) Frais complémentaires d'appartenance à un fond de pension privé (CI) Activités intellectuelles (CI) Amortissement de crédit relatif à l’acquisition d’un logement (CI) Frais de scolarité (CI) Dons à des fondations (CI) Contrats d’assurance (CI) Crédit fiscal pour l’investissement (CI)

27431 299 1471 101 235 3460 680 171 3664 207

— — — — — — — — — —

ISLANDE (1994) Intérêts versés au titre de l’habitation personnelle (IC)

11250

22000

21.5

Célibataire

21.5

Contribuables auxquels s'appliquent les calculs2

Couple

21.6

7.5

1.9

5.9

0.3

27.9

17.1

27.6

16.6

19.5

9.1

17.5

6.9

Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen Ensemble des salariés Ensemble des salariés Salariés du type de l'ouvrier moyen

Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen

28.0 3402 646

Couple

Ayant prise en compte de ces allégements

28.0

17.1

26.4

13.5 — — — — — — — — — —

20.5

25.6

3.3

— — — — — — — — — — 19.6

1.5

Salariés du type de l'ouvrier moyen

Ensemble des contribuables dont le revenu est proche de celui de l'ouvrier moyen

Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

156

Tableau III.6. Principaux allégements fiscaux non forfaitaires dont bénéfice un ouvrier moyen

© OECD/OCDE 2004

Tableau III.6. Principaux allégements fiscaux non forfaitaires dont bénéfice un ouvrier moyen (suite) Montant moyen des allégements normalement reçus par l'ouvrier moyen (monnaie nationale)1

Célibataire

Couple

Taux de l'impôt sur le revenu payé par un ouvrier moyen

Avant prise en compte de ces allégements Célibataire

IRLANDE (1999) Frais professionnels (AF) Allégement au titre de l’assurance maladie (CI) Ensemble des intérêts versés (CI)

ESPAGNE (1995) Intérêts sur emprunts hypothécaires (AF) 15 % de l’amortissement du logement (CI)

Contribuables auxquels s'appliquent les calculs2

Couple

19.3

10.1

18.5

9.4

19.3

14.9

18.3

13.8

102237 2789 63474 138160 1546 12108 7238 366 459217 2680 1663 7537

Ensemble des salariés de l'industrie manufacturière dont le revenu est compris entre 15 000 et 17000 £IR Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen

140070 7092 10.8 75000 45000 27000 45000

Ensemble des salariés

75000 70000 80000 180000 29.5

26.2

Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen

3600 600 2400 400 31100 13.2 123557

6.4

8.9

2.2

17 % de l'ensmble des contribuables dont le revenu est proche de celui de l'ouvrier moyen

157

Méthodes et limites de l’étude

NORVEGE (2000) Frais de déplacement exceptionnels au-delà de NOK 8 800 (AF) Cotisations syndicales (AF) Primes et cotisations aux régimes professionnels de retraites publiques et privées (AF) Primes aux régimes de retraites complémentaires individuelles (AF) Abattement illimité au titre des intérêts versés (AF)

Célibataire

80 17 75

ITALIE (2000) Dépenses médicales (CI) Dépenses pour les personnes handicapées (CI) Intérêts sur emprunts hypothécaires (CI) Cotisations à des fonds d'assurance (CI) Dons à des fondations (CI) Dépenses scolaires et universitaires (CI) Frais funéraires (CI) Autres (CI) Cotisations obligatoires (AF) Cotisations/primes payées à des systèmes de retraite privée (AF) Dons aux oeuvres (AF) Dépenses médicales et d'assistance aux personnes handicapées Allocations périodiques fixées par les autorités judiciaires versées aux conjoints (AF) Autres déductions (AF) LUXEMBOURG (2001) Frais professionnels (5 %) (AF) Déductions spécifiques (3.5 %) (AF) Déductions exceptionnelles (1.1 %) (AF) Intérêts versés au titre de l’habitation personnelle (AF)

Couple

Ayant prise en compte de ces allégements

Montant moyen des allégements normalement reçus par l'ouvrier moyen (monnaie nationale)1

Célibataire

Couple

Taux de l'impôt sur le revenu payé par un ouvrier moyen

Avant prise en compte de ces allégements Célibataire

SUÈDE (2001) Frais de déplacement au travail excédent Skr 7000 (AF) Autres frais professionnels (AF) Primes aux régimes de retraites (AF) Indemnités pour versements d’intérêts (CI)

ÉTATS-UNIS (2000) Frais médicaux (AF) Impôts versés (AF) Intérêts versés (AF) Cotisations (AF)

Célibataire

33.5

31.2

Ensemble des salariés dont le revenu est proche de celui de l'ouvrier moyen

10.2

5.0

9.1

4.3

Ensemble des salariés dont le revenu est de celui de l'ouvrier moyen

15.6

10.4

15.6

10.4

Ensemble des salariés dont le revenu est de celui de l'ouvrier moyen

3200 10

10 18.0 376 1116 1972 596

Contribuables auxquels s'appliquent les calculs2

Couple

3458 627 2455 11528

SUISSE (1999) Frais professionnels (AF) ROYAUME-UNI (2002-2003) Frais professionnels (AF)

Couple

Ayant prise en compte de ces allégements

n.d.

Ensemble des contribuables dont lerevenu est proche de celui de l'ouvrier moyen

AF = abattement fiscal; CI = crédit d’impôt 1. Il s’agit des allégements fiscaux non forfaitaires auxquels peuvent normalement prétendre les contribuables ayant un revenu proche de celui de l’ouvrier moyen. Le montant de chaque allégement est calculé en divisant le montant total de l’allégement reçu par les contribuables du type de l’ouvrier moyen par leur nombre total, y compris ceux qui ne peuvent pas bénéficier de l’allégement. Après avoir été calculés selon cette méthode, les montants de l’ensemble des allégement individuels sont additionnés pour obtenir le montant total de l’allégement reçu par l’ouvrier moyen. 2. Le « revenu proche de celui de l’ouvrier moyen » est le revenu qui représente un écart maximum de plus ou moins 5 pour cent de celui de l’ouvrier moyen, dans la plupart des pays.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

158

Tableau III.6. Principaux allégements fiscaux non forfaitaires dont bénéfice un ouvrier moyen (suite)

© OECD/OCDE 2004

© OECD/OCDE 2004

Tableau III.7. Impôts sur le revenu des collectivités décentralisées, 2003 Ecarts des taux du barème à l’intérieur du pays ou de la région retenue Assiette de l’impôt

Belgique

Impôt versé à l’administration centrale

Barème à un seul taux taux minimum et maximum à l’intérieur du pays

Barème progressif appliqué dans la région retenue

Jusqu’à un maximum de 8 %

Canada1 (à l’exclusion du Québec) Impôt versé à l’administration centrale

Région ou taux d’imposition retenu pour l’étude

7% Voir Partie V

Ontario ( barème progressif)

Corée

Impôt versé à l’administration centrale

5.0 % à 15.0 %

10%

Danemark

Revenu imposable à l’impôt d’État

30.00 % à 36.68 %

Moyenne pondérée (33.3 %)

Espagne

Revenu imposable à l’impôt d’État

3 % à 8.4 % dans l’ensemble du pays

Barème général

Finlande

Revenu imposable à l’impôt d’État ajusté2

15.5 % to 20.00 %

Moyenne pondérée (18.03 %)

Islande

Revenu imposable à l’impôt d’État

Jusqu’à un maximum de 12.04%

Moyenne pondérée (12.79 %)

Italie

Revenu imposable à l’impôt d’Etat

0.9 % à 1.9 %

Japon

Revenu imposable à l’impôt d’État ajusté2

Norvège

Revenu imposable à l’impôt d’État (moins une déduction spécifique)

28 % dans l’ensemble du pays

Suède

Revenu imposable à l’impôt d’État

Max. 33.72 %, min. 28.90 %

Suisse

Revenu imposable à l’impôt d’État ajusté2

0 % à 30.55 % (Zurich)

Zurich (barème progressif)

États-Unis

Revenue imposable à l’impôt d’Etat ajusté à partir d’asiettes fiscals distinctes.

0 % à 10 %

Michigan et Detroit (taux uniforme 4.2% et 2.75% respectivement)

0.90% Barème normal applicable dans l’ensemble du pays (5 % à 15 % plus montant fixe)

Barème général

28% 31.17 % moyenne pondérée

1. Le Québec applique son propre système d’impôt sur le revenu des personnes physiques. L’impôt provincial est calculé en pourcentage du revenu imposable. 2. Le revenu soumis à l’impôt est le même que dans le système d’impôt sur le revenu de l’administration centrale mais les allégements fiscaux applicables ne sont pas identiques.

Méthodes et limites de l’étude

159

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

problème ne se pose pas, les taux des impôts locaux n’étant pas différents les uns des autres ; le Japon a retenu le barème général le plus largement appliqué et la Belgique le taux maximum le plus généralement appliqué de l’impôt local sur le revenu. Le tableau III.7 résume les modes de calcul de ces impôts et la méthode utilisée pour déterminer le montant des impôts sur le revenu versé aux collectivités décentralisées par un ouvrier moyen. H. Cotisations de sécurité sociale La présente étude prend en compte les cotisations sociales obligatoires versées par les salariés se situant au niveau de revenu de l’ouvrier moyen à l’État ou à des organismes de sécurité sociale effectivement contrôlés par l’État. Dans la plupart des pays, ces cotisations sont calculées sur les salaires bruts et affectées au financement de prestations sociales. En Finlande, en France, aux Pays-Bas et en Norvège certaines de ces cotisations dépendent du revenu imposable (c’est-à-dire du salaire brut déduction faite de certains allégements fiscaux). Les cotisations à des systèmes de sécurité sociale extérieurs à l’administration ne sont pas incluses dans les calculs. I.

Taxes sur les salaires et la main-d’oeuvre

La base d’imposition des taxes sur les salaires est soit un pourcentage des salaires, soit un montant fixe par salarié. Toutes les taxes sur les salaires sont indiquées à la rubrique 3000 des Statistiques des recettes publiques.4 Quatorze pays de l’OCDE déclarent des recettes des taxes sur les salaires relevant de la rubrique 3000 : Australie, Autriche, Canada, Corée, Danemark, France, Grèce, Hongrie, Irlande, Mexique, Nouvelle-Zélande, Pologne, République tchèque et Suède. Les taxes sur les salaires sont incluses dans les « coins fiscaux » totaux indiqués dans cette publication, dans la mesure où elles ont pour effet d’accroître l’écart entre les coûts bruts de main-d’oeuvre et la rémunération nette disponible après impôt de la même manière que l’impôt sur le revenu et les cotisations de sécurité sociale. La principale différence avec ces dernières est le fait que, dans le cas des taxes sur les salaires, il existe un lien moins direct entre le paiement de l’impôt et les éléments constitutifs de la rémunération de chaque salarié. Par ailleurs, la base des taxes sur les salaires peut différer de la base des cotisations de sécurité sociale à la charge des employeurs. Par exemple, certains avantages accessoires peuvent n’être assujettis qu’à la taxe sur les salaires. Comme ce rapport porte sur le cas général, la base de la taxe sur les salaires est – selon la législation en vigueur – le salaire brut (à l’exclusion des avantages accessoires et autres éléments de rémunération, qui varient selon les salariés) plus les cotisations patronales de sécurité sociale ou un montant fixe par salarié. Depuis l’édition de 1998, l’Autriche inclut ses taxes sur les salaires et la main-d’œuvre dans les calculs des impôts et des transferts sociaux. Pour diverses raisons, plusieurs pays qui font état de recettes de taxes sur les salaires dans les Statistiques des recettes publiques n’ont pas fait figurer ces taxes dans les calculs effectués en vue de la présente étude. Dans le cas de la Grèce, de l’Irlande, de la Pologne et de la République tchèque les revenus reportés dans les Statistiques des recettes publiques ne sont pas quantitativement significatifs ou sont en rapport avec des impôts qui ne s'appliquent plus. Au Danemark, les employeurs paient un montant fixe par employé. Les recettes fiscales ainsi collectées alimentent un fond qui permet de subventionner les employeurs qui recrutent des stagiaires dont les qualifications sont faibles ou moyennes. Cet impôt sur les salaires n’est pas inclus dans les équations fiscales du Danemark. La Hongrie prend en compte la cotisation des employeurs pour l’assurance médicale; toutefois la taxe communale sur les entreprises n’est pas comprise puisque toutes les municipalités ne prélèvent pas cet impôt. 160

La Corée ne tient pas compte de l’impôt sur les bureaux commerciaux (« Business Office Tax ») qui s’applique aux entreprises de plus de 150 salariés (voir § 5.4 du chapitre par pays à la partie V). © OECD/OCDE 2004

Méthodes et limites de l’étude

La Nouvelle-Zélande n’a pas inclus les taxes sur salaires et la main-d’oeuvre dans les calculs de ses impôts pour la raison principale que l’impôt sur les avantages annexes (« Fringe Benefit Tax ») n’est pas fonction du revenu du salarié et que les autorités n’ont pas d’information précise pour allouer l’impôt à tous les salariés au prorata de leur revenu. Il s’en suit que l’impôt sur les avantages annexes n’est pas une catégorie « standard » et qu’en conséquence il ne doit pas être inclus dans le calcul des impôts et des transferts sociaux des salariés. J.

Impôt paroissial

Plusieurs pays de l'OCDE prélèvent une taxe appelée « impôt paroissial ». Mais à une exception près, les pays ne rapportent pas les revenus procurés par cette taxe dans les Statistiques des recettes publiques. Le Danemark qui lui rapporte ces impôts étant donné que l'Église d'État danoise est classée comme faisant partie des Administrations publiques estime que ce classement est justifié du fait du haut degré de contrôle qu'exerce l'État sur l'Église. Le Groupe de travail sur l'analyse des politiques et des statistiques fiscales ayant souhaité que les impôts paroissiaux soient traités de façon consistante dans ses deux principales publications statistiques a admis que les impôts paroissiaux du Danemark soient aussi inclus dans les calculs des « impôts sur les salaires ». K.

Prestations en espèces versées aux familles par l’administration

Les déductions fiscales et les prestations familiales en espèces de caractère général versées au titre des enfants à charge de cinq à douze ans (c'est-à-dire plus de 5 et moins de 12 ans) en cours de scolarité sont incluses dans le champ de l’étude. Par conséquent, seuls les enfants de six, sept, huit, neuf, dix et onze ans sont pris en compte dans la détermination de la déduction fiscale au titre des enfants à charge et/ou dans le montant des prestations familiales. Si les déductions fiscales ou les transferts en espèces varient à l’intérieur de ce groupe d’âges, ce sont les dispositions les plus avantageuses qui sont retenues. Le cas des jumeaux est explicitement laissé de côté. Supposons que le programme de prestations familiales d’un pays présente la structure suivante :

Groupe d’âges

Enfants 6-8 ans Enfants 9-10 ans Enfants 11-14 ans

Prestations par enfant à charge

110 unités 120 unités 150 unités

Le résultat le plus favorable est obtenu dans le cas des jumeaux de 11 ans : 300 unités. Toutefois, comme on exclut le cas des jumeaux, le meilleur résultat devient 270 unités (un enfant de 11 ans, et un enfant de 9 ou 10 ans). Ce montant serait inclus dans le tableau par pays. Souvent, le montant des prestations se trouve relevé lorsque l’âge des enfants augmente d’une année. En supposant que les enfants sont nés le ler janvier, le montant annuel des allocations familiales reçues peut être calculé à partir du barème de prestations en vigueur au début de l’année en question. Les révisions de ces montants intervenues au cours de l’année sont prises en compte Les prestations sociales pertinentes comprennent celles dispensées par les administrations centrales et locales. Pour la plupart des familles de cette étude elles constituent le seul transfert en espèce d’importance reçu des administrations publiques. Dans certains cas, les allocations en espèces incluent les montants qui sont payés, sans prendre en compte le nombre d’enfants. L.

Crédits d'impôts récupérables

L’édition 2001 de la publication intitulée Les impôts sur les salaires comporte une légère modification : l’inclusion pour mémoire des crédits d’impôt récupérables. Il s’agit du cas où des crédits d’impôt sont supérieurs à la somme due au fisc et où la différence peut être remboursée sous forme de versement au contribuable. En principe, on peut traiter ces crédits d’impôt de différentes manières, en les © OECD/OCDE 2004

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considérant comme des dispositions fiscales ou des transferts en espèces, ou encore une combinaison des deux. Une étude spéciale figurant dans l’édition 2001 de Statistiques des recettes publiques examine ces différentes solutions, ainsi que les problèmes d’ordre conceptuel et pratique qui se posent pour choisir la méthode qui convient le mieux à la présentation de statistiques internationalement comparables des recettes fiscales.5 Sur la base de cet examen et de ses conclusions, les prochaines éditions des Statistiques des recettes publiques, à compter de 2002, continueront à se conformer au guide d’interprétation qui prévoit que seule la composante dépenses fiscales des crédits d’impôt récupérables doit être retenue pour le calcul des recettes fiscales (voir plus bas). Toutefois, les Statistiques des recettes publiques donne des informations complémentaires sur les montants totaux réclamés par le fisc et la composante transfert totale des crédits d’impôt récupérables, pour montrer les résultats de différents traitements statistiques.6 A dater de l’édition 2001, on a également modifié la présentation des crédits d’impôt récupérables dans Les impôts sur les salaires, pour inclure une rubrique pour mémoire où figurent les composantes dépenses fiscales et transferts en espèces. Mais, à part l’introduction de cette rubrique, le traitement de ces crédits d’impôt et leur incidence sur les statistiques présentées dans Les impôts sur les salaires ne changeront pas. En particulier, les calculs d’impôt sur le revenu des personnes physiques des tableaux par pays continueront à imputer la totalité des crédits d’impôt récupérables. Comme on l’a indiqué cidessus, le guide d’interprétation des Statistiques des recettes publiques demande i) que seule la fraction du crédit d’impôt récupérable qui a pour effet de réduire ou d’effacer la dette fiscale du contribuable (la composante « dépense fiscale ») 7 soit déduite dans la présentation des recettes ; et, ii) que la fraction du crédit d’impôt qui est supérieure à la somme à payer par le contribuable et qui lui est remboursée (la composante « transfert en espèces ») soit traitée comme une dépense et ne soit pas déduite des chiffres de recettes fiscales. Si l’on s’en tenait strictement au guide d’interprétation des Statistiques des recettes publiques, il faudrait que seule la composante dépenses fiscales des Impôts sur les salaires soit imputée sur l’impôt sur le revenu, tout dépassement éventuel étant traité comme un transfert en espèces. Cependant, cette méthode aurait pour effet d’affaiblir et non de renforcer la valeur informative des résultats obtenus. En particulier, limiter les demandes de crédits d’impôt à la dépense fiscale se traduirait par un impôt nul et un taux moyen d’impôt sur le revenu également nul quand des remboursements en espèces sont effectués. Si l’on ne limite pas de cette façon les demandes de crédits d’impôt, on fera apparaître, quand des remboursements en espèces ont lieu, un impôt négatif sur le revenu et des taux moyens également négatifs d’impôt sur le revenu. On peut soutenir que ces montants négatifs donnent une idée plus claire de la situation du contribuable (plutôt que de considérer une situation de nonimposition). Enfin, le fait de ne pas inclure la fraction correspondant à des transferts en espèces des crédits d’impôts récupérables à la section (11) des tableaux par pays, consacrée strictement aux transferts en espèces, permet une plus grande transparence. Ainsi, pour étoffer les informations données dans les tableaux par pays sur les crédits d’impôt récupérables, la rubrique pour mémoire qui se trouve au bas des tableaux des pays concernés indique, sur une ligne, les montants de dépenses fiscales et, sur une deuxième ligne, les montants des transferts en espèces. Là où il existe plusieurs dispositifs de crédits d’impôt récupérables, les données présentées font ressortir le total des dépenses fiscales et le total des transferts en espèces (au lieu de faire apparaître distinctement le coût de chaque dispositif). Pour chaque catégorie de ménages considérée, on peut, en faisant la somme des dépenses fiscales et des transferts en espèces, obtenir le coût global des ces mesures.

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LIMITES DE L’ÉTUDE A.

Limites de caractère général

L’utilisation de la méthode simple consistant à comparer la situation au regard de l’impôt et des avantages sociaux de l’ouvrier moyen permet d’échapper aux nombreux problèmes conceptuels et de définition que soulèvent des comparaisons plus complexes. Toutefois, l’une des faiblesses de cette méthode est liée au fait que la place de la rémunération de l’ouvrier moyen sur l’éventail des salaires varie d’une économie à l’autre bien que les salaires en question concernent des ouvriers accomplissant des tâches de même nature dans les différents pays membres de l’OCDE. En raison des limites qui affectent les impôts et les prestations sociales couvertes par le rapport, les données réunies ne peuvent être considérées comme représentatives de l’impact global des administrations sur le niveau de vie des contribuables et de leurs familles. Il faudrait pour cela étudier l’incidence des impôts indirects, le régime applicable en matière d’imposition des revenus du travail non salariaux ainsi que des autres revenus et l’incidence des autres mesures d’allégement fiscal et prestations en espèces. Il faudrait aussi tenir compte de l’incidence sur le niveau de vie des services fournis par l’État soit gratuitement soit en dessous de leur coût et l’incidence sur les salaires et les prix des impôts sur les sociétés et des autres impôts directs. Il est impossible de couvrir un champ d’étude aussi étendu dans le cadre d’une comparaison internationale concernant l’ensemble des pays de l’OCDE. L’importance des écarts entre les résultats présentés ici et ceux auxquels aboutirait une étude complète de l’impact global des interventions publiques sur la situation des salariés serait variable d’un pays à l’autre, notamment en fonction de la part relative des différents impôts dans les recettes publiques et de l’étendue et de la nature des dépenses sociales des administrations (voir Annexe III). Le rapport indique l’incidence formelle de l’impôt sur les salariés et les employeurs. L’incidence économique finale de la charge fiscale peut être répercutée des employeurs aux salariés et vice versa à la suite d’ajustements des salaires bruts opérés sur le marché. Le revenu restant à la disposition du contribuable peut correspondre à des niveaux de vie différents selon les pays, parce que l’éventail des biens et services auxquels le revenu est affecté ainsi que leurs prix relatifs diffèrent d’un pays à l’autre. Dans les pays où les administrations fournissent une gamme importante de biens et services (régimes de retraite de base généreux, services de santé gratuits, logements sociaux, éducation tertiaire, etc.) le contribuable peut disposer d’un revenu en espèces plus faible tout en ayant un niveau de vie identique à celui d’un contribuable percevant un revenu en espèces plus élevé mais vivant dans un pays où les biens et services publics sont plus limités. B.

Exemples de limites spécifiques affectant le calcul de l’impôt sur le revenu

Etant donné le nombre limité des allégements fiscaux considérés ainsi que l’exclusion des revenus non salariaux, les taux moyens d’impôt sur le revenu calculés dans les tableaux de cette publication ne rendent pas nécessairement compte des taux effectifs des impôts versés par les contribuables se situant aux niveaux de salaires indiqués. L’exclusion des abattements de caractère non forfaitaire liés à des frais réels (voir tableau III.6) peut conduire à surestimer les taux réels d’imposition dans le calcul. D’autre part, l’exclusion des revenus autres que ceux du travail peut tendre à les sous-estimer. La décision d’exclure les revenus non salariaux (tels que dividendes et intérêts perçus) a été prise parce que l’objet principal de la présente étude est le régime fiscal des revenus du travail. Les contribuables ayant le niveau de revenu de l’ouvrier moyen ne perçoivent généralement pas de revenus significatifs en dehors de leurs salaires. En Australie, en Autriche, en Finlande, et en Irlande par exemple, les revenus non-salariaux représentent moins de 0.5 pour cent de la rémunération totale de l’ouvrier moyen. Dans certains pays, toutefois, les contribuables du type de l’ouvrier moyen disposent effectivement de revenus non-salariaux. Ainsi, aux États-Unis, plus de 60 pour cent des © OECD/OCDE 2004

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contribuables de ce type disposent de revenus autres que ceux du travail qui représentent en moyenne environ 5 pour cent des revenus professionnels. La décision de ne pas procéder à un calcul séparé de l’impôt sur le revenu après prise en compte de l’effet des allégements fiscaux non-forfaitaires a été prise pour les raisons suivantes : • Dans de nombreux cas, les allégements liés à des dépenses effectives représentent des substituts d’aides financières directes. Prendre en considération ces allégements sans prendre en compte par ailleurs les éventuelles aides directes correspondantes conduirait à fausser les comparaisons des rémunérations nettes plus transferts en espèces ; • Le régime fiscal particulier de certaines dépenses peut s’accompagner d’un régime spécial des revenus associés à ces dépenses (par exemple, le régime fiscal des cotisations de sécurité sociale et des pensions de retraite) qui se situe en dehors du champ de la présente étude ; • Quelques pays n’ont pas été en mesure d’estimer la valeur de ces allégements et même les pays qui ont pu effectuer une telle estimation n’ont pas été capables de la limiter aux contribuables présentant les caractéristiques prises par hypothèse dans les rubriques B, D et E de la section précédente ; • Dans la majorité des pays, ces allégements n’affectent pas de manière significative les taux de l’impôt sur le revenu indiqués dans la présente publication et, dans la plupart des cas, seule une minorité de contribuables bénéficient d’un allégement particulier ; et, • Tous les pays n’ont pas été en mesure de calculer séparément les allégements applicables aux différents types de familles. Lorsqu’on calcule séparément les allégements applicables aux célibataires et aux familles avec enfants, on observe des écarts importants entre les montants des allégements dont bénéficient normalement ces deux catégories de ménages. Le tableau III.6, qui a été inséré ultérieurement, montre que pour la plupart des pays qui sont en mesure de fournir des informations sur ces allégements, leur prise en compte aurait conduit à une réduction significative des taux de l’impôt sur le revenu, atteignant plus de 20 pour cent en Espagne et au Luxembourg. Pour les comparaisons des taux de l’impôt sur le revenu, certains lecteurs peuvent préférer se référer aux taux figurant dans les cinquième et sixième colonnes du tableau III.6 s’agissant de pays tels que le Luxembourg et l’Espagne dans lesquels un ouvrier moyen bénéficierait normalement d’allégements non-forfaitaires pour des montants importants. On a néanmoins calculé aussi les taux de l’impôt en utilisant la méthode normale pour l’ensemble des pays et ce sont les chiffres découlant de cette méthode qui sont utilisés dans les principaux tableaux et graphiques comparatifs C.

Limites relatives aux comparaisons de séries chronologiques

Il y a lieu de noter que les éditions précédentes de cette publication, jusqu’à celle de 1995 incluse, ne portaient que sur deux types de familles : les célibataires sans enfant et les couples mariés disposant d’un salaire unique et ayant deux enfants. Les revenus étaient les mêmes dans les deux cas et étaient égaux à ceux d’un ouvrier moyen. Ce champ d’application limité peut expliquer pourquoi les tableaux de l’Annexe II n’indiquent des chiffres portant sur la période 1979-2003 que pour ces deux types de familles. L’interprétation de l’évolution des résultats obtenus sur une certaine période de temps est également sujette à certaines limitations. Toute analyse dynamique de ces résultats doit tenir compte des réserves suivantes :

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• Les données relatives aux salaires ne se réfèrent pas nécessairement au même contribuable pendant toute la période considérée. Les salaires moyens dans l’industrie manufacturière sont calculés pour chaque année. De ce fait, les résultats ne se réfèrent pas à l’évolution dans le temps des gains et de la situation de certains individus au regard de l’impôt mais plutôt à la situation d’ouvriers qui, pour chaque année considérée, gagnent un salaire égal au salaire moyen dans l’industrie manufacturière. Cela peut signifier par ailleurs que le montant des salaires © OECD/OCDE 2004

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auquel il est fait référence peut se situer, au cours de la période considérée, à des niveaux différents sur l’éventail des revenus et les modifications des taux de l’impôt peuvent être influencées par ces évolutions. • Pour des raisons techniques les procédures suivies par les pays, pour établir les salaires de référence de l’ouvrier moyen, peuvent changer au cours du temps. Par exemple, à compter de cette édition, la France établit le salaire de l’ouvrier moyen sur la base de statistiques améliorées; en conséquence le rapport enregistre pour 1997 un accroissement additionnel de 5 à 7 pour cent (voir détails à la section 5 du chapitre par pays à la partie V de ce rapport). De même, au § 5.1 du chapitre par pays des Pays-Bas, il est mentionné que depuis 1994 le Bureau Central de Statistiques ne rapporte plus séparément les revenus des ouvriers manuels. A compter de l’édition de 1999 les Pays-Bas font l’hypothèse que le salaire des ouvriers dans l’industrie est en moyenne égal à 90 pour cent du salaire de l’ensemble des travailleurs de l’industrie, y compris les travailleurs à « cols blancs » ainsi que leurs superviseurs. • Dans certains cas, les impôts compris dans ce rapport pour un pays donné peuvent différer au cours du temps. Par exemple, à compter de cette édition, la Corée a élargi le champ des cotisations de sécurité sociale. Cette extension explique largement pourquoi le « coin fiscal » entre les coûts du travail et le salaire net d’un célibataire gagnant le SOM passe, dans le cas de la Corée, de 6.3 pour cent en 1996 à 12.4 pour cent en 1997. • Dans trois (Canada, Suisse et États-Unis) des douze pays où existent des impôts sur le revenu des collectivités décentralisées (États et collectivités locales) les taux de l’impôt appliqués à l’ouvrier moyen se réfèrent à une région où l’industrie manufacturière est particulièrement représentée (voir tableau III.7). En conséquence, si l’évolution des taux de l’impôt dans ces régions n’est pas représentative de celle observée dans les autres régions du pays, elle fournit une indication peu satisfaisante de l’évolution des taux moyens d’imposition au niveau national. L’interprétation des résultats obtenus appelle des précautions particulières lorsque plusieurs des limitations énumérées ci-dessous sont applicables à un pays donné. En effet, si chacune de ces limitations prises individuellement n’est pas susceptible de déformer les résultats obtenus, leur cumul peut avoir un impact important sur ces derniers. En conclusion, les données sont comparables pour les situations particulières auxquelles il est fait référence et les résultats obtenus montrent bien la part du salaire brut qui est conservée par le titulaire. Ce revenu net disponible peut être considéré comme la somme dont dispose le ménage pour exercer son libre choix en matière de dépenses. D. Limites relatives aux taux marginaux Dans le calcul des « coins fiscaux » marginaux concernant le conjoint, les éditions précédentes envisageaient le cas où le conjoint qui entre dans la vie active voyait son revenu augmenter de zéro à une unité monétaire donnée de revenu d’activité. Certes, ce cas n’est guère significatif et il est par conséquent moins intéressant étant donné qu’en général un conjoint qui entre dans la vie active bénéficiera d’une augmentation (discontinue) de ses gains plus importante qu’une seule unité monétaire. De plus, l’approche précédente ne tenait pas compte des « sauts » discontinus des cotisations de sécurité sociale et des crédits d’impôt non-remboursables qui s’appliquent dans le cadre de certains systèmes d’impôts et de prestations sociales lorsque le revenu d’activité du conjoint passe de zéro à une unité monétaire. Ces paiements/transferts qui ne sont pas proportionnels au revenu n’ont pas été pris en compte dans les taux d’imposition marginaux du conjoint dans le cas (100-0) étant donné que leur inclusion aurait abouti à des valeurs exceptionnellement élevées (positives/négatives) du ‘coin fiscal’ (par exemple excédant 1000 pour cent) qui risqueraient d’induire en erreur. Afin de pouvoir appliquer cette approche d’une manière plus rigoureuse, il a été décidé – à partir de l’édition de 1998 – de reconstituer le calcul du ‘coin fiscal’ marginal dans le cas (100-0) pour tenir compte du cas où le conjoint, lorsqu’il entre dans la vie active, bénéficie d’une augmentation de ses revenus salariaux de zéro unité monétaire à 33 pour cent du salaire de l’ouvrier moyen. © OECD/OCDE 2004

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On notera qu’un certain nombre de pays Membres de l’OCDE appliquent des conditions de ressources aux prestations en espèces et/ou aux allégements fiscaux. Par conséquent, le bénéfice de ces mesures est moindre lorsque le revenu augmente. Pour les salariés, la réduction de la prestation équivaut à un impôt additionnel et a donc pour effet d’augmenter leur taux marginal combiné (explicite et implicite) d’imposition.

NOTE SUR LES ÉQUATIONS FISCALES Chaque chapitre par pays contient une section qui décrit les équations présentées sous une forme normalisée indiquant les calculs nécessaires pour obtenir le montant de l’impôt sur le revenu, des cotisations de sécurité sociale et des transferts en espèces. Ces algorithmes représentent sous une forme algébrique les dispositions légales décrites dans le chapitre et correspondent aux chiffres indiqués dans les tableaux par pays et les tableaux comparatifs. Cette section décrit les conventions utilisées dans la définition des équations et indique la manière dont elles pourraient être appliquées à d’autres recherches. Les sections précédentes des chapitres par pays décrivent le mode de fonctionnement des systèmes fiscaux et des autres systèmes ainsi que les valeurs des paramètres de ces systèmes, tels que le montant des abattements et des crédits d’impôt et les barèmes d’imposition. La première partie de la section concernant les équations est un tableau qui décrit brièvement chaque paramètre (tel que le « Crédit d’impôt de base »), indique le nom du paramètre tel qu’il est utilisé dans l’équation algébrique (« Basic_cred ») et la valeur actuelle pour l’année considérée (telle que « 1098 »). Lorsqu’il existe un tableau de valeurs – par exemple un barème des taux d’imposition et des seuils de revenu imposable correspondants – un nom est donné à l’ensemble du tableau (par exemple « tax_sch »). Ces noms de variables sont ceux qui sont utilisés dans les équations. A la suite du tableau des paramètres se trouve le tableau d’équations. Les quatre colonnes contiennent les informations suivantes : • Les deux premières colonnes contiennent une description et indiquent le nom de la variable correspondant au résultat de l’équation mentionnée sur la même ligne. Elles incluent toujours les treize principales rubriques financières des tableaux par pays. Des lignes supplémentaires définissent des valeurs intermédiaires qui sont calculées soit pour faire apparaître de manière plus détaillée les données figurant dans les tableaux (telles que la ventilation des abattements fiscaux totaux entre les différentes catégories) ou des montants qui facilitent les calculs. • La troisième colonne indique l’intervalle de calcul dans cette ligne. Cette indication est nécessaire pour tenir compte des différents modes de calcul possibles de l’impôt dû par les couples mariés. Les différentes options sont les suivantes : – B Le calcul est effectué séparément aussi bien en ce qui concerne le revenu principal que celui du conjoint et en utilisant les niveaux de rémunération de chacun d’entre eux. Cela vaut pour les cas où il y a imposition séparée et aussi en général pour les cotisations de sécurité sociale. – P Le calcul s’applique uniquement au revenu principal. On peut citer comme exemple le cas où le titulaire du revenu principal peut utiliser tous les abattements à la base de son conjoint qui ne peuvent être déduits des revenus de celui-ci. – S Le calcul s’applique seulement au conjoint dont le revenu est le plus faible.

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– J Le calcul est effectué une seule fois sur la base du revenu cumulé. Cela vaut pour les systèmes d’imposition conjointe ou familiale et cette méthode est également courante pour le calcul des prestations en espèces au titre des enfants à charge. © OECD/OCDE 2004

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• La dernière colonne contient l’équation elle-même. Celle-ci peut se référer aux variables figurant dans le tableau des paramètres et aux variables qui résultent de l’une des lignes du tableau d’équations lui-même. On utilise également deux variables standards, « marié », qui prend la valeur 1 si la famille est constituée par un couple marié et 0 dans le cas d’un célibataire, et « enfants », qui indique le nombre d’enfants. Parfois, il est fait référence à une variable à laquelle s’ajoute l’affixe « total » qui indique la somme des valeurs des variables à prendre en compte pour le titulaire du revenu principal et son conjoint. De même les affixes « _princ » et « _conjoint » indiquent respectivement les valeurs concernant le titulaire du revenu principal et son conjoint. Dans les équations, un certain nombre de fonctions sont utilisées. Certaines d’entre elles sont utilisées de la même manière que dans un certain nombre de programmes informatiques d’utilisation courante. Par exemple, MAX(X, Y) et MIN(X, Y) permettent de trouver respectivement la valeur maximum et la valeur minimum. IF (condition, X, Y) choisit l’expression X si la condition est vérifiée et l’expression Y si elle ne l’est pas. Des expressions booléennes sont également utilisées et l’on admet qu’elles ont la valeur 1 si l’expression est vérifiée et 0 si elle ne l’est pas. Par exemple, (enfants=2*CB_2 est équivalent à IF(enfant=2, CB_2,0). Il y a aussi trois fonctions spéciales généralement utilisées qui font apparaître les calculs souvent nécessaires dans le cadre des systèmes d’impôt et de sécurité sociale. Ces fonctions sont les suivantes : • Tax (taxinc, tax_sch) : cette fonction calcule le résultat obtenu en appliquant le barème d’imposition et les différents seuils dans « tax_sch » à la valeur du revenu imposable représenté par « taxinc ». Cette fonction peut être utilisée dans toutes les parties des équations et non pas seulement dans le calcul de l’impôt sur le revenu. Pour certains pays, elle est utilisée en ce qui concerne les cotisations de sécurité sociale ou même pour les niveaux de prestations qui pourraient dépendre des revenus. • Positive (X) : cette fonction donne le résultat X lorsque cette valeur est positive et 0 dans les autres cas. Elle est donc équivalente à MAX(0,X). • Taper (valeur, revenu, seuil, taux) : cette fonction indique le montant représenté par « valeur si le « revenu » est inférieur au « seuil ». Sinon elle indique la « valeur » réduite par le « taux » multiplié par (revenu-seuil) à moins que cela ne donne un résultat négatif auquel cas on revient à zéro. Cette fonction indique le calcul qui est parfois nécessaire lorsque, par exemple, un crédit d’impôt peut être accordé en totalité sous réserve que le revenu total soit inférieur à un certain seuil mais se trouve ensuite retiré à un taux donné pour chaque unité monétaire à partir de ce seuil jusqu’à son retrait complet. Dans certains cas, il existe des fonctions spécifiques à chaque pays. Ces fonctions font intervenir un programme conçu pour simplifier les calculs fiscaux. Ce programme repose sur la mesure fiscale considérée qui est décrite au chapitre V. Par exemple, le crédit d’impôt pour les revenus du travail en vigueur aux États-Unis est calculé à l’aide de la fonction EIC. Quiconque souhaite utiliser ces équations à d’autres fins devra établir des fonctions correspondant à ces fonctions spéciales ou apporter les modifications appropriées aux équations qui les utilisent.

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

NOTES 1. Les estimations des salaires indiqués dans les Perspectives économiques correspondent aux informations qui figurent dans la Base de données analytique du Département des affaires économiques de l’OCDE. Ces estimations sont établies par les bureaux du Département des affaires économiques chargés des différents pays. Les données qui figurent dans la Base de données analytique EO73 correspondent au numéro de juin 2003 (n° 73) des Perspectives économiques, qui était le numéro le plus récent au moment où cette étude a été effectuée. 2. On trouvera dans la publication Les pouvoirs fiscaux des administrations infranationales, Études de politique fiscale de l'OCDE n° 1 (Paris, 1999) toutes informations concernant les compétences fiscales des administrations infranationales. 3. Dans ce cas, le montant de la déduction d’impôt est lié aux cotisations de sécurité sociale réellement versées par le salarié ou retenues sur son salaire - par conséquent, ce poste s’écarte de la définition générale des abattements forfaitaires selon laquelle ces abattements sont indépendants des dépenses effectivement encourues. 4. Statistiques des recettes publiques de l’OCDE, 1965-2002, p. 291. 5. Statistiques des recettes publiques de l’OCDE, 1965-2000, p. 28-31. 6. Statistiques des recettes publiques de l’OCDE, 1965-2002, Table D, p. 22-24. 7. Cette caractérisation doit être considérée comme informelle car il faudrait, pour déterminer les dépenses fiscales, trouver un système fiscal de référence pour chaque pays ou, mieux encore, une référence internationale commune. Dans les faits, il n’a pas été possible de s’accorder sur le choix d’une référence internationale à cette fin.

168

© OECD/OCDE 2004

Part IV

COUNTRY TABLES, 2003 All thirty country tables in this part of the report have a similar format. The left hand page of each table specifies the tax-benefit position of single persons in four cases, which differ by wage level (67/ 100/167 per cent of the APW wage level), and the presence of children (0/2). The right hand page of the table specifies the tax-benefit position of married couples, again discerning between four cases, which now differ by wage level (0/33/67/100 per cent of the APW wage level), the presence of children (0/2) and one-/two-earner situations. All tables start with gross wage earnings (line 1) and derive taxable income for the personal income tax levied by central government (line 4), taking into account a number of standard tax allowances (line 2) and taxable cash transfers (line 3). Taxable income allows one to determine central government income tax paid (line 7), including reductions in the form of tax credits (line 6). Total payments to general government (line 10) also include state and local income taxes (line 8) and employees’ compulsory social security contributions (line 9). Take-home pay (line 12) is calculated as gross wage earnings less all payments to general government, plus universal cash transfers received from general government (line 11). Line 13 reports employers’ compulsory social security contributions (including payroll taxes). Average tax rates (line 14) are then calculated as: • the share of income tax in gross wage earnings; • the share of employees’ social security contributions in gross wage earnings; • the share of income tax and employees’ social security contributions minus benefits in gross wage earnings; and, • the share of income tax and all social security contributions minus benefits in gross labour costs. Marginal tax rates (line 15) are calculated similarly as: • the increase in income tax and employees’ contributions minus benefits as a share of the related increase in gross wage earnings (both for the principal earner and the spouse); and, • the increase in tax and all social security contributions minus benefits as a share of the related increase in gross labour costs (both for the principal earner and the spouse).

169

© OECD/OCDE 2004

Partie IV

TABLEAUX PAR PAYS, 2003 Les trente tableaux par pays qui figurent dans cette partie de l’ouvrage sont présentés de la même manière. La page de gauche de chaque tableau précise la situation au regard de l’impôt et des prestations sociales de personnes célibataires dans quatre cas, qui diffèrent par le niveau de salaire (67/100/167 pour cent du niveau de salaire de l’ouvrier moyen) et la présence d’enfants (0/2). La page de droite du tableau précise la situation, au regard de l’impôt et des prestations sociales, des couples mariés, en distinguant là encore quatre cas, qui diffèrent ici par le niveau de salaire (0/33/67/100 pour cent du niveau de salaire de l’ouvrier moyen), la présence d’enfants (0/2) et l’existence d’un seul ou de deux salaires. Tous les tableaux commencent par le salaire brut (ligne 1) et en déduisent le revenu imposable au titre de l’impôt sur le revenu des personnes physiques perçu par l’administration centrale (ligne 4) compte tenu d’un certain nombre d’abattements forfaitaires (ligne 2) et de prestations en espèces imposables (ligne 3). Le revenu imposable permet de déterminer l’impôt sur le revenu versé à l’administration centrale (ligne 7) compte tenu des réductions sous forme de crédits d’impôt (ligne 6). L’ensemble des versements aux administrations publiques (ligne 10) inclut également les impôts sur le revenu versés à un niveau autre que celui de l’administration centrale (ligne 8) et les cotisations de sécurité sociale obligatoires des salariés (ligne 9). Le revenu disponible (ligne 12) est calculé à partir du salaire brut dont on retranche l’ensemble des versements aux administrations publiques et auquel on ajoute les prestations sociales en espèces d’application générale reçues des administrations publiques (ligne 11). La ligne 13 indique les cotisations patronales de sécurité sociale obligatoires (l’impôt sur les salaires est inclus). Les taux moyens d’imposition (ligne 14) sont ensuite calculés sous la forme suivante : • la part de l’impôt sur le revenu dans le salaire brut ; • la part des cotisations salariales de sécurité sociale dans le salaire brut ; • la part de l’impôt sur le revenu et des cotisations de sécurité sociale des salariés moins les avantages dans le salaire brut ; et, • la part de l’impôt sur le revenu et de l’ensemble des cotisations de sécurité sociale moins les avantages dans les coûts bruts de main-d’oeuvre. Les taux marginaux d’imposition (ligne 15) sont exprimés de même sous la forme suivante : • l’augmentation de l’impôt sur le revenu et des cotisations de sécurité sociale moins les avantages des salariés en pourcentage de l’augmentation correspondante du salaire brut (pour le titulaire du revenu principal et pour son conjoint) ; et, • l’augmentation des impôts et des cotisations dues moins les avantages en pourcentage de l’augmentation correspondante des coûts bruts de main-d’œuvre (à la fois pour le titulaire du revenu principal et pour son conjoint). 171

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Australia

1. 2.

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

33821

50732

84553

33821

0 0 33821

0 0 50732

0 0 84553

0 1 33822

6318 507

11392 761

26547 1268

6319 507

6826

12153

27815

6826

0 0

0 0

0 0

0 0

0 6826 0 0

0 12153 0 0

0 27815 0 0

0 6826 0 0

6826

12153

27815

6826

0 0 0

0 0 0

0 0 0

152 8840 8992

26996 2029

38579 3044

56738 5073

35987 2029

20.2% 0.0% 20.2%

24.0% 0.0% 24.0%

32.9% 0.0% 32.9%

20.2% 0.0% -6.4%

24.7%

28.3%

36.7%

-0.4%

31.5% n.a. 35.4%

31.5% n.a. 35.4%

48.5% n.a. 51.4%

58.9% n.a. 61.2%

n.a.

n.a.

n.a.

n.a.

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total

3. 4. 5.

Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Income tax Medicare Levy Total

6.

Tax credits Basic credit Married or head of family Children Other Total

7. 8. 9.

Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ payroll tax 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer payroll taxes 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

172

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Australia

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

1. 2.

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

3. 4. 5.

Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Income tax Medicare Levy

Total

Total 6.

Tax credits Basic credit Married or head of family Children Other Total

7. 8. 9. 10. 11.

Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total

12. Take-home pay (1-10+11) 13. Employers’ payroll tax 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer payroll taxes 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

100-33 2

100-67 2

100-33 none

50732

67643

84553

67643

0 0 50732

0 0 67643

0 0 84553

0 0 67643

11392 761 12153

13246 1015 14261

17710 1268 18978

13246 1015 14261

0 0

235 0

0 0

235 0

0 12153 0 0 12153

235 14026 0 0 14026

0 18978 0 0 18978

235 14026 0 0 14026

0 4227 4227 42806 3044

0 2190 2190 55807 4059

0 2190 2190 67765 5073

0 0 0 53617 4059

24.0% 0.0% 15.6% 20.4%

20.7% 0.0% 17.5% 22.2%

22.4% 0.0% 19.9% 24.4%

20.7% 0.0% 20.7% 25.2%

31.5% 23.1% 35.4% 27.5%

31.5% 18.5% 35.4% 23.1%

31.5% 31.5% 35.4% 35.4%

31.5% 18.5% 35.4% 23.1%

173

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Austria

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

16270

24405

40675

16270

60

60

60

60

2938 132 945 4075 0 12195 1981

4407 132 1108 5707 0 18698 3873

7345 132 1434 8970 0 31705 8392

2938 132 945 4075 0 12195 1855

887 0

887 0

887 0

887 364

345 1232 749 0

345 1232 2641 0

345 1232 7160 0

345 1596 259 0

2938

4407

7345

2938

2938 3687

4407 7047

7345 14504

2938 3196

0 0 12583

0 0 17358

0 0 26171

4517 4517 17590

3535 1220 4755

5303 1830 7133

8838 3051 11889

3535 1220 4755

4.6% 18.1% 22.7% 40.2%

10.8% 18.1% 28.9% 45.0%

17.6% 18.1% 35.7% 50.2%

1.6% 18.1% -8.1% 16.3%

42.1% n.a. 55.2% n.a.

42.6% n.a. 55.6% n.a.

49.8% n.a. 61.1% n.a.

51.6% n.a. 62.6% n.a.

54 0

54 0

54 0

418 0

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (excl. of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10.

Total payments to general government (7 + 8 + 9)

11.

Cash transfers from general government For head of family For two children Total

12.

Take-home pay (1-10+11)

13.

Employer’s wage dependent contributions and taxes Employer’s social security conttributions Payroll taxes Total

14.

Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge incl. employer’s social security contr. and pay-roll taxes

15.

Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits tax expenditure component

174

cash transfer component

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Austria

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100-67 2

100-33 none

24405

32540

40675

32540

60

120

120

120

4407 132 1108 5707 0

5876 264 1891 8151 0

7345 264 2054 9782 0

5876 264 1891 8151 0

18698 3873

24389 4231

30893 5853

24389 4231

887 364

1774 0

1774 0

1774 0

345 1596 2277 0

690 2464 2531 0

690 2464 3389 0

690 2464 2531 0

4407

5876

7345

5876

4407 6683

5876 8406

7345 10734

5876 8406

4517 4517 22238

4517 4517 28650

4517 4517 34458

0 0 24134

5303 1830 7133

7070 2441 9511

8838 3051 11889

7070 2441 9511

9.3% 18.1% 8.9% 29.5%

7.8% 18.1% 12.0% 31.9%

8.3% 18.1% 15.3% 34.4%

7.8% 18.1% 25.8% 42.6%

42.6% 21.2% 55.6% 39.0%

42.6% 18.1% 55.6% 36.6%

42.6% 42.1% 55.6% 55.2%

42.6% 18.1% 55.6% 36.6%

418 0

164 0

108 0

164 0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (excl. of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10.

Total payments to general government (7 + 8 + 9)

11.

Cash transfers from general government For head of family For two children Total

12.

Take-home pay (1-10+11)

13.

Employer’s wage dependent contributions and taxes Employer’s social security conttributions Payroll taxes Total

14.

Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge incl. employer’s social security contr. and pay-roll taxes

15.

Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits tax expenditure component cash transfer component

© OECD/OCDE 2004

175

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Belgium

1.

Gross gross earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

20825

31238

52063

20825

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes

2722

4083

6805

2722

Work-related expenses

1962

2234

2777

1962

4684 0

6316 0

9581 0

4684 0

16141 5221

24922 9172

42482 17711

16141 5221

54 1393 0

0 1393 0

0 1393 0

54 1688 917

1447 3774 268

1393 7780 545

1393 16319 1142

2658 2563 183

2722 0 2722 6764

4083 273 4356 12680

6805 501 7306 24767

2722 0 2722 5468

0 0 14061 5946

0 0 18558 9547

0 0 27296 16748

2938 2938 18295 5946

19.4% 13.1% 32.5% 47.5%

26.6% 13.9% 40.6% 54.5%

33.5% 14.0% 47.6% 60.3%

13.2% 13.1% 12.1% 31.7%

59.3% n.a. 69.7% n.a.

54.8% n.a. 66.4% n.a.

59.3% n.a. 69.7% n.a.

59.3% n.a. 69.7% n.a.

54 0

0 0

0 0

971 0

Other Total 3.

Tax credits or cash transfers included in taxable income

4. 5. 6.

Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total

7. 8. 9.

Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits tax expenditure component cash transfer component

176

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Belgium

2003 The tax/benefit position of married couples 100-0 100-33 Wage level (per cent of APW) Number of children 2 2

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13. 14.

15.

100-67 2

100-33 none

Gross gross earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

31238

41651

52063

41651

4083 2234

5444 3808

6805 4196

5444 3808

Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employer’s compulsory social security contributions Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

6316 0 24922 7709

9251 0 32399 10991

11000 0 41063 14393

9251 0 32399 10991

0 2305 804

260 2305 804

54 2305 804

260 2305 0

3109 4600 322

3369 7622 552

3163 11230 790

2565 8426 608

4083 273 4356 9278

5444 370 5814 13988

6805 483 7288 19308

5444 370 5814 14848

2938 2938 24898 9547

2938 2938 30601 10202

2938 2938 35693 15493

0 0 26803 10202

15.8% 13.9% 20.3% 39.0%

19.6% 14.0% 26.5% 41.0%

23.1% 14.0% 31.4% 47.2%

21.7% 14.0% 35.6% 48.3%

50.7% 45.2% 63.4% 48.5%

54.8% 53.9% 66.4% 65.8%

54.8% 60.4% 66.4% 70.6%

54.8% 53.9% 66.4% 65.8%

804 0

1064 0

858 0

260 0

Memorandum item: Non-wastable tax credits tax expenditure component cash transfer component

177

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Canada

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1.

Gross wage earnings

2.

Standard tax allowances

100 none

167 none

67 2

26735

40103

66838

26735

0

0

0

0

0

0

0

0

26735

40103

66838

26735

4278

6892

12872

4278

1241

1241

1241

1241

0

0

0

1054

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other(CPP & EI) Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings

0

0

0

0

274

419

419

274

1515

1660

1660

2569

2763 1041

5231 2032

11212 4673

1709 0

1712

2621

2621

1712

1712

2621

2621

1712

5515

9885

18505

3421

339

0

0

339

0

0

0

5689

Taxable income Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children

339

0

0

6028

21559

30218

48333

29342

3030

4589

5656

3030

14.2%

18.1%

23.8%

6.4%

6.4%

6.5%

3.9%

6.4%

19.4% 27.6%

24.6% 32.4%

27.7% 33.3%

-9.8% 1.4%

Total payments less cash transfers: Spouse

27.5% n.a.

31.1% n.a.

39.4% n.a.

52.6% n.a.

Total tax wedge: Principal earner

35.3%

33.9%

40.6%

57.7%

n.a.

n.a.

n.a.

n.a.

Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

Total tax wedge: Spouse

178

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Canada

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

100-67 2

100-33 none

40103

53471

66838

53471

0

0

0

0

0

0

0

0

40103

53471

66838

53471

6892

9031

11169

9031

Basic credit

1241

2482

2482

2482

Married or head of family

1054

0

0

0

0

0

0

0

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total

3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits

Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings

419

542

693

542

2714

3024

3175

3024

4178 1564

6006 2249

7994 3073

6006 2249

2621

3390

4332

3390

Taxable income Total 10. Total payments to general government (7 + 8 + 9)

2621

3390

4332

3390

8362

11645

15400

11645

11. Cash transfers from general government

0

0

0

0

2556

1901

1366

0

2556

1901

1366

0

34297

43727

52805

41825

4589

6017

7618

6017

14.3%

15.4%

16.6%

15.4%

6.5%

6.3%

6.5%

6.3%

14.5% 23.3%

18.2% 26.5%

21.0% 29.1%

21.8% 29.7%

Total payments less cash transfers: Spouse

49.3% 29.5%

35.2% 37.2%

35.2% 31.5%

31.2% 33.2%

Total tax wedge: Principal earner

51.3%

37.7%

37.7%

33.9%

Total tax wedge: Spouse

36.3%

43.9%

38.9%

40.3%

For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

179

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Czech Republic

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

147182

220773

367955

147182

38040 0 0 18398

38040 0 0 27597

38040 0 0 45994

38040 0 47040 18398

Total

56438 0 90744 13612

65637 0 155136 25567

84034 0 283921 54600

103478 0 43704 6556

Total

0 13612 0

0 25567 0

0 54600 0

0 6556 0

18398

27597

45994

18398

18398 32009

27597 53164

45994 100595

18398 24953

0 0 115173 51514

0 0 167609 77271

0 0 267360 128784

35386 35386 157614 51514

9.2% 12.5% 21.7% 42.0%

11.6% 12.5% 24.1% 43.8%

14.8% 12.5% 27.3% 46.2%

4.5% 12.5% -7.1% 20.7%

25.6% n.a. 44.9% n.a.

30.0% n.a. 48.1% n.a.

34.4% n.a. 51.4% n.a.

47.1% n.a. 60.8% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

180

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Czech Republic

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

220773

294364

367955

294364

38040 21720 47040 27597

76080 0 47040 36796

76080 0 47040 45994

76080 0 0 36796

Total

134397 0 86376 12956

159916 0 134449 20167

169114 0 198841 29826

112876 0 181489 29520

Total

0 12956 0

0 20167 0

0 29826 0

0 29520 0

27597

36796

45994

36796

27597 40553

36796 56963

45994 75820

36796 66316

26587 26587 206806 77271

15000 15000 252401 103027

7512 7512 299647 128784

0 0 228048 103027

5.9% 12.5% 6.3% 30.6%

6.9% 12.5% 14.3% 36.5%

8.1% 12.5% 18.6% 39.7%

10.0% 12.5% 22.5% 42.6%

42.9% 38.0% 57.7% 54.1%

25.6% 25.6% 44.9% 44.9%

25.6% 25.6% 44.9% 44.9%

30.0% 25.6% 48.1% 44.9%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

181

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Denmark

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

211181

316772

527953

211181

19900 7344

29403 7344

48410 7344

19900 7344

27244 0 183937 10520

36747 0 280025 21167

55754 0 472200 70720

27244 0 183937 10520

1958

1958

1958

1958

1958 8562 49396

1958 19209 81393

1958 68762 145388

1958 8562 49396

25133

33580

50474

25133

25133 83091

33580 134183

50474 264624

25133 83091

0 0 128090 1789

0 0 182589 1789

0 0 263330 1789

53704 53704 181794 1789

27.4% 11.9% 39.3% 39.9%

31.8% 10.6% 42.4% 42.7%

40.6% 9.6% 50.1% 50.3%

27.4% 11.9% 13.9% 14.6%

43.3% n.a. 43.3% n.a.

48.8% n.a. 48.8% n.a.

62.3% n.a. 62.3% n.a.

43.3% n.a. 43.3% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

182

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Denmark

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

316772

422363

527953

422363

29403 7344

39801 14688

49304 14688

39801 14688

36747 0 280025 15805

54489 0 367874 21041

63992 0 463962 31285

54489 0 367874 21041

5874

3916

3916

3916

5874 11889 69539

3916 17125 98792

3916 27369 130790

3916 17125 98792

33580

50265

58712

50265

33580 115008

50265 166182

58712 216871

50265 166182

20900 20900 222664 1789

20900 20900 277080 3578

20900 20900 331983 3578

0 0 256180 3578

25.7% 10.6% 29.7% 30.1%

27.4% 11.9% 34.4% 34.9%

30.0% 11.1% 37.1% 37.5%

27.4% 11.9% 39.3% 39.9%

43.3% 48.5% 43.3% 49.3%

43.3% 43.3% 43.3% 43.3%

48.8% 48.8% 48.8% 48.8%

43.3% 43.3% 43.3% 43.3%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general governmen For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

183

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Finland

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

19259

28888

48147

19259

Deduction for social security contributions and income taxes

924

1387

2311

924

Work-related expenses

590

590

590

590

1514

1977

2901

1514

0

0

0

0

17744

26911

45246

17744

879

2761

7637

879

0

0

0

0

879 2769

2761 4483

7637 7910

879 2769

1155

1760

2969

1155

1155

1760

2969

1155

4803

9003

18516

4803

0

0

0

3212

0

0

0

3212

14456

19885

29631

17668

4622

6933

11555

4622

18.9%

25.1%

32.3%

18.9%

6.0%

6.1%

6.2%

6.0%

24.9% 39.5%

31.2% 44.5%

38.5% 50.4%

8.3% 26.0%

Total payments less cash transfers: Spouse

39.3% n.a.

45.0% n.a.

50.7% n.a.

39.3% n.a.

Total tax wedge: Principal earner

51.1%

55.7%

60.3%

51.1%

n.a.

n.a.

n.a.

n.a.

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance Married or head of family Dependent children

Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

Total tax wedge: Spouse

184

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Finland

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

28888

38517

48147

38517

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses

1387

1849

2311

1849

590

1180

1180

1180

1977

3029

3491

3029

0

0

0

0

26911

35489

44656

35489

2761

2761

3640

2761

0

0

0

0

2761 4483

2761 5536

3640 7252

2761 5536

1760

2309

2914

2309

Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

1760

2309

2914

2309

9003

10606

13805

10606

2406

2406

2406

0

2406

2406

2406

0

22291

30317

36747

27911

6933

9244

11555

9244

25.1%

21.5%

22.6%

21.5%

6.1%

6.0%

6.1%

6.0%

22.8% 37.8%

21.3% 36.5%

23.7% 38.4%

27.5% 41.6%

Total payments less cash transfers: Spouse

45.0% 16.7%

45.0% 23.8%

45.0% 39.3%

45.0% 23.8%

Total tax wedge: Principal earner

55.7%

55.7%

55.7%

55.7%

Total tax wedge: Spouse

32.8%

38.6%

51.1%

38.6%

Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

185

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

France

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100 none

167 none

67 2

15022

22533

37555

15022

2205

3308

5565

2205

2771 1225

4156 1838

6638 3092

2771 1225

6201 0 8821 1355

9302 0 13231 2983

15295 0 22260 6636

6201 0 8821 1142

328 328 1027 0

0 0 2983 0

0 0 6636 0

424 424 717 0

2043

3064

4819

2043

2043 3070

3064 6047

4819 11455

2043 2760

0 0 0 11952 4146

0 0 0 16486 9369

0 0 0 26100 15440

1335 -67 1268 13530 4146

6.8% 13.6% 20.4% 37.6%

13.2% 13.6% 26.8% 48.3%

17.7% 12.8% 30.5% 50.7%

4.8% 13.6% 9.9% 29.4%

47.6% n.a. 74.1% n.a.

32.8% n.a. 52.5% n.a.

35.6% n.a. 53.8% n.a.

30.2% n.a. 65.5% n.a.

328

0

0

424

0

0

0

0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family (Gross) For two children (Gross) CRDS Deducted Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credit tax expenditure component cash transfer component

186

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

France

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100-67 2

100-33 none

22533

30044

37555

30044

3308

4410

5513

4410

4156 1838

5542 2450

6927 3063

5542 2450

9302 0 13231 1713

12402 0 17642 2433

15503 0 22052 3471

12402 0 17642 3083

111 111 1602 0

302 302 2132 0

360 360 3110 0

270 270 2814 0

3064

4086

5107

4086

3064 4666

4086 6218

5107 8218

4086 6900

1335 -67 1268 19135 9369

1335 -67 1268 25095 11125

1335 -67 1268 30605 13516

0 0 0 23144 11125

7.1% 13.6% 15.1% 40.0%

7.1% 13.6% 16.5% 39.0%

8.3% 13.6% 18.5% 40.1%

9.4% 13.6% 23.0% 43.8%

21.2% 20.7% 44.3% 35.7%

27.4% 23.8% 48.7% 38.3%

27.4% 36.4% 48.7% 68.5%

32.8% 29.2% 52.5% 42.6%

111

302

360

270

0

0

0

0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family (Gross) For two children (Gross) CRDS Deducted Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credit tax expenditure component cash transfer component

187

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Germany

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1.

Gross wage earnings

2.

Standard tax allowances

22540

100 none

167 none

67 2

33810

56350

22540

Basic allowance

0

0

0

2340

0 2001

0 2001

0 2001

0 2001

1044 36

1044 36

1044 36

1044 36

3081

3081

3081

5421

0 19459 3248

0 30729 7035

0 53269 16846

0 17119 2423

0

0

0

3696

0 3248

0 7035

0 16846

3696 -1273

0

0

0

0

4745

7117

10658

4745

4745

7117

10658

4745

7993

14152

27504

3472

0 14547

0 19658

0 28846

0 19068

4745

7117

10658

4745

Income tax

14.4%

20.8%

29.9%

-5.6%

Employees’ social security contributions Total payments less cash transfers

21.1% 35.5%

21.1% 41.9%

18.9% 48.8%

21.1% 15.4%

Total tax wedge including employer’s social security contributions

46.7%

52.0%

57.0%

30.1%

Total payments less cash transfers: Principal earner

51.3%

58.0%

63.2%

48.5%

Total payments less cash transfers: Spouse

n.a. 59.8%

n.a. 65.3%

n.a. 67.4%

n.a. 57.4%

n.a.

n.a.

n.a.

n.a.

tax expenditure component

0

0

0

2423

cash transfer component

0

0

0

1273

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates

15. Marginal rates

Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credit

188

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Germany

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances

100-67 2

100-33 none

33810

45080

56350

45080

0 4728

0 4002

0 4002

0 4002

1044 72

2088 72

2088 72

2088 72

5844

6162

6162

6162

0 27966 3184

0 38918 6324

0 50188 9915

0 38918 6497

3696

3696

3696

0

3696 -512

3696 2628

3696 6219

0 6497

0

0

0

0

7117

9489

11862

9489

7117

9489

11862

9489

6605

12117

18081

15986

0 27205

0 32963

0 38269

0 29094

7117

9489

11862

9489

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax

-1.5%

5.8%

11.0%

14.4%

Employees’ social security contributions Total payments less cash transfers

21.1% 19.5%

21.1% 26.9%

21.1% 32.1%

21.1% 35.5%

Total tax wedge including employer’s social security contributions

33.5%

39.6%

43.9%

46.7%

Total payments less cash transfers: Principal earner

50.8%

51.2%

54.5%

51.3%

Total payments less cash transfers: Spouse Total tax wedge: Principal earner

47.5% 59.4%

51.2% 59.7%

54.5% 62.4%

51.3% 59.8%

Total tax wedge: Spouse

56.6%

59.7%

62.4%

59.8%

3184

3696

3696

0

512

0

0

0

15. Marginal rates

Memorandum item: Non-wastable tax credit tax expenditure component cash transfer component

189

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Greece

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

7939

11908

19847

8733

1262

1893

3156

1388

0

0

0

0

1262

1893

3156

1388

0

0

0

0

6676

10015

16691

7344

0

2

1497

0

0

0

0

0

0

0

0

0

0 0

2 0

1497 0

0 0

1262

1893

3156

1388

1262

1893

3156

1388

1262

1896

4653

1388

0

0

0

0

0

0

0

0

12. Take-home pay (1-10+11)

6676

10012

15194

7344

13. Employer’s compulsory social security contributions

2220

3329

5549

2442

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total

3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total

14. Average rates

0.0%

0.0%

7.5%

0.0%

Employees’ social security contributions

15.9%

15.9%

15.9%

15.9%

Total payments less cash transfers

15.9% 34.3%

15.9% 34.3%

23.4% 40.2%

15.9% 34.3%

Total payments less cash transfers: Spouse

15.9% n.a.

28.5% n.a.

41.1% n.a.

15.9% n.a.

Total tax wedge: Principal earner

34.3%

44.1%

54.0%

34.3%

n.a.

n.a.

n.a.

n.a.

Income tax

Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

Total tax wedge: Spouse

190

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Greece

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances

100-67 2

100-33 none

14290

18259

22228

17068

2272

2903

3534

2714

0

0

0

0

2272

2903

3534

2714

0

0

0

0

12018

15356

18694

14354

3

3

3

152

0

0

0

0

0

0

0

0

3 0

3 0

3 0

152 0

2272

2903

3534

2714

2272

2903

3534

2714

2275

2906

3537

2866

0

0

0

0

0

0

0

0

12015

15353

18691

14202

3995

5105

6215

4772

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates

0.0%

0.0%

0.0%

0.9%

Employees’ social security contributions

15.9%

15.9%

15.9%

15.9%

Total payments less cash transfers

15.9% 34.3%

15.9% 34.3%

15.9% 34.3%

16.8% 35.0%

Total payments less cash transfers: Spouse

28.5% 15.9%

28.5% 15.9%

28.5% 15.9%

28.5% 15.9%

Total tax wedge: Principal earner

44.1%

44.1%

44.1%

44.1%

Total tax wedge: Spouse

34.3%

34.3%

34.3%

34.3%

Income tax

Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

191

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Hungary

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13.

14.

167 none

67 2

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

776610 1164915 1941525

776610

0 0

0 0

Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employer’s wage dependent contributions and taxes Employer’s compulsory social security contributions Payroll taxes Total Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions

0 0 0 0 0 0 776610 1164915 1941525 167983 284475 576610

0 0 776610 167983

108000

108000

1526

108000

0 16503 124503 43480 0

0 24754 132754 151720 0

0 41257 42783 533827 0

43480 16503 167983 0 0

97076

145614

242691

97076

97076 140556

145614 297334

242691 776518

97076 97076

0 0 636054

0 0 0 0 867581 1165007

169000 169000 848534

248515 53049 301564

372773 58874 431647

621288 70523 691811

248515 53049 301564

5.6% 12.5% 18.1% 41.0%

13.0% 12.5% 25.5% 45.7%

27.5% 12.5% 40.0% 55.8%

0.0% 12.5% -9.3% 21.3%

40.4% n.a. 55.3% n.a.

40.4% n.a. 55.3% n.a.

68.4% n.a. 76.3% n.a.

12.5% n.a. 34.5% n.a.

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

0 0

100 none

0 0

192

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Hungary

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13.

14.

15.

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

100-67 2

100-33 none

1164915 1553220 1941525 1553220

0 0

0 0

0 0

0 0

Total 0 0 0 0 Tax credits or cash transfers included in taxable income 0 0 0 0 Central government taxable income (1 - 2 + 3) 1164915 1553220 1941525 1553220 Central government income tax liability (exclusive of tax credits) 284475 362136 452458 362136 Tax credits Basic credit 108000 177895 216000 177895 Married or head of family Children 96000 96000 96000 0 Other 24754 32521 41257 32521 Total 228754 306415 353257 210415 Central government income tax finally paid (5-6) 55720 55720 99200 151720 State and local taxes 0 0 0 0 Employees’ compulsory social security contributions Gross earnings 145614 194153 242691 194153 Taxable income Total 145614 194153 242691 194153 Total payments to general government (7 + 8 + 9) 201334 249873 341891 345873 Cash transfers from general government For head of family For two children 145600 145600 145600 0 Total 145600 145600 145600 0 Take-home pay (1-10+11) 1109181 1448947 1745234 1207347 Employer’s wage dependent contributions and taxes Employer’s compulsory social security contributions 372773 497030 621288 497030 Payroll taxes 58874 106098 111923 106098 Total 431647 603129 733211 603129 Average rates Income tax 4.8% 3.6% 5.1% 9.8% Employees’ social security contributions 12.5% 12.5% 12.5% 12.5% Total payments less cash transfers 4.8% 6.7% 10.1% 22.3% Total tax wedge including employer’s social security contributions 30.5% 32.8% 34.8% 44.0% Marginal rates Total payments less cash transfers: Principal earner 40.4% 40.4% 40.4% 40.4% Total payments less cash transfers: Spouse 12.5% 12.5% 40.4% 12.5% Total tax wedge: Principal earner 55.3% 55.3% 55.3% 55.3% Total tax wedge: Spouse 39.3% 34.5% 55.3% 34.5%

193

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Iceland

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1.

Gross wage earnings

2.

Standard tax allowances

100 none

167 none

67 2

1796055 2694083 4490138 1796055

Basic allowance Married or head of family Dependent children

71842

Deduction for social security contributions and income taxes

107763

179606

71842

Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit

71842 107763 179606 71842 0 0 0 0 1724213 2586320 4310533 1724213 443985

665977 1334469

443985

321900

321900

321900

321900

321900 122085 220699

321900 321900 344077 1012569 331049 551748

321900 122085 220699

Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions

5440

Gross earnings

5440

5440

5440

5440 5440 680566 1569757

5440 348224

Taxable income Total 10. Total payments to general government (7 + 8 + 9)

5440 348224

11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions

0 0 0 410880 0 0 0 410880 1447831 2013517 2920381 1858711 102914 154371 257285 102914 , 19.1% 25.1% 34.8% 19.1% 0.3% 0.2% 0.1% 0.3% 19.4% 25.3% 35.0% -3.5% 23.8% 29.3% 38.5% 2.1%

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

37.0% n.a. 40.4% n.a.

37.0% n.a. 40.4% n.a.

42.0% n.a. 45.2% n.a.

43.7% n.a. 46.8% n.a.

194

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Iceland

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

1.

Gross wage earnings

2.

Standard tax allowances

100-33 2

100-67 2

100-33 none

2694083 3592111 4490138 3592111

Basic allowance Married or head of family Dependent children

107763

Deduction for social security contributions and income taxes

143684

179606

143684

Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit

107763 143684 179606 143684 0 0 0 0 2586320 3448426 4310533 3448426 665977

887970 1109962

887970

643800

643800

643800

643800

643800 22177 331049

643800 244170 441399

643800 466162 551748

643800 244170 441399

5440

10880

10880

10880

10880 10880 696448 1028790

10880 696448

Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9)

5440 358666

11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions

260344 202841 145338 0 260344 202841 145338 0 2595761 3098504 3606686 2895662 154371 205828 257285 205828

14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions

13.1% 0.2% 3.6% 8.9%

19.1% 0.3% 13.7% 18.4%

22.7% 0.2% 19.7% 24.0%

19.1% 0.3% 19.4% 23.8%

43.7% 44.0% 46.8% 47.1%

43.7% 43.7% 46.8% 46.8%

43.7% 43.7% 46.8% 46.8%

37.0% 37.0% 40.4% 40.4%

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

195

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Ireland

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

17959 0 0 17959 3592

26939 0 0 26939 5388

44898 0 0 44898 12697

17959 0 0 17959 3592

1520 0

1520 0

1520 0

1520 1520

800 2320 1272 0

800 2320 3068 0

800 2320 10377 0

800 3840 0 0

454

1352

2277

454

454 1726

1352 4420

2277 12654

454 454

0 0 0 16233 1527

0 0 0 22519 2896

0 0 0 32244 4827

2133 2822 4955 22460 1527

7.1% 2.5% 9.6% 16.7%

11.4% 5.0% 16.4% 24.5%

23.1% 5.1% 28.2% 35.2%

0.0% 2.5% -25.1% -15.3%

24.0% n.a. 30.0% n.a.

26.0% n.a. 33.2% n.a.

44.5% n.a. 49.9% n.a.

61.6% n.a. 64.6% n.a.

1.

Gross wage earnings

2.

Standard tax allowances

3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Single, head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

196

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Ireland

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

26939 0 0 26939 5388

35919 0 0 35919 7184

44898 0 0 44898 8980

35919 0 0 35919 7184

3040 0

3040 0

3040 0

3040 0

1570 4610 778 0

1600 4640 2544 0

1600 4640 4340 0

1600 4640 2544 0

1352

1352

1806

1352

1352 2130

1352 3896

1806 6146

1352 3896

0 2822 2822 27631 2896

0 2822 2822 34845 3659

0 2822 2822 41574 4422

0 0 0 32023 3659

2.9% 5.0% -2.6% 7.4%

7.1% 3.8% 3.0% 12.0%

9.7% 4.0% 7.4% 15.7%

7.1% 3.8% 10.8% 19.1%

26.0% 19.7% 33.2% 26.0%

26.0% 20.0% 33.2% 26.3%

26.0% 24.0% 33.2% 30.0%

26.0% 20.0% 33.2% 26.3%

1.

Gross wage earnings

2.

Standard tax allowances

3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Single, head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

197

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Italy

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 100 Number of children none none

1.

Gross wage earnings

2.

Standard tax allowances (*)

167 none

67 2

14743

22114

36857

14743

7156

5903

3396

7156

7156

5903

3396

7156

0

0

0

0

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

7586

16211

33461

7586

5.

Central government income tax liability (exclusive of tax credits)

1745

3801

8962

1745

6.

Tax credits Basic credit

0

0

235

0

Married or head of family

0 0

0 0

0 0

0 1063 1063

Children Other

0

0

235

1745

3801

8727

682

120

181

301

120

1355

2032

3387

1355

1355

2032

3387

1355

3220

6014

12415

2158

0

0

0

1977

0

0

0

1977

11522

16100

24442

14562

4877

7315

12192

4877

12.7%

18.0%

24.5%

5.4%

9.2%

9.2%

9.2%

9.2%

Total payments less cash transfers

21.8%

27.2%

33.7%

1.2%

Total tax wedge including employer’s social security contributions

41.3%

45.3%

50.2%

25.8%

36.9%

43.9%

55.6%

36.9%

n.a.

n.a.

n.a.

n.a.

52.6%

57.9%

66.7%

52.6%

n.a.

n.a.

n.a.

n.a.

Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general governmen For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

*) Since 1st gen. 2003 a new standard allowance has been introduced (see Part V - Description of Tax / Benefit Systems - Italy)

198

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Italy

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances (*)

100-67 2

100-33 none

22114

29485

36857

29485

5903

13274

13059

13274

5903

13274

13059

13274

0

0

0

0

16211

16211

23797

16211

3801

3801

5546

3801 0

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3 )

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits

0

0

0

497

0

0

0

1033

1033

1033

0

1530

1033

1033

0

2272

2768

4513

3801

181

181

301

181

2032

2710

3387

2710

2032

2710

3387

2710

4485

5659

8201

6692

1339

465

310

0

1339

465

310

0

18968

24291

28965

22794

7315

9754

12192

9754

11.1%

10.0%

13.1%

13.5%

9.2%

9.2%

9.2%

9.2%

Total payments less cash transfers

14.2%

17.6%

21.4%

22.7%

Total tax wedge including employer’s social security contributions

35.5%

38.1%

40.9%

41.9% 43.9%

Basic credit Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions

15. Marginal rates Total payments less cash transfers: Principal earner

43.9%

43.9%

43.9%

Total payments less cash transfers: Spouse

15.9%

9.2%

36.9%

9.2%

Total tax wedge: Principal earner

57.9%

57.9%

57.9%

57.9%

Total tax wedge: Spouse

36.8%

31.8%

52.6%

31.8%

*) Since 1st gen. 2003 a new standard allowance has been introduced (see Part V - Description of Tax / Benefit Systems - Italy)

199

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Japan

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13. 14.

15.

Gross wage earnings Standard tax allowances: Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employer’s compulsory social security contributions Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

100 none

167 none

67 2

2800133

4200199

7000332

2800133

380000 0 0 324535 1020040

380000 0 0 486803 1380040

380000 0 0 811338 1900033

380000 0 760000 324535 1020040

1724575 0 1075557 86045

2246843 0 1953356 156268

3091372 0 3908960 361434

2484575 0 315557 25245

0 86045 51836

0 156268 89285

0 361434 259896

0 25245 23786

324535

486803

811338

324535

324535 462416

486803 732357

811338 1432668

324535 373566

0 0 2337716 364857

0 0 3467842 547286

0 0 5567664 912143

0 0 2426566 364857

4.9% 11.6% 16.5% 26.1%

5.8% 11.6% 17.4% 27.0%

8.9% 11.6% 20.5% 29.6%

1.8% 11.6% 13.3% 23.3%

18.7% n.a. 28.1% n.a.

22.9% n.a. 31.8% n.a.

32.0% n.a. 39.8% n.a.

18.7% n.a. 28.1% n.a.

200

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Japan

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13. 14.

15.

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employer’s compulsory social security contributions Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

100-33 2

100-67 2

100-33 none

4200199

5600265

7000332

5600265

380000 760000 760000 486803 1380040

760000 0 760000 649071 2030040

760000 0 760000 811338 2400080

760000 0 0 649071 2030040

3766843 0 433356 34668

4199111 0 1401155 112092

4731418 0 2268914 181513

3439111 0 2161155 172892

0 34668 33043

0 112092 76049

0 181513 112929

0 172892 104242

486803

649071

811338

649071

486803 554514

649071 837212

811338 1105780

649071 926205

0 0 3645685 547286

0 0 4763053 729715

0 0 5894551 912143

0 0 4674060 729715

1.6% 11.6% 13.2% 23.2%

3.4% 11.6% 14.9% 24.8%

4.2% 11.6% 15.8% 25.5%

4.9% 11.6% 16.5% 26.2%

20.0% 20.2% 29.2% 29.4%

20.0% 22.4% 29.2% 31.4%

20.0% 18.7% 29.2% 28.1%

22.9% 22.4% 31.8% 31.4%

201

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Korea

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

133 none

167 none

16311953

24467930

32623907

40779883

13280831 0 3031122 272801

14871246 0 9596684 863702

16519965 0 16103942 1998709

17899956 0 22879927 3218387

136401

359110

450000

450000

136401 136401 13640

359110 504591 50459

450000 1548709 154871

450000 2768387 276839

734038

1101057

2257574

2821968

Total

734038 884078

1101057 1656107

2257574 3961155

2821968 5867193

Total

0 15427875 1391410

0 22811823 2087114

0 28662752 2782819

0 34912690 3478524

0.9% 4.5% 5.4% 12.9%

2.3% 4.5% 6.8% 14.1%

5.2% 6.9% 12.1% 19.0%

7.5% 6.9% 14.4% 21.1%

8.5% n.a. 15.7% n.a.

10.1% n.a. 17.1% n.a.

23.4% n.a. 29.4% n.a.

23.4% n.a. 29.4% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

202

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Korea

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

24467930

32623907

40779883

32623907

16871246 0 7596684 683702

24027223 0 8596684 773702

29652077 0 11127806 1001503

23027223 0 9596684 863702

305110

332110

446011

359110

305110 378591 37859

332110 441591 44159

446011 555492 55549

359110 504591 50459

1101057

1468076

1835095

1468076

Total

1101057 1517507

1468076 1953826

1835095 2446135

1468076 2023126

Total

0 22950423 2087114

0 30670081 2782819

0 38333748 3478524

0 30600781 2782819

1.7% 4.5% 6.2% 13.6%

1.5% 4.5% 6.0% 13.4%

1.5% 4.5% 6.0% 13.4%

1.7% 4.5% 6.2% 13.6%

10.1% 5.3% 17.1% 12.8%

10.1% 4.5% 17.1% 12.0%

10.1% 8.5% 17.1% 15.7%

10.1% 4.5% 17.1% 12.0%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

203

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Luxembourg

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

21465

32198

53663

21465

1080

1080

1080

1080

2943 936 0 4959 0 16650 793

4434 936 0 6450 0 26000 2809

7418 936 0 9434 0 44700 9554

2943 936 0 4959 0 16650 0

0

0

0

0

0 793 0

0 2809 0

0 9554 0

0 0 0

2943

4434

7418

2943

2943 3736

4434 7243

7418 16972

2943 2943

0 0 17729 2934

0 0 24955 4330

0 0 36691 7123

5272 5272 23795 2934

3.7% 13.7% 17.4% 27.3%

8.7% 13.8% 22.5% 31.7%

17.8% 13.8% 31.6% 39.6%

0.0% 13.7% -10.9% 2.5%

28.2% n.a. 36.5% n.a.

37.1% n.a. 44.4% n.a.

47.8% n.a. 53.8% n.a.

13.9% n.a. 23.8% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

204

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Luxembourg

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100-67 2

100-33 none

32198

42931

53663

42931

1080

2160

2160

2160

4434 936 0 6450 0 26000 599

5885 1872 4500 14417 0 28850 947

7377 1872 4500 15909 0 38200 2435

5885 1872 4500 14417 0 28850 947

599

947

1845

0

599 0 0

947 0 0

1845 590 0

0 947 0

4434

5885

7377

5885

4434 4434

5885 5885

7377 7967

5885 6832

5272 5272 33035 4330

5272 5272 42317 5819

5272 5272 50968 7264

0 0 36098 5819

0.0% 13.8% -2.6% 9.6%

0.0% 13.7% 1.4% 13.2%

1.1% 13.7% 5.0% 16.3%

2.2% 13.7% 15.9% 26.0%

13.9% 13.5% 23.8% 24.1%

13.9% 13.9% 23.8% 24.4%

30.0% 30.0% 38.0% 38.0%

24.6% 24.6% 33.3% 33.8%

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

205

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Mexico

2003 The tax/benefit position of single persons Wage level (per cent of APW) Number of children

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13. 14.

15.

67 none

100 none

167 none

67 2

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

41791

62687

104478

41791

1418

1504

1675

1418

Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employers’ compulsory social security contributions Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

1418 0 40374 3645

1504 0 61183 6675

1675 0 102803 15666

1418 0 40374 3645

4325

3332

2011

4325

842 5167 -1523 0

1542 4874 1801 0

3619 5630 10036 0

842 5167 -1523 0

522

962

1986

522

522 -1000

962 2763

1986 12022

522 -1000

0 0 42792 7054

0 0 59924 9743

0 0 92456 15548

0 0 42792 7054

-3.6% 1.3% -2.4% 12.4%

2.9% 1.5% 4.4% 17.3%

9.6% 1.9% 11.5% 23.0%

-3.6% 1.3% -2.4% 12.4%

8.9% n.a. 17.4% n.a.

15.5% n.a. 25.8% n.a.

27.0% n.a. 35.9% n.a.

8.9% n.a. 17.4% n.a.

3645 1523

4874 0

5630 0

3645 1523

Memorandum item: Non-wastable tax credit tax expenditure component cash transfer component

206

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Mexico

2003 The tax/benefit position of married couples Wage level (per cent of APW) Number of children

1. 2.

3. 4. 5. 6.

7. 8. 9.

10. 11.

12. 13. 14.

15.

100-0 2

100-33 2

100-67 2

100-33 none

Gross wage earnings Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

62687

83583

104478

83583

1504

2448

2921

2448

Total Tax credits or cash transfers included in taxable income Central government taxable income (1 - 2 + 3) Central government income tax liability (exclusive of tax credits) Tax credits Basic credit Married or head of family Children Other Total Central government income tax finally paid (5-6) State and local taxes Employees’ compulsory social security contributions Gross earnings Taxable income Total Total payments to general government (7 + 8 + 9) Cash transfers from general government For head of family For two children Total Take-home pay (1-10+11) Employers’ compulsory social security contributions Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

1504 0 61183 6675

2448 0 81135 8277

2921 0 101557 10320

2448 0 81135 8277

3332

7935

7658

7935

1542 4874 1801 0

1912 9848 -1570 0

2384 10042 278 0

1912 9848 -1570 0

962

1223

1485

1223

962 2763

1223 -347

1485 1762

1223 -347

0 0 59924 9743

0 0 83930 14636

0 0 102716 16796

0 0 83930 14636

2.9% 1.5% 4.4% 17.3%

-1.9% 1.5% -0.4% 14.5%

0.3% 1.4% 1.7% 15.3%

-1.9% 1.5% -0.4% 14.5%

15.5% -14.9% 25.8% 6.9%

15.5% 8.6% 25.8% 17.2%

15.5% 8.9% 25.8% 17.4%

15.5% 8.6% 25.8% 17.2%

4874 0

8277 1570

10042 0

8277 1570

Memorandum item: Non-wastable tax credit tax expenditure component cash transfer component

207

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Netherlands

1.

Gross wage earnings

2.

Standard tax allowances:

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

21193

31790

52983

21193

366

981

1635

366

366 1431 22258

981 1991 32800

1635 0 51348

366 1431 22258

729

2863

10841

729

148 581 0

148 2714 0

148 10693 0

308 421 0

1052 4223 5274 5855

1807 6279 8087 10801

1635 6279 7914 18608

1052 1288 2340 2761

0 0 15338 3372

0 0 20989 5019

0 0 34376 4184

1709 1709 20141 3372

2.7% 24.9% 27.6% 37.6%

8.5% 25.4% 34.0% 43.0%

20.2% 14.9% 35.1% 39.9%

2.0% 11.0% 5.0% 18.0%

46.3% n.a. 54.1% n.a.

45.4% n.a. 50.4% n.a.

52.0% n.a. 52.0% n.a.

41.9% n.a. 50.4% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits : Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income (net of credits) Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

208

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Netherlands

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances:

100-67 2

100-33 none

31790

42387

52983

42387

981

981

1347

981

981 1991 32800

981 2706 44112

1347 3421 55057

981 2706 44112

2863

3055

3592

3055

253 2610 0

289 2766 0

321 3271 0

265 2790 0

2132 4363 6495 9105

2312 7224 9536 12302

2859 10057 12916 16187

2312 7668 9981 12771

1709 1709 24393 5019

1709 1709 31793 6656

1709 1709 38505 8391

0 0 29616 6656

8.2% 20.4% 23.3% 33.7%

6.5% 22.5% 25.0% 35.2%

6.2% 24.4% 27.3% 37.3%

6.6% 23.5% 30.1% 39.6%

45.4% 30.2% 50.4% 39.5%

45.4% 25.4% 50.4% 35.4%

45.4% 46.3% 50.4% 54.1%

45.4% 25.4% 50.4% 35.4%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits : Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income (net of credits) Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

209

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

New Zealand

1.

Gross wage earnings

2.

Standard tax allowances:

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

27635

41452

69087

27635

0 0 27635 5389

0 0 41452 8549

0 0 69087 18214

0 0 27635 5389

155

0

0

155

155 5233 0

0 8549 0

0 18214 0

155 5233 0

0

0

0

0

0 5233

0 8549

0 18214

0 5233

0 0 22401 0

0 0 32903 0

0 0 50873 0

4218 4218 26619 0

18.9% 0.0% 18.9% 18.9%

20.6% 0.0% 20.6% 20.6%

26.4% 0.0% 26.4% 26.4%

18.9% 0.0% 3.7% 3.7%

21.0% n.a. 21.0% n.a.

33.0% n.a. 33.0% n.a.

39.0% n.a. 39.0% n.a.

51.0% n.a. 51.0% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits : Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

210

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

New Zealand

1.

Gross wage earnings

2.

Standard tax allowances:

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

41452

55269

69087

55269

0 0 41452 8549

0 0 55269 11244

0 0 69087 13938

0 0 55269 11244

0

363

155

363

Total

0 8549 0

363 10881 0

155 13782 0

363 10881 0

Total

0 8549

0 10881

0 13782

0 10881

72 72 32975 0

0 0 44389 0

0 0 55304 0

0 0 44389 0

20.6% 0.0% 20.4% 20.4%

19.7% 0.0% 19.7% 19.7%

19.9% 0.0% 19.9% 19.9%

19.7% 0.0% 19.7% 19.7%

63.0% 17.4% 63.0% 17.4%

33.0% 21.0% 33.0% 21.0%

33.0% 21.0% 33.0% 21.0%

33.0% 21.0% 33.0% 21.0%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits : Basic credit Married or head of family Children Other

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

211

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Norway

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

204871

307307

512178

204871

108900

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

77300

77300

77300

3.

Tax credits or cash transfers included in taxable income

0

0

0

0

4.

Central government taxable (ordinary) income (1 - 2 + 3)

127571

230007

434878

95971

5.

Central government income tax liability (ordinary + personal)

15002

27049

74291

11286

6.

Tax credits (applicable against local tax)

0

0

0

0

0

0

0

0

15002 20718

27049 37353

74291 70624

11286 15586

15980

23970

39950

15980

15980

23970

39950

15980

51700

88372

184865

42852

0

0

0

34992

0

0

0

34992

153171

218935

327313

197011

26224

39335

65559

26224

17.4%

21.0%

28.3%

13.1%

7.8%

7.8%

7.8%

7.8%

25.2% 33.7%

28.8% 36.8%

36.1% 43.3%

3.8% 14.7%

Total payments less cash transfers: Spouse

35.8% n.a.

35.8% n.a.

49.3% n.a.

35.8% n.a.

Total tax wedge: Principal earner

43.1%

43.1%

55.1%

43.1%

n.a.

n.a.

n.a.

n.a.

Total

Basic credit Married or head of family Children Other Total 7.

Central government income tax paid (5)

8.

State and local taxes (net of tax credits)

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

Total tax wedge: Spouse

212

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Norway

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

307307

409743

512178

409743

140700

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other

108900

140700

154600

3.

Tax credits or cash transfers included in taxable income

0

0

0

0

4.

Central government taxable (ordinary) income (1 - 2 + 3)

198407

269043

357578

269043

5.

Central government income tax liability (ordinary + personal)

23333

31639

42051

31639

6.

Tax credits (applicable against local tax)

0

0

0

0

0

0

0

0

23333 32221

31639 43693

42051 58071

31639 43693

23970

31960

39950

31960

Total

Basic credit Married or head of family Children Other Total 7.

Central government income tax paid (5)

8.

State and local taxes (net of tax credits)

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

23970

31960

39950

31960

79524

107292

140072

107292

23328

23328

23328

0

23328

23328

23328

0

251111

325779

395434

302451

39335

52447

65559

52447

18.1%

18.4%

19.5%

18.4%

7.8%

7.8%

7.8%

7.8%

18.3% 27.6%

20.5% 29.5%

22.8% 31.6%

26.2% 34.6%

Total payments less cash transfers: Spouse

35.8% 27.1%

35.8% 35.8%

35.8% 35.8%

35.8% 35.8%

Total tax wedge: Principal earner

43.1%

43.1%

43.1%

43.1%

Total tax wedge: Spouse

35.4%

43.1%

43.1%

43.1%

Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

213

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Poland

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

18129

27193

45322

18129

3392 1444

5088 1444

8480 1444

3392 1444

4836 0 13293 2526

6532 0 20661 3926

9924 0 35398 6726

4836 0 13293 2526

530

530

530

530

1142 1672 853 0

1713 2243 1682 0

2855 3385 3340 0

1142 1672 853 0

3392 1142 4534 5387

5088 1713 6801 8483

8480 2855 11335 14675

3392 1142 4534 5387

0 0 12741 3704

0 0 18710 5556

0 0 30646 9259

1020 1020 13761 3704

4.7% 25.0% 29.7% 41.6%

6.2% 25.0% 31.2% 42.9%

7.4% 25.0% 32.4% 43.9%

4.7% 25.0% 24.1% 37.0%

34.2% n.a. 45.3% n.a.

34.2% n.a. 45.3% n.a.

34.2% n.a. 45.3% n.a.

34.2% n.a. 45.3% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other (health insurance) Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

214

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Poland

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

27193

36257

45322

36257

5088 1444

6784 2888

8480 2888

6784 2888

6532 0 20661 3926

9672 0 26586 5051

11367 0 33954 6451

9672 0 26586 5051

1060

1060

1060

1060

1713 2773 1152 0

2284 3344 1707 0

2855 3915 2536 0

2284 3344 1707 0

5088 1713 6801 7953

6784 2284 9068 10775

8480 2855 11335 13871

6784 2284 9068 10775

0 0 19240 5556

0 0 25482 7407

0 0 31451 9259

0 0 25482 7407

4.2% 25.0% 29.2% 41.3%

4.7% 25.0% 29.7% 41.6%

5.6% 25.0% 30.6% 42.4%

4.7% 25.0% 29.7% 41.6%

34.2% 31.1% 45.3% 42.8%

34.2% 34.2% 45.3% 45.3%

34.2% 34.2% 45.3% 45.3%

34.2% 34.2% 45.3% 45.3%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other (health insurance) Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

215

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Portugal

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons 67 Wage level (per cent of APW) Number of children none

100 none

167 none

67 2

5785

8677

14462

5785

3081

3081

3081

3081

0

0

0

0

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

3081 0

3081 0

3081 0

3081 0

4.

Central government taxable income (1 - 2 + 3)

2704

5596

11381

2704

5.

Central government income tax liability (exclusive of tax credits)

324

700

2015

324

6.

Tax credits

214

214

214

285

0

0

0

285

214 110

214 486

214 1801

570 0

0

0

0

0

636

954

1591

636

636

954

1591

636

747

1440

3392

636

0

0

0

642

12. Take-home pay (1-10+11)

0 5038

0 7237

0 11070

642 5791

13. Employer’s compulsory social security contributions

1374

2061

3435

1374

Total

Basic credit Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government: For head of family For two children Total

14. Average rates

1.9%

5.6%

12.5%

0.0%

Employees’ social security contributions

11.0%

11.0%

11.0%

11.0%

Total payments less cash transfers

12.9%

16.6%

23.5%

-0.1%

Total tax wedge including employer’s social security contributions

29.6%

32.6%

38.1%

19.1%

23.0%

25.0%

35.0%

11.0%

Income tax

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

n.a.

n.a.

n.a.

n.a.

37.8%

39.4%

47.5%

28.1%

n.a.

n.a.

n.a.

n.a.

216

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Portugal

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

8677

11569

14462

11569

3081

5973

6162

5973

0

0

0

0

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

3081 0

5973 0

6162 0

5973 0

4.

Central government taxable income (1 - 2 + 3)

5596

5596

8300

5596

5.

Central government income tax liability (exclusive of tax credits)

672

672

996

672

6.

Tax credits

357

357

357

357

285

285

285

0

642

642

642

357

30

30

354

315

0

0

0

0

954

1273

1591

1273

954

1273

1591

1273

984

1302

1945

1588

501

501

501

0

501

501

501

0

12. Take-home pay (1-10+11)

8193

10768

13017

9982

13. Employer’s compulsory social security contributions

2061

2748

3435

2748

0.3% 11.0%

0.3% 11.0%

2.4% 11.0%

2.7% 11.0%

Total

Basic credit Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total

14. Average rates Income tax Employees’ social security contributions

5.6%

6.9%

10.0%

13.7%

23.7%

24.8%

27.3%

30.3%

Total payments less cash transfers: Principal earner

23.0%

23.0%

23.0%

23.0%

Total payments less cash transfers: Spouse

11.0%

11.0%

23.0%

11.0%

Total tax wedge: Principal earner

37.8% 28.1%

37.8% 28.1%

37.8% 37.8%

37.8% 28.1%

Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates

Total tax wedge: Spouse

217

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Slovak Republic

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

100000

150000

250000

100000

38760 0 0 12800

38760 0 0 19200

38760 0 0 32000

38760 0 33600 12800

Total

51560 0 48440 4844

57960 0 92040 9408

70760 0 179240 26848

85160 0 14840 1484

Total

0 4844 0

0 9408 0

0 26848 0

0 1484 0

12800

19200

32000

12800

12800 17644

19200 28608

32000 58848

12800 14284

0 0 82356 38000

0 0 121392 57000

0 0 191152 95000

13980 13980 99696 38000

4.8% 12.8% 17.6% 40.3%

6.3% 12.8% 19.1% 41.4%

10.7% 12.8% 23.5% 44.6%

1.5% 12.8% 0.3% 27.8%

21.5% n.a. 43.1% n.a.

30.2% n.a. 49.4% n.a.

30.2% n.a. 49.4% n.a.

21.5% n.a. 43.1% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

218

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Slovak Republic

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

150000

200000

250000

200000

38760 12000 33600 19200

77520 0 33600 25600

77520 0 33600 32000

77520 0 0 25600

Total

103560 0 46440 4644

136720 0 63280 6328

143120 0 106880 10688

103120 0 96880 9892

Total

0 4644 0

0 6328 0

0 10688 0

0 9892 0

19200

25600

32000

25600

19200 23844

25600 31928

32000 42688

25600 35492

13980 13980 140136 57000

13980 13980 182052 76000

8220 8220 215532 95000

0 0 164508 76000

3.1% 12.8% 6.6% 32.3%

3.2% 12.8% 9.0% 34.0%

4.3% 12.8% 13.8% 37.5%

4.9% 12.8% 17.7% 40.4%

21.5% 16.2% 43.1% 39.3%

21.5% 21.5% 43.1% 43.1%

21.5% 21.5% 43.1% 43.1%

30.2% 21.5% 49.4% 43.1%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employers’ compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

219

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Spain

2003 The tax/benefit position of a single persons Wage level (per cent of APW) 67 Number of children none

1.

Gross wage earnings

2.

Standard tax allowances: Basic allowance

100 none

167 none

67 2

11317

16975

28292

11317

3400

3400

3400

5550

0 719

0 1078

0 1797

2900 719

2951

2400

2400

2951

7069

6878

7597

11317

0 4247

0 10097

0 20695

0 0

659

2063

4883

0

0

0

0

0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings

0

0

0

0

402 258

1328 735

3203 1680

0 0

719

1078

1797

719

Taxable income

719

1078

1797

719

1378

3141

6679

719

0

0

0

0

0

0

0

0

12. Take-home pay (1-10+11)

9939

13834

21613

10598

13. Employer’s compulsory social security contributions

3463

5194

8657

3463

Income tax

5.8%

12.2%

17.3%

0.0%

Employees’ social security contributions

6.4%

6.3%

6.3%

6.4%

Total payments less cash transfers

12.2%

18.5%

23.6%

6.4%

Total tax wedge including employer’s social security contributions

32.8%

37.6%

41.5%

28.3%

34.0%

30.0%

33.0%

6.0%

n.a.

n.a.

n.a.

n.a.

49.6%

46.6%

48.9%

28.2%

n.a.

n.a.

n.a.

n.a.

Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total

14. Average rates

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

220

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Spain

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

16975

22633

28292

22633

6800

6800

6800

6800

Deduction for social security contributions and income taxes

2900 1078

2900 1437

2900 1797

0 1437

Work-related expenses

2400

5900

5351

5900

13178

13986

16847

12536

0 3797

0 8647

0 11445

0 10097

570

1715

2135

2063

0

0

0

0

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance Married or head of family Dependent children

Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings

0

0

0

0

344 226

1099 617

1352 783

1328 735

1078

1437

1797

1437

1078

1437

1797

1437

1647

3153

3931

3501

0

0

0

0

0

0

0

0

15328

19481

24360

19133

5194

6926

8657

6926 9.1%

Taxable income Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax

3.4%

7.6%

7.5%

Employees’ social security contributions

6.3%

6.3%

6.3%

6.3%

Total payments less cash transfers

9.7%

13.9%

13.9%

15.5%

30.9%

34.1%

34.1%

35.3% 30.0%

Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner

20.0%

30.0%

30.0%

Total payments less cash transfers: Spouse

26.6%

7.0%

23.0%

7.0%

Total tax wedge: Principal earner

38.9%

46.6%

46.6%

46.6%

Total tax wedge: Spouse

43.8%

28.5%

41.2%

28.5%

221

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Sweden

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

165272

247908

413180

165272

21400

13100

11400

21400

2900

4400

5800

2900

24300 0 140972 0

17500 0 230408 0

17200 0 395980 22320

24300 0 140972 0

8700 8700 -8700 44118

13000 13000 -13000 72015

17200 17200 5120 123602

8700 8700 -8700 44118

11600

17400

23000

11600

11600 47018

17400 76415

23000 151722

11600 47018

0 0 118254

0 0 171493

0 0 261458

22800 22800 141054

48871 5371 54242

73306 8057 81363

122177 13428 135605

48871 5371 54242

21.4% 7.0% 28.4% 44.8%

23.8% 7.0% 30.8% 46.6%

31.2% 5.6% 36.7% 51.2%

21.4% 7.0% 14.7% 34.1%

35.5% n.a. 51.4% n.a.

35.5% n.a. 51.4% n.a.

51.2% n.a. 63.2% n.a.

35.5% n.a. 51.4% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s wage dependent contributions and taxes Employers’ compulsory social security contributions Payroll taxes Total 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

222

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Sweden

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances: Basic allowance

100-67 2

100-33 none

247908

330544

413180

330544

13100

34500

34500

34500

4400

5900

7300

5900

17500 0 230408 0

40400 0 290144 0

41800 0 371380 0

40400 0 290144 0

13000 13000 -13000 72015

17300 17300 -17300 90823

21700 21700 -21700 116133

17300 17300 -17300 90823

17400

23200

29000

23200

17400 76415

23200 96723

29000 123433

23200 96723

22800 22800 194293

22800 22800 256621

22800 22800 312547

0 0 233821

73306 8057 81363

97742 10742 108484

122177 13428 135605

97742 10742 108484

23.8% 7.0% 21.6% 39.5%

22.2% 7.0% 22.4% 40.1%

22.9% 7.0% 24.4% 41.6%

22.2% 7.0% 29.3% 45.4%

35.5% 24.6% 51.4% 43.2%

35.5% 26.1% 51.4% 44.4%

35.5% 35.5% 51.4% 51.4%

35.5% 26.1% 51.4% 44.4%

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s wage dependent contributions and taxes Employers’ compulsory social security contributions Payroll taxes Total 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

223

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Switzerland

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 100 Number of children none none

1.

Gross wage earnings

2.

Standard tax allowances

167 none

67 2

43504

65256

108760

43504

0 0 4916 1900 1500 8316 0 35100 180

0 0 7374 1900 1500 10774 0 54400 684

0 0 12275 2895 1500 16670 0 92000 2811

0 11200 4916 1900 2219 20235 5204 28400 35

0 180 2850

0 684 5760

0 2811 13044

0 35 1214

4916

7374

12275

4916

4916 7946

7374 13818

12275 28130

4916 6165

0 0 35558 4916

0 0 51438 7374

0 0 80630 12275

5204 5204 42543 4916

7.0% 11.3% 18.3% 26.6%

9.9% 11.3% 21.2% 29.2%

14.6% 11.3% 25.9% 33.4%

2.9% 11.3% 2.2% 12.1%

23.4% n.a. 31.2% n.a.

29.7% n.a. 36.8% n.a.

35.5% n.a. 41.7% n.a.

19.6% n.a. 27.7% n.a.

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

224

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Switzerland

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 Number of children 2

100-33 2

100-67 2

100-33 none

65256

87008

108760

87008

0 11200 7374 1900 4400 24874 5204 45500 214

7000 11200 9832 3800 4400 36232 5204 55900 468

7000 11200 12290 3800 4400 38690 5204 75200 1137

7000 0 9832 3800 3000 23632 0 63300 690

0 214 3149

0 468 4677

0 1137 7676

0 690 5765

7374

9832

12290

9832

7374 10737

9832 14977

12290 21103

9832 16286

5204 5204 59723 7374

5204 5204 77235 9832

5204 5204 92861 12290

0 0 70722 9832

5.2% 11.3% 8.5% 17.8%

5.9% 11.3% 11.2% 20.2%

8.1% 11.3% 14.6% 23.3%

7.4% 11.3% 18.7% 27.0%

23.9% 19.5% 31.7% 27.7%

27.7% 27.7% 35.1% 35.1%

28.6% 28.6% 35.9% 35.9%

27.7% 27.7% 35.1% 35.1%

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

225

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Turkey

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 100 Number of children none none

1.

Gross wage earnings

2.

Standard tax allowances

8155529413 12233294119

167 none

67 2

20388823532 8155529413

540000000

540000000

1223329412

1834994118

3058323530 1223329412

Total 1763329412

0 6392200001 1077373177

2374994118 0 9858300001 1795059765

3598323530 1763329412 0 0 16790500002 6392200001 3569957942 1077373177

0

0

0 1077373177 0

0 1795059765 0

0 0 3569957942 1077373177 0 0

1223329412

1834994118

3058323530 1223329412

Total 1223329412

2300702589

1834994118 3630053883

3058323530 1223329412 6628281471 2300702589

0 0 5854826824 1753438824

0 0 8603240236 2630158236

0 0 0 0 13760542060 5854826824 4383597059 1753438824

13.2% 15.0% 28.2% 40.9%

14.7% 15.0% 29.7% 42.1%

17.5% 15.0% 32.5% 44.5%

13.2% 15.0% 28.2% 40.9%

32.6% n.a. 44.5% n.a.

32.6% n.a. 44.5% n.a.

36.8% n.a. 48.0% n.a.

32.6% n.a. 44.5% n.a.

Basic allowance

540000000

540000000

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit

0

0

Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse

226

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

Turkey

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

100-67 2

100-33 none

12233294119

16311058825

20388823532

16311058825

540000000

1080000000

1080000000

1080000000

1834994118

2446658824

3058323530

2446658824

2374994118 0

3526658824 0

4138323530 0

3526658824 0

9858300001 1795059765

12784400002 2258441353

16250500002 2872432942

12784400002 2258441353

0

0

0

0

0 1795059765

0 2258441353

0 2872432942

0 2258441353

0

0

0

0

1834994118

2446658824

3058323530

2446658824

1834994118

2446658824

3058323530

2446658824

3630053883

4705100177

5930756471

4705100177

0 0

0 0

0 0

0 0

12. Take-home pay (1-10+11)

8603240236

11605958648

14458067060

11605958648

13. Employer’s compulsory social security contributions

2630158236

3506877647

4383597059

3506877647

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total

3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total

14. Average rates Income tax

14.7%

13.8%

14.1%

13.8%

Employees’ social security contributions

15.0%

15.0%

15.0%

15.0%

Total payments less cash transfers

29.7%

28.8%

29.1%

28.8%

Total tax wedge including employer’s social security contributions

42.1%

41.4%

41.6%

41.4%

Total payments less cash transfers: Spouse

32.6% 26.4%

32.6% 28.4%

32.6% 32.6%

32.6% 28.4%

Total tax wedge: Principal earner

44.5%

44.5%

44.5%

44.5%

Total tax wedge: Spouse

39.4%

41.0%

44.5%

41.0%

15. Marginal rates Total payments less cash transfers: Principal earner

227

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

United Kingdom

2003 The tax/benefit position of single persons Wage level (per cent of APW) Number of children

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

67 none

100 none

167 none

67 2

13517

20276

33793

13517

4615

4615

4615

4615

0

0

0

0

4615 0 15661

4615 0 29178

4615 0 8902

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

4615 0 8902

5.

Central government income tax liability (exclusive of tax credits)

1723

3210

6184

1723

6.

Tax credits

0

0

0

3957

0 1723 0

0 3210 0

0 6184 0

3957 -2233 0

978

1721

2923

978

978 2701

1721 4932

2923 9107

978 -1255

0 0 10816 1138

0 0 15345 2003

0 0 24686 3733

1472 1472 16244 1138

12.7% 7.2% 20.0% 26.2%

15.8% 8.5% 24.3% 31.1%

18.3% 8.6% 26.9% 34.2%

-16.5% 7.2% -20.2% -10.8%

33.0% n.a. 40.6% n.a.

33.0% n.a. 40.6% n.a.

23.0% n.a. 31.7% n.a.

70.0% n.a. 73.4% n.a.

0 0

0 0

0 0

1723 2233

Total

Basic credit Married or head of family Children Other Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits tax expenditure component cash transfer component

228

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

United Kingdom

2003 The tax/benefit position of married couples Wage level (per cent of APW) Number of children

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100-0 2

100-33 2

100-67 2

100-33 none

20276

27035

33793

27035

4615

9230

9230

9230

0

0

0

0

4615 0 15661 3210

9230 0 17805 3447

9230 0 24563 4934

9230 0 17805 3447

1456

545

545

0

1456 1754 0

545 2901 0

545 4388 0

0 3447 0

1721

1956

2699

1956

1721 3476

1956 4857

2699 7087

1956 5402

1394 1394 18194 2003

1394 1394 23571 2276

1394 1394 28100 3141

0 0 21632 2276

8.7% 8.5% 10.3% 18.3%

10.7% 7.2% 12.8% 19.6%

13.0% 8.0% 16.8% 23.9%

12.7% 7.2% 20.0% 26.2%

70.0% 20.4% 73.4% 23.5%

33.0% 33.0% 40.6% 40.6%

33.0% 33.0% 40.6% 40.6%

33.0% 33.0% 40.6% 40.6%

1456 0

545 0

545 0

0 0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other Total

7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions Total payments less cash transfers Total tax wedge including employer’s social security contributions 15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits tax expenditure component cash transfer component

229

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

United States

1.

Gross wage earnings

2.

Standard tax allowances

2003 The tax/benefit position of single persons Wage level (per cent of APW) 67 Number of children none

100 none

167 none

67 2

22306

33459

55765

22306

7800

7800

7800

10050

0

0

0

6100

7800

7800

7800

16150

0

0

0

0

14506

25659

47965

6156

1826

3499

8801

616

0

0

0

2398

0

0

0

1796

Basic allowance Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

0

0

0

4194

7.

Central government income tax finally paid (5-6)

1826

3499

8801

-3578

8.

State and local taxes

1273

1989

3422

989

9.

Employees’ compulsory social security contributions

1706

2560

4266

1706

1706

2560

4266

1706

4805

8048

16489

-883

0

0

0

0

0

0

0

0

17501

25411

39276

23189

1706

2560

4266

1706

13.9%

16.4%

21.9%

-11.6%

7.7%

7.7%

7.7%

7.7%

Total payments less cash transfers

21.5%

24.1%

29.6%

-4.0%

Total tax wedge including employer’s social security contributions

27.1%

29.4%

34.6%

3.4%

29.1%

29.1%

39.1%

25.1%

n.a.

n.a.

n.a.

n.a.

34.1%

34.1%

43.4%

30.5%

n.a.

n.a.

n.a.

n.a.

tax expenditure component

0

0

0

819

cash transfer component

0

0

0

3578

Total

Gross earnings Taxable income Total 10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates Income tax Employees’ social security contributions

15. Marginal rates Total payments less cash transfers: Principal earner Total payments less cash transfers: Spouse Total tax wedge: Principal earner Total tax wedge: Spouse Memorandum item: Non-wastable tax credits

230

© OECD/OCDE 2004

Country Tables, 2003/Tableaux par pays, 2003

United States

2003 The tax/benefit position of married couples Wage level (per cent of APW) 100-0 100-33 Number of children 2 2

1.

Gross wage earnings

2.

Standard tax allowances Basic allowance

100-67 2

100-33 none

33459

44612

55765

44612

15600

15600

15600

15600

6100

6100

6100

0

21700

21700

21700

15600

0

0

0

0

11759

22912

34065

29012

1176

2737

4410

3652

260

0

0

0

2000

2000

2000

0

Married or head of family Dependent children Deduction for social security contributions and income taxes Work-related expenses Other Total 3.

Tax credits or cash transfers included in taxable income

4.

Central government taxable income (1 - 2 + 3)

5.

Central government income tax liability (exclusive of tax credits)

6.

Tax credits Basic credit Married or head of family Children Other

2260

2000

2000

0

-1084

737

2410

3652

1563

2279

2995

2563

2560

3413

4266

3413

2560

3413

4266

3413

3039

6429

9671

9628

0

0

0

0

0

0

0

0

30420

38183

46094

34984

2560

3413

4266

3413

Income tax

1.4%

6.8%

9.7%

13.9%

Employees’ social security contributions

7.7%

7.7%

7.7%

7.7%

Total payments less cash transfers

9.1%

14.4%

17.3%

21.6%

15.5%

20.5%

23.2%

27.2%

Total payments less cash transfers: Principal earner

45.1%

29.1%

29.1%

29.1%

Total payments less cash transfers: Spouse

30.4%

29.1%

29.1%

29.1%

Total tax wedge: Principal earner

49.0%

34.1%

34.1%

34.1%

Total tax wedge: Spouse

35.3%

34.1%

34.1%

34.1%

tax expenditure component

1176

2000

2000

0

cash transfer component

1084

0

0

0

Total 7.

Central government income tax finally paid (5-6)

8.

State and local taxes

9.

Employees’ compulsory social security contributions Gross earnings Taxable income Total

10. Total payments to general government (7 + 8 + 9) 11. Cash transfers from general government For head of family For two children Total 12. Take-home pay (1-10+11) 13. Employer’s compulsory social security contributions 14. Average rates

Total tax wedge including employer’s social security contributions 15. Marginal rates

Memorandum item: Non-wastable tax credits

231

© OECD/OCDE 2004

Part V

DESCRIPTION OF TAX/BENEFIT SYSTEMS, 2003 Partie V

DESCRIPTION DES SYSTÈMES D'IMPÔTS ET DE PRESTATIONS SOCIALES, 2003

AUSTRALIA – AUSTRALIE Chapter 1

(2003-2004 Income tax year)

The national currency is the Australian dollar (AUD). For the 2003-2004 income tax year AUD 1.5897 was equal to USD 1 (average of previous nine months daily exchange rates). In that period the average production worker earned AUD 50 732 (secretariat estimate). 1.

Personal income tax system

1.1. Federal government income tax 1.11. Tax unit Members of the family are taxed separately. 1.12. Tax allowances and credits 1.121. Standard tax reliefs • Basic reliefs: Income earned up to AUD 6 000 by resident taxpayers is subject to tax at a zero rate; • Standard marital status reliefs: A taxpayer may claim a tax credit where he or she contributes to the maintenance of a dependent spouse (legal or de facto). During 2003-04, the credit is AUD 1 535 for a dependent spouse without dependent children. The credit is reduced by AUD 1 for every AUD 4 by which the spouse’s separate net income exceeds AUD 282. The rebate for a dependent spouse with a dependent child has been replaced by the Family Tax Benefit system (see below). • Relief(s) for children: From 1 July 2000, the new Family Tax Benefit (FTB) has replaced several forms of tax relief and cash transfers, such as Family Tax Assistance, the dependent spouse with child rebate and the sole parent rebate. FTB can be claimed either through the taxation system or as a cash transfer. From 1 July 2001 a refundable tax offset, called the Baby Bonus, was introduced to recognise that one of the hardest times for families financially is the birth of their first child, when one partner gives up or reduces their paid employment. The Baby Bonus can only be claimed through the taxation system. Refer § 3.2. • Relief for social security contributions and other taxes: no such contributions are levied. • Relief for low income earners: an AUD 235 tax credit is available for taxpayers whose taxable income was less than AUD 21 600. This credit is reduced by four cents for every AUD 1 by which the taxpayer’s taxable income exceeds AUD 21 600, and no tax credit is available once the taxpayer’s taxable income equals AUD 27 475.* • Other: No other standard relief available. 1.122. Main non-standard tax reliefs applicable to an average production worker include: From 1 July 1992, all employers are required to provide a minimum level of superannuation support for each of their full-time, part-time and casual employees. Apart from a limited number of * The tax calculations reflect other reliefs available to low-income families that are not pertinent at the income levels taken into consideration for this Report and are not described here. These reliefs are the pensioner tax offset and the beneficiary tax offset.

© OECD/OCDE 2004

235

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

exemptions, if no superannuation support is provided the employer is liable for a superannuation guarantee charge. The Government has announced that from 1 July 2003, the Government Co-contribution for Low Income Earners will provide a co-contribution of up to AUD 1 000 for superannuation contributions made by low income earners (those earning below AUD 40 000). The maximum co-contribution of AUD 1 000 will be payable for those on incomes of AUD 27 500 or less. The maximum co-contribution will reduce by 8 cents for each dollar of income over AUD 27 500. The Government co-contribution is subject to the passage of legislation through Parliament and will replace the existing maximum AUD 100 taxation rebate for personal superannuation contributions made by low income earners. At the time of writing, the relevant legislation had not yet passed through the Parliament. A taxpayer may receive an 18 per cent income tax rebate for contributions up to AUD 3 000 per annum to a complying superannuation fund on behalf of a spouse with an income equal to or below AUD 13 800 per annum (a maximum rebate of AUD 540). The maximum rebatable limit is reduced at the rate of one dollar for each dollar of spouse assessable income exceeding AUD 10 800. Investment income from superannuation savings is taxed at the concessional rate of 15 per cent. On 1 January 1999, the Government introduced a 30 per cent rebate for individuals who have private health insurance. To be eligible for the tax rebate, an individual must pay a premium in respect of an ‘appropriate private health insurance policy’ – a policy that provides hospital cover, ancillary cover or combined cover and the person being covered by the policy is eligible to claim benefits under Medicare. The amount of the rebate is not means tested and is 30 per cent of the amount paid for cover in respect of the year of income. Medical expenses: A medical expense credit applies at a rate of 20 per cent to the excess of net medical expenses over AUD 1 500 for the 2003-04 year of income. To qualify for the rebate, the medical expenses must have been paid by a resident taxpayer in respect of himself or herself or a resident dependant. However, it is not necessary that the payments be made to a resident or that they be paid in Australia. ‘Medical expenses’ for the purposes of the medical expenses rebate includes payments to doctors, nurses, chemists, dentists, opticians and optometrists. Payments for therapeutic treatment and for medical or surgical appliances, remuneration paid to an attendant of an incapacitated person and payments for the maintenance of a guide dog may also qualify. Other non-standard reliefs provided as deductions are: • Subscriptions paid in respect of membership of a trade, business or professional association or union; • Charitable contributions of AUD 2 or more to specified funds, authorities and institutions, including public benevolent institutions, approved research institutes for scientific research, building funds for schools conducted by non-profit organisations etc; and • Work-related expenses including cost of replacement of tools of trade, cost of provision and of cleaning protective clothing and footwear, travelling between jobs or travelling in the course of employment. 1.13. Tax schedule General rates of tax -- resident individuals

Taxable income (AUD) Tax at general rates on total taxable income

236

Not less than

Not more than

0 6 000 21 600 52 000

6 000 21 600 52 000 62 500 62 500 and over

NIL NIL + 17c for each AUD in excess of AUD 6 000 AUD 2 652 + 30c for each AUD in excess of AUD 21 600 AUD 11 772 + 42c for each AUD in excess of AUD 52 000 AUD 16 182 + 47c for each AUD in excess of AUD 62 500

© OECD/OCDE 2004

Australia – Australie

To contribute towards the cost of basic medical and hospital care a Medicare Levy is imposed on the taxable incomes of resident taxpayers. In 2003-04 the levy applies at the rate of 1.5 per cent of the taxable income of an individual. Certain thresholds are applied before the levy is imposed. For example, in 2002-03, an individual taxpayer did not pay the levy where their taxable income did not exceed AUD 15 062. Where a taxpayer was in a couple or sole parent family no levy was payable if the taxable family income did not exceed AUD 25 417. The threshold increased by AUD 2 334 for each dependent child. Where an individual’s taxable income exceeded AUD 15 062 but did not exceed AUD 16 283 shading-in provisions applied under which the levy payable was 20 per cent of the excess of taxable income over AUD 15 062. These thresholds are not yet finalised for 2003-04. In 2002-03, individual pensioners under Age Pension age did not pay the levy where their taxable income did not exceed AUD 17 164. Where taxable income exceeded AUD 17 164 but did not exceed AUD 18 555 shading in provisions applied under which the levy payable was 20 per cent of the excess of taxable income over AUD 17 164. Again, these thresholds are not yet finalised for 2003-04. In 2003-04 eligible senior Australians of Age Pension age do not pay the levy where their taxable income does not exceed AUD 20 500. Where the taxable family income of an eligible senior Australian does not exceed AUD 31 729 no levy is payable. A Medicare Levy Surcharge equal to 1 per cent of the taxpayer’s taxable income and reportable fringe benefits may also be paid by high income taxpayers without adequate private patient hospital insurance. In 2003-04, a single taxpayer with combined taxable income and reportable fringe benefits exceeding AUD 50 000 may be liable to surcharge. A couple or sole parent family may be liable to surcharge where combined taxable income and reportable fringe benefits exceed AUD 100 000. This family surcharge threshold is increased by AUD 1 500 for each dependant after the first. The effects of the Medicare Levy Surcharge are not shown in this publication. Most taxpayers who would otherwise be liable to surcharge have private patient hospital insurance as the cost of this insurance tends to be lower than the surcharge and therefore the surcharge is not typically imposed. 1.2. State and local income taxes In Australia no states or territories levy a tax based on a resident’s income. 2.

Social security contributions

2.1. Employees’ contributions None. There is, however, a Medicare Levy which is based upon taxable income. Refer § 1.13. 2.2. Employers’ contributions No contributions are collected from employers or employees specifically for pensions, sickness, unemployment or work injury benefits, family allowances or other benefits. Part of Australia’s retirement income system is the provision of compulsory employer contributions (the Superannuation Guarantee system) equal to at least 9 per cent of ordinary time earnings or of the relevant industrial award. These contributions are not reflected in the ‘Taxing Wages’ calculations because they are not a form of taxation (they are not an unrequited transfer to general government). While the Superannuation Guarantee scheme is mandated by the Australian Government, superannuation is provided through private superannuation funds subject to Government regulation. Employers’ contributions are generally made to individual accounts and form part of employees’ personal superannuation assets. Some defined benefit schemes for government employees and private defined benefit schemes also exist. The employee may take superannuation benefits as either a lump sum payment or pension on retirement. © OECD/OCDE 2004

237

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

3.

Other taxes

3.1. Pay-roll tax Australian State Governments levy pay-roll taxes on wages, cash or in kind, provided by larger employers to their employees. The rates of pay-roll tax, thresholds and deductions differ across States. In New South Wales, the State with the largest population, the pay-roll tax rate is 6.00 per cent for employers with total Australian wages in excess of AUD 600 000 in 2003-04. The employer is entitled to an exemption from tax, or a pro-rated pay-roll tax threshold, on wages paid in New South Wales up to a maximum of AUD 600 000. The exempt amount is reduced based on the proportion of the employer’s New South Wales pay-roll to total Australian pay-roll. Pay-roll tax revenue is not used to fund social security. It forms part of the consolidated revenue of State Governments, which do not deliver social security. 4.

Universal cash transfers*

4.1. Transfers related to marital status There are no cash transfers made on a universal basis to married couples. 4.2. Transfers related to dependent children • As mentioned earlier, the government has introduced the Family Tax Benefit (FTB) to replace certain forms of family assistance. There are two parts to FTB. Families may be entitled to one or both parts depending on their family circumstances. Eligibility for FTB(A) benefit is based upon the combined taxable incomes of the parents. The income ceiling of AUD 82 052 upon which eligibility is measured increases by AUD 3 285 for the second and additional children, and the payment shades out at the rate of AUD 0.30 per AUD 1 of income over the ceiling. The base rate of payment is AUD 1 095 for a dependent child aged under 18, and AUD 1 470.95 for a dependent child aged under 21 or a dependent full-time student aged 21 to 24. A higher benefit is available for lower income earners, and the value of this benefit is dependent on the age and number of children. Families may receive a maximum payment of AUD 3 401.80 for each child aged under 13 years and AUD 4 314.30 for each child aged 13 to 15 years in 2003-04. This additional benefit shades out at the rate of AUD 0.30 for each dollar of income over AUD 31 755 until the base payment is reached. The attached calculations assume each dependant is less than 13 years of age. • The Part B benefit is targeted at single income couple and sole parent families. Eligibility for FTB(B) is contingent upon the spouse meeting a separate income test and the existence of at least one dependent child under the age of 16 or a qualifying dependent full-time student up to the age of 18. There is no income ceiling for sole parents or the main income earner in a couple family, however there is a spouse income threshold of AUD 1 825, above which the entitlement is reduced by AUD 0.30 for each dollar of income. The maximum payment is AUD 2 036.70 per year where there is a dependent child of at least 5, and AUD 2 920 per year where there is a child under 5 years. The attached calculations assume each dependant is between 5 and 16 years of age. • In the 2001-02 income year a Baby Bonus was introduced to recognise that one of the hardest times for families financially is the birth of their first child, when one partner gives up or reduces their paid employment. To be eligible a taxpayer must have had a baby or gained legal responsibility of a child under age 5 after 30 June 2001. The Baby Bonus is payable until the child

238

* The tax calculations reflect the New Start Allowance which is a transfer amount that is available to low-income families although it is not pertinent to the family types considered within this Report and it’s description is not included herein.

© OECD/OCDE 2004

Australia – Australie

turns 5. The maximum amount is reduced by the proportion of the taxable income in the claim year as against the base year. For those with a taxable income below AUD 25 001 in the claim year there is a minimum entitlement of AUD 500 per annum. As a transitional measure the Baby Bonus is also available to families who already have children, in respect of the children born on or after 1 July 2001. • Parenting Payment is a taxable payment payable to partnered and sole parents in low income families with a qualifying child under 16. The maximum annual rate of Parenting Payment (Partnered) (PP(P)) is estimated to be AUD 9 032 in 2003-04, while the maximum annual rate of Parenting Payment (Single) (PP(S)) is estimated to be AUD11 770. These payments are subject to income and assets tests. Under the PP(P) income test, a spouse with little or no income (less than AUD 62 per fortnight) would not receive any Parenting Payment where the higher earning partner’s income exceeded AUD 1 077 per fortnight (AUD 28 008 per year) in 2003-04. PP(S) reduces by AUD 0.40 for each AUD 1 of income above a fortnightly threshold of AUD 120 (or AUD 3 120 yearly) plus AUD 24.60 (AUD 639.60 yearly) for each child. A sole parent with two qualifying dependants may be entitled to some basic PP(S) in 2003-04 where private income does not exceed an average of AUD 1 300 per fortnight (or AUD 33 823 yearly). • A non-taxable supplementary payment called Pharmaceutical Allowance (PA) is payable with PP(S). This payment is added to the maximum basic rate of PPS before a person’s entitlement is calculated. Anyone with a PP(S) entitlement, after PA has been added, receives the full amount of PA. In 2003-04, the payment is projected to be AUD 5.80 per fortnight (AUD 150.80 yearly). 5.

Main changes in the tax/benefit system since 1999

5.1. General rates of tax – resident individuals • As part of tax reform, the personal income tax rates and thresholds have changed from those which applied from the 1995-1996 to 1999-2000 income years. These thresholds have also changed for the 2003-04 income year. Refer § 1.13. • In the attached calculations, the Medicare Levy has been shifted from the Employee’s Compulsory Social Security Contributions category to the Central Government Income Tax category. 5.2. Cash transfers related to dependent children • From 1 July 2000, the new Family Tax Benefit (FTB) has replaced several forms of tax relief and cash transfers. Refer § 1.121 and 2.3. 6.

Memorandum items

6.1. Identification of an average production worker The source of the information used in replying to the questionnaire was the Australian Bureau of Statistics publication Average Weekly Earnings – Australia, catalogue number 6302.0. The survey is conducted on a quarterly basis and is based on a representative sample of employers in each industry. All wage and salary earners who received pay for the reference period are represented in the Survey of Average Weekly Earnings (AWE), except: • members of the Australian permanent defence forces; • employees of enterprises primarily engaged in agriculture, forestry and fishing; • employees in private households employing staff; • employees of overseas embassies, consulates, etc; • employees based outside Australia; and © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

• employees on workers’ compensation who are not paid through the payroll. Also excluded are the following persons who are not regarded as employees for the purposes of this survey: • casual employees who did not receive pay during the reference period; • employees on leave without pay who did not receive pay during the reference period; • employees on strike, or stood down, who did not receive pay during the reference period; • directors who are not paid a salary; • proprietors/partners of unincorporated businesses; • self-employed persons such as subcontractors, owner/drivers, consultants; and • persons paid solely by commission without a retainer. The sample for the AWE survey, like most ABS business surveys, is selected from the ABS Business Register which is primarily based on registrations to the Australian Taxation Office's (ATO) Pay As You Go Withholding (PAYGW) scheme (and prior to 1 June 2000 the Group Employer (GE) scheme). The population is updated quarterly to take account of: • new businesses; • businesses which have ceased employing; • changes in employment levels; • changes in industry; and • other general business changes. The survey data used in identifying the average production worker relates to that applying to fulltime employees in the manufacturing sector being adult males and females without regard to marital status. Earnings comprise weekly ordinary time earnings and weekly overtime earnings. Weekly ordinary time earnings refers to one week’s earnings of employees for the reference period attributable to award, standard or agreed hours of work. It is calculated before taxation and any other deductions (e.g. superannuation, board and lodging) have been made. Included in ordinary time earnings are award, workplace and enterprise bargaining payments, and other agreed base rates of pay, over award and over agreed payments, penalty payments, shift and other allowances; commissions and retainers; bonuses and similar payments related to the reference period; payments under incentive or piecework; payments under profit sharing schemes normally paid each pay period; payment for leave taken during the reference period; all workers’ compensation payments made through the payroll; and salary payments made to directors. Excluded are overtime payments, retrospective pay, pay in advance, leave loadings, severance, termination and redundancy payments, and other payments not related to the reference period. Weekly overtime earnings refers to payment for hours in excess of award, standard or agreed hours of work. The annual gross earnings for 2003-04 are based on the APW figure given for 2002-03 and growth derived from the OECD Economic Outlook publication. 6.2. Employers’ contribution to private health and pension scheme In Australia very few employers make any contributions towards health schemes for their employees, especially where the employee is at a wage level comparable to that of an average production worker.

240

From a survey of employment benefits conducted by the Australian Bureau of Statistics for November 1995, the findings of which are published in Superannuation – Australia (ABS Catalogue No 6319.0), it was estimated that 95.6 per cent of all persons aged 15 to 74 and employed full-time in the manufacturing industry were covered by a superannuation scheme. © OECD/OCDE 2004

Australia – Australie

2003-2004 Parameter values Average earnings/yr Spouse income limit withdrawal rate Low income credit Tax schedule

Ave_earn spouse_cr sp_lim sp_redn low_inc_cr low_inc_lim low_inc_redn tax_sch

Medicare levy exemption limits married/sole parent + per child shading-in rate Part A FTB max Part A FTB basic part A income limit 1 part A income limit 2 reduction rate additional limit2 per extra child Part B FTB part B partner income limit reduction rate Parenting payment single reduction rate income limit additional limit per child Pharmaceutical allowance State pay-roll tax rate (NSW)

medic_rate sing_lim m_lim ch_lim shade_rate FTB_A_max FTB_A_base FTB_A_lim1 FTB_A_lim2 FTB_A_taper FTB_A_child FTB_B FTB_B_lim FTB_B_taper PPS PPS_taper PPS_lim PPS_ch_lim PA Pay_roll_rate

Additional parameters Parenting payment partnered reduction rate 1 reduction rate 2 income limit 1 income limit 2 partner income threshold partner income taper Newstart allowance single Newstart allowance partnered reduction rate 1 reduction rate 2 income limit 1 income limit 2 Pensioner tax offset single Pensioner tax offset threshold single Pensioner tax offset supplement single Pensioner tax offset taper rate

PPP PPP_taper1 PPP_taper2 PPP_lim1 PPP_lim2 PPP_ptnr_lim PPP_ptnr_taper NSAS NSAP NSA_taper1 NSA_taper2 NSA_lim1 NSA_lim2 PTOS PTOS_thresh PTOS_supp PTOS_taper

50732 1535 282 0.25 235 21600 0.04 0 0.17 0.30 0.42 0.47 0.015 15062 25417 2334 0.2 3401.8 1095 31755 82052 0.3 3285 2036.7 1825 0.3 11769.65 0.4 3120 639.6 150.8 0.06

Secretariat estimate

6000 21600 52000 62500

Treasury projection

9031.62 0.5 0.7 1612 6370 15106 0.7 10012.6 9031.62 0.5 0.7 1612 3692 1926 17330 415 0.125

241

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Australian system in 2003 are mostly repeated for each individual of a married couple. But the spouse credit is relevant only to the calculation for the principal earner and the calculation of employee social security contributions (medicare levy) uses shading-in rules which depend on the levels of earnings of the spouses. The basis of calculation is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Where the calculation for one earner takes into account variables for the other earner, the affix "_oth" is used. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. 2003-2004 Tax equations Line in country table and intermediate steps Variable name

1. Earnings 2. Allowances 3. Credits in taxable income: Credits in taxable income of principal

Range

Equation

earn tax_al

B

0

taxbl_cr_princ

P

IF(AND(Children>0,Married=0),Taper(PPS,earn_princ,PPS _lim+PPS_ch_lim*Children,PPS_taper),IF(AND(Children= 0,Married=0),taper2(NSAS,earn_princ,NSA_lim1,NSA_lim2 ,NSA_taper1,NSA_taper2),IF(AND(Children=0,Married>0), taper3(NSAP,earn_princ,earn_spouse,NSA_lim1,NSA_lim2 ,NSA_taper1,NSA_taper2),IF(AND(Children>0,Married>0), taper3(NSAP,earn_princ,earn_spouse,NSA_lim1,NSA_lim2 ,NSA_taper1,NSA_taper2),0)))) IF(AND(Children>0,Married=0),0,IF(AND(Children=0,Marri ed=0),0,IF(AND(Children=0,Married>0),taper3(NSAP,earn _spouse,earn_princ,NSA_lim1,NSA_lim2,NSA_taper1,NSA _taper2),IF(AND(Children>0,Married>0),taper4(PPP,earn_ spouse,earn_princ,PPP_lim1,PPP_lim2,PPP_taper1,PPP_ta per2,PPP_ptnr_lim),0)))) earn+taxbl_cr

Credits in taxable income of spouse taxbl_cr_spouse

4. CG taxable income 5. CG tax before credits Medicare Levy

tax_inc

B

med_levy

B

liab CG_tax_excl

P B

spouse_cr

P

Low income credit Pensioner tax offset

low_cr pen_cr

B P

Beneficiary tax offset

ben_cr

B

Total CG tax State and local taxes Employees' soc security Cash transfers: Family Tax Benefit (Part A)

tax_cr CG_tax local_tax SSC

B B B B

ftbA

P

Family Tax Benefit (Part B)

ftbB

J

Pharmaceutical Allowance

PA

J

cash_trans tax_empr

J B

Tax liability 6. Tax credits : Spouse credit

7. 8. 9. 11.

13. Employer's State pay-roll tax 242

S

MEDICARE(tax_inc,sing_lim,m_lim,ch_lim,shade_rate,me dic_rate,married,tax_inc_oth,Children) Tax(tax_inc,tax_sch) liab + med_levy Taper(IF(Children>0,0,spouse_cr),earn_spouse, sp_lim, sp_redn) Taper(low_inc_cr, tax_inc, low_inc_lim, low_inc_redn) IF(AND(taxbl_cr_princ>0,AND(Children>0,Married=0)),MI N(PTOS-(earn_princ-PTOS_thresh)*PTOS_taper,PTOS),0) IF(AND(taxbl_cr>0,NOT(AND(Children>0,Married=0))),Tax (taxbl_cr,tax_sch),0) spouse_cr+low_cr+pen_cr+ben_cr Positive(liab-tax_cr) + med_levy 0 0 IF(PA>0,FTB_A_max*Children,IF(earn_total+taxbl_cr>FTB_ A_lim2+FTB_A_child*(Children1),Taper(FTB_A_base*Children,earn_total+taxbl_cr,FTB_A_l im2+FTB_A_child*(Children1),FTB_A_taper),ftbtaper(FTB_A_max*Children,earn_total+t axbl_cr,FTB_A_lim1,FTB_A_taper,FTB_A_base*Children))) IF (children>0, Taper(FTB_B,earn_spouse,FTB_B_lim,FTB_B_taper),0) AND(Children>0,Married=0)*IF(Taper(PPS+PA,earn_princ, PPS_lim+PPS_ch_lim*Children,PPS_taper)>0,PA,0 ftbA+ftbB+taxbl_cr+PA earn*Pay_roll_rate

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

© OECD/OCDE 2004

AUSTRIA – AUTRICHE Chapter 1

The Austrian currency is the Euro (EUR). In year 2003, EUR 0.9001 was equal to 1 USD (average of nine months daily exchange rates). In that year the Average Production Worker earned EUR 24 405 (Secretariat estimate). 1.

Personal Income Tax

1.1. Central government income tax 1.11. Tax unit Each person is taxed separately. 1.12. Tax allowances 1.12.1. Standard tax reliefs • Work related expenses: a minimum allowance of EUR 132 is available to all employees. • Minimum allowance for special expenses EUR 60 (reduced to 0 between income of EUR 36 400 and EUR 50 900). • Social security contributions and connected contributions (see Section 2). 1.12.2. Non-standard tax reliefs • Mainly work-related expenses ( ‘Werbungskosten’); • Traffic relief according to the distance between home/address and working place Following allowances are deductible from income (EUR per year): Public transport Available

more than 2 km more than 20 km more than 40 km more than 60 km

0 384 768 11 052

Not available

210 840 1 470 2 100

• Special expenses allowances (‘Sonderausgaben’): Some personal expenses (for example, life insurance premiums, expenses for the purchase of residence including repayments of housing loans) are partly deductible from income. The allowance is limited to EUR 2 920 per taxpayer or EUR 5 840 for sole earners or parents. A quarter of ‘Sonderausgaben’ can be deducted up to a taxable income of EUR 36 400, whereas between EUR 36 400 and EUR 50 900 the deductible amount is (linearly) reduced to zero. Unless higher special expenses can be proved a standard deduction for “Sonderausgaben” of EUR 60 is granted (see above § 1.121). Additionally, contributions to the church are deductible up to an amount of EUR 75. • Tax-free supplements for dirty, hard, dangerous, night, weekend and holiday work and overtime. The supplement for five hours of overtime up to EUR 43 per month is tax free, the other supplements are tax free up to EUR 360 (EUR 540 for night workers) per month. 1.12.3. Adjustments The data on which the gross earnings of an average production worker are based reflect amounts that form a category of tax-free income (Freibeträge). In order to make the tax calculations as realistic as possible, it is assumed for this Report that 2 per cent of the gross earnings is tax free. © OECD/OCDE 2004

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1.13. Rate Schedule The rates of tax are: Income up to (EUR)

Marginal rate %

3 640 7 270 21 800 50 870 Above

0 21 31 41 50

Because of the calculation rules for the general tax credit, the effective tax rates are different from the formal schedule (see § 1.15): There is a special taxation apart from the normal tax schedule for Christmas and leave bonus as far as their sum does not exceed two average monthly payments (1/6 of current income). If these bonuses are below EUR 1 680 p.a., no tax is calculated. Otherwise the tax is the minimum of 30 per cent of the amount exceeding EUR 1 680 and of 6 per cent of total bonuses minus a tax-free amount of EUR 620. 1.14. Tax credits Tax credits are available as follows: • General tax credit EUR 887 (reduced to 0 for income above EUR 35 421. This reduction takes place according to schedules which are different for employees, pensioners and self-employed and also dependent on family status.) • Employee’s tax credit of EUR 54. In the overall tax calculation, negative tax is possible where the amount paid to the taxpayer would equal the gross tax minus tax credits but is limited to 10 per cent of social security contributions to a maximum of EUR 110. • Traffic (commuting) tax credit EUR 291. • Sole earner’s and sole parent’s tax credit of EUR 364. The sole earner’s credit is not given when a spouse’s income exceeds EUR 2 200 or EUR 4 400 for a family with children. If there are children, this tax credit can be paid out as a negative income tax (in addition to the negative tax permitted in respect of the Employee’s tax credit). • Children’s tax credit EUR 610.80 per child. As this tax credit is paid together with children allowances and not connected with income tax assessment, it is treated as a transfer – like in the Revenue Statistics. • Tax credit for retired persons EUR 400. This credit is linearly reduced to 0 between 16 715 EUR and 21 800 EUR of income. 1.15. Effective tax schedules for employees The calculation rules for the general tax credit imply two effective tax rate schedules for employees: Without sole earner's (parent's) tax credit

244

With sole earner's (parent's) tax credit

Bracket (EUR)

Rate (%)

Bracket (EUR)

Rate (%)

3 640 7 270 8 866 9 811 10 901 14 535 18 168 21 800 35 421 50 870 Above

0 21 31 43.27513 22.37615 31.99064 35.01872 32.92731 45.5004 41 50

3 640 6 177 7 270 8357 9920 10901 11301 14535 18168 21800 35421 50870 above

0 21 56.22415 18.94848 0.09789 43.94597 63.75 31.89672 35.01872 32.92731 45.5004 41 50

© OECD/OCDE 2004

Austria – Autriche

1.2. State and local income taxes None. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employee and Employer Social Security Contributions Ceilings (EUR)

Health insurance Unemployment insurance Pension insurance Accident insurance Contribution to the labour chamber Contribution for the promotion of residential building Addition to secure wage payments in the case of bankruptcy

Rates (%)

Regular wage per month

Christmas and leave bonus

3 360 3 360 3 360 3 360 3 360 3 360 3 360

6 720 6 720 6 720 6 720 1 1

6 720

Employee

Employer2

3.95 3.00 10.25 – 0.50 0.50 –

3.65 3.00 12.55 1.40 – 0.50 0.70

1. No contributions on Christmas and leave bonus. 2. A new program has been introduced as of January 1, 2003 for severance payments. Employers are required to pay 1.53 per cent of gross wages to the Social Health Security Fund (“Krankenkassen”) for those whose employment starts after January 1, 2003 or where the employer and employee opt to participate in the new program. It is assumed that the wage earners considered in the Report do not participate in this new program.

2.2. Payroll taxes There are two payroll taxes which are levied for all private sector employees on employers with a monthly gross wage total of more than EUR 1 095: the contribution to the Family Burden Equalisation Fund (4.5 per cent) and the Community Tax (3 per cent). The wage-dependant part of the contribution to the Entrepeneurs’ Chamber (listed under heading 1000, taxes on profits, in the Revenue Statistics) which is levied together with contributions to the Family Burden Equalisation Fund at different rates depending upon the Länder Chamber (the average rate is approximately 0.4 per cent) is not taken into account. The contribution for the promotion of residential buildings (listed under heading 3000, taxes on payroll, in the Revenue Statistics) is included in the social security contributions shown above as it is levied by the Health Insurance Companies on monthly income (current) along with the other social security contribution amounts. 3.

Universal Cash Transfers

3.1. Amount for marriage No recurrent payments. 3.2. Amount for children A family allowance is granted for each child; in 2002 the monthly payment is EUR 105.40 for the first child, EUR 118.20 for the second and EUR 130.90 for subsequent child. It is increased by EUR 7.30 for children above 3 years, EUR 25.50 for children above 10 years of age and by EUR 47.30 for students (above 19). Children under the age of 3 were excepted from the 7.30 EURO increase in 2003, as for these children one parent is entitled to a childcare transfer of 436 EUR per month, introduced in 2002. The children’s tax credit (EUR 50.90 monthly, see § 1.14) is paid out together with the family allowance and therefore treated as a transfer 4.

Main Changes in Tax/Benefit Systems Since 1994

In this section, all amounts are expressed in Austrian shillings (ATS). In 1994, a major tax reform took effect. Most measures concerned the taxation of firms. For employees the following points are important. The general tax credit was increased by ATS 3 840, i.e. ATS 320 monthly. For employees with © OECD/OCDE 2004

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low income a negative income tax option was introduced (the negative income tax is limited to the wage earner's tax credit, but it cannot exceed 10 per cent of social security contributions). In 1995, family allowances were reduced by ATS 100 per month (ATS 1 200 per year). In 1996, a consolidation package was introduced, some measures of which took effect already in 1996. The deductibility of special expenses was reduced (half to quarter) and abolished for incomes above ATS 700 000. Tax free overtime supplements were limited to ATS 590 per month. The general tax credit was linearly reduced to zero between ATS 200 000 and ATS 500 000 of income and there was a change in the deductibility of social security contributions on non-current wages and salaries. The family package of 1998 brought an increase of ATS 1 500 of the family allowances and the children’s tax credits each in 1999. A supplement of ATS 2 400 in 1999 and ATS 4.800 in 2000 for the 3rd etc. child for families earning less than ATS 504 000 was introduced. The sole earner’s or sole parent’s tax credit negative tax limit was abolished. For 2000 and following years there is another increase of the sum of family allowances and children's tax credits by ATS 3 000, but the differentiation according to the number of children was transferred to the allowances, i.e. from now there is a unique annual tax credit of ATS 8 400 per child. The tax reform 1999, effective from the beginning of 2000, brought a reduction of the tax schedule and an increase of the general tax credit leading to a (linearly increasing) tax reduction between ATS 4000 and 7000 p.a. The maximum reduction is reached at a gross income near the ceiling for social security contributions. The reform also included a number of other measures which concerned mainly enterprise taxation. The budget consolidation measures for 2001 included an abolition of the general tax credit for incomes exceeding 487 400 ATS, the halving of the employee’s tax credit to 750 ATS and a phasing-out of the pensioner’s tax credit between an income of 230 000 and 300 000 ATS. The adaptation of the tax laws to the EURO did not bring any substantive changes. In 2003 (effective), the family allowances for children above three years of age were increased by EURO 7.30 per month. 5.

Memorandum Items

5.1. Calculation of Earnings Data • Sector used – All employees • Geographical coverage -- Whole country • Sex -- Male and Female • Earnings base: Items excluded: Unemployment compensation Sickness compensation Items included: Vacation payments Overtime payments Recurring cash payments Fringe benefits (taxable value) • Basic method of calculation used: Average annual earnings • Income tax year ends: 31 December 246

Period to which the earnings calculation refers to: one year. © OECD/OCDE 2004

Austria – Autriche

2003 Parameter values APW-income Non current income as % Tax free inc on non-current Ceiling for taxing non-current income Work related Allowance f."Special expenses" Basic allowances threshhold Basic allowance reduction rate Tax free inc. Basic tax credit Employee's tax credit Max. neg. employee's tax credit Traffic (commuting) tax credit Sole earner's (parent's) tax credit Spouse income not more than Spouse with children Tax on non-current income Altern.tax on non-current income Income tax schedule (se...for sole earners)

Ave_earn non_cur_pc bonus nonc_ceil work_rel Basic_al Basic_al_thrsh Basic_al_redn tax_free basic_cr wage_cr neg_wage_cr traffic_cr sole_cr sole_lim0 sole_lim1 non_cur_rate alt_nonc_rate tax_sch(se)

24405 14.286% 620 1680 132 60 36400 0.4138% 2.00% 887 54 110 291 364 2200 4400 6% 30% 0 0.21 0.31 0.432751 0.223761 0.319906 0.350187 0.329273 0.455004 0.41 0.5

Ceiling f. soc. security contributions lower limit Employees' contr. rates

SSC_ceil SSC_low health_rate unemp_rate pension_rate empl_14 others_rate health_empr unemp_empr pension_empr accident_empr payinsur_empr empr_14 others_empr payroll_rate CB_1 CB_2 CB_3 CB03sppl CB10sppl CB19sppl child_cr_1

3360 309.38 3.95% 3.00% 10.25% 17.20% 1.00% 3.65% 3.00% 12.55% 1.40% 0.70% 21.30% 0.50% 7.50% 1264.80 1418.40 1570.80 87.60 306.00 567.60 610.80

sum without others Employers' contr.rates

sum without others Pay roll taxes Child benefit: 1st child 2nd child 3rd+ child suppl.>3years suppl.>10years suppl >19years Child credit first

(Secretariat estimate)

3640 7270 8866 9811 10901 14535 18168 21800 35421 50870

0 0.21 0.562242 0.189485 0.000979 0.43946 0.6375 0.318967 0.350187 0.329273 0.455004 0.41 0.5

3640 6177 7270 8357 9920 10901 11301 14535 18168 21800 35421 50870

247

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Austrian system are, in principle, on an individual basis. The only variable which is dependent on the marital status is the head of family (sole earner) tax credit which is also given to single people with children. For the Christmas and leave bonus (both amounting to one monthly wage or salary) there are special rules for the calculation of social security contributions (separate ceilings and slightly lower rate) and wage tax (reduced flat rate). The income tax schedule and the tax credits are applied only for "current pays". The general tax credit varies with income, and for lower incomes it is also different between sole earners and other tax payers. Therefore, instead of the formal tax schedule (0%- 21%-31%-41%-50%), the schedule of effective tax rates is included. The children tax credit is in principle given to the mother (as a negative tax together with "family allowances" = transfer for children). The sole earner and the employee tax credit are connected with negative income tax rules. Therefore, the tax finally paid may be different from tax liability minus tax credits. 2003 Tax equations Bn Variable

3 4 5 6 7

earnings (%APW) number of children Gross earnings Current income Basic allowance

8 SSC on curr.inc.

code for docn equations

Excel-Function

percent child earn cearn allow

0, 1/3, 2/3, 1 or 1 2/3 in APW tables 0 or 2 in APW tables =Ave_earn*percent =(1-non_cur_pc)*earn =(earn>14*SSC_low)*Taper(Basic_al;cearn-SSCc-work_reltaxfrinc;Basic_al_thrsh;Basic_al_rdn)

work_rel taxfrinc ctbase

12 Gross tax on current income 13 Basic tax credit 14 Married or head of familiy

gtaxcur btaxcr headcr

15 Other 16 Interm. tax on current income 17 Net tax on current income

othcr itcur ntaxcur

18 Non current income 19 SSC on non-curr. inc.

ncearn SSCnc

20 21 22 23

Non current income-SSC of which tax free Non-curr. tax base Tax on non current income

ncearn_adj1 taxfree ncearn_adj2 taxnc

24 25 26 27 28

Taxable income Tax liability excl. tax credits Income tax finally paid Employee's SSC Employer's SSC

taxinc inctax_ex inctax SSC SSCf

payroll cash

31 Take-home pay 32 Wage cost

248

1.

2.1

SSCc

9 Work related expenses 10 Tax-free income 11 Tax base for schedule

29 Pay-roll taxes 30 Cash transfers

APW Nr.

non-wastable tax credits tax expenditure component

taxexp

cash transfer component

transfer

=(empl_14+others_rate)*MIN(12*SSC_ceil;cearn*(cearn>1 2*SSC_low) =work_rel =tax_free*earn =(earn>14*SSC_low)*ROUND(cearn-allow-SSCc-work_reltaxfrinc;-2) =IF(headcr>0;Tax(ctbase;tax_schse);Tax(ctbase;tax_sch)) =(earn>14*SSC_low)*basic_cr =(earn_sp0;sole_lim1;sole_lim0))*sole_cr (for singles: (child>0)*sole_cr) =min(wage_cr;10%*SSC)+traffic_cr =gtaxcur-btaxcr-headcr-othcr =IF(itcur>0; itcur;MAX(itcur;-0,1*SSC-(child>0)*headcr; neg_wage_cr-(child>0)*headcr)) =earn-cearn =(health_rate+unemp_rate+pension_rate) * MIN(2*SSC_ceil;ncearn)*(ncearn>2*SSC_low) =ncearn-SSCnc =MIN(bonus;ncearn_adj) =ncearn_adj-taxfree =Positive(MIN((ncearn_adj1nonc_ceil)*alt_nonc_rate;ncearn_adj2*non_cur_rate)) =ctbase+ncearn_adj2 =gtaxcur+taxnc =ntaxcur+taxnc =SSCc+SSCnc =((empr_14+others_empr)*MIN(12*SSC_ceil;cearn)+empr _14*MIN(12*SSC_ceil;ncearn)) =payroll_rate*earn =IF(child<2;child*(CB_1+CB10sppl);CB_1+CB_2+ (child2)*(CB_3+CB03suppl) +2*CB10sppl+child*child_cr_1 (for singles and spouses in the married couple cases) =earn-inctax-SSC+cash =earn+SSCf+payroll

2.4 2.5

2. 6.1 6.2 6.4

4. 5. 7. 2.4/9.

13.1 13.2

11. 12.

=-MIN(inctax;-headcr-wage_cr-(othcr of spouse>0)*MAX(wage_cr;-inctax of spouse))-transfer =IF(inctax<0,-inctax,0)

© OECD/OCDE 2004

BELGIUM – BELGIQUE Chapter 1

La monnaie nationale est l’Euro (EUR). En 2003, EUR 0.9001 étaient égal à USD 1 (moyenne sur neuf mois des taux de change quotidiens). Pour 2003, le revenu de l’ouvrier moyen a été estimé à 31 238 EUR (Estimation du Secrétariat). 1.

Système d'imposition sur le revenu

1.1.Impôt sur le revenu perçu par l'administration centrale 1.11. Unité d'imposition L'unité d'imposition est le ménage. Toutefois, les conjoints qui bénéficient tous deux de revenus professionnels sont imposés séparément et le conjoint qui n'exerce pas d'activité professionnelle bénéficie de l'imposition séparée sur la quote-part de revenus qui peut lui être attribuée (voir ciaprès : quotient conjugal). 1.12. Abattements fiscaux 1.121. Déduction des cotisations de sécurité sociale Sauf mention contraire, les cotisations sociales sont déductibles des revenus bruts. 1.122. Charges professionnelles Les salariés et les titulaires de professions libérales ont droit à une déduction forfaitaire pour charges professionnelles. Celle-ci ne peut en aucun cas excéder EUR 3 000 par conjoint et se calcule comme suit : Revenu brut, cotisations sociales déduites (EUR)

de moins de 4 500 de 4 500 à 8 930 de 8 930 à 14 870 au delà de 14 870

Taux (%)

25 10 5 3

Les dirigeants d’entreprises ont également droit à une déduction forfaitaire pour charges professionnelles : celle-ci est de 5 pour cent du revenu brut (cotisations sociales déduites) et ne peut excéder EUR 3 000 par conjoint. Un forfait complémentaire peut être octroyé aux salariés en cas d'éloignement du domicile par rapport au lieu de travail. Les charges réelles exposées pour acquérir ou conserver les revenus professionnels peuvent être déduites si elles sont supérieures à la déduction forfaitaire. La déductibilité de certaines catégories de dépenses professionnelles (voitures, vêtements, restaurant, cadeau d'affaires) est toutefois limitée. Les contribuables qui déclarent leurs charges réelles peuvent déduire EUR 0.15 par kilomètre avec un maximum de 25 km par trajet simple, pour leurs déplacements du domicile au lieu de travail effectués autrement qu’en voiture individuelle. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.123. Quotient conjugal Le quotient conjugal peut être octroyé lorsque le revenu professionnel de l'un des conjoints n'excède pas 30% des revenus professionnels des deux conjoints. Le montant alors attribué est limité à 30% du total des revenus professionnels nets, diminués des revenus propres du conjoint qui reçoit la quote-part. Il est limité à 8.030 €. 1.124. Tranche exonérée La tranche exonérée varie selon la situation familiale, les montants de base sont (en euros): Isolé

5 570

Conjoint

4 610

Majorations pour enfants à charge (un enfant handicapé est compté pour deux): 1 enfant

1 180

2 enfants

3 050

3 enfants

6 830

4 enfants Au-delà du

11 040 4e

enfant, par enfant supplémentaire

4 220

Les quotités exonérées pour enfant à charge qui ne peuvent être imputées faute de revenu suffisant donnent lieu à un crédit d’impôt remboursable à partir de 2002. Le crédit d’impôt remboursable est calculé au taux marginal et plafonné à EUR 340 par enfant à charge. Des majorations sont également octroyées en raison de certaines situations familiales particulières (en euros): Autres personnes à charge

1 180

Conjoint handicapé

1 180

Autres personnes à charge handicapées

1 180

Veuf(ve) avec enfants à charge

1 180

Père ou mère célibataire

1 180

Ces majorations s'imputent par priorité sur les revenus imposables du conjoint qui en a le plus, le solde éventuel est transféré sur les revenus de l'autre conjoint. La réduction d'impôt de la tranche exonérée ainsi que ces majorations pour personnes à charge et pour père ou mère célibataire est calculée en appliquant le barème au montant de cette tranche majorée. (« l'imputation se fait par le bas »). 1.125. Barème Revenu imposable ( EUR)

0-6 840 6 840-9 740 9 740-14 530 14 530-29 740 29 740 et plus

Taux marginal (%)

25 30 40 45 50

La tranche exonérée et ses éventuelles majorations sont imputées « par le bas ». La contribution complémentaire de crise (CCC) est supprimée. 1.2. Impôt des collectivités locales 250

Les impôts locaux sont constitués d'additionnels à l'impôt sur le revenu, avant déduction des crédit d’impôt remboursables (pour faible revenus d’activité professionnelle et pour enfants) . Le taux © OECD/OCDE 2004

Belgium – Belgique

de ces additionnels est fixé par chaque commune et il n'existe pas de limite maximale. Un taux moyen de 7 pour cent a été retenu. 2.

Cotisations sociales obligatoires versées à des régimes publics

2.1. Taux et plafond a) Cotisations salariales La loi fixe les taux de cotisations patronales et personnelles (celles du travailleur). Les taux de cotisations applicables (en pourcentages) sont les suivants (entreprises de 20 travailleurs et plus):

Chômage Indemnité assurance maladie Soins de santé Parcours d’insertion Allocations familiales Pensions Accueil des enfants Maladies professionnelles Accidents de travail Congé d’éducation Fermetures d'entreprises Modération salariale Total

Travailleur

Employeur

Total

0.87 1.15 3.55

3.32 2.35 3.80 0.05 7.00 8.86 0.05 1.10 0.30 0.04 0.12 7.59 34.58

4.19 3.50 7.35 0.05 7.00 16.36 0.05 1.10 0.30 0.04 0.12 7.59 47.65

7.5

13.07

Le pécule de vacances perçu n'est pas soumis aux cotisations de sécurité sociale applicables aux salaires, mais une retenue de sécurité sociale de 13.07 pour cent est effectuée lors de son attribution. b) Réduction des cotisations patronales A partir du 1er avril 2001 ; il est octroyé une réduction des cotisations patronales, dont le montant varie en fonction du salaire brut selon le barème suivant. Salaire brut annuel (S) en euros

0 < S < 10 261 10 261 < S < 13 329 13 329 < S < 18 459 S > 18 459

Réduction en euros

1 255 2 946 2 946 – 0.3295 ( S – 13 329 ) 1 255

c) Réduction des cotisations personnelles de sécurité sociale Il est en outre octroyé à partir du 1er janvier 2000, une réduction des cotisations personnelles de sécurité sociale pour les bas salaires. Celle-ci est octroyée mensuellement en fonction du niveau du salaire. Salaire brut annuel (Sa) en euros

0 < Sa 10 733.04 10 733.04 < Sa < 14 047.68 14 047.68 <Sa < 18 110.04 Sa > 18 110.04

Réduction en euros

0 1 140,00 1 140,00 – 0,2806 (S – 14 047,68) 0

d) Cotisation spéciale de sécurité sociale En outre, il est établi à partir de l'année 1994 une cotisation spéciale annuelle de sécurité sociale. Toutes les personnes soumises totalement ou partiellement à la sécurité sociale des travailleurs salariés sont concernées par cette cotisation spéciale. En principe, le montant de la cotisation est fixé en fonction du revenu imposable globalement du ménage. Le revenu imposable globalement est égal © OECD/OCDE 2004

251

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

aux revenus bruts déduction faite des cotisations de sécurité sociale ordinaires et des charges professionnelles. Le montant de la cotisation est fixé comme suit : Revenu imposable (EUR)

Montant dû sur la limite inférieure

De 0 à 18 592.02 De 18 592.02 à 21 070.96 De 21 070.96 à 60 161.85 60 161.85 et plus

% au-delà de la limite inférieure

0 0 223.10 731.29

0 9 1.3 0

2.2. Déduction selon la situation de famille ou le sexe Aucune. 3.

Prestations sociales d'application générale

Des allocations familiales sont octroyées aux enfants. Les montants annuels de ces prestations sociales sont les suivants :

1er enfant 2e enfant 3e enfant

< 6 ans

6-12 ans

12-18 ans

> 18 ans

871.32 1 612.20 2 407.08

1 023.12 1 914.84 2 709.72

454.44 765.12 765.12

813.00 1 050.60 1 050.60

Pour la détermination des ressources de l'ouvrier moyen, il a été supposé que les enfants ont entre six et douze ans. 4.

Principales modifications apportées au système fiscal

L’indexation annuelle du barème et de tous les montants libellés en EUR est entièrement rétablie à partir de 1999. La contribution complémentaire de crise est supprimée à partit de l’exercice 2004 (revenus de 2003). La réforme de l’impôt des personnes physiques, qui est mise en œuvre de façon progressive sur une période allant de 2002 à 2005, vise à réduire la pression fiscale sur les revenus du travail, à une neutralité à l’égard des modes de vie, à une meilleure prise en compte des enfants à charge et à une fiscalité plus écologique. Elle a les conséquences suivantes pour l’impôt sur les revenus de 2003 de l’ouvrier moyen : Les charges professionnelles forfaitaires : Le taux de la première tranche du barème des charges forfaitaires passe de 23 à 25 pour cent. Il s’agit du taux qui s’applique à la 1ère tranche de EUR 4 500 des salaires. Le barème Revenu imposable (EUR)

0-6 840 6 840-9 740 9 740-14 530 14 530-29 740 > 29 740 252

Taux marginal (%)

25 30 40 45 50

Le taux marginal de 52.5 % est supprimé. © OECD/OCDE 2004

Belgium – Belgique

Crédit d’impôt Un crédit d’impôt remboursable sur les faibles revenus d’activité professionnelle est progressivement introduit sur une période de trois ans. Le crédit d’impôt est calculé sur base du montant net des revenus d’activités professionnelles, c’est-à-dire le montant net de charges professionnelles des revenus professionnels. La base s’évalue avant application du quotient conjugal. Le barème de ce crédit, qui est octroyé et calculé par conjoint est le suivant : Barème du crédit d’impôt Tranches du Revenu net (R) en EUR Montant du crédit d’impôt en EUR L1

0 3 910 5 220 13 050 16 960

L2

3 910 5 220 13 050 16 960 et plus

0 B x (R - L1)/(L2-L1) B B x (L2–R)/(L2-L1) 0

Pour les revenus de 2003 le montant de base B est de EUR 260. Un nouveau dispositif de réduction des cotisations patronales et personnelles de sécurité sociale est entré en vigueur au 1er avril 2001.

253

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values Work-related expenses

Ave_earn work_rel_max work_rel_sch

Tax credits (tranche exonérée)

single_cr married_cr One child child_cr1 Two children child_cr2 Single parents s_parent_cr Maximum Child Credit Payment child_cr_max Basic Credit basic_cr_base basic_cr_thrsh1 basic_cr_thrsh2 basic_cr_thrsh3 basic_cr_thrsh4 Income tax schedule tax_sch

Local tax Unemployment Medical care Sickness Pension Employee contribution

quote_max quote_rate local_rate unemp_rate med_rate sickness_rate pension_rate SSC_rt SSC_redn (annual)

Special annual contribution

SSC_special

Employer contributions

SSC_empr_rt SSC_empr_redn

Child benefit (age 6-12) second child third child

CB_1 CB_2 CB_3

31,238 3,000 0.25 0.1 0.05 0.03 5,570 4,610 1,180 3,050 1,180 340 260 3,910 5,220 13,050 16,960 tax_rate1 0.25 0.30 0.40 0.45 0.50 8,030 0.3 0.07 0.0087 0.0115 0.0355 0.0750 0.1307 0 10,733.04 14,047.68 18,110.04 9999999 0.000 0.090 0.013 0.000 0.3458 0 10,261 13,329 18,459 9,999,999 1,023.12 1,914.84 2,709.72

Secretariat estimate 4,500 8,930 14,870

6,840 9,740 14,530 29,740

0 1140.00 1140.00 0.00

0 0 0.2806 0

18592.02 21070.96 60161.85 1,255 2,946 2,946 1,255

0.0000 0.0000 0.3295 0.0000

254

© OECD/OCDE 2004

Belgium – Belgique

The equations for the Belgian system in 2003 are mostly calculated on an individual basis. But central government tax for a married couple is calculated on two bases and the lower value used. One of the bases takes account of the combined income of the couple. Also, tax credits may be used against the tax liability of the secondary earner if the principal earner is unable to use them. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables « married » and « children ». A reference to a variable with the affix « _total » indicates the sum of the relevant variable values for the principal and spouse. And the affixes « _princ » and « _spouse » indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with ?«_spouse » values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings 2. Allowances:

earn tax_al

B

3. Credits in taxable income 4. CG taxable income Quote part

taxbl_cr tax_inc_int Q

B B J

MIN(work_rel_max,Tax(earnSSC,work_rel_sch))+SSC 0 earn-tax_al IF(married,IF(MIN((tax_inc_int_total)*Parameter s!quote_rate,Parameters!quote_max)0),tax_inc_intitial_totalQ,tax_inc_int_princ) IF((Q>0),Q,tax_inc_int_spouse) Tax(tax_inc_adj,tax_sch)

CG adjusted taxable income - principal tax_inc_adj_princ CG adjusted taxable income - spouse 5. CG tax before credits 6. Calculation of credits Child exemption amount Family exemption amount

P

tax_inc_adj_spouse CG_tax_excl

S J

child_ex_inc fam_ex_inc

P B

Initial exempt income - principal Initial exempt income - spouse Transferable amount

ex_inc_int_princ ex_inc_int_spouse ex_inc_tran

P S J

Final exempt income - principal Final exempt income - spouse Tax credits Basic Credit

ex_inc_fin_princ ex_inc_fin_spouse tax_credits basic_cr

P S J B

7. CG tax Tax prior to non-wasteable credits Non-wasteable child credit

CG_tax_init child_credit_nw

B J

Final CG tax 8. State and local taxes 9. Employees' soc security

CG_tax_final local_tax SSC

J J B

SSC_special SSC_total

J

© OECD/OCDE 2004

(children=1)*child_cr1+(children=2)*child_cr2 IF(married,married_cr,single_cr+(children>0)*s_ parent_cr) child_ex_inc+fam_ex_inc_princ fam_ex_inc_spouse married*IF(ex_inc_int_princ
255

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Line in country table and intermediate steps

Variable name

Range

Equation

11. Cash transfers 13. Employer's soc security

cash_trans empr_sch

J B

(Children>0)*CB_1+(Children>1)*CB_2 Positive(earn*SSC_empr_rt(VLOOKUP(earn,SSC_empr_redn,2)VLOOKUP(earn,SSC_empr_redn,3)*(earnVLOOKUP(earn,SSC_empr_redn,1))))

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis.

256

© OECD/OCDE 2004

CANADA Chapter 1

The national currency is the Canadian dollar (CAD). In 2003, CAD 1.4826 was equal to USD 1. (Average of 9 months of daily exchange rates) In that year, the average production worker earned CAD 40 103 (Secretariat estimate). 1.

Personal Income Tax Systems

1.1. Central/federal government income taxes 1.11. Tax unit Under the present system, tax is levied on individuals separately; however, in cases where the income of a spouse is below CAD 7 245 and the couple has no children, the income can be reported on the return of the other spouse. The filer receives a tax credit in respect of his/her dependent spouse. 1.12. Tax allowances and credits 1.121. Standard credits • Basic credit: As of January 1, 2003 all taxpayers qualify for a basic personal tax credit of CAD 1 240.96. • Age credit: Taxpayers aged 65 and over are entitled to a tax credit of CAD 605.92, reduced at 15 per cent of net income1 in excess of CAD 28 193. • Credit for Spouse or Eligible Dependant: A taxpayer supporting a spouse or other eligible dependant receives a tax credit of CAD 1 053.76 which is reduced by 16 cents for each dollar of the dependant’s income in excess of CAD 659. • The goods and services tax credit provides a refundable credit of CAD 222 that is paid out quarterly for each adult 19 years of age or older and CAD 117 for each dependent child under the age of 19. Single tax filers can receive an additional credit of CAD 117 if living alone and CAD 222 if they have a child. These credits are reduced at a rate of 5 percent of net family income over CAD 28 955. As this amount is paid directly to families, it is considered as a cash transfer for the purposes of this report.2 • Infirm dependent age 18 and older amount: For dependents aged 18 and over and physically or mentally infirm, a maximum credit of CAD 586.08 is allowed. If the dependent has a net income between CAD 3 663 and CAD 8 860, a partial credit is provided. The credit is reduced by the dependent’s net income above CAD 3 663 at a 16 per cent rate. • Caregiver amount: taxpayers can claim a caregiver credit of up to CAD 586.08 for a dependent 18 years of age or older who is living with the taxpayer and is dependent upon the taxpayer due to mental or physical infirmity or is a parent or grandparent. This credit is reduced by the dependant’s net income in excess of CAD 12 509 at a 16 per cent rate. – Social security contributions: taxpayers are entitled to claim 16% of their contributions to the Canada or Quebec Pension Plans (to a maximum of CAD 1 801.80) and their Employment Insurance premiums (to a maximum of CAD 819). – Child care: (See non-standard reliefs). 1.122. Main non-standard tax reliefs applicable to an average production worker: A number of non-standard tax reliefs are available to the APW in Canada. The main ones are: • Medical expenses credit: Taxpayers are entitled to a 16 per cent tax credit for an amount of eligible medical expenses that exceeds the lesser of 3 per cent of net income or CAD 1 755. • Disability credit: Canadians who are markedly restricted by disabilities in carrying out the basic activities of daily living can claim a disability credit of CAD 1 004.64. Unused amounts may be transferred to a spouse or other supporting person. © OECD/OCDE 2004

257

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

• Supplement for Disabled Children: Children under age 18 who qualify for the Disability Tax Credit can claim a supplement of up to CAD 586.08. This credit is reduced by the amount of child care expenses or attendant care expenses claimed on their behalf in excess of CAD 2 145, at a 16 per cent rate. Any unused credit may be transferred to a supporting person. • Charitable donations credit: The credit is 16 per cent on the first CAD 200 of eligible charitable donations and 29 per cent on eligible donations in excess of CAD 200. Eligible donations are those made to registered charities, to a maximum of 75 per cent of net income. • Registered pension plan contributions: Employees who are members of a registered pension plan are entitled to deduct their contributions to the plan in respect of current and/or past service. Generally, employee contributions to a registered pension plan are not subject to any limit; however, limits apply to the benefits that a plan may provide. • Registered retirement savings plan (RRSP) premiums: Individuals can deduct their contributions to an RRSP up to a limit of 18 per cent of the previous year’s earned income, to a maximum of CAD 14 500 a year, unless they are also accruing benefits under a registered pension plan or a deferred profit sharing plan. Members of those other plans are limited to RRSP contributions of 18 per cent of the previous year’s earned income to a maximum of CAD 14 500, minus a pension adjustment amount based on pension benefits accrued in the year. • Union and professional dues: Individuals with annual dues paid to a trade union or an association of public servants or paying dues required to maintain a professional status recognised by statute are allowed to deduct such fees in computing taxable income. • Moving expenses: Eligible moving expenses are deductible from income if the taxpayer moves at least 40 kilometres closer to a new place of employment. • Child care expenses: A portion of child care expenses is deductible if incurred for the purpose of earning business or employment income, studying or taking an occupational training course or carrying on research for which a grant is received. The lower-income spouse must generally claim the deduction. The amount of the deduction is limited to the lesser of: – the expenses incurred for the care of a child; – two-thirds of the taxpayer’s earned income; and – CAD 7 000 for each child who is under age seven, and CAD 4 000 per child between seven and sixteen years of age. The amount for a disabled child under seventeen is CAD 10 000. • Northern residents deduction: Individuals living in prescribed areas in Canada may claim the northern resident deduction, made up of a residency deduction and a deduction for employer-provided travel benefits. The maximum annual residency deduction is CAD 5 400 per household. • Post-secondary education and training: A 16 per cent credit is available for tuition fees paid by students to a post-secondary or other approved institution. In addition, students enrolled at prescribed institutions can claim a credit of CAD 64 per month of full time study, CAD 19.20 per month of part time study. The unused portion of the education and tuition fee credits can be transferred to a supporting person or carried forward to another year. • Student loans: Individuals repaying student loans are allowed to claim a 16 per cent credit on the interest portion of repayments made in the current year. • Scholarship income: Individuals are allowed an exemption for the first CAD 3 000 of scholarship, fellowship or bursary amounts received in a year. 1.13. Tax schedule Federal income tax rates before tax reductions range from 16 per cent to 29 per cent. There are four income tax brackets. The table of tax rates is given below. 2003 Federal Income Tax RatesBasic Federal Tax Taxable Income (CAD)

258

0 – 32 183 32 183 – 64 368 64 368 – 104 648 104 648 and over

Marginal Tax Rate (%)

16 22 26 29

© OECD/OCDE 2004

Canada

1.2. State and local income taxes 1.21. Tax Rates With the exception of Quebec, the Federal Government has an agreement in place to administer the provincial income tax systems. Prior to the 2000 tax year, provincial tax in all jurisdictions other than Quebec, was calculated as a percentage of the Basic Federal Tax (tax-on-tax). In 2000 and 2001, these provinces adopted tax-on-income systems under which tax is levied as a percentage of Taxable Income using tax brackets, rates and credits as defined by the province. Many provinces still levy high-income surtaxes but all flat taxes were eliminated following the move to tax-on-income systems. The following table compares the provincial tax rates and brackets for the 2003 tax year. 2003 Provincial Income Tax Rates Province

Newfoundland Prince Edward Island Nova Scotia New Brunswick

Quebec Ontario Manitoba Saskatchewan Alberta British Colombia

Yukon

Northwest Territories

Nunavut

Taxable Income

Marginal Tax Rate (%)

0-29 590 29 590-59 180 59 180 and over 0-30 754 30 754-61 509 61 509-and over 0-29 590 29 590-59 180 59 180 and over 0- 32 183 32 183-64 368 64 368-104 648 104 648 and over 0-27 095 27 095- 54 195 54 195 and over 0-32 435 32 435-64 871 64 871-and over 0-30 544 30 544-65 000 65 000 and over 0-35 000 35 000-100 000 100 000 and over 13 525 and over 0- 31 653 31 653- 63 308 63 308- 72 685 72 685- 88 260 88 260 and over 0- 32 183 32 183-64 368 64 368-104 648 104 648 and over 0- 32 183 32 183-64 368 64 368-104 648 104 648 and over 0- 32 183 32 183- 64 368 64 368-104 648 104 648 and over

10.57 16.16 18.02 9.8 13.8 16.7 9.77 14.95 16.67 9.68 14.82 16.52 17.84 16 20 24 6.05 9.15 11.16 10.9 14.9 17.4 11 13 15 10 6.05 9.15 11.7 13.7 14.7 7.04 9.68 11.44 12.76 7.2 9.9 11.7 13.05 4 7 9 11.5

1.22. Tax Allowance and Credits With tax-on-tax systems, the participating provinces implicitly adopted the wastable tax credits offered under the Federal system. However, under tax-on-income, each province is free to determine which credits they will allow, the value of those credits and whether the amounts and thresholds are indexed. This has always been the case in Québec. © OECD/OCDE 2004

259

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.23. Tax regime selected for this study The calculation of provincial tax for the average production worker study assumes the worker lives in Ontario, the most populous of the 10 provinces and 3 territories. The main features of the Ontario tax system relevant to this report are summarised below: Tax Schedule Income Bracket

CAD 0 to CAD 32 435 CAD 32 435 to CAD 64 871 Over CAD 64 871

Marginal Tax Rate

6.05% 9.15% 11.16%

Wastable tax credits • 6.05 per cent of the contributions made to the Canada Pension Plan and of the Employment Insurance premiums. • A maximum credit of CAD 401.54 for a dependant spouse that is withdrawn as the income of the spouse exceeds CAD 664 and is completely withdrawn when the income of the spouse is at least CAD 7 350. Non-wastable tax credits • Tax credit equal to CAD 100 for the principal wage earner, CAD 100 for the spouse and CAD 50 for each dependent child under the age of 19 to a maximum credit entitlement of CAD 1 000. The credit is reduced by 2 per cent of the total net income of the family exceeding CAD 4 000 and by 4 per cent of the total family net income exceeding CAD 22 000. Surtax Provincial tax after accounting for credits

Amounts Exceeding CAD 3 747 Amounts Exceeding CAD 4 727

Surtax Rate

20% of the excess amount 36% of the excess amount

Tax Reduction The earner with the highest income is entitled to claim a tax reduction where the initial entitlement is equal to CAD 181 plus CAD 334 for each dependant child under the age of 19. If this amount is greater or equal to the liable provincial tax, then no tax is due. If the amount is less than the liable tax, then the actual tax reduction is equal to twice the initial entitlement amount less the liable tax (if this calculation is zero, the reduction is equal to zero). 2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1. Employees’ contributions 2.11. Pensions

260

Generally, all employees are eligible for coverage under the Canada Pension Plan (Québec Pension Plan in the province of Québec). For 2003, all employees are required to contribute to the Canada Pension Plan at a rate of 4.95 per cent of income up to a maximum contribution of CAD 1 801.80. Income subject to contributions is earnings (wages and salaries) less a CAD 3 500 basic exemption. The maximum contribution of CAD 1 801.80 is reached at an earnings level of CAD 39 900 i.e. (CAD 39 900 CAD 3 500) x 0.0495 = CAD 1 801.80. For employees, each contribution to the CPP or QPP gives rise to a © OECD/OCDE 2004

Canada

tax credit equal to 16 per cent of the contributed amount. Employers are also required to contribute to the Canada Pension Plan on behalf of their employees at the same rate (refer § 2.21). Self-employed persons must also contribute to the Canada Pension Plan (Québec Pension Plan in the province of Québec) on their own behalf. However, the self-employed are required to contribute at the combined employer/employee rate of 9.9 per cent of earnings up to a maximum of CAD 3 603.60. For the 2001 tax year onwards, the self-employed can deduct the employer portion of their contribution from income, equal to 50 per cent of the total contribution or CAD 1 801.80. The remaining 50 per cent, representing the employee portion, is then claimed as a tax credit at 16 per cent. 2.12. Sickness There is no national sickness benefit plan administered by the federal government. However, all provinces have provincially-administered health care insurance plans. Two provinces, Alberta and British Columbia, levy health insurance premiums separately from the personal income tax to help finance their health programmes. 2.13. Unemployment In general, all employees are eligible for employment insurance. For 2003, employees are required to contribute at the rate of 2.10 per cent of insurable earnings. Insurable earnings are earnings (wages and salaries) up to a maximum of CAD 750 per week. The maximum employee contribution is CAD 819 per year. Employment insurance contributions give rise to a tax credit equal to 16 per cent of the amount contributed. Employers are also required to contribute to the plan. (refer § 2.23) 2.14. Work injury There is no national work injury benefit plan administered by the federal government. Each province, however, has a provincial workers' compensation plan which pays benefits to workers (or their families in case of death) for work-related illness or injury. These plans are funded entirely by employer contributions. Benefits from workers' compensation are not subject to federal or provincial income tax. 2.15. Family allowances None. 2.16. Others None. 2.2. Employers’ contributions 2.21. Pensions Employers are required to contribute to the Canada Pension Plan on behalf of their employees an amount equal to their employees' contributions. Thus, employers also contribute at the rate of 4.95 per cent of earnings (less the CAD 3 500 earnings exemption) to a maximum of CAD 1 801.80. 2.22. Sickness There is no national sickness benefit plan administered by the federal government. However, all provinces have provincially-administered health care insurance plans. Three provinces levy a special tax on employer payrolls to finance health services (Québec and Ontario) or health services and education (Manitoba). These payroll taxes are deductible from the employer’s income subject to tax. In the case of the province of Ontario, employers pay a 1.95 per cent Employer Health Tax on the value of their payroll that exceeds CAD 400 000. © OECD/OCDE 2004

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2.23. Unemployment Employers are required to contribute to the employment insurance scheme. The general employer contribution is 1.4 times the employee contribution, that is, 2.94 per cent of insurable earnings. Premiums are adjusted for employers who provide sick pay superior to payments provided under the employment insurance regime. All employment insurance contributions are deductible from the employer’s income subject to tax. 2.24. Work injury There is no national work injury benefit plan administered by the federal government. However, employers are required to contribute to a provincial workers’ compensation plan which pays benefits to workers (or their families in case of death) for work-related illness or injury. The employer contribution rates, which vary by industry and province, are related to industry experience of work-related illness and injury. Premiums are deductible from the employer’s income subject to tax. In the case of Ontario, employers in the manufacturing sector pay, on average, 2.14 per cent of the wages paid to each employee to a maximum of CAD 65 600. 2.25. Family allowances None. 2.26. Others None. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children The child tax benefit provides CAD 1 201 per child under age 18 plus a CAD 238 supplement for each child under 7 where no child care expenses are deducted and a CAD 84 supplement for the 3rd child and each additional child. This basic benefit is reduced by 4 per cent of family net income in excess of CAD 35 000 for families with two or more children and 2 per cent for families with one child. In addition, a national child benefit supplement (NCB) is provided to low-income families with children. The maximum NCB is CAD 1 503 for one child, plus CAD 1 288 for a second child, plus CAD 1 207 for the third and each additional child. The NCB is phased out based on family net income in excess of CAD 22 716. The reduction rates are 12.2 per cent for families with one child, 22.7 per cent for families with two children and 32.5 per cent for larger families3. The province of Ontario administers a program to benefit working families providing tax-free monthly payments. For each child under seven, qualifying two-parent families can receive up to CAD 1 100 annually while qualifying single parent families can receive up to CAD 1 310. The actual benefit is calculated as being either the greater of qualifying child care expenses or a percentage of the earnings of a family over CAD 5 000. The percentage used depends upon the number of children. For a one child family, the rate is 21 per cent. For a two children family, the rate is 42 per cent. For families with more than two children, the rate is 63 per cent. The benefit is withdrawn at a rate of 8 per cent of family income that exceeds CAD 20 750. 4. 262

Main changes in the Tax/Benefit System since 1999

Recent enrichments to the Child Benefit programs (CCTB/NCB) will bring the maximum CCTB/NCB benefit payable for 1 child from CAD 1 625 for July 1998, to CAD 2 704 effective July 2004. As well, © OECD/OCDE 2004

Canada

increases in the income threshold and lowering of phase-out rates will increase the point at which partial benefits are paid, from CAD 66 721 in July 1998 to CAD 95 050 in July 2004. Effective July, 2003, a new supplement was added to the NCB for children under age 7 with disabilities worth CAD 1 600. Many of the amounts and thresholds used in the personal income tax system are indexed each year by the rate of inflation as determined using the Consumer Price Index (CPI). The indexation factor is calculated for a given tax year as the percentage change in the average CPI for the 12-month period ending on September 30 of the previous year relative to the previous 12-month average CPI. For the tax years 1986 through 1999, the amounts and thresholds subject to indexation were partially indexed, reflecting only inflationary increases in excess of 3%. Effective January 1, 2000, full-indexation was reinstated. Tax rates were lowered and a fourth bracket added as of January, 2001. The 17 per cent rate was reduced to 16 per cent, the 26 per cent rate was reduced to 24 per cent, and the 29 per cent rate was reduced to 26 per cent on incomes between about CAD 61 000 and 100 000. The 5 per cent surtax was also eliminated as of January 2001. A supplement for children under 18 who are eligible for the disability tax credit was introduced in the 2000 tax year. The amount of the supplement CAD 2 941 is reduced by the amount of child care or attendant care expenses claimed on behalf of the child in excess of CAD 2 000, and credited at a rate of 16 per cent. For 2001, the amounts for infirm dependents, caregiver and supplement for disabled children were increased to CAD 3 500 and the disability tax credit amount was raised to CAD 6 000. 5.

Memorandum Items

5.1. Identification of an Average Production Worker The earnings data refer to production workers in the manufacturing sector. To obtain the annual average wage figure, the average weekly earnings for the year for employees paid by the hour (including overtime) are multiplied by 52. 5.2. Employer contributions to private health and pension schemes These do exist but no information is available on the amounts involved.

263

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2003 Parameter values Average earnings/yr Tax credits Spouse withdrawal rate threshold Child(refundable) Child under 7 additional for 3rd+ reduction rate: 1 child redn. rate: 2 or more threshold Working income supplement threshold to start phase-out threshold to end phase-out reduction rate Federal tax schedule

High-income surtax rate threshold Canada pension plan rate exemption max contrib. Unemployment ins.rate max contrib. tax credit rate employer contrib. mult. GST adult credit child credit threshold reduction rate single supplement single supplement eligibility threshold single supplement withdrawal rate Province: Ontario Tax Credits Spouse withdrawl rate threshold % of BFT Unemployement tax credit rate Surtax rate 1 threshold rate 2 threshold Tax reduction amount per dependent amount per disabled dep Provincial tax schedule

264

Child tax credit % per child of earnings over threshold For 1 Child under 7 threshold max per child under 7 single parent sup per ch under 7 threshold reduction reduction rate Property and Sales tax credits sales tax credit adult sales tax credit child threshold threshold seniors reduction rate reduction rate seniors max credit Employer Health Tax Employer Workers Compensation Levy Employer Workers Compensation Levy Ceiling Maximum number of children under the age of 7

Ave_earn Basic_cred Spouse_cred Sp_crd_wth Sp_crd_thrsh Ch_credit Ch_crd_und7 Ch_crd_3rd Ch_crd_red1 Ch_crd_red2 Ch_crd_thrsh WIS_crd_1st WIS_crd_2nd WIS_crd_3rd WIS_phout_st WIS_phout_end WIS_redn1 WIS_redn2 WIS_redn3 Fed_sch

H_sur_rate H_sur_thrsh CPP_rate CPP_ex CPP_max Unemp_rate Unemp_max Unemp_crd_rate Unemp_emplr GST_crd_ad GST_crd_ch GST_crd_thrsh GST_crd_redn GST_crd_sgsp GST_sgsp_thrsh GST_sgsp_rate

40103 1240.96 1053.76 0.16 659 1201 238 84 0.02 0.04 35000 1503 1288 1207 22716 35000 0.122 0.227 0.325 0.16 0.22 0.26 0.29 0 18500 0.0495 3500 1801.8 0.021 819.00 0.16 1.4 222 117 28955 0.05 117 7211 0.02

P_basic_crd P_spouse_crd P_sp_crd_wd P_sp_crd_thr P_pct_bft P_unem_tc_rt P_sur_rt1 P_sur_thr1 P_sur_rt2 P_sur_thr2 P_tax_red P_tr_chld P_tr_dis_ch Prov_sch

472.93 401.54 0.0605 664 0.375 0.0605 0.2 3747 0.36 4727 181 334 334 0.0605 0.0915 0.1116

P_pct_earn P_ch_crd_th P_und7_max P_sps_und7 P_thrsh_red P_redn_rate

0.21 5000 1100 210 20750 0.08

P_sales_cred P_salcr_chd P_ps_thresh P_ps_thr_sen P_ps_red_rt P_ps_rr_sen P_ps_max_cr emp_healthtax emp_workcomp emp_workcomp_ceil children_und7_max

100 50 4000 22000 0.02 0.04 1000 0.0195 0.0214 65600 1

Secretariat Estimate

32183 64368 104648

32435 64871

© OECD/OCDE 2004

Canada

The equations for the Canadian system are mostly repeated for each individual of a married couple. But the spouse credit is relevant only to the calculation for the principal earner and the refundable credits are calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. 2003 Tax equations Line in country table and intermediate steps Variable name

Range

Equation

Earnings Allowances Credits in taxable income CG taxable income CG tax before credits: Basic Federal tax 6. Tax credits : Basic credit Spouse credit

earn tax_al taxbl_cr tax_inc Basic_Fed_tax Basic_Fed_tax

B B B B B

0 0 earn Tax(earn, Fed_sch) Tax(earn, Fed_sch)

basic_cr spouse_cr

B P

Unemployment insurance Total (wastable) tax credits 7. CG tax 8. State and local taxes Liable provincial tax Provincial tax credits

unemp_cr tax_cr CG_tax

B B B

Basic_cred ((married+children)>0)*Taper(Spouse_cred, earn_spouse, Sp_crd_thrsh, Sp_crd_wth) Unemp_crd_rate*SSC basic_cr+spouse_cr+unemp_cr Basic_Fed_tax-tax_cr

Prov_tax_sch Prov_tax_cred

B B

Provincial surtax

Prov_surtax

B

Provincial tax reduction

Prov_tax_redn

B

Provincial sales tax credit

Prov_tax_stcred

P

Liable provincial tax

Prov_tax

B

CPP Unemp SSC

B B B

MIN(CPP_rate*Positive((earn-CPP_ex), CPP_max) MIN(Unemp_rate*earn, Unemp_max) CPP+Unemp

CTB

P

GST_cr

P

(Children>0)*(Taper(Children*Ch_credit +MAXA((Children2),0)*Ch_crd_3rd+MINA(Children,children_und7_max)*Ch_c rd_und7,earn_total,Ch_crd_thrsh,IF(Children=1,Ch_crd_red1 ,Ch_crd_red2)))+MAXA(IF(Children>0,IF(Children<2,WIS_crd _1st,IF(Children<3,WIS_crd_1st+WIS_crd_2nd,WIS_crd_1st+ WIS_crd_2nd+(Children-2)* WIS_crd_3rd)),0)MAXA((earn_totalWIS_phout_st),0)*IF(Children=1,WIS_redn1,IF(Children=2,W IS_redn2,WIS_redn3)),0) Taper((GST_crd_ad+(Married=1)*(GST_crd_ad+Children*G ST_crd_ch)+(Married=0)*(Children>0)*(GST_crd_ad+GST_cr d_sgsp+Positive(Children1)*GST_crd_ch)+(Married=0)*(Children=0)*Positive(MIN(GS T_crd_sgsp,(earn_totalGST_sgsp_thrsh)*GST_sgsp_rate))),earn_total,GST_crd_thrs h,GST_crd_redn)

1. 2. 3. 4. 5.

9. Employees' soc security: Canada Pension Plan Unemployment insurance Total Employees'soc security 11. Cash transfers (nonwastable) Child Tax Benefit

GST Credit - Total

Tax(earn, Prov_sch) P_basic_crd+P_unem_tc_rt*SSC+IF(AND(Married=0,Childre n>0),P_spouse_crd,Married*Taper(P_spouse_crd,earn_spou se,P_sp_crd_thr,P_sp_crd_wd)) P_sur_rt1*Positive(Prov_tax_sch-Prov_tax_credP_sur_thr1)+P_sur_rt2*Positive(Prov_tax_sch-Prov_tax_credP_sur_thr2) MAX(2*(P_tax_red+Children*P_tr_chld)-(Prov_tax_schProv_tax_cred+Prov_surtax),0) Taper(IF(Married=1,2,1)*P_sales_cred+Children*P_salcr_ch d,earn_total,P_ps_thresh,P_ps_red_rt) Positive(Prov_tax_sch-Prov_tax_cred+Prov_surtaxProv_tax_redn)-Prov_tax_stcred

265

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Line in country table and intermediate steps Variable name

Range

Equation

GST Credit - Adult

GST_cr_adult

P

GST Credit - Child Provincial Child Care Supplement

GST_cr_child Prov_childcare

P P

Cash_tran

P

Taper((GST_crd_ad+(Married=1)*(GST_crd_ad)+(Married=0 )*Positive(MIN(GST_crd_sgsp,(earn_totalGST_sgsp_thrsh)*GST_sgsp_rate))),earn_total,GST_crd_thrs h,GST_crd_redn) GST_cr-GST_cr_adult Taper(MIN(((earn_total)P_ch_crd_th)*MIN(Children,children_und7_max,3)*P_pct_ea rn,Positive((P_und7_max+IF(Married=0,P_sps_und7,0))*MIN (Children,children_und7_max))),earn_total,P_thrsh_red,P_re dn_rate) CTB+GST_cr+Prov_childcare

CPP_empr Unemp_empr Health_empr Comp_empr SSC_empr

B B B B B

CPP*Unemp_emplr Unemp*Unemp_emplr earn*emp_healthtax MAX(earn,emp_workcomp_ceil)*emp_workcomp CPP_empr+Unemp_empr+Health_empr+Comp_empr

Total Cash Transfers 13. Employer's soc security Canada Pension Plan Unemployment insurance Ontario Employers Health Tax Ontario Workers Compensation Total Employer's soc security

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

NOTES 1. For the families taken into consideration within this Report, net income is equivalent to gross wage earnings. 2. The payments that relate to the 2003 tax year are payable between July 2004 and June 2005. The payment amount is fully indexed to inflation and will reflect consumer price index data through to October 2004. The amounts shown in this Report do not reflect the indexation adjustment that will take place based on these data and are thus subject to change. 3. See note 2.

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Chapter 1

CZECH REPUBLIC/RÉPUBLIQUE TCHÈQUE The national currency is the Koruny (CZK). In 2003, CZK 28.6087 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned CZK 220 773 (Secretariat estimate). 1.

Personal Income Tax System

1.1. Central government income taxes 1.11. Tax unit The tax unit is the individual. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic relief: CZK 38 040 allowance for all individuals. • Marital status relief: An additional allowance of CZK 21 720 is given in respect of a spouse living in a common household if that spouse earns no more than CZK 38 040. • Relief for children: One spouse may claim an allowance of CZK 23 520 per child for children of the household (Irrespective of the child’s own income) who satisfy one or more of the following criteria: – aged below 18 – aged below 26 and receiving full-time education – aged below 26 and physically or mentally disabled provided that the child is not in receipt of a state disability payment • Relief for social and health security contributions: Employees' social security contributions (see §2.1) are deductible for income tax purposes. 1.122. Main non-standard tax reliefs applicable to an APW • Charitable donations allowance: A tax allowance of up to 10 per cent of taxable income is available for donations made to municipalities or legal entities for financing of social, health, cultural, humanitarian, religious, ecological and sport activities. The minimum limit for donations is the lesser of 2 per cent of taxable income or CZK 1 000. • Interest payments: Taxpayer may claim an allowance of up to CZK 300 000 for mortgage interest payments or other interest payments related to purchase or improvement of housing. If more than one individual living in the same household applies for this allowance, the sum of their annual deductions is subject to the above-mentioned ceiling, i.e. CZK 300 000. • Supplementary pension scheme contributions: Taxpayers who are members of a registered supplementary private pension scheme are entitled to deduct individually paid (i.e. paid by © OECD/OCDE 2004

267

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employee) annual contributions to a registered pension scheme reduced by CZK 6 000 from the earned income. The maxim allowance is CZK 12 000 a year. • Private life insurance premiums: Taxpayer may claim an allowance of up to CZK 12 000 for premiums paid according to a contract between taxpayer and an insurance company if the benefit (lump sum or recurrent pension) is paid out 60 months after the signature of the contract and in the year in which the taxpayer reaches the age of 60. 1.123. Tax schedule The tax schedule is as follows: Taxable income (CZK)

Tax at the lower limit (CZK)

Tax rate on taxable income in excess of the lower limit (%)

0 16 380 38 220 66 420

15 20 25 32

0-109 200 109 200-218 400 218 400-331 200 Over 331 200

1.2. State and local income tax There are no regional or local income taxes. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees’ contributions Compulsory contributions of 12.5 per cent of gross wages and salaries (with no limit) are paid by all employees into government operated schemes. The total is made up as follows (in %): Health insurance Social insurance Sickness Retirement Unemployment

4.5 8.0 1.1 6.5 0.4

2.2. Employers’ contributions The total contribution for employers is 35 per cent of gross earnings (with no limit). The contribution consists of the health insurance contribution (9 per cent of gross wages and salaries) and social insurance (26 per cent). 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children Non-taxable family allowances are paid as follows: Family Income

up to 1.1 MLS

Age of child

268

below 6 6-10 10-15 15-26

1.1 MLS - 1.8 MLS

1.8 MLS - 3.0 MLS

Total payment CZK per month

541 605 714 784

474 530 625 686

237 265 313 343

© OECD/OCDE 2004

Czech Republic/République tchèque

The central government pays an allowance in respect of each dependent child based on the family income level and provided that family income does not exceed three times the relevant minimum living standard (MLS). The limits of family income bands are defined as multiples of the MLS. Family income includes the earnings of both parents net of income tax and the employees’ social security and health insurance contributions. The monthly MLS for the APW-type family with children can be calculated by summing the following amounts (in CZK): Basic Personal Requirement Adult Child aged below 6 Child aged between 6 and 10 Child aged between 10 and 15 Child aged between 15 and 26

2320 1690 1890 2230 2450

Household Expenses One person household Two person household Three or four person household Five and more person household

1780 2320 2880 3230

3.3 Additional transfers 3.3.1. Transfers related to social status A family is entitled to a social allowance if there is at least one child in the family and the net monthly income of the family is below 1.6 MLS. The transfer is calculated based on the following formula: Child’s basic personal requirement * net family income child’s basic personal requirement – MLS * 16 If the net family income is below MLS, MLS is to be used in this formula instead of the net family income. The central government pays this allowance monthly. 3.3.2. Municipal allowances An additional allowance is paid by local government to low income families. The amount transferred varies according to the budget capacity and is provided if total family income including family allowances is less than the MLS. This allowance is not included in the computation. 4.

Main Changes in Tax/Benefit Systems since 2001 The cash transfers and relevant MLS were adjusted as from the year 2002.

5.

Memorandum Items

5.1. Identification of APW and valuation of earnings The average earnings of an APW are estimated by the Czech Statistical Office from employer survey data. 5.2. Employers' contributions to private pension, health and related schemes There are supplementary private pension schemes only, but employers' contributions vary. Relevant information is not available. © OECD/OCDE 2004

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2003 Parameter values Basic allowance Spouse Child Income tax schedule

Ave_earn basic_al spouse_al child_al tax_sch

Social security contributions SSC_rate Employers SSC_empr Minimum living standard (MLS) basic_adult basic_child house_exp

Cash transfers

transf_1 transf_2 transf_3

220773 38040 21720 23520 0.15 0.2 0.25 0.32 0.125 0.35 2320 2230 1 2 3 4 5 714 625 313

Secretariat estimate

109200 218400 331200

1780 2320 2880 2880 3230

270

© OECD/OCDE 2004

Czech Republic/République tchèque

The equations for the Czech system are mostly on an individual basis. But the spouse allowance is relevant only to the calculation for the principal earner. and cash transfers are calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

1. Earnings

earn

2. Allowances: Basic Spouse Children Total

basic_allce spouse_allce ch_al tax_al

Range

Equation

B P P B

basic_al IF(earn_spouse>basic_al,0,Married*spouse_al) Children*child_al basic_allce+spouse_allce+ch_al+SSC

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch)

6. Tax credits :

tax_cr

B

0

7. CG tax

CG_tax

B

CG_tax_excl

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

earn*SSC

net_inc MLS

J J

Total cash transfers

cash_trans

J

earn_total-CG_tax_total-SSC_total (1+Married)*basic_adult+Children*basic_child+ VLOOKUP((1+Married+Children),house_exp,2, FALSE) Children*IF(net_inc<=(1.1)*MLS*12,transf_1*12,IF(net_inc<= (1.8)*MLS*12,transf_2*12,IF(net_inc<=(3)*MLS*12,transf_3*1 2,0)))+Children*12*IF(net_inc<MLS*12,basic_child*(0.6/ 1.6),IF(net_inc<1.6*MLS*12,basic_child*(1- net_inc/ (1.6*MLS*12)),0))

13. Employer's soc security

SSC_empr

B

11. Cash transfers Net family income Minimum living standard (montly)

earn*SSC_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation)

271

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DENMARK – DANEMARK Chapter 1

The national currency is the Kroner (DKK). In 2003, DKK 6.6957 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned DKK 316 772 (Secretariat estimate). 1.

Personal Income Tax Systems

In the Danish personal income tax system, the income of the individual taxpayer is split into three categories: • Personal income, which consists unemployment benefits etc.

of

employment

income,

business

income,

pensions,

• Capital income (e.g. interest payments and dividends received, imputed rent of owner-occupied dwellings); calculated as a net amount. • Taxable income – the aggregate of personal income and capital income less deductions (e.g. workrelated expenses etc). All three categories are relevant for various tax rates, see § 1.13. The employees’ social security contributions and their payments to labour market supplementary pension schemes (See § 2.1) are not included in personal income (or taxable income). 1.1. Central government income taxes 1.11. Tax unit Earned income of husband and wife is taxed separately. 1.12. Tax allowances and tax credits 1.121. Standard reliefs If a wage or salary earner has expenses related to earning his income (e.g. transport, trade union membership dues, unemployment premiums) these expenses are fully deductible. In this report contributions to unemployment insurance are considered as a standard tax allowance (and as a social security contribution). 1.12.2. Main non-standard tax reliefs applicable to an APW • Interest payments are fully deductible against capital income. • The non-standard deduction for wage and salary earners: Actual costs related to the acquisition of income are deductible from taxable income. The main items are: – Contributions paid to trade unions – Transportation costs: Up to 24 km. per day: No deduction. 25-100 km.: 160 øre per km. Above 100 km. 80 øre per km ) 272

– Other costs above DKK 4 700. © OECD/OCDE 2004

Denmark – Danemark

• Contributions/premiums paid to private pension saving plans are in general deductible from personal income. Contributions/premiums paid to private pension saving plans with sum payments are from 1999 on no longer deductible from income subject to the top bracket tax. • Other reliefs: – Alimonies, if according to contract, are deductible from taxable income – Contributions to certain non-profit institutions are deductible from taxable income (limit DKK 5 000) – Losses incurred from unincorporated business in earlier years are as a principal rule deductible from personal income. 1.123. Tax credits Each person is granted a personal allowance, which is converted into a wastable tax credit by applying the marginal tax rate of the first bracket of the income tax schedule. For a person 18 years of age and older the tax credit amounts to: For central government income tax For local government income tax and church tax (average rate)

5.5 per cent of DKK 35 600 = DKK 1 958 33.3 per cent of DKK 35 600 = DKK 11 855

Special personal allowance for an individual younger than 18 years: DKK 26 500 If a married person cannot utilise the personal allowance, the unutilised part is transferred to the spouse. 1.13. Tax schedule Low bracket tax to the central government is assessed on the aggregate of personal income and positive net capital income at the rate of 5.50 per cent. Medium bracket tax to the central government is assessed on the part of the aggregate of personal income and positive net capital income above DKK 198 000, at the rate of 6 per cent. If a married individual cannot utilise the total allowance of DKK 198 000, the unutilised part is transferred to the spouse. Top bracket tax to the central government is assessed on the excess of DKK 295 300 of the aggregate of personal income and positive net capital income at the rate of 15 per cent. If the marginal tax rate including local tax but excluding church tax exceeds 59 per cent the top bracket tax rate is reduced by the difference between the marginal tax rate and 59 per cent. At the average local tax rate, this reduction equals 0.1 percent in 2003. 1.2. State and local income taxes 1.21. General description Local income taxes are levied by the counties and the municipalities (and the church). They are flat-rate taxes levied by the local authorities (the rate varies by jurisdiction). 1.22. Tax base The tax base is taxable income (See §1). Tax credit varies with tax rates. The average amount is given below. 1.23. Tax rates Lowest rate: 30 .0 per cent Highest rate: 36.68 per cent Average rate: 33.3 per cent (municipalities: 22.120; counties: 10.461; church: 0.736) The average rate is used in this study. It is applied to the tax base less personal allowances (See §1.123). © OECD/OCDE 2004

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2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1. Employees' contributions Employees are required to make a fixed contribution of DKK 7 344 for unemployment insurance. From 1999 and on the contribution to unemployment insurance is split into two: One part consisting of the contribution to unemployment insurance (DKK 2 988), while the other part is a voluntary contribution to an early retirement scheme (DKK 4 356). In this report both contributions are included. What is not included is an administration charge paid to the unemployment fund. It varies between the funds. The mean for all 35 funds in Denmark is approximately DKK 1 320. The typical charge for an industrial worker is DKK 1 602. Additional social security contributions are assessed on the basis of employees’ gross earnings at the rate of 8.0 per cent* Social security contributions are not assessed on social transfers or on capital income. A compulsory contribution of 1 per cent of employee’s gross earnings is paid to an individual Labour Market Supplementary Pension Scheme established for the employee – this contribution is not considered as a social security contribution rather it is savings being made by the individual. In addition, there is a compulsory fixed contribution to a general Labour Market Supplementary Pension Scheme of DKK 894 for workers with at least 117 hours of work each month and their employer makes a corresponding contribution that is double this amount (for workers who work less than 117 hours and at least 78 hours, the rate is DKK 596 while for those workers whose hours amount to at least 39 hours but less than 78, the rate is DKK 298). Under this scheme, each employee has a plan and it should be noted that the contribution that is ascribed to this plan is determined by the level of employment and does not necessarily relate to the actual amount described above. For the purposes of this Report, only the fixed contribution amount is considered as a social security contribution. 2.2. Employers’ contributions From 2000 and on the social security contribution is zero. The employer only contributes to a Labour Market Supplementary Pension scheme. Labour market supplementary pension scheme: DKK 1 789. 3.

Universal Cash Transfers The transfers for each dependent child are as follows

Age group

Quarterly amount (DKK) for each child

0-2 3-6 7-17

3 225 2 925 2 300

The transfer is independent of the parents’ income. There are special amounts for single parents: the transfer for each dependent child is DKK 4 040 per year, and yearly transfer of DKK 4 108 regardless of the number of children. In addition there is a state transfer of DKK 10 308 per year for each dependent child in case an ‘absent parent’ does not contribute (this amount) to the family. This transfer has been included in the calculations for single parents. 274

* In the Revenue Statistics this payment is not reported as a social security contribution, but as a separate type of personal income tax. For presentational reasons it is included here as a social security contribution.

© OECD/OCDE 2004

Denmark – Danemark

4.

Main Changes in Tax/Benefit Systems

From 2000 to 2002, the low bracket tax rate has been reduced from 7 percent to 5.5 percent. The low bracket tax is assessed on the aggregate of personal income and positive net capital income. There are no changes from 2002 to 2003 5.

Memorandum Items

5.1. Identification of an APW The APW is identified as a production worker employed at firms in the manufacturing sector which are members of the Danish Employers’ Confederation. 5.2. Employers’ contribution to private schemes The employer must provide his employees with work injuries’ insurance. Employees typically participate in a private occupational (labour market) pension scheme to which both the employee and the employer make contributions. The employee’s contribution is deductible for income tax purposes and treated here as a non-standard tax relief. The employer’s contribution is not included in the gross wage income of the employee. For an average production worker the combined employer contribution to the occupational pension scheme plus the labour market supplementary pension scheme described in § 2.2 amounts to DKK 1 789.

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2003 Parameter values Central taxes

Local taxes total local tax rate Child transfers

for single parents Individual Labour Market Pension Scheme Employees soc. security: suppl. pension scheme unempl. insurance SSC rate Employer soc. security: suppl. pension scheme refunded by government SSC rate

Ave_earn Low_rate Medium_thrsh Medium_rate Top_thrsh Top_rate Marg_rate_ceil Adj_top_rate Temp_tax_rate Temp_tax_thrsh Personal_al gener_rate church_rate Local_rates Child1_5y Child2_12y Child3_3y Child4 Sing_par_basic Sing_par_ch Pension_rate Pension Unemp SSC_rate Pension_empr Pension_ref SSC_empr

316772 0.055 198000 0.06 295300 0.15 0.59 0.149 0.00 0 35600 0.326 0.007 0.333 11700 9200 9200 9200 4108 14348 0.01

Secretariat estimate

894 7344 0.08 1789 0.00 0.0000

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The equations for the Danish system in 2003 are mostly on an individual basis. But there is an interaction in the calculation of Central Government tax between spouses and child benefit is calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

SSC+Pension_rate*earn

1. Earnings

earn

2. Allowances:

tax_al

B

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income Personal income

tax_inc pers_inc

B B

Positive(earn-tax_al+taxbl_cr) Positive(earn-pension-pension_rate*earn-ssc_rate*earn)

5. CG tax before credits

CG_tax_excl_princ

P

CG_tax_excl_spouse

S

Low_rate*tax_inc_princ+Medium_rate*Positive(tax_inc_ princ-Medium_thrsh-Married*Positive(Medium_thrshpers_inc_spouse))+Adj_top_rate*Positive(tax_inc_princTop_thrsh) Low_rate*tax_inc_spouse+Medium_rate*Positive(tax_inc _spouseMedium_thrsh)+Adj_top_rate*Positive(tax_inc_spouseTop_thrsh)

tax_cr_princ

P

tax_cr_spouse

S

6. Tax credits :

Personal_al*Low_rate+Married*Positive(Personal_alpers_inc_spouse)*Low_rate Personal_al*Low_rate

7. CG tax

CG_tax

B

CG_tax_excl-tax_cr

8. State and local taxes

local_tax_princ

P

local_tax_spouse

S

Positive(Local_rates*(tax_inc_princ-Personal_alMarried*Positive(Personal_al-tax_inc_spouse))) Local_rates*Positive(tax_inc_spouse-Personal_al)

SSC_earn SSC

B B

earn (earn>0)*(Pension+Unemp+SSC_rate*SSC_earn)

10. Total payments

tot_payments

J

Positive(CG_tax_total+local_tax_total+SSC_total)

11. Cash transfers

cash_trans

J

(Children>0)*(Child1_5y+(Children>1)*Child2_12y+(Chil dren>2)*Child3_3y+(Children>3)*Child4+(Married=0)*(S ing_par_basic+Children*Sing_par_ch))

13. Employer's soc security

SSC_empr

B

SSC_empr*earn+(earn>0)*(Pension_empr-Pension_ref)

9. Employees' soc security relevant earnings contribution

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation)

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FINLAND – FINLANDE Chapter 1

The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned EUR 28 888 (Secretariat estimate). 1.

Personal Income Tax Systems

1.1.Central government income taxes 1.11. Tax unit Spouses are taxed separately for earned income. 1.12. Standard tax allowances 1.121. Standard tax allowances • Work-related expenses: A standard deduction for work-related expenses equal to the amount of wage or salary, with a maximum amount of EUR 590 is granted. 1.122. Main non-standard tax reliefs applicable to an APW • Interest: Interest can be deducted against capital income. Of the excess of interest over capital income 29 per cent can be credited against income tax up to a maximum of EUR 1 400. • Membership fees: membership fees paid to employees' organisations or trade unions. • Travelling expenses: travelling expenses from the place of residence to the place of employment using the cheapest means of communication in excess of EUR 500 up to a maximum deduction of EUR 4 700. • Other work-related outlays: outlays for tools, professional literature, research equipment and scientific literature, and expenses incurred in scientific or artistic work (unless compensated by scholarships). Travelling expenses and other work-related outlays are deductible only to the extent that their total amount exceeds the amount of the standard deduction for work-related expenses. 1.13. Rate schedule Central government income tax. Taxable income (EUR )

278

11 600-14 400 14 400-20 000 20 000-31 200 31 200-55 200 55 200 and over

Tax on lower limit (EUR )

8 344 1 240 33 704 10 424

Tax on excess income in bracket (%)

12.0 16.0 22.0 28.0 35.0

© OECD/OCDE 2004

Finland – Finlande

1.2. Local income tax 1.21. Tax base and tax rates The tax base of the local income tax is taxable income as established for the income tax levied by central government. Municipal tax is levied at flat rates. In 2003 the tax rate varies between 15.50 and 20.00 per cent, the average rate being approximately 18.03 per cent. Municipal tax is not deductible against central government taxes. Work-related expenses and other non-standard deductions are deductible, as for purposes of the central government income tax. 1.22. Allowances in municipal income taxation: • An earned income allowance is calculated on the basis of taxpayer’s income from work. The allowance amounts to 40 per cent of income between EUR 2 500 and EUR 7 230, and 14 per cent of the income exceeding EUR 7 230, until it reaches its maximum of EUR 2 550 . The amount of the allowance is reduced by 3.5 per cent of the earned income minus work related expenses exceeding EUR 14 000. • A basic allowance is granted on the basis of taxable income remaining after the other allowances have been subtracted. The maximum amount, EUR 1 480, is reduced by 20 per cent of the income exceeding EUR 1 480. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employee’' contributions 2.11. Rate and ceiling In 2003, the rate of the health insurance contribution paid by an employee is 1.50 per cent. The tax base for the health insurance contribution is net taxable income for municipal income tax purposes. In addition there is an employees’ pension insurance contribution which amounts to 4.60 per cent of gross salary and an employees’ unemployment insurance contribution equal to 0.20 per cent of gross salary. These two contributions are deductible for income tax purposes. 2.12. Distinction by marital status or sex The rates do not differ. 2.2. Employers’ contributions The average rate of the employers’ social security contribution in 2003 is 24 per cent of gross wage. 3.

Universal Cash Transfers

3.1. Amount for marriage None. 3.2. Amount for children The central government pays in 2003 the following allowances (EUR): For the first child For the second child For the third child For the fourth child Fifth and subsequent child

1 080 1 326 1 572 1 818 2 064

The child subsidy for a single parent is increased by an annual amount of EUR 403.20 for each child. © OECD/OCDE 2004

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4.

Main Changes in the Tax/Benefit System Since 2001

In January 2003 the central government tax brackets were adjusted by about 1 per cent, and the central government marginal tax rates were lowered by 0.5 percentage point. The maximum amount of the earned income allowance was raised to EUR 2 300 from EUR 2 140 in 2002, and the maximum amount of the standard deduction for work-related expenses was raised to EUR 590. The rate of the employees' unemployment insurance contribution was reduced from 0.40 to 0.20 per cent, and the rate of the employees’ pension insurance contribution was raised from 4.40 to 4.60 per cent. In July 2003 the new government introduced further income tax cuts for the year 2003. The central government marginal tax rates were each lowered by an additional 0.5 percentage points and the maximum amount of the earned income allowance was raised to € 2 550. 5.

Memorandum Items

5.1. Calculation of average gross annual wage The Finnish figures are generally calculated as follows: • Gross annual earnings are calculated at an individual level on the basis of the hours usually worked, average hourly pay for the fourth quarter, and the share of annual periodic bonuses. • The earnings exclude sickness and unemployment compensations, but include all normal overtime compensations, bonuses, holiday remunerations and remunerations for public holidays. • The sector covered is manufacturing as defined in division 2, 3 and 4 of the ISIC (members of employers’ confederation only). Mining and quarrying are included but their impact is extremely minor. 5.2. Employer contributions to private pension and health schemes No information is available.

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Finland – Finlande

2003 Parameter values APW-wage Expenses Allowances State tax Tax schedule

Earned income ded.

low income Local intax Soc sec taxpayer progressive Prog.lim soc.sec empr Cash transfer

Ave_earn Work_exp_max Work_exp_rate al_SSC_rate Tax_min Tax_sch

28888 590 1 0.048 8 0 0.12 0.16 0.22 0.28 0.35

al_thrsh al_thrsh2 al_rate al_rate2 al_redn_thrsh al_redn_rate al_max SL_max SL_rate Local_rate Church_rate Local_tot SSC_rate SSC_prog_rate SSC_prog_thrsh SSC_empr ch_1 ch_2 ch_3 ch_4 ch_5 ch_small ch_lone

2500 7230 0.40 0.14 14000 0.035 2550 1480 0.2 0.1803 0 0.1803 0.015 0 80000 0.24 1080 1326 1572 1818 2064 0 403.2

Tax_thrsh 11600 14400 20000 31200 55200

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Finnish system are mostly on an individual basis. But child benefit is calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

Earn work_rel SSC_al

B B

MIN(Work_exp_max,Work_exp_rate*earn) earn*al_SSC_rate

2. Allowances:

tax_al

B

work_rel+SSC_al

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

=Tax(tax_inc,Tax_sch)+Tax_min* (tax_inc>Tax_thrsh)

6. Tax credits :

tax_cr

B

0

7. CG tax Earned income allowance

CG_tax earninc_al

B B

Low income

low_inc

B

Taxable income (local)

tax_inc_l

B

CG_tax_excl MIN(al_max, IF(earn>al_thrsh2, al_rate*(al_thrsh2al_thrsh1)+al_rate2*(earn-al_thrsh2), Positive(earnal_thrsh)))- MIN(al_max,al_redn_rate* Positive(earnwork_rel-al_redn_thrsh)) Positive(MIN(earn-work_rel-low_al-SSC_al,SL_max)SL_rate*Positive(earn- work_rel- low_al-SSC_al-SL_max)) tax_inc-earninc_al-low_inc

1. Earnings Work related expenses SSC deduction

8. State and local taxes

local_tax

B

tax_inc_l*Local_tot

9. Employees' soc security

SSC

B

SSC_rate*tax_inc_l+ SSC_prog_rate* Positive(tax_inc_lSSC_prog_thrsh)+SSC_al

11. Cash transfers

cash_trans

J

(Children>0)*ch_1+(Children>1)*ch_2+ (Children>2)*ch_3+ (Children>3)*ch_4+ Positive(Children-4)*ch_4 +(Married=0)*Children*ch_lone

13. Employer's soc security

SSC_empr

B

earn*SSC_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

282

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Chapter 1

FRANCE En 2003, la monnaie nationale est l’Euro (EUR). En 2003, EUR 0.9001 est égal à 1 USD (moyenne journalière sur neuf mois). Une estimation du Secrétariat pour l'année 2003 du salaire brut moyen de l’ouvrier de l’industrie manufacturière est égale à EUR 22 533. 1.

Système d’imposition sur le revenu

1.1. Impôt sur les revenus 2002 perçus par l’administration centrale* 1.11. Unité fiscale L’unité d’imposition est le revenu commun de la famille mais les enfants n’y sont compris que s’ils sont à la charge des parents. Les autres personnes sont prises en compte sous certaines conditions: contrairement aux conjoints qui sont toujours imposés ensemble, les enfants et les autres membres de la famille ont la faculté de choisir l’imposition séparée. Les personnes qui ont conclu en 1999, les premiers pactes civils de solidarité, souscrivent pour l’imposition des revenus 2002, une déclaration commune. Les salaires déclarés (salaire net) sont nets de cotisations sociales et de la fraction de CSG déductible, mais contiennent les 2.4 pourcent de CSG non déductibles de l’assiette de l’impôt sur le revenu, et les 0.5 pourcent de CRDS. 1.12. Allégements fiscaux et crédits d’impôt 1.121. Allégements forfaitaires • Pour frais professionnels, correspondant au montant réel ou bien est évalué forfaitairement à 10 pour cent du salaire net (minimum de EUR 370 et plafond à EUR 12 437). • Abattement forfaitaire égal à 20 pour cent du salaire après application de la déduction mentionnée ci-dessus. Cet abattement est supprimé sur la fraction de salaires, des pensions et rentes viagères à titre gratuit (après abattement de 10 pour cent) qui dépassent EUR 113 900 pour les revenus de 2002. • Situation familiale : le système du « quotient familial » permet de tenir compte de la situation matrimoniale et des charges de famille du contribuable. Il consiste à diviser le revenu imposable net en un certain nombre de parts (une pour le mari, une pour la femme, une demi-part pour chaque enfant et autre personne à charge, une 1/2 part supplémentaire pour les titulaires de handicaps, etc..) : l’impôt total dû est égal au montant de l’impôt correspondant à une part multiplié par le nombre total de parts ; les contribuables ayant trois enfants et plus bénéficient * Les calculs liés à l’impôt sur le revenu dans ce rapport pour 2003 sont basés sur la fiscalité des revenus de 2002 et la prévision du salaire brut pour 2003. Le décalage existant avec les autre pays de l’OCDE s’explique par la spécificité du système fiscal français qui ne prélève pas l’impôt sur le revenu perçu en 2003 (imposition à la source), mais se sert des revenus de 2002 déclarés en mars 2003 par les contribuables français (système déclaratif). La législation fiscale couvrant les revenus de la période 2003 n’étant connue qu’un an plus tard (début 2004), ce rapport ne peut donc appliquer aux revenus 2003, les règles auxquels ils seront soumis. Dans cette version, le revenu après impôts demeure cependant plus proche économiquement pour des comparaisons avec celui des autre pays de l’OCDE.

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d’une demi-part supplémentaire. L’avantage en impôt procure par la demi-part supplémentaire ne peut excéder, selon les cas, EUR 980, EUR 2 051 et EUR 3 549. 1.122. Principaux allégements non-forfaitaires applicables à un ouvrier moyen Certaines charges continuent de donner lieu à réduction d’impôts ou à crédits d’impôts : les intérêts des emprunts afférents à l’acquisition de l’habitation principale, (il s’agit de la dernière année pour les acquisitions réalisées dans l’ancien avant le 31/12/1997), certaines dépenses relatives à l’amélioration ou au maintien en l’état de l’habitation principale : les dépenses d’isolation thermique et de régulation du chauffage, les dépenses d’acquisition de gros équipements, les dépenses d’acquisition d’équipements de production d’énergie utilisant une source d’énergie renouvelable (crédit d’impôts au taux de 15 pour cent avec plafond pluriannuel de dépenses), la prestation compensatoire lorsqu’elle est versée en capital (réduction au taux de 25 pour cent plafonnée à EUR 30 500), les frais de garde des enfants de moins de sept ans (réduction de 25 pour cent, avec un plafond annuel de dépenses de EUR 2 300), la présence d’enfants à charges scolarisés en collège, lycée ou poursuivant des études dans l’enseignement supérieur, les dons à des œuvres ou à des organismes aidant les personnes en difficulté, les cotisations syndicales, etc. 1.123. Crédit d'impôt récupérable: la Prime pour l'emploi (PPE) Il s'agit d'un crédit d'impôt destiné aux salariés à temps plein appartenant à un foyer fiscal de condition modeste. Cette prime est accordée à l'ensemble des membres du foyer fiscal éligibles sous réserve que le revenu de référence du foyer fiscal ne dépasse pas certains seuils qui varient avec la configuration familiale, (par exemple : une personne seule ne doit pas avoir un revenu de référence supérieur à EUR 11 972, une famille monoparentale avec deux enfants un revenu supérieur à EUR 18 588, un couple marié monoactif sans enfant un revenu supérieur à EUR 23 944, un couple marié monoactif avec deux enfants un revenu supérieur à EUR 30 560). Le calcul du montant de la prime tient compte de la situation de famille et du niveau du revenu d’activité déclaré par le bénéficiaire. Celui- ci ne doit, dans tous les cas, jamais être inférieur à un revenu minimum de EUR 3 265 en 2002. Le revenu de référence pour un foyer fiscal qui ne perçoit que des revenus d’une activité salariée est une approximation du revenu net imposable, c’est ce revenu qui doit être finalement repris pour les simulations de cas types présentés dans le tableau qui suit et qui n’intègre pas la dimension « revenu de référence » du foyer fiscal : Situation de famille

Personne seule sans enfant

284

Revenu d’activité en année pleine compris entre

Montant de la prime pour l’emploi

3 265 EUR
R*4.4% (15 235 EUR -R) * 11 %

Marié mono-actif

3 265EUR
R*4.4% + 79 EUR (15 235 EUR-R)*11%+79 EUR 79 EUR ( 23 207 EUR -R)* 5.5%

Famille monoparentale avec deux enfants

3 265 EUR
R*4.4% (15 235 EUR -R) * 11 % 0

Majoration pour charges de famille

– Sans enfant

Deux enfants

– – – –

64 EUR 64 EUR 32 EUR 32 EUR 96 EUR 96 EUR 64 EUR

Les personnes à charge majorent le montant de la PPE attribuée au foyer fiscal, la présence d’un ou deux actifs pour des couples mariés peut, elle aussi, influer sur le montant de la prime (majoration pour les couples mono-actifs du montant de la PPE de EUR 79). Chaque enfant majore la PPE du foyer fiscal qui le compte à charge de EUR 32, sauf cas particulier (par exemple les deux dernières tranches de revenu pour les mariés mono-actifs bénéficiaires de la prime). © OECD/OCDE 2004

France

1.13. Barème de 2003 d’imposition sur les revenus 2002 Fraction du revenu imposable (1 part, en euros)

1re tranche 2e tranche 3e tranche 4e tranche 5e tranche 6e tranche 7e tranche

N’excédant pas 4191 De 4 191 à 8 242 De 8 242 à 14 506 De 14 506 à 23 489 De 23 489 à 38 218 De 38 218 à 47 131 Au delà de 47 131

Taux (en %)

0 7.05 19.74 29.14 38.54 43.94 49.58

Sur le montant de l’impôt résultant de ce barème s’applique une « décote » spécifique pour les contribuables faiblement imposables et éventuellement certaines réductions d’impôts (le montant de l’impôt sur les revenus soumis au barème progressif de l’IR, avant prise en compte des réductions pour bénéficier de la décote doit être inférieure à EUR 772 et la décote s’évalue à la moitié de la différence entre ce plafond et l’impôt sur le revenu avant la décote). La réduction de 5% qui avait été opérée sur les revenus 2001 soumis au barème progressif en 2002, a été pour l’imposition des revenus 2002 intégrée au barème, via les taux marginaux d’imposition arrêtées par la loi de finances. Quand l’impôt final s’évalue à un montant au dessous de EUR 61, il n y a pas d’impôt à payer. 1.2. Impôt des collectivités décentralisées Les impôts locaux touchant les ménages salariés sont : • La taxe d’habitation, qui est fixée par les communes. • Les impôts fonciers sur la propriété bâtie et sur la propriété non bâtie. • Les règles communes à chaque type d’impôt, ainsi que les aménagements pratiqués par certaines communes. Ces impôts locaux dont le taux varie selon la commune dans des proportions importantes ne sont pas évalués ici. 1.3. Contribution sociale généralisée (CSG) La Contribution sociale généralisée est entrée en vigueur le 1er février 1991 au taux de 1.1 pour cent sur 95 pour cent du salaire brut. Depuis le 1er janvier 1998, le taux de CSG est fixé à 7.5 pour cent, dont 5.1 points déductibles du revenu imposable. 1.4. Contribution au remboursement de la dette sociale (CRDS) La Contribution au remboursement de la dette sociale est en application depuis le 1er février 1997. Comme la Contribution sociale généralisée, sa base est constituée de 95 pour cent du salaire brut. Son taux est fixé à 0.5 pour cent. Contrairement aux cotisations sociales, la CRDS fait partie du revenu imposable. 2.

Cotisations sociales obligatoires versées à des régimes de caractère public

Certaines cotisations sont calculées sous un plafond de salaire mensuel. Depuis 1997, ce plafond est réévalué une fois par an au 1er janvier. En janvier 2003, il s’élève à EUR 2 432 par mois (soit : EUR 29 184 annuels) 2.1. Cotisations des salariés 2.11. Retraite 6.55 pour cent du salaire sous plafond. © OECD/OCDE 2004

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2.12. Maladie, maternité, invalidité, décès 0.75 pour cent de la totalité du salaire. 2.13. Chômage 2.05 pour cent jusqu’à 4 fois le plafond (moyenne des cotisations 2002) et de 2.40 pour cent pour le seul changement de cotisation du 1er janvier 2003) 2.16. Autres • Retraite complémentaire des non-cadres : minimum 3 pour cent sous le plafond et 6 pour cent entre une et à trois fois le plafond. • Retraite complémentaire des cadres : minimum 3 pour cent jusqu’à une fois le plafond, 7.5 pour cent de une à huit fois le plafond. • Depuis avril 2001, une nouvelle cotisation (AGFF) remplace l’ASF, qui était auparavant comprise dans les cotisations « chômage ». Cette cotisation est de 0.8 pour cent sous le plafond et de 0.9 pour cent, pour les non-cadres, entre 1 et 3 fois le plafond et pour les cadres, entre 1 et 4 fois le plafond. • Depuis janvier 1997, une contribution exceptionnelle et temporaire (CET) est applicable aux rémunérations (jusqu’à huit fois le plafond de sécurité sociale) perçues par les cadres relevant du régime Agirc. La CET est répartie entre employeur et cadre. Depuis janvier 2002, elle est de 0.13 pour cent. • Veuvage : 0.1 pour cent sur la totalité du salaire. • Cotisations à l’APEC (Association Pour l’Emploi des Cadres) : taux de 0.024 pour cent par an de 1 à 4 plafonds. 2.2. Cotisations patronales 2.21. Retraite 8.2 pour cent du salaire sous plafond, complété par un prélèvement de 1.6 pour cent sur l’intégralité du salaire. 2.22. Maladie, maternité, invalidité, décès 12.8 pour cent de la totalité du salaire. 2.23. Chômage 4.00 pour cent jusqu’à quatre fois le plafond. A cela s’ajoute 0.35 pour cent sous quatre plafonds pour l’alimentation du fonds de garantie de salaire (pour le seul changement de cotisation du 1er janvier 2003). 2.24. Accidents du travail • Les taux d’accidents du travail sont différenciés par secteurs d’activité et publiés annuellement au journal officiel de la république française. Pour les industries mécaniques et électriques, le taux moyen s’élève à 2.22 pour cent. 2.25. Allocations familiales

286

5.4 pour cent de la totalité du salaire. Il existe une réduction des charges patronales qui bénéficie aux salaires mensuels inférieurs ou égaux à 133 pour cent du SMIC. Cette mesure est ramenée à 1.3 SMIC depuis le 1er janvier 1998 (le montant annuel du SMIC est de EUR 14 216 en 2003). Cette © OECD/OCDE 2004

France

réduction ne peut pas dépasser un montant forfaitaire mensuel de EUR 210.08 au 1er juillet 2002.(Rien de connu pour le montant annuel 2003 à la date du 15/04 sinon le SMIC brut mensuel depuis le 1er juillet 2002 soit : EUR 1154.27) 2.26. Autres • Retraite complémentaire : Pour les non cadres un taux de 4.5 pour cent jusqu’à une fois le plafond et 9 pour cent de une à trois fois le plafond. Pour les cadres, le taux de 4.5 pour cent est maintenu que jusqu’au plafond et de 12.5 pour cent de une à huit fois le plafond. • Comme en 2002, la cotisation AGFF est pour les non-cadres et les cadres, de 1.2 pour cent sous le plafond et, pour les non-cadres, de 1.3 pour cent entre une et trois fois le plafond et pour les cadres, de 1.3 pour cent entre une et quatre fois le plafond. Dans le tableau, elle est cumulée avec les taux de retraite complémentaire. • Contribution exceptionnelle et temporaire (CET) : 0.22 pour cent, pour les cadres. • Autres (construction, logement, apprentissage, formation continue) : 2.95 pour cent de la totalité du salaire jusqu’au plafond de sécurité sociale puis 2.85 pour cent au delà de ce plafond. La taxe sur les transports n’est pas prise en compte car elle est géographiquement variable. 3.

Prestations sociales d’application générale

3.1. Principales prestations familiales (au titre des enfants à charge) • Allocations familiales : Base mensuelle des allocations familiales (BMAF) (janvier à décembre) : EUR 347.68 au 1er janvier 2003. • Taux : deux enfants : 32 pour cent ; par enfant supplémentaire : 41 pour cent. • Complément familial : Montant forfaitaire de EUR 139.5 en 2001. Il est versé, sous condition de ressources, à partir de trois enfants à charge. • Allocation pour jeune enfant (moins de trois ans) : 45.72 pour cent de la BMAF sous condition de ressources. • La CRDS s’applique sur les allocations familiales à un taux de 0.5 pour cent. 4.

Principales modifications apportées au système fiscal et au régime des prestations sociales depuis 2000 Système fiscal : • Création d’une réduction d’impôt au taux de 5 pour cent s’appliquant à l’impôt brut après décote sur les seuls revenus d’activité

5.

Rubrique pour mémoire

Pour apprécier le degré de comparabilité entre les pays, il faut tenir compte des précisions suivantes : • le secteur couvert est le secteur privé et semi-public des industries de transformation ; • la catégorie de salariés regroupe les manœuvres, les ouvriers spécialisés et qualifiés, ainsi que les contremaîtres ; • les chiffres présentés sont le résultat de l’application des barèmes fiscaux et des cotisations sociales sur les salaires bruts issus des "Déclarations annuelles de données sociales" en NAF (nomenclature d’activité française, version française de la NACE). • l’estimation de salaire est réalisée à partir des DADS 2000 et des dernières prévisions de l’OCDE pour 2001 et 2002. © OECD/OCDE 2004

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2003 Parameter values APW earnings Work expenses Basic allowance Tax schedule

Décote value Prime Pour l´Emploi

CSG+CRDS

Social security contributions

Extra pension (non-cadres) (incl. AGFF) Widows pension Employer contributions Unemployment (incl. "garantie de salaire") Accidents Family Allowance Extra pension (incl. AGFF) Others Child benefit (second child) third & subsequent

Ave_earn work_rel_fl work_rel_ceil work_rel_rate basic_al_rate basic_al_max tax_sch

limit_demipart limit_sp_demipart1 decote tax_min rev_ref_sing rev_ref_mar maj_dem_part rate1 rate2 SMIC_net extra_1_earn extra_sing_1st_pers extra_pers CSG_rat_noded CRDS_rat_noded CSG_CRDS_rat_noded CSG_rat_ded CRDS_special pension_rate SSC_ceil sickness_rate unemp_rate1 unemp_rate2 pens_rate_ex pens_rate_ex2 pens_widow pens_empr1 pens_empr2 sickness_empr unemp_empr1 unemp_empr2 accidents_empr SMIC fam_empr pens_empr_ex pens_empr_ex2 others_empr1 others_empr2 CB_2 CB_3

22533 370 12437 0.1 0.2 113900 0 0.0705 0.1974 0.2914 0.3854 0.4394 0.4958 2051 3549 772 61 11972 23944 3308 0.044 0.11 10882 96 79 32 0.0228 0.00475 0.02755 0.04845 0.05000 0.0655 29184 0.0075 0.0240 0.0240 0.038 0.069 0.001 0.082 0.016 0.128 0.0435 0.0435 0.0218 14216.28 0.054 0.057 0.103 0.0295 0.0285 1335 1711

Secretariat Estimate

4191 8242 14506 23489 38218 47131

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The equations for the French system are mostly calculated on a family basis. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps Variable name

Range

Equation

1. Earnings Quotient for tax calculation

earn quotient

J

1+Married+IF(Children<3,Children/2,Children1)+0.5*(Married=0)*(Children>0)

2. Allowances: Work related

work_exp

J

basic_al

J

CSG_ded SSC_al tax_al taxbl_cr tax_inc

J J J J J

MIN(work_rel_ceil, MAX(work_rel_rate* (earn_totalSSC_total-csg_ded), MIN(work_rel_fl,earn_total))) basic_al_rate*min(earn_total-work_exp-SSC_totalcsg_ded,basic_al_max) CSG_rat_ded*earn SSC_total work_exp+basic_al+CSG_ded+SSC_al 0 earn-tax_al

sch_tax

J

Basic CSG deductible Soc sec contributions Total 3. Credits in taxable income 4. CG taxable income 5. CG tax before credits Calculation according to schedule

Adjusted for decote Tax liable CSG+CRDS (non-deductible) 6. Tax credits : Prime pour l'emploi

Additional flat rate allowance

Total NWTC 7. CG tax 8. State and local taxes 9. Employees' soc security

11. Cash transfers

adj_tax J inc_tax J CSG_CRDS_noded J PPE_main

B

add_all

J

tax_cr CG_tax local_tax SSC

J J J B

cash_transf_gross crds_cash_transf cash_transf_net

J J J

MAX(quotient*Tax(tax_inc/ quotient,tax_sch),IF(Married,2*Tax(tax_inc/2,tax_sch)limit_demipart*(quotient-2),Tax(tax_inc,tax_sch)(Children>0)*(limit_sp_demipart1+limit_demipart*(quotient -2)))) MIN( 1.5*sch_tax-decote/2, sch_tax) (adj_tax>=tax_min)*adj_tax Positive(CSG_CRDS_rat_nod*earn) IF((IF(tax_inc<(Married=0)*rev_ref_sing+(Married=1)*rev_ref _mar+(Children>0)*maj_dem_part*Children,1,0))=1,Positive( IF(earn>=0.3*SMIC_net,(earn<SMIC_net)*rate1*earn+(earn> =SMIC_net)*(1.4*SMIC_net-earn)*rate2,0)),0) IF((IF(tax_inc<(Married=0)*rev_ref_sing+(Married=1)*rev_ref _mar+(Children>0)*maj_dem_part*Children,1,0))=1,((Marrie d=1)*IF(earn_total=MAX(earn_princ,earn_spouse),extra_1_e arn,0)+(Married=0)*(Children>0)*(extra_sing_1st_pers+(Chil dren1)*extra_pers)+(Married=1)*(Children>0)*(extra_pers*Childr en)),0) PPE_main+add_all inc_tax+CSG_CRDS_noded+CSG_ded-tax_cr 0 pension_rate*MINA(earn,SSC_ceil)+sickness_rate*earn+une mp_rate1*MINA(earn,SSC_ceil)+(earn>SSC_ceil)*unemp_rat e2*MINA(earnSSC_ceil,3*SSC_ceil)+pens_rate_ex*MINA(earn,SSC_ceil)+(e arn>SSC_ceil)*pens_rate_ex2*MINA(earnSSC_ceil,3*SSC_ceil-SSC_ceil)+pens_widow*earn IF(Children<2,0,CB_2+(Children-2)*CB_3) cash_transf_gross*-1*CRDS_special cash_transf_gross+crds_cash_transf

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Line in country table and intermediate steps Variable name

Range

Equation

13. Employer's soc security

B

(pens_empr1+others_empr1)*MINA(earn,SSC_ceil)+IF(SSC_c eil<earn,pens_empr2+others_empr2,0)*(earnSSC_ceil)+(sickness_empr+fam_empr+accidents_empr)*ear n+pens_empr_ex*MINA(earn,SSC_ceil)+(earn>SSC_ceil)*pe ns_empr_ex2*MINA(earn-SSC_ceil,3*SSC_ceilSSC_ceil)+IF(earn<SSC_ceil,unemp_empr1*earn,unemp_em pr1*earn+(unemp_empr2-unemp_empr1)*(earn-SSC_ceil))IF(earn<=SMIC,0.182*earn,IF(earn<=1.33*SMIC,(1.33*SMICearn)*0.55,0))

SSC_empr

Memorandum item: Non-wastable tax credit tax expenditure component taxexp cash transfer component transfer

P P

tax_cr-transfer IF(CG_tax<0,-CG_tax,0)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

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Chapter 1

GERMANY – ALLEMAGNE The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). The Average Production Worker earned EUR 33 810 (secretariat estimate). 1.

Personal Income Tax Systems

1.1. Central/federal government income taxes 1.11. Tax unit Spouses are normally assessed jointly. They have, however, the option of being separately assessed. The income of dependent children is not assessable with that of the parents. The calculations in this report assume joint taxation. 1.12. Tax allowances and tax credits: 1.121. Standard reliefs and work-related expenses • Basic reliefs: None. • Standard marital status reliefs: In the case of joint assessment, specific allowances are doubled. Income tax according to the schedule is computed by the income splitting method. • Relief(s) for children: tax credit of EUR 1 848 for the first, the second and the third child, EUR 2 148 for the fourth and subsequent children. In cases where the value of the tax credit is less than the relief from the tax allowances (EUR 1 824 for the subsistence of a child and additionally EUR 1 080 for minding and education or training needs [EUR 3 648 and EUR 2 160 in the case of jointly assessed married couples]), the tax allowances are used instead to compute the income tax in the tax assessment. • Relief for lone parents: allowance of EUR 2 340 (household allowance) for taxpayers who live alone with at least one child for whom they receive tax allowances or a tax credit. • Reliefs for social security contributions and life insurance contributions: Social security contributions and other expenses incurred in provision for the future (e.g. life insurance), are deductible up to specific ceilings. The calculation of the former relief proceeds in three steps. First, EUR 3 068/6 136 (singles/couples) are deductible. These amounts are, however, lowered by 16 per cent of gross wage (serving as a proxy for employers’ social security contributions). This provision is meant as a partial compensation for the self-employed, who do not receive tax-free employers’ contributions to social security. Second, the remaining expenses are deductible up to EUR 1 334/2 668 (singles/couples). Third, half of the remaining expenses are deductible up to EUR 667/1 334 (singles/couples). • Work-related expenses: EUR 1 044 lump-sum allowance per gainfully-employed person. • Special expenses: Lump sum allowance (EUR 36/72 (singles/couples)) for special expenses, e.g. for tax accountancy or disbursed church taxes. When the taxpayer proves that his expenses are higher, they are fully deductible. © OECD/OCDE 2004

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1.122. Main non-standard tax reliefs applicable to an APW • Interest on qualifying loans: Interest on housing loans is fully deductible in the case of leased dwellings. • Contributions to pensions, life insurance, superannuation schemes: On application to the tax office expenses are deductible up to specific ceilings. • Medical expenses: Partially deductible insofar as not covered by insurance (most have full coverage - in particular dependently employed persons). • Other: On application to the tax office work-related expenses are fully deductible (no ceiling). 1.13. Tax schedule The German tax schedule is formula-based. The calculations are based on a rounded amount of taxable income. If the taxable income cannot be divided by 36 it is rounded down to the next (full EUR) amount which can be divided by 36. Subsequently it is increased by EUR 18. • X is the taxable income. • T is the income tax liability. • In addition the following definition is used in the income tax liability formulae: X – 7 200 Y= 10 000 Z=

X – 9 216 10 000

The income tax liability (amounts in EUR) is calculated as follows: 1. T = 0 for X ≤ 7 235 2. T = (768.85Y + 1 990)Y for 7 236 ≤ X ≤9251 3. T = (278.65Z + 2 300)Z + 432 for 9 252 ≤ X ≤ 55 007 4. T = 0.485X - 9 872 for 55 008 ≤ X These formulae are used directly to calculate the income tax of single individuals. The income tax liability for spouses who are assessed jointly is computed as follows: the formula income tax is calculated with respect to one-half of the joint taxable income. The resulting amount is doubled to arrive at the income tax liability of the spouses (splitting method). 1.14. Solidarity surcharge The solidarity surcharge is levied at 5.5 per cent of the income tax liability subject to an exemption limit of EUR 972/1 944 (singles/couples). Once the income tax liability exceeds the exemption limit, the solidarity surcharge is phased in at a higher rate of 20 per cent of the difference between the income tax liability and the exemption limit till such time that it equals 5.5 per cent of the total liability. 1.2. State and local income taxes 292

None. © OECD/OCDE 2004

Germany – Allemagne

2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1. Employee’ contributions1 2.11. Pensions 9.75 per cent of gross wage earnings, or not more than 9.75 per cent of the insurable ceiling of EUR 61 200. 2.12. Sickness On average 7.2 per cent (estimate) of gross wage earnings, or not more than 7.2 per cent of the insurable ceiling of EUR 41 400. 2.13. Unemployment 3.25 per cent of gross wage earnings, or not more than 3.25 per cent of the insurable ceiling of EUR 61 200. 2.14. Care 0.85 per cent of gross wage earnings, or not more than 0.85 per cent of the insurable ceiling of EUR 41 400. 2.15. Work injury Employer only. 2.16. Family allowances None. 2.17. Others None. 2.2. Employers’ contributions2 2.21.-2.24. (Pensions, sickness, unemployment, care): As a rule the employer pays the same amount as the employee (refer § 2.1). 2.25. Work injury The contributions to work injury insurance are solely paid by the employer. They are based on employees’ earnings and on the danger classes in which individual enterprises are classified according to the incidence of risk. These amounts are not taxable to the employee. As it is not possible to identify a representative contribution rate, these amounts are not considered in this report. 2.26. Family allowances None. 2.27. Others None. © OECD/OCDE 2004

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3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children None. 4.

Main Changes in Tax/Benefit Systems Since 1997

In 1997 the tax credit for the first and second children was raised to DEM 2 640 and the child allowance increased to DEM 6 912. In 1999 the tax credit for the first and second children was raised further to DEM 3 000. In 2000 the tax credit for the first and second children was raised to DEM 3 240 and the child allowance increased to DEM 9 936. In 2002 the tax credit for the first, second and third children was raised to EUR 1 848 (DEM 3 614), for the fourth and subsequent children to EUR 2 148 (DEM 4 201) and the child allowance increased to EUR 5 808 (DEM 11 359). 5.

Memorandum Items

5.1. Average gross annual earnings calculation a) Source of calculation: Federal Statistical Office. b) Calculated on the basis of weekly wages. c) Calculated on the basis of rates of pay per hour. d) Excluding sickness and unemployment, including normal overtime and bonuses. e) Area: West Germany. 5.2. Employer’s contributions to private pension, etc. schemes No information available, though such schemes do exist.

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2003 Parameter values APW earnings Tax allowances Lone Parents Work related SSC allowance Allow. for special expenses Church tax rate Tax formula

Solidarity Surcharge Solidarity Exemption Limit Alternative Surcharge Rate Social security contributions ceiling Sickness ceiling Unemployment ceiling Care ceiling SSC Floor Intermediate SSC Ceiling Alternative employer rate Alternative Fixed SSC Rate SSC Phase-in rate Child credit Top Rate Tax Reduction Tax Equation Rates tax_eqn_rates z y

Ave_earn Child_al Lone_al Work_rel_al SSC_dn SSC_dn_rt SSC_dn_lim SE_al Ch_tax_rt Tax_rate2 Tax_thrsh1 Tax_thrsh2 Tax_thrsh3 surcharge surcharge_limit surcharge_alt Pension_rate Pension_ceil Sick_rate Sick_ceil Unemp_rate Unemp_ceil Care_rate Care_ceil SSC_floor SSC_floor1 SSC_empr_alt SSC_alt_fixed SSC_phasein Ch_cred Reduction Squared 278.65 768.85

33810 5808 2340 1044 3068 0.16 1334 36 0 0.485 7200 9216 55008 0.055 972 0.2 0.0975 61200 0.072 41400 0.0325 61200 0.0085 41400 9600 4800 0.25 0.04 0.341 1848 9872

Secretariat estimate

Single 2300 1990

Constant 432 0

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The equations for the German system in 2003 are mostly calculated on a family basis. The standard functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Two additional functions (Dtax and ftax, listed below) have been incorporated to carry out an iterative calculation for central government tax. These allow for the fact that the church tax is calculated as 9 per cent of Central Government tax and is also allowed as a deduction when calculating taxable income. Under German tax law the tax formula is calculated using a value of tax_inc rounded down to a multiple of € 36 and some of the components of the formula are rounded down to a multiple of € 1000. Rounding is not shown in the equations below. The functions Etax and gtax carry out a rounded calculation for the tables but the unrounded versions are used in calculating the marginal rates. For a taxpayer with children, either the child allowance is given in the tax calculation or the cash transfer is given if this is more beneficial. In practice, therefore, it is necessary to make two calculations with and without the child allowance. Nevertheless, the calculation of church tax and of solidarity surcharge is always based on the calculation which does assume that the child tax allowance is given. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings Quotient for tax calculation

earn quotient

J

1+Married

2. Allowances: Children Lone parent Soc sec contributions

children_al lone_allce SSC_al_int

J J J

SSC_al

J

work_al church_al SE_al tax_al

J J J J

Children*Child_al Lone_al*(Children>0)*(Married=0) Min(Positive(Quotient*SSC_dnSSC_dn_rt*earn_total),SSC_total) SSC_al_int+MIN(SSC_dn_lim*Quotient, Positive(SSC_totalSSC_al_int))+ 0.5*MIN(SSC_dn_lim*Quotient, Positive(SSC_total-SSC_al_int-SSC_dn_lim*Quotient)) Quotient*Work_rel_al Ch_tax_rt*CG_tax SE_al children_al+SSC_al+work_al+church_al+lone_allce

Work related Church tax Allow. for special expenses Total

296

3. Credits in taxable income

taxbl_cr

J

0

4. CG taxable income

tax_inc

J

earn-tax_al

5. CG tax before credits adjusted taxable income formula based tax schedule

adj tax_formula

J J

Adjust for the quotient Include solidarity surcharge

tax_adj sol_surch

J J

Tax paid

tax_inc/quotient (adj>Tax_thrsh1)*(adjTax_thrsh2)*(adjTax_thrsh3)*(Tax_rate2*adj-9872) Quotient*tax_formula MIN( tax_adj * 0.055, Positive(tax_adj surcharge_limit*Quotient) * surcharge_alt) tax_adj+sol_surch

CG_tax_excl

J

6. Tax credits :

tax_cr

J

0

7. CG tax

CG_tax

J

CG_tax_excl

8. State and local taxes

local_tax

J

0

9. Employees' soc security

SSC

B

IF(earn>SSC_floor,Pension_rate*MINA(earn,Pension_ceil)+Si ck_rate*MINA(earn,Sick_ceil)+Unemp_rate*MINA(earn,Unem p_ceil)+Care_rate*MINA(earn,Care_ceil), IF(earn > SSC_floor1, SSC_phasein*(earnSSC_floor1)+SSC_alt_fixed*earn, 0))

© OECD/OCDE 2004

Germany – Allemagne

Line in country table and intermediate steps

Variable name

Range

Equation

11. Cash transfers

Cash_tran

J

Children*ch_cred

13. Employer's soc security

SSC_empr

B

IF(earn>SSC_floor1, Pension_rate*MINA(earn,Pension_ceil)+Sick_rate*MINA(earn ,Sick_ceil)+Unemp_rate*MINA(earn,Unemp_ceil)+Care_rate* MINA(earn,Care_ceil), SSC_empr_alt*earn)

Memorandum item: non-wastable tax credit tax expenditure component taxexp cash transfer component transfer

tax_cr-transfer -MIN(CG_tax,0)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

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NOTES 1. Employees pay full social security contributions where their annual earnings are greater than EUR 9 600. On earnings up to EUR 4 800, no contributions are made and the contributions are fully phased in between EUR 4 800 and EUR 9 600. 2. Where the employees annual earnings are no more than EUR 4 800, employers make a special payment equal to 25 per cent of the gross wage. On annual earnings in excess of EUR 4 800, the employers contributions are determined on the basis of the rates described for employees in Section 2.1.

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GREECE – GRÈCE Chapter 1

The national currency is the Euro (EUR). In 2003, EUR 0.9001 were equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned EUR 11 908 (Secretariat estimate). 1.

Personal income tax system

1.1. Central government income tax 1.11. Tax unit Married individuals are taxed separately on their own income, but they are required to file a joint tax return. 1.12. Tax allowances and tax credits 1.121. Standard tax reliefs • Reliefs for social security contributions: Contributions to public pension funds are not regarded as taxable income. 1.122. Non-standard tax reliefs • Main non-standard tax allowances related to actual expenses incurred, not subject to a ceiling: – Donations to the State, state universities, the church and other public institutions. Donations to philanthropic institutions, amateur sports clubs and similar charities amounting to at least EUR 100 in total may be deducted subject to a maximum equal to 10 percent of the declared income. – Bank interest on mortgage and housing loans, where the loans have been used for the acquisition of the main residence and taken by the 31st of December, 2002. • Non-standard tax credits related to actual expenses incurred – 15 percent of the expenses for medical and hospital care up to a maximum amount of EUR 6 000. – 15 percent of the total annual amount of rent paid for the main residence, provided that the taxpayer does not own a house with an area equal to or larger than the rented house in the same province and that the taxpayer does not receive a rent allowance from the State. – 15 percent of the expenses incurred by the taxpayer or his children paid to private schools or private language institutes up to a maximum of EUR 1 000. – 15 percent of the annual mortgage interest on a taxpayer’s principal residence on loans obtained as from the 1st of January, 2003. The relief is limited where the financed amount exceeds EUR 200 000. – 15 percent of the annual expenses of the household excluding the expenses listed above and expenditures on electricity, water, telephone, food and beverages purchased from supermarkets and some other minor items. The total tax credit can not exceed EUR 75 for both single and mar© OECD/OCDE 2004

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ried taxpayers. Where both spouses have employment income, the credit is split between them according to their declared income. 1.123. Tax calculation The total annual taxable employment income of an average production worker decreases by the amount of the non-standard tax reliefs plus the reliefs for social security contributions. The amount of tax which corresponds to the remaining income, calculated in accordance with the income tax schedule, constitutes the average worker’s income tax liability. This amount of tax is further decreased by the tax withheld at source and the tax credits (described in § 1.121 above). The amount left is the tax payable. The same tax regime is applicable to all taxpayers with income from dependent personal services (salaries, wages, pensions). 1.13.Rate schedule The following rates apply to taxable income in year 2003. Income bracket (EUR)

Tax rate (%)

Up to 10 000 10 001 to 13 400 13 401 to 23 400 Over 23 400

0 15 30 40

Beginning in 2003, the tax credits previously provided for dependent children have been replaced with a wider band of non-taxable income that is provided to individuals with employment income and dependent children. The non-taxable bracket of income for individuals with dependent children is increased by EUR 1 000 to EUR 11 000 where there is one dependent child, by EUR 2 000 to EUR 12 000 where there are two dependent children, by EUR 10 000 to EUR 20 000 where there are three dependent children and by a further EUR 1 000 for each subsequent dependent child. The subsequent brackets are correspondingly adjusted. It should be noted that a tax credit of EUR 30 is provided for each dependent child of taxpayers with employment income who live at least nine months in certain border areas or specified islands. 1.2. State and local income taxes No state or local income taxes exist in Greece. 2.

Compulsory Social Security Contributions to Schemes Operate within the Government Sector

The great majority of individuals who are employed in the private sector and render dependent personal services are principally, directly and compulsorily insured in the Social Insurance Organisation (IKA). Apart from the main contribution, IKA compulsorily collects contributions for other minor Funds created for the employee’s benefit (Unemployment Benefits Funds, etc.). A subsidiary Social Insurance Fund (TEAM) for employees who are principally insured in IKA has been also established since 1983. The average rate of contributions paid by the employer and the employee as a percentage of gross earnings are as follows (%):

1. Social Insurance Organisation (IKA) 2. Subsidiary Social Insurance Fund (TEAM) 3. Other Funds Total

300

Employer

Employee

Total

18.43 3.00 6.53 27.96

9.22 3.00 3.68 15.90

27.65 6.00 10.21 43.86

Where the insured individual is engaged in unhealthy or dangerous work, higher contributions are due (19.35 per cent paid by the employee and 30.11 per cent paid by the employer), so that such © OECD/OCDE 2004

Greece – Grèce

individuals become entitled to pension five years earlier than when the normal age limit applies. In the industrial sector, a contribution at a rate of 1 per cent is added as an occupational risk contribution which is paid by the employer, since the workers because of their difficult employment conditions are vulnerable to an increased risk of labour accidents and occupational diseases. So the effective total rate of a mixed insurance premium is 50.46 per cent (employer’s contribution 31.11 per cent and employee’s contribution 19.35 per cent). Contributions are calculated as percentages on the basis of monthly salary or wages paid but within the limits specified in the National General Collective Employment Agreement. A cap applies of EUR 1595.74 per month. However, for individuals who have been insured for the first time after 1 January, 1993, IKA contributions are calculated on the basis of the actual total amount of their salaries (wages), independently of the maximum insurance class limit. For the purposes of the calculations contained in this Report, it is assumed that the cap does not apply. 3.

Universal Cash Transfers

Employees are usually granted by their employers, according to the relevant Collective Labour Agreement or arbitrary decision, cash transfers as a rule representing 5 per cent of their salaries for each of the first, second and third child, as well as 10 per cent of their salaries for the wife independently of her income status. Where no family subsidies are provided for by the Collective Labour Agreement, then subsidies are granted by the Manpower Employment Organisation (OAED) under certain circumstances and according to employees’ income and family status. 4.

Main Changes in the Tax/benefit System since 1995 No information provided.

5.

Memorandum items

5.1. Identification of an APW and method of calculations used Calculation of annual average earnings. Information for this section is annually provided by the National Statistical Service of Greece Labour Statistics. The survey takes place quarterly and covers those establishments which at the latest industrial establishments census, had a total employment of ten persons and over. The earnings data refer to the average earnings of all full-time production workers – male and female – in the manufacturing sector. Regular payments are those made for normal working time and under normal working conditions. Such payments also include certain benefits, such as bonuses and gratuities paid for extra production and regular work attendance. Included are payments such as Christmas, Easter and vacation bonuses, and fringe benefits as well. Regular payments (hourly manufacturing earnings) are multiplied by the number of the weekly worked hours and by thirteen weeks. Overtime hourly payments are multiplied by the number of the overtime hours per week, by thirteen weeks. 5.2. Main employers’ contributions to private pension, health, and related schemes Contributions to private pension and sickness schemes made by employers are not added to employees’ gross earnings for tax purposes and therefore are not subject to any tax. Since these contributions are not obligatory for employers, no data is available to the National Statistical Service of Greece and very few employers have adopted such additional insurance schemes. According to information given by certain major life insurance companies of Greece the contributions in question mainly cover over and above the regular insurance schemes, subsidiary pension, sickness, work accidents, hospitalisation, temporary or permanent disability, etc. Depending on the insurance scheme the premium paid, usually by the employer, will amount to between 1.5 and 5 per cent of the employee’s earnings. © OECD/OCDE 2004

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5.3. Effect on taxes and subsidies when the wife is gainfully employed On the wife’s tax/benefit position The wife who is gainfully employed gets the same treatment as every other taxpayer. On the husband’s reliefs and cash transfers The family subsidies payable to the husband by his employer are not affected. However, in the case of subsidies granted by the Manpower Employment Organisation (OAED), only one of the spouses is entitled to the transfer.

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Greece – Grèce

2003 Parameter values Average earnings/yr Tax credit Rates of family subsidies paid by employers children (up to 3) Income tax schedule

Social security contributions

Ave_earn Child_cred

11908 0

Wife_sub Child_sub Tax_sch

0.1 0.05 0 0.15 0.3 0.4 1000 7000 0.159 0.2796 21852 0

Bandaugment_ch Bandaugment_ch3 SSC_rate SSC_rate_empr SSC_ceil SSC_ceil_use

Secretariat estimate

10000 13400 23400

303

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The equations for the Greek system in 2003 are mostly on an individual basis. But the tax credit for children is calculated only once. This is shown by the Range indicator in the table below. The level of gross earnings for the principal earner is increased by the spouse and child subsidy paid by the employer. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

1. Earnings

Variable name

Range

Equation

earn_princ

P

Ave_earn*(1+Married*Wife_sub+ MIN(Children,3)*Child_sub) Ave_earn

earn_spouse

S

2. Allowances:

tax_al

B

SSC

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

P B B

Children*Bandaugment_ch+(Children>2)*Bandaugment_ch3 Positive(tax_inc-bandincrease) Tax(Eff_tax_inc,tax_sch)

5. CG tax before credits Increase in non taxable income band bandincrease Effective taxable income Eff_tax_inc CG tax before credits CG_tax_excl 6. Tax credits :

tax_cr

P

0

7. CG tax

CG_tax

B

Positive(CG_tax_excl-tax_cr)

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

IF(SSC_ceil_use=1,SSC_rate*MIN(earn,SSC_ceil),SSC_rate*e arn)

11. Cash transfers

cash_trans

B

0

13. Employer's soc security

SSC_empr

B

IF(SSC_ceil_use=1,SSC_rate_empr*MIN(earn,SSC_ceil),SSC_r ate_empr*earn)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

304

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HUNGARY – HONGRIE Chapter 1

The national currency is the Forint (HUF). In 2003, HUF 226.2 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned HUF 1 164 915 (Secretariat estimate). 1.

Personal Income Tax Systems

1.1. Central/federal government income taxes 1.11. Tax unit The tax unit is, in all cases, the separate individual. In exceptional cases, the employer can become subject to personal income tax, for instance in the case of benefits in kind. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic reliefs: None. • Standard marital status reliefs: None. • Relief(s) for children: None. 1.122. Main non-standard tax reliefs • Trade Union membership dues: Membership dues and contributions paid to trade unions and other corporate bodies of employees are deductible without any restriction. 1.123. Tax credits • Employee Tax credit: This must be calculated as 18 per cent of wage income earned, with the monthly maximum of HUF 9 000. This tax credit is applicable to workers whose annual income does not exceed HUF 1 350 000. In the case of employees having annual income between HUF 1 350 000 and HUF 1 950 000, a reduced amount of tax credit is applicable. • Employees’ social security contribution: 25 per cent of pension contributions and membership fees paid within the framework of the private pension system can be deducted from the tax payable. • Tax credit for housing loans: 40 per cent of the amount paid on housing loans during the tax year, not to exceed HUF 240 000 per year, can be deducted from the tax payable. • Tax credits for children: For families, the tax can be reduced by the child tax credit, which is for one dependent HUF 3 000 per month; for two dependents HUF 4 000 per month/each dependent; for three or more dependents HUF 10 000 per month/each dependent. This tax deduction can be applied by pregnant woman (or her husband) on the basis of the fetus(es), from the 91st day after conception until birth. The tax credits may be claimed by one or split between the spouses. • Others: Further tax credits are made available for certain insurance schemes, bodily disability, intellectual and agricultural activities, investments for the purpose of business, grants made for pub© OECD/OCDE 2004

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lic purposes and allotted to foundations. Tax deduction is available for landowners and those having income from abroad. But these rebates are not relevant in the case of an APW. 1.13. Tax schedule Taxable income (HUF) Lower limit

Upper limit

0 650 001 1 350 001

–650 000 –1 350 000 and above

Tax on lower limit (HUF)

0 130 000 340 000

Tax rate on income in bracket (%)

20 30 40

1.2. State and local income taxes In Hungary there is no local personal income tax system supplementing the central one. More precisely, the total income tax collected is split between the central government and local governments. At the same time, the local governments can levy taxes on sites and buildings, tourist facilities and activities, employment and business activities. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees’ contributions 2.11. Pensions A new pension system became effective on January 1, 1998. The pension system has now three pillars and consists of a public scheme, private pension funds and voluntary mutual insurance funds/ insurance companies. Participation in the public scheme is obligatory for all employees. At the same time, employees under the age of 42 who first join the social security system after 30 June 1998, are obliged to enter a private pension fund (2nd pillar). Different rules exist for employees who first joined the social security scheme in 2002 and employees under the age of 30 on 1 January 2003: they could/can voluntarily enter a private pension fund. Employees remaining in the public scheme continue to pay 8.5 per cent contributions to the state pension fund (the public scheme). For the purpose of this report, a pension contribution (payable to the state pension fund) of 8.5 per cent has been taken into account. The maximum annual amount of this contribution is HUF 331 968. 2.12. Sickness The rate of health security contribution amounts to 3 per cent of gross earnings. 2.13. Unemployment The worker must pay, as employees’ contribution, 1 per cent of gross earnings. 2.14. Others

306

None. The APW does not have any obligation to pay other contributions than the above mentioned. However, the contribution rates may be different for certain types of income or for certain groups of income recipients. In certain cases, an accident insurance contribution must also be paid, for example, in the case of employees who have pensioner status. None of these exceptions are applicable to the workers taken into consideration within this Report. © OECD/OCDE 2004

Hungary – Hongrie

2.2. Employers’ contributions 2.21. Pensions The rate of pension security contribution amounts to 18 per cent of gross earnings. 2.22. Sickness The rate of health security contribution amounts to 11 per cent of gross earnings. 2.23. Unemployment The employer has to pay 3 per cent of gross earnings (employer’s contribution). 2.24. Others None. The social security contribution of 29 per cent must be also paid on other benefits than gross earnings (e.g., grants in kind) and payments (e.g., certain kind of contracts) as well. The employer contributions also reflect payroll taxes that consist of a per employee lump sum health contribution as well as a percentage rate training contribution. In 2003, the lump sum health contribution amounted to 3 450 HUF per month and the training contribution amounted to 1.5 per cent of salaries paid. 3.

Universal cash transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children Effective from 1 September 2002: Type of family

For a couple with one child For a single earner with one child For a couple with two children, per child For a single earner with two children, per child For a couple with 3 or more children, per child For a single earner with 3 or more children, per child For a permanently sick and disabled child

HUF per month

4 600 5 400 5 600 6 500 7 100 7 600 12 600

In July families receive an extra one-month benefit. It must be emphasized that measures only for a single parent and a couple with two children have been built in the relevant equations. 4.

Main Changes in the Tax/benefit System Since 2002 Tax brackets in the progressive tax rate structure have been increased.

Pension security contributions payable by employees were increased, whilst contribution payable by employees for unemployment benefits was reduced. Since 2002 payroll taxes (the employer lump sum health contribution and the training contribution) have been included in the tax/benefit calculation. In 2003 the amount of employer lump sum health contribution for each employee was decreased from HUF 4 500 per month to HUF 3 450 per month. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

5.

Memorandum Items

5.1. Method used to identify an average production worker and to calculate his gross earnings 5.2. Employer contributions to private social security arrangements Since 1998 (when the pension reform was introduced), private individuals have had the opportunity to enter private pension funds (the second pillar of the social security system). According to the relevant legislation in force, payments made by employers (on behalf of their employees or to supplement the payments of employees) to private pension funds are exempted from both personal income tax and all social security contributions. In Hungary the law dealing with the voluntary mutual insurance funds (like pension funds) was enacted on 6 December 1993. Based on the rules of 2003, the monthly contribution paid to a voluntary mutual insurance fund by the employer of a private worker who participates in a voluntary mutual insurance fund, limited to an amount that is below the mandatory minimum wage, is exempt from the personal income tax and social security contributions. On the basis of contributions exceeding the limit mentioned here, the employer is obliged to pay income tax of 44 per cent, social security contributions of 29 per cent and employers’ contributions of 3 per cent. Sponsor's donations paid by employer to its employees’ voluntary mutual insurance fund are taxable according to the progressive tax rate schedule. In general, insurance premiums (on the basis of which an employee is named as the recipient/ beneficiary of insurance services) paid by the employer are taxable, and social security contributions are also payable. At the same time insurance premiums related to life insurance policy for accidental death, injury liability, or medical care insurance for full and permanent incapacity to work are exempted from taxation.

308

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Hungary – Hongrie

2003 Parameter values Child allowance (per child) Social security allowance Income tax schedule Social security contributions

Tax credits

Ave_earn child_al SSC_al tax_sch SSC_unemp SSC_p SSC_lim SSC_h tax_cr_pe tax_cr_ce tax_cr_li1 tax_cr_li2 tax_cr_ra tax_cr_pn CL_rates

Employers Payroll taxes Transfers for children (monthly)

SSC_empr payroll_rate1 payroll_rate2 CB_rates

1164915 0 0 0.2 0.3 0.4 0.01 0.085 3905500 0.03 0.18 9000 1350000 1950000 0.18 0.25 1 2 3 0.32 3450 0.015 0 1

650000 1350000

36000 48000 120000

5600 6500

309

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Hungarian system in 2003 are mostly on an individual basis. But the child allowance is relevant only to the calculation for the principal earner and cash transfers are calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables "married" and "children". A reference to a variable with the affix "_total" indicates the sum of the relevant variable values for the principal and spouse. And the affixes "_princ" and "_spouse" indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with "_spouse" values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

1. Earnings

earn

2. Allowances: Children Total

child_allce tax_al

Range

Equation

P B

Children*child_al child_allce+SSC_unemp*earn*SSC_al

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch)

6. Tax credits :

tax_cr

B

MIN(CG_tax_excl,IF(earn>tax_cr_li2,0,IF(earn
7. CG tax

CG_tax

B

CG_tax_excl-tax_cr

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

earn*SSC_unemp+earn*SSC_h+MIN(earn, SSC_lim)*SSC_p

11. Cash transfers

cash_trans

J

Children*(VLOOKUP((1-Married),CB_rates,2)*13)

13. Employer's soc security Employer's payroll taxes

SSC_empr Payroll

B B

earn*SSC_empr IF(earn>0,payroll_rate1*12,0)+earn*payroll_rate2

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

310

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Chapter 1

ICELAND – ISLANDE The national currency is the króna (plural: krónur) (ISK). In 2003, ISK 77.25 was equal to USD 1 (average of nine months of daily exchange rates). In that year, the average production worker earned ISK 2 694 083. 1.

Personal Income Tax System

1.1. Central government income taxes 1.11. Tax unit Income is taxed on an individual basis, except for capital income of married couples which is taxed jointly. 1.12. Tax allowances and credits 1.121. Standard reliefs • Basic tax credit: A fixed tax credit, amounting to ISK 321 900 in 2003, is granted to all individuals 16 years and older, regardless of their marital status. The tax credit is subtractible from levied central and local government taxes as well as net wealth taxes. Unutilised tax credits or portions thereof are wastable, i.e. non-refundable and non-transferable between tax years. • Standard marital status relief: Married couples may utilise up to 100 per cent of each spouses’ unutilised portion of his/her basic tax credit. • Relief(s) for children: None. • Relief(s) for compulsory pension contributions: Since January 2000, the compulsory payment to pension funds, which amounts to 4 per cent of wages, is deductible. In addition, an optional payment of up to 4 per cent of wages may also be deducted. As the additional 4 per cent contribution is optional, it is considered to be a non-standard relief in this Report. 1.122. Main non-standard tax reliefs applicable to an APW • Interest payment relief: A fully refundable tax credit is granted to purchasers of personal dwellings (homes) to recuperate a part of mortgage-related interest expenses. The maximum tax-related interest credit is in 2003 ISK 160 588 for a single person, ISK 206 528 for a single parent and ISK 265 567 for a married couple. The following constraints apply to interest rebates: (1) They can not exceed 7 per cent of the remaining debt balance incurred in buying a home for one’s own use. (2) The maximum amount of interest payments that qualify for an interest rebate calculation is 468 655 krónur for an individual, 615 244 krónur for a single parent and 761 832 for a couple. (3) Six per cent of taxable income is subtracted from the interest expense. (4) The rebates begin to be curtailed at a net worth threshold of 3 525 022 krónur for a single individual and 5 843 331 krónur for a couple and are eliminated altogether at a 60 per cent higher amount. Seamen are entitled to a special credit against income tax of 728 krónur per day at sea in 2003. © OECD/OCDE 2004

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1.13. Tax schedule The income tax base is composed of personal income (e.g. wages, salaries, fringe benefits, pensions, etc.), which is taxed on an individual basis, and capital income which is taxed jointly for married couples. The tax on personal income is single-rated. The central government income tax rate in 2003 is 25.75 per cent. and applies to all personal income in excess of 69 585 krónur per month (835 020 krónur per year). A special 7 per cent income surtax is levied in 2003 on individuals with a monthly personal income in 2002 above 3 980 000 krónur for a single person and 7 960 000 krónur for a couple. For 2004, the surtax has been reduced to 5 per cent and will be applied to 2003-incomes of 4 089 450 and 8 178 900 krónur for single persons and couples, respectively. The tax on capital income is 10 per cent. It is levied on all capital income of individuals, such as interest, dividends, rents etc. Such capital income is not subject to the personal income tax described above. 1.2. Local government income tax The local government income tax base is the same as the central government’s income tax base. The local governments’ income tax is single-rated, but the rate varies from 11.24 to 13.03 per cent between municipalities. The average rate in 2003 is 12.8 per cent. 2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1. Employees’ contributions Fee to the Retiree Investment Fund: Individuals, age 16-70, are subjected to a fixed tax of 5 440 krónur in 2003, provided the individual's taxable income was at least 809 611 krónur in 2002. 2.2. Employers’ contributions Employers have to pay a social security tax on total wages of 5.73 per cent. In addition a 0.65 per cent is levied on the wages of fishermen as a premium for their government accident insurance. 3.

Universal Cash Transfers

3.1. Marital status related transfers None. 3.2. Transfers for dependent children Child benefits are granted for each child, subject to income thresholds. In 2003 they are as follows (in krónur per year):

312

For all children under the age of seven regardless of income Children under the age of sixteen in 2002: First child Each additional child Benefits for single parents: First child Each additional child Income threshold for benefit curtailment: For couples For a single parent Curtailment of benefits: For one child For two children For three children or more

35 422 120 249 143 135 200 282 205 447 1 408 916 704 459 3 per cent 7 per cent 9 per cent

© OECD/OCDE 2004

Iceland – Islande

4.

Main Changes in the Tax/Benefit System Since 1998

4.1. The deductibility of the payment to pension funds In February 1998, a law was enacted which increases the deductible level of employee payments to pension funds from the income tax, from 4 per cent of wages to 6 per cent in 1999. In the year 2000, the deductible level was further increased from 6 per cent to 8 per cent. In both cases the employee payment in excess of 4 per cent is optional and goes into an individual retirement account. 4.2. A reduction of the central government income tax rate The Government has pursued a policy of reducing the marginal tax rate. It did so with a reduction of 1.1. percentage points at the beginning of 1997, by 0.9 points at the beginning of 1998 and by 1 points at the beginning 1999. From 2001, the rate was lowered by 0.33 points to compensate for a similar increase in local government rates. In 2002, the rate was further lowered by 0.33 points. From 1998 on the combined central government and average local government personal income tax rate has been as follows: Central gov't general tax rate

Municipal tax rate

Total tax rate

Central gov't surtax

1998 1999

27.41

11.61

39.02

7.00

26.41

11.93

38.34

7.00

2000

26.41

11.96

38.37

7.00

2001

26.08

12.68

38.76

7.00

2002

25.75

12.79

38.54

7.00

2003

25.75

12.80

38.55

5.00 5.00

2004

4.3. A special tax on higher income In 1998, the special tax on higher income was raised by 2 percentage points, from 5 to 7 per cent. For 2003-income it was reduced back to 5 per cent. Under the surtax collection system, the surtax imposed in year 1 is based on income in year 0. The reduction in the surtax from 7 to 5 per cent in 2004 is thus based on 2003-income. The 5 per cent rate is already applied in the latter half of 2003 to an estimated prepayment of the surtax on 2003-income. The final settlement of the tax takes place with the annual personal income tax assessment at the end of July 2004. 4.4. A revision of the child benefit system The child benefit system was amended in 2000. The changes were aimed at reducing income linkages by eliminating means-testing of benefits for children under the age of seven and otherwise reducing the degree of income linkage by a third. The linkage to net wealth is also abolished. Furthermore, benefit amounts and income thresholds were increased in concert with general contractual wage increases in the years 2001-2003. 4.5. An abolition of the allowance on investment in joint-stock companies The phase-out of the tax allowance for the investment in joint-stock companies commenced in 1998 and was originally scheduled to be completed in three years. It was subsequently extended through 2002 and ceased at the end of that year. © OECD/OCDE 2004

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4.6. Transferability of the basic tax credit between spouses The basic tax credit was made transferable between spouses in stages. See section 1.121 above. In the income year 2001, 90 per cent of the credit became transferable, rising to 95 per cent in 2002 and 100 per cent in 2003. 5.

Memorandum Items

5.1. Identification of APW and valuation of earnings The earnings data refer to production workers in the manufacturing sector. To obtain the earning figures, the average weekly hours for the year are multiplied by average hourly earnings. The resulting number is then multiplied by 52 to obtain annual salary. The original data are obtained from a quarterly survey among members of the Labour Market Research Institute. 5.2. Employer contributions to private pension funds, health and related schemes By law, all employees and employers must contribute to pension funds. These funds are private, generally linked to unions and employee associations. The private pension funds are not part of the government-run social security system, to which a payroll tax is paid as described under section 2.2 above. Generally, employees pay 4 per cent of their wages to such pension funds and employers 6 per cent. Furthermore, employees can invest up to a limit of 4% of income in a voluntary pension scheme (individual retirement accounts) that is deductible from income before tax. Employees who take advantage of this option receive a matching contribution of up to 2% from their employer. In addition, the employer can add up to 0,4% to the employee contribution and get this part offset through a commensurate reduction in the social security tax.

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Iceland – Islande

2003 Parameter values APW-income Previous year income Pension rate for tax allowance Tax credit

Employer SSC

Ave_earn fiscal_inc pension_rate Basic_crd Married_propn central_rate special_rate special_thrsh local_rate church_tax SSC_fixed SSC_thrsh SSC_empr

General child allowance: child allowance Maximum number of children under 7

CA max_child_under7

Central income tax Special tax threshold Local tax Church tax Social Security Contr.

Supplement child allowance: Married couple case first child other children income threshold Single parent case first child other children income threshold reduction rate (one child) reduction rate (two children) reduction rate (tree or more children)

2694083 2567086 0.04 321900 1 0.2575 0.05 4089450 0.128 0 5440 835019 0.0573

Secretariat estimate Estimate

35422 2

SA_first_m SA_others_m SA_tresh_m

120249 143135 1408916

SA_first_s SA_others_s SA_tresh_s SA_redn_1 SA_redn_2 SA_redn_3

200282 205447 704459 0.03 0.07 0.09

315

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Iceland system are mostly on an individual basis. But the tax credit for married couples is relevant only to the calculation for the principal earner and child benefit is calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

1. Earnings

Variable name

Range

Equation

earn*pension_rate

earn

2. Allowances:

tax_al

B

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

earn-tax_al

5. CG tax before credits

CG_tax_excl

B

earn*central_rate

6. Tax credits :

tax_cr

P

special_tax

S J

MIN(Basic_crd+Married_propn*(Basic_crdtax_cr_spouse),CG_tax_excl_prin+local_tax_princ) MIN(Basic_crd, CG_tax_excl_spouse+local_tax_spouse) (earn_total>(1+Married)*special_thrsh)*earn_total* special_rate

7. CG tax

CG_tax

B

8. State and local taxes

local_tax

B

earn*local_rate

9. Employees' soc security

SSC

B

SSC_fixed*(earn>SSC_thrsh)

11. Cash transfers: Income in previous year Child allowance

inc_prev cash_trans

J J

fical_inc*earn_total/ave_earn MIN(Children,max_child_under7)*CA+(Children>0)*(IF(Marri ed,SA_first_m+Positive(Children1)*SA_others_m,SA_first_s+Positive(Children1)*SA_others_s)-Positive(inc_prev*(1-pension_rate)IF(Married,SA_tresh_m,SA_tresh_s))*IF(Children=1,SA_redn_ 1,IF(Children=2,SA_redn_2,SA_redn_3)))

13. Employer's soc security

SSC_empr

B

earn*SSC_empr_rate

CG_tax_excl-tax_cr+special_tax

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

316

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IRELAND – IRLANDE Chapter 1

The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). In that year, the average production worker earned EUR 26 939 (Secretariat estimate). 1.

Personal income tax systems

1.1. Central/ federal government income taxes 1.11. Tax unit Tax is levied on the combined income of both spouses. Either spouse may, however, opt for separate assessment, in which case the tax payable by both spouses must be the same as would be payable under joint taxation. A further option allows either spouse to opt for assessment as single persons in which case they are treated as separate units. The calculations presented in this Report are based on family taxation. 1.12. Tax credits 1.121. Standard reliefs: • Basic reliefs: The single person's credit is EUR 1 520 per year. • Standard marital status reliefs: The married person's credit is EUR 3 040 per year (i.e. twice the basic credit of EUR 1 520). • Employee credit: With the exception of certain company directors and their spouses and the spouses of partners in partnership cases, all employees, including (subject to certain conditions) children who are full-time employees in the business of their parents, are entitled to an employee credit of EUR 800. • Single-Parent Family Relief: The single parent family credit is EUR 1 520. 1.122. Main non-standard tax reliefs applicable to an APW • Interest on qualifying loans: A qualifying loan in respect of the purchase, repair or improvement of the principal private residence. This relief is subject to the following overall limits in 2003:

Married Couple Widowed Person Single Person

First Time Mortgage Holders

Other Mortgage Holders

€ 8 000 € 8 000 € 4 000

€ 5 079 € 5 079 € 2 539

• Medical Insurance: Relief at the taxpayer’s standard rate of tax is available for taxpayers who make a payment to an authorised insurer under a contract which provides for the payment of medical expenses resulting from sickness of the person, his wife, child or other dependants. This relief is now granted at source and is paid to the insurance provider. • Mortgage Interest Relief: This relief is now granted at source and is paid to the mortgage provider. © OECD/OCDE 2004

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• Work-related Expenses: These are relieved to the extent that they are wholly, exclusively and necessarily incurred in the performance of the duties of an employment. • New Carers Allowance: This is a tax credit of EUR 770 for families where one spouse works at home to care for children, the aged or incapacitated persons, where the carer spouse’s income does not exceed EUR 5 079. A reduced measure of relief is granted for income between EUR 5 080 and EUR 6 620. This credit and the increased standard rate tax band for two income couples (see tax schedule below) are mutually exclusive but the person may opt for whichever is the more beneficial. The calculations within this Report take into consideration the New Carers Allowance. 1.13. Tax schedule Band of taxable Income (€) Single/ Widow(er)

Married Couple (One Income)

Married Couple (Two Incomes)

One-Parent Families

Up to 28 000

Up to 37 000

Up to minimum of 37 000 to a maximum of 56 000 (threshold is increased by the amount of the lowest income to a maximum of 19 000)

Balance

Balance

Balance

Rate (%)

32 000

20

Balance

42

1.14. Low income exemption and marginal relief tax Where total income is less than or equal to the income exemption limit that income is exempt from tax. Exemption limits: Single/Widowed Under 65 65 and over Married Under 65 65 and over Children One or two children (each) Subsequent children

€ 5 210 15 000 10 420 30 000 575 830

• The marginal relief rate of tax applies where liability to tax at the marginal relief rate is less than that which would be chargeable under the normal tax schedule and where total income is less then twice the relevant exemption limit, otherwise tax is charged under the normal tax schedule. • Marginal relief tax is charged, where applicable, at a rate of 40 per cent on the difference between total income and the relevant exemption limit. 1.2. State and local income taxes No State or local income taxes exist in Ireland. 2. Compulsory Social Security Contributions to Schemes Operated within the Government Sector. 2.1. Employees' contributions

318

Contributions are payable as a percentage of an employee's gross earnings less allowable superannuation contributions. No distinction is made by marital status or sex. The first EUR 356 of weekly earnings are exempt from the health levy and the first EUR 287 of weekly earnings are exempt from social insurance. If the employee is not exempt, then an allowance of EUR 127 per week is applicable for social insurance contribution purposes. The first EUR 127 of weekly earnings are exempt from the social insurance contribution. This weekly exemption is non-cumulative in that the earner is no longer entitled to the weekly exemption when their cumulative annual earnings exceed the social © OECD/OCDE 2004

Ireland – irlande

insurance ceiling. The following is a breakdown of the 2003 rate of contribution together with ceilings where applicable: Description

Rate

Ceiling (€)

Health contribution Pension and social insurance

2.00 4.00

No ceiling 40420

TOTAL

6.00

2.2. Employers' contributions Like employees' contributions, employers' contributions are payable as a percentage of gross employee earnings less allowable superannuation contributions. The following is a breakdown of the 2003 rate of contribution: Description

Occupational injuries Redundancy contribution Pension and social insurance TOTAL

Rate %

Ceiling (€)

0.50 0.40 9.85 10.75

36 600

The employers' contribution is reduced from 12 per cent to 8.5 per cent in respect of employees earning less than EUR 356 per week. 3. Universal Cash Transfers 3.1. Transfers related to marital status None. 3.2. Transfers for dependent children These are payable to all children under the age of 16 (or under 19 years, if the child is undergoing full-time education by day or is incapacitated and likely to remain so for a prolonged period). These payments do not depend on any insurance or on the means of the claimant. The amounts payable in 2003 are as follows: Period

April 2002 to April 2003 April 2003 to December 2003

Monthly rate per child

First to third child €117. 60 First to second child €125. 60

Subsequent children €147. 30 Subsequent children € 157. 30

3.3. Transfers for low income families A non taxable family income supplement is payable to low income families where either the principal earner and/or the spouse are in full-time employment. Full-time employment is defined as working nineteen hours per week or more. The hours worked by the principal and the spouse can be aggregated for the purposes of this definition. When calculating income for the purposes of the relief superannuation payments, social welfare payments, tax payments, health and employment and training levies are all subtracted to arrive at disposable income. The level of payment is dependent on the amount of family income and the number of children. The supplement payable is 60 per cent of the difference between the family income and the income limit applicable to the family. A minimum of EUR 13 per week is payable to eligible families. No supplement is payable to families with income in excess of the relevant income limit. The income limit for a family with two children in 2003 is EUR 405 per week. © OECD/OCDE 2004

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One Parent Family Payment: This new non taxable payment is available for men and women who for a variety of reasons are bringing up a child or children without the support of a partner .The payment which is means tested is payable in full where the persons earnings do not exceed EUR 7 618. Where earnings are between EUR 7 618 and EUR 15 236 a reduced payment is received. The amount of the full payment for 2003 is EUR 6 490 plus EUR 1 004 for each child. Because of the complex means testing system this type of person is excluded from the APW examples. 4.

Other Main Changes in Tax/Benefit System Since 2002 Mortgage interest relief: period of relief for first time buyers was increased from 5 years to 7 years.

5.

Memorandum Items

5.1. Method used to identify an APW and to calculate the APW's gross earnings Identification of an APW: To be determined by the secretariat. 5.2. Employer contributions to private social security arrangements Information not available, although such schemes do exist.

320

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Ireland – irlande

2003 Parameter values Tax allowances Tax Credits

Exemption amount

Marginal relief limit

Marginal relief Income tax

Ave_earn

26939

Basic_al_at_standardrate Married_al_at_standardrate Empl_al_at_standardrate Singleparent_at_standardrate Carers_allow Carers_thrsh1 Carers_thrsh2 Carers_taper_rt Single_ex Married_ex Child_ex Child_ex_3 Single_MR Married_MR Child_MR Child_MR_3 marg_rel_rate Single_sch

1520 1520 800 1520 770 5080 6620 0.5 5210 5210 575 830 10420 10420 1150 1660 0.4 0.2 0.42 0.2 0.42 0.2 0.42 0.2 0.42 19000 14924 0.04 40420 18512 0.02 6604 0.1075 0.085 18512 1411 1768 21060 676 0.6 7176 10400 1352

Single_sch_child Married_sch_oneinc Married_sch_twoinc Maximum increase in first band Band_increase_lim Social security contributions SSC_thresh Employees pension_rate pension_ceil Emp_hlth_lower Health_rate Non_cum_Allc Employers Empr_rate Empr_lower_rate Empr_thrsh Child benefit Ch_ben Ch_ben_3 Family income supplement FIS_pay_limit FIS_min FIS_rate Medical card single_med_card married_med_card child_add_med_card

Secretariat estimate

28000 32000 37000 56000

321

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Irish system in 2003 are mostly on a family basis using mainly a tax credit system for the first time. But social security contributions are calculated separately for each spouse. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. 2003 Tax equations Line in country table and intermediate steps

1. Earnings

Variable name

Range

earn

2. Allowances: 3. Credits in taxable income

(provided at standard rate ( tax credit equivalent)) taxbl_cr

4. taxable income tax_inc New carers allowance (provided as a career_allow tax credit) Preliminary Tax Liable (including carers allowance)

Equation

J

0

J

Earn IF((Married*Children)>0,IF(earn_spouse<=Carers_thrsh1, Carers_allow,IF(earn_spouse>Carers_thrsh2,0,Positive (Carers_allow-Carers_taper_rt*(earn_spouseCarers_thrsh1)))),0) IF(Married=0,IF(Children=0,Tax(tax_inc,Single_sch),Tax(tax_i nc,Single_sch_child)),IF(AB7=0,Tax(tax_inc,Married_sch_onei nc)-AG7,Tax(earn_principal+Positive(earn_spouseBand_increase_lim),Married_sch_oneinc)+Tax(MIN(earn_spo use,Band_increase_lim),Married_sch_oneinc)))

tax_prel

J

5. tax before credits (but including carers allowance)

_tax_excl

J

IF((Married*earn_spouse)>0,MINA(tax_prel,(Tax(tax_inc, Married_sch_oneinc)-career_allow)),tax_prel)

6. Tax credits :

basic_cr

J

Basic_al_at_standardrate+(Married*Married_al_at_standardr ate) IF(Married=0,IF(Children>0,Singleparent_at_standardrate,0), 0) Empl_al_at_standardrate+ (IF(earn_spouse>0,Empl_al_at_standardrate,0)) basic_cr+single_par_cr+other_cr Single_ex+Married*Married_ex+Child_ex*MIN(2,Children)+ (Children>2)*(Children-2)*Child_ex_3 Single_MR+Married*Married_MR+Child_MR*MIN(2,Children )+ (Children>2)*(Children-2)*Child_MR_3

single_par_cr other_cr Exemption amount

tax_cr exemp_amt

J

Marginal relief limit

MRL

J

7. Net tax

CG_tax

J

If(earn_total<=MRL,MIN(marg_rel_rate*positive(earn_totalexem_amt),positive(_tax_excl-tax_cr)),positive(_tax_excltax_cr))

8. State and local taxes

local_tax

J

0

9. Employees' soc security weekly allowance

weekly_allce

B

SSC

B

IF(earn=0,0,MINA(IF(earnEmp_hlth_lower)+IF(earn>SSC_thre sh, pension_rate*Positive(MINA(earn,pension_ceil)weekly_allce),0)

Child_benefit

J

FIS

J

employees' soc security

11. Cash transfers

322

Total cash transfers

cash_trans

13. Employer's soc security

SSC_empr

B

Children*Ch_ben+(Children>2)*(Children-2)*(Ch_ben_3Ch_ben) (Children>0)*IF((earn-_tax-SSC)<=FIS_pay_limit ,MAXA( (FIS_pay_limit-(earn-_tax-SSC))*FIS_rate,FIS_min),0) Child_benefit+FIS IF(earn<=Empr_thrsh,Empr_lower_rate,Empr_rate)* MIN(earn,Empr_ceil)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

© OECD/OCDE 2004

Chapter 1

ITALY – ITALIE The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). In that year the Average Production Worker earned EUR 22 114 (Secretariat estimate). 1.

Personal Income Tax

1.1. Central government income tax 1.11. Tax unit Spouses are taxed separately. 1.12. Tax allowances and tax credits 1.121. Standard tax credits • Dependent spouse: provided that the spouse's income does not exceed EUR 2 840.51 a tax credit is allowed, according to income brackets as follows: Income brackets (EUR)

0-15 494.00 15 494.01-30 987.00 30 987.01-51 646.00 51 646.01 and over

Tax credit (EUR)

546.18 496.60 459.42 422.23

• Children: A tax credit, that varies according to the number of children, is granted to parents. This tax credit is due in full to only one parent, if the spouse is not dependent, the tax credit is shared between the parents either at 50 per cent or according to a different percentage agreed to by them. Total tax credit allowed on parent with dependent children*

1 child

EUR 516.46 (income up to EUR 36 151.98) EUR 303.68 (income up to EUR 51 646) EUR 285.08 (income over EUR 51 646)

2 children

EUR 1 032.92 (income up to EUR 41 316.55) EUR 640.42 (income up to EUR 51 646) EUR 570.16 (income over EUR 51 646)

3 children

EUR 1 549.38 (income up to EUR 46 481.12) EUR 977.14 (income up to EUR 51 646) EUR 855.24 (income over EUR 51 646)

4 children

EUR 2 065.84

*

© OECD/OCDE 2004

The total tax credit is given as the sum of the credits allowed for each children (these may be different amounts depending on the level of income of the parents)

323

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Tax credit for dependent children in case of widowed spouse or parent with a not acknowledged child for an income up to EUR 15 494*

1 child

EUR 546.18

2 children

EUR 1 062.64

3 children

EUR 1 579.10

4 children

EUR 2 095.56

*

For single parents with two children the law provides for a tax credit for the first child equal to that of the dependent spouse. For the second child the single parent is granted the total tax credit.

• Other members of the family: a tax credit of EUR 142.54 (up to EUR 51 646) or EUR 133.25 (over EUR 51 646) is granted for other dependents, provided the dependent’s income does not exceed EUR 2 840.51. A dependent is deemed to be any person entitled to maintenance allowances (e.g., parents, mother and father-in-law) under civil law. • Tax allowances: A reform of the personal income tax (IRPEF) has started with the 2003 Financial Law which introduces a “no tax area” that results from the calculation of income related tax allowances. This set of new measures leads to tax savings for low/middle income earners. The standard allowance (“no tax area”) is EUR 7 500.00. The actual allowance granted to each individual depends on the value of a ratio that is defined as a function of net income and represented by the following formula: (26000 + 7500 – net income) / 26000. The way in which the actual allowance is to be computed is illustrated in the following table: ratio > or = 1 0 < ratio < 1 ratio < or = 0

Actual allowance = Standard allowance Actual allowance = 7 500.00 * ratio Actual allowance = 0

– Tax credits for dependent workers: The 2003 Financial Law provides that the tax credit for dependent workers varies with income as follows: Income

From EUR 27 000.00 to EUR 29 500.00 From EUR 29 500.01 to EUR 36 500.00 From EUR 36 500.01 to EUR 41 500.00 From EUR 41 500.01 to EUR 46 700.00 From EUR 46 700.01 to EUR 52 000.00

Tax credit

EUR 130,00 EUR 235.00 EUR 180.00 EUR 130.00 EUR 25.00

• Social security contributions due by law 1.122. Main non standard tax allowances and tax credits • Other compulsory contributions • Periodical benefits allowed to the spouse fixed by judicial authority • Charitable donations to certain religious institutions (up to EUR 1 032.91) • Medical and assistance expenses incurred by handicapped persons • Expenses to restore one's own residence at 36 per cent of full expenses, apportioned into 5 or 10 annual allowances of the same amount • Credit for leaseholders of principal residence (a sum of EUR 495.80 for income up to EUR 15 493.71 and a sum of EUR 247.90 for income up to EUR 30 987.41) As to the following expenses, a tax credit of 19 per cent of each incurred expense is allowed: • Mortgage loan interest (up to EUR 1 807.60 or EUR 3 165.20 according to circumstances) 324

• Most medical expenses that exceed EUR 129.11 © OECD/OCDE 2004

Italy – Italie

• Payments to insurance funds up to EUR 1 291.14 • Expenses to attend secondary school and university courses; in case such courses are private, the expenses allowed cannot exceed those foreseen for State courses • Funeral charges up to EUR 1 549.37 • Expenses for disabled persons • Donations to political parties (ranging from EUR 51.65 to EUR 103 291.38) • Payments to foundations (up to EUR 2 065.83). 1.13. Tax schedule The following tax schedule is applied to taxable income: Bracket (EUR)

up to 15 000 over 15 000 up to 29 000 over 29 000 up to 32 600 over 32 600 up to 70 000 over 70 000

Rate (%)

23 29 31 39 45

1.2. State and local taxes The “no tax area” is not taken into account for determining taxable income for the local surcharges. The local surcharges are computed with reference to the old definition of the tax base; these surcharges are, however, due only by taxpayers who pay the IRPEF. Regional surcharge tax This surcharge tax has been introduced in 1997. The tax is levied by each region on resident taxpayers’ total taxable income at a discretionary rate, which must fall within an established range. As from the year 2000 this range is 0.9 per cent – 1.4 per cent. For the years 2002 and 2003 all regions have applied the lowest rate of 0.9 per cent. Local surcharge tax This surcharge tax has been introduced in 1999. The tax may be levied by each local government at an initial rate that cannot exceed 0.2 per cent. If the tax is levied, the local government can increase the initial rate, on a yearly basis, up to a maximum of 0.5 per cent. Each yearly increase cannot exceed 0.2 per cent. The figure given in the Country Tables under the heading “State and local taxes” does not include the local surcharge tax. In fact, since this surcharge is levied only by some local governments and at different rates, its inclusion in the calculation of the tax burden of the APW would have necessitated an assumption on the taxpayer’s residence or required a complicated derivation of a national average. 2.

Compulsory Social Security

2.1. Employee contributions a) Rate and ceiling – The average rate charged to a dependent worker is 9.19 per cent on earnings up to EUR 36 959. – The average rate charged to a dependent worker is 10.19 per cent on earnings over EUR 36 959. b) Distinction by marital status or sex – None. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.2. Employer contributions – Contributions taken into account for this report amount to: 33.08 per cent 3.

Universal Cash Transfers

3.1. Amount for spouse and for dependent children Cash transfers are granted for family income that is: a) composed of at least 70 percent wage and/or pension income b) below a given threshold set by law each year Family income is the sum of the incomes of all individuals comprising the family. Cash transfers are determined each year by INPS (Istituto Nazionale di Previdenza Sociale, the public body that collects and manages the social security contributions for dependent workers for the period beginning in July of that year (t) to June in the following year (t+1) and relate to family income earned in the previous year (t-1). This complicates the calculation of the transfers granted in any given year t. The following table provides a description of the calculations. Transfer granted in year t

Relevant amounts as given in INPS tables

January – June

The amount of cash transfers is that given in the INPS table published in July t-1. The transfers are granted with reference to family income earned in year t-2.

July – December

The amount of cash transfers is that given in the INPS table published in July t. The transfers are granted with reference to family income earned in year t-1.

It should be pointed out that the calculations underling the provisional data for year t that is given at the beginning of the same year t use the INPS tables published in July t-1. 4.

Main Changes Personal income tax rates and brackets New income related tax allowance with the introduction of the “no tax area” New tax credits for dependent workers

The Financial Law introduces a grand-fathering clause which allows taxpayers penalised by the new regime to calculate their taxes due using the previous tax regime 5.

Memorandum Item

5.1. Identification of an APW The data refer to the annual earnings of production workers in the manufacturing sector. 5.2. Contributions by employers to private pension, health, etc. schemes 326

Information on this matter is not available. © OECD/OCDE 2004

Italy – Italie

2003 Parameter values Average earnings/yr Tax schedule

Ave_earn tax_sch

Standard tax allowances Tax credits Employment

b_all emp_flat emp_add

Spouse

Spouse_cred

limit Child credit

Sp_crd_lim Ch1_credit

Regional tax reg_rt Social security contributions SSC_sch Employer contributions Cash transfers: taxable income (t-1) family allowance sched. (t) -married couple

family allowance sched. (t) -single parent

© OECD/OCDE 2004

Empr_sch tax_inc_pr1 trans_sch_m

trans_sch_s

22114 0.23 0.29 0.31 0.39 0.45 7500.00

Secretariat estimate 15000.00 29000.00 32600.00 70000.00 999999999.99

0 0 27000.01 29500.01 36500.01 41500.01 46700.01 52000.01 0 15494.01 30987.01 51646.01 999999999.99 2840.51 0 41316.56 51645.70 999999999.99 0.009 0.0919 0.1019 0.00 0.3308

36959.00 80391.00 999999999.99 20658.28

21408.09 0 11697.13 14474.16 17250.64 20026.05 22803.62 25580.09 28357.66 31133.07 33909.56 36685.50 39463.62 42240.09 45017.13 47793.60 50571.18 53348.76 999999999.99 0 13548.11 16325.15 19100.55 21877.58 24655.16 27431.64 30208.11 32984.61 35760.55 38538.66 41315.69 44091.08 46868.66 49645.68 52423.25 55199.74 999999999.99

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0 0 0 0 0 0 0 99.68 79.53 54.23 23.24 20.66 20.66 0 0 0 0 0 0 0 0 0 0 0 0

0.00 130.00 235.00 180.00 130.00 25.00 0.00 546.18 496.60 459.42 422.23 0 258.23 151.84 142.54 0.00

258.23 168.37 142.54 0.00

130.66 114.65 92.45 65.59 43.90 25.82 15.49 15.49 12.91 12.91 12.91 0.00 0.00 0.00 0.00 0 0 0 184.89 164.75 136.34 102.26 73.85 48.55 34.09 34.09 28.41 28.41 28.41 0 0 0 0 0 0 0

250.48 220.53 190.57 158.04 111.55 81.60 57.33 38.73 25.82 25.82 23.24 23.24 23.24 0.00 0.00 0.00 0.00 0 412.13 372.37 332.60 289.73 230.34 190.57 159.07 136.34 119.30 119.30 102.26 102.26 102.26 0 0 0 0 0

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

taxable income (t-2) tax_inc_pr2 family allowance sched.(t-1) trans_sch1_m -married couple

family allowance sched.(t-1) trans_sch1_s -single parent

20798.48 0 10850.16 11422.99 13562.10 14134.93 16274.04 16846.34 18984.93 19556.70 22269.17 24980.57 27693.04 30403.40 33114.81 35825.69 38538.70 41250.10 43962.05 999999999.99 0 13230.59 15942.54 18652.89 21364.83 24077.31 26788.72 29500.12 32211.54 34922.42 37635.42 40347.36 43057.71 45770.19 999999999.99

46.48 36.15 36.15 25.82 25.82 10.33 10.33 0 0 0 0 0 0 0 0 0 0 0 0 99.68 79.53 54.23 23.24 20.66 20.66 0 0 0 0 0 0 0 0 0

130.66 130.66 114.65 114.65 92.45 92.45 65.59 65.59 43.90 25.82 15.49 15.49 12.91 12.91 12.91 0 0 0 0 184.89 164.75 136.34 102.26 73.85 48.55 34.09 34.09 28.41 28.41 28.41 0 0 0 0

250.48 250.48 220.53 220.53 190.57 190.57 158.04 158.04 111.55 81.60 57.33 38.73 25.82 25.82 23.24 23.24 23.24 0 0 412.13 372.37 332.60 289.73 230.34 190.57 159.07 136.34 119.30 119.30 102.26 102.26 102.26 0 0

328

© OECD/OCDE 2004

Italy – Italie

The equations for the Italian system in 2003 are mostly repeated for each individual of a married couple. But the spouse credit is relevant only to the calculation for the principal earner and any child credit which the spouse is unable to use is transferred to the principal. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

B B

SSC (earn>0) * MIN(earn - tax_al1, (b_all * MIN(1,(MAX((1-(earn tax_al1 - b_all)/26000),0)))) )

1. Earnings

earn

2. Allowances:

tax_al1 tax_al2

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc_xal2 tax_inc

B B

earn-tax_al1 earn-tax_al1-tax_al2

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch)

6. Tax credits : Employment

emp_cr

B

Spouse credit

spouse_cr

P

Child credit

child_cr_princ

P

Total

tax_cr

B

MIN((emp_flat+VLOOKUP(tax_inc_xal2,emp_add,2)),CG_tax_ excl) IF(Married=1,IF(tax_inc_xal2_spouse>Sp_crd_lim,0,VLOOKU P( tax_inc_princ,Spouse_cred,2)),0) IF(Married=1; (Children>0)*(((VLOOKUP(tax_inc_al2_princ;Ch1_credit;2)) +(VLOOKUP(tax_inc_xal2_princ;Ch1_credit;3))) *IF(emp_cr>0;2;IF(CG_tax_excl_spouse=0;2;1))); (Children>0)* ((MAX((VLOOKUP(tax_inc_xal2_princ;Spouse_cred;2)); VLOOKUP(tax_inc_al2_princ;Ch1_credit;3)*2)) +(VLOOKUP(tax_inc_al2_princ;Ch1_credit;3))*2)) IF(CG_tax_exc_spouse>0,Children>0) *(((VLOOKUP((tax_inc_xal2_spouse),Ch1_credit,2)) +(VLOOKUP((tax_inc_xal2_spouse),Ch1_credit,3)))*(spouse_ cr=0) MIN(emp_cr+spouse_cr+child_cr,CG_tax_excl)

7. CG tax

CG_tax

B

Positive(CG_tax_excl-tax_cr)

8. State and local taxes

local_tax

B

IF(final_income_tax>0;taxable_income*reg_rt;0)

9. Employees' soc security

SSC

B

Tax(earn,SSC_sch)

J

((Children+Married)>0)*((6/12)*12*VLOOKUP(tax_inc_pr1* (earn_total), IF(Married,trans_sch_m,trans_sch_s),1+Married+Children)+ (6/12)*12*VLOOKUP(tax_inc_pr2*(earn_total),IF(Married, trans_sch1_m,trans_sch1_s),1+Married+Children))

B

Tax(earn,Empr_sch)

child_cr_spouse S

11. Cash transfers

13. Employer's soc security

SSC_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

329

© OECD/OCDE 2004

JAPAN – JAPON Chapter 1

The national currency is the Yen (JPY). In 2003 JPY 118.3084 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker is assumed to earn JPY 4 200 199 (Secretariat estimate). 1.

Personal Income Tax Systems

1.1. Central government income tax 1.11. Tax unit Each individual is taxed separately. 1.12. Allowances and tax credits 1.121. Standard reliefs • Basic allowance: a taxpayer may deduct JPY 380 000 as basic allowance from his or her income • Allowance for spouse: allowance equal to JPY 380 000 is given to a resident taxpayer who has a spouse, provided certain requirements are met • Special allowance for spouse: special allowance up to JPY 380 000 according to income of a spouse is given to a resident taxpayer, provided certain requirements are met. The additional amount of the allowance (i.e. the amount granted on top of Basic Allowance) shall be abolished from (Cy) 2004. • Allowance for dependents: if a resident taxpayer has children and other relatives who meet the same requirements as for a spouse mentioned above, an allowance of JPY 380 000 is given for each dependent • Special allowance for dependents: if a resident taxpayer has dependents who meet the requirement mentioned above and who are between 16 and 23 years old, an allowance of JPY 630 000 is given for each dependent instead of the allowances for dependents mentioned above. • Deduction for social insurance premiums: the amount of social insurance premiums for a resident taxpayer or his/her dependents shall be deducted from his/her income without any ceiling • Employment income deduction: the following amounts may be deducted from the income in calculating taxable income: – If income received does not exceed JPY 1 800 000 the deduction is 40 per cent of salaries etcetera, but the minimum amount deductible is JPY 650 000. – If income received exceeds JPY 1 800 000, but not JPY 3 600 000, the deduction is JPY 180 000 plus 30 per cent of salaries etc.. – If income received exceeds JPY 3 600 000, but not JPY 6 600 000, the deduction is JPY 540 000 plus 20 per cent of salaries etc.. – If income received exceeds JPY 6 600 000, but not JPY 10 000 000, the deduction is JPY 1 200 000 plus 10 per cent of salaries etc.. 330

– If income received exceeds JPY 10 000 000, the deduction is JPY 1 700 000 plus 5 per cent of salaries etc.. © OECD/OCDE 2004

Japan – japon

1.122. Main non-standard tax reliefs applicable to an APW • Credit for housing loans: A resident taxpayer who constructs, purchases, enlarges or rebuilds a house, financing its cost by housing loans and uses it as his or her own dwelling, is entitled to income tax credit up to the amount described below for 6 or 10 years after the year including the day when the house is put in use(the period differs according to the first year of residence), provided that: the floor space is 50m2 or more, and more than half of the floor space in use is for own living. Base of the tax credit is equal to the balance of the housing loan debt amount, calculated at the end of each year, consisting of the loan obtained not only from private financial institutions but also from public institutions. This tax credit cannot be claimed by those whose total income exceeds JPY 30 million. • The deductible period and the rates for tax credits correspond to the year in which residence in the house commenced as follows : Residence starts from 1 July in 2001 to 31 December in 2003

Residence starts from 1 January to 31 December in 2004

Tax credit rate

Tax credit rate

If the remaining housing loan balance (RHLB) is JPY 50 million or less: Deductible period

RHLB× 1.0%

If the R.H.L.B is JPY 20 million or less:

RHLB ×1.0% RHLB ×0.5%

10 years

If the R.H.L.B exceeds JPY 20 million but not JPY 30 million: Deductible period

6 years

• Deduction for life insurance premiums and personal pension plan premiums: If a resident taxpayer pays insurance premiums on life insurance contracts, under which the recipient of insurance proceeds is the taxpayer, his/her spouse or other relatives living with him, that portion of such premiums which does not exceed the maximum prescribed below, is deductible from ordinary income, retirement income or timber income. In addition, if a resident taxpayer pays insurance premiums for a “qualified personal pension plan (insurance type)”, under which the recipient of the pension payment is the taxpayer or his/her spouse under a specific condition, the portion of such premiums which does not exceed the maximum prescribed below, is deductible from ordinary income, retirement income, or timber income. Premiums Paid (JPY)

Deduction

Over

Not over 25 000

Total amount of premiums paid (1)

25 000 50 000 100 000

50 000 100 000 –

(1) x 1/2 + JPY 12 500 (1) x 1/4 + JPY 25 000 JPY 50 000

As for the insurance premiums of this type of pension plan, the deduction for life insurance premiums is not applied. • Deduction for medical expenses: If a resident taxpayer pays bills for medical or dental care for himself/ herself or for his/her spouse or other relatives living with him/her and the amount of such expenses (excluding those recovered by insurance) exceeds the lesser of JPY 100 000 and 5 per cent of the total of his/her ordinary income, retirement income and timber income, the excess amount is deductible from his/her ordinary income, retirement income or timber income. The maximum deductible is JPY 2 million. • Deduction for casualty insurance premiums: If a resident taxpayer pays insurance premiums for fire or other casualty insurance, covering the house which he/she, his/her spouse or other relatives own and live in, or on household goods necessary for daily living, a portion of those premiums up to the maximum indicated below, is deductible from ordinary income, retirement income, or timber income. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Premiums Paid Type of Insurance

Deduction Over

Not over

Long-term insurance JPY 10 000 JPY 20 000 Short-term insurance JPY 2 000 JPY 4 000

JPY 10 000 JPY 20 000

Total amount of premiums paid (1) (1) x 1/2+ JPY 5 000 JP Y 15 000

JPY 2 000 JPY 4 000

Total amount of premiums paid (2) (2) x 1/2+ JPY 1 000 JPY 3 000

1.13. Tax schedule Taxable Income (JPY) Over

3 300 000 9 000 000 18 000 000

Not over

3 300 000 9 000 000 18 000 000

Tax Rate (%) (A)

Deductible Amounts for Each Bracket (JPY) (B)

10 20 30 37

330 000 1 230 000 2 490 000

Proportional Tax Reduction (C) : 20 per cent of calculated amount (ceiling: JPY 250 000)

Tax liability is obtained by multiplying the taxable income by tax rate (A) and deducting the amount (B). In addition, Proportional Tax Reduction (C) is granted from (Fy)1999. For example, income tax due on taxable income of JPY 7 million is: 7 000 000 x 0.20 (A) – 330 000 (B) – 214 000 (C) = JPY 856 000. 1.2. State and local income taxes 1.21. General description of the system State and local income taxes in Japan consist of prefectural inhabitants tax levied by prefectures and municipal inhabitants tax levied by cities, towns and villages. The prefectural inhabitants tax is collected together with the municipal inhabitants tax by cities, towns and villages. 1.22. Tax base The base for prefectural and municipal inhabitants’ taxes is taxable income augmented by a fixed per capita amount. The taxable income is similar to the one computed for the purpose of the previous year's central income tax (see below). Note: Calculation of income for local inhabitants’ taxes is slightly different from the one for the national income tax. For example, the amount of Basic Allowance, Allowance for Spouse, ceiling of Special Allowance for Spouse, Allowance for Dependants is JPY 330 000, the amount of Special Allowance for dependants is JPY 450 000, etc. 1.23. Tax rate • The standard per capita tax rate of Prefectural inhabitants’ tax is JPY 1 000. • The standard per capita tax rate of Municipal inhabitants’ tax rates are as follows: – City with a population of 500 000 or more JPY 3 000 – City with a population of more than 50 000 but less than 500 000 JPY 2 500 – Other cities, towns and villages JPY 2 000 332

• The standard rate of Prefectural and Municipal inhabitants’ tax is as follows: © OECD/OCDE 2004

Japan – japon

Tax Rate (%) (A)

Taxable Income (JPY)

Deductible Amounts for Each Bracket (JPY) (B)

[ Prefectural inhabitants’ tax ] Over

Not over

7 000 000

7 000 000 –

2 3

– 70 000

3 8 10

– 100 000 240 000

[ Municipal inhabitants’ tax ] Over

Not over

2 000 000 7 000 000

2 000 000 7 000 000 –

Proportional Tax Reduction (C) : 15 % of calculated amount (ceiling: JPY 40 000)

Tax liability is obtained by multiplying the taxable income by tax rate (A) and deducting the amount (B). In addition, Proportional Tax Reduction (C) is granted from FY 1999. For example, income tax due on taxable income of JPY 3 million is: 3 000 000 x (0.02 + 0.08) (A) – 100 000 (B) – 30 000 (C) = JPY 170 000. 1.24. Tax rate selected for this study Country-wide rates as described above, applying in cities with half a million inhabitants or more. 2.

Compulsory Social Security Contribution to Schemes Operated Within the Government Sector

2.1. Employees’ contributions 2.11. Pension 8.675 per cent of standard remuneration plus 0.5 per cent of bonuses until 31 March. From 1 April in 2003, 6.79 per cent of total remuneration (standard remuneration and bonuses), or not more than 6.79 per cent of the insurable ceiling of JPY 620 000 (monthly). 2.12. Sickness 4.25 per cent of standard remuneration plus 0.3 per cent of bonuses until 31 March. From 1 April in 2003, 4.1 per cent of total remuneration (standard remuneration and bonuses) up to the insurable ceiling of JPY 980 000 (monthly). 2.13. Unemployment 0.7 per cent of total remuneration. 2.14-15. Work injury and family allowance None. 2.2. Employers’ contributions 2.21. Pensions 8.675 per cent of standard remuneration plus 0.5 per cent of bonuses until 31 March. From 1 April in 2003, 6.79 per cent of total remuneration, or not more than 6.79 per cent of the insurable ceiling of JPY 620 000 (monthly). © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.22. Sickness 4.25 per cent of standard remuneration plus 0.5 per cent of bonuses until 31 March. From 1 April in 2003, 4.1 per cent of total remuneration up to the insurable ceiling of JPY 980 000 (monthly). 2.23. Unemployment 1.05 per cent of total remuneration. 2.24. Work injury 0.55 per cent to 13.3 per cent of total remuneration, the contribution rate depending on each industry's accident rate over the last three years and other factors. There are thirty rates for fifty-two industrial categories at present. 2.25. Family allowance 0.11 per cent of standard remuneration. (0.09 per cent of total remuneration from 1 April 2003.) 3.

Universal Cash Transfers

3.1. Transfers related to marital status Not available. 3.2. Transfers for dependent children JPY 5 000 for the first and second child and JPY 10 000 for each subsequent child. Payments are only made till the first of March after the child turns six. 4.

Main changes in the Tax/benefit Systems since 1998

As part of the Fiscal Year 1999 tax reform, the highest marginal rate of the personal income tax imposed by the central government was reduced from 50 per cent to 37 per cent. The top rate of the local inhabitants tax was reduced from 15 per cent to 13 per cent. Proportional tax reduction: national income tax (deduction rate 20 per cent, ceiling JPY 250 000), local inhabitants' tax (deduction rate 15 per cent, ceiling JPY 40 000). Eligible age for transfers for dependant children was raised to six from three from 1 June 2001. 5.

Memorandum Item

5.1. Average gross annual wage earnings calculation The source of calculation is the Basic Survey on Wage Structure, published by the Ministry of Health, Labour, and Welfare. This survey covers all establishments with ten or more regular employees over the whole country, and contains statistical figures for monthly contractual cash earnings in June and annual special cash earnings (such as bonuses) received by various categories of workers. Male and female workers of the manufacturing sector in an average age group are the point of departure. Their gross annual earnings have been calculated by multiplying monthly contractual cash earnings by 12 and adding any annual special cash earnings. In the Basic Survey, sickness and unemployment compensations are excluded from cash earnings, but average overtime and bonuses are included. As far as the Basic Survey is concerned, it covers the whole country, and no special assumption is made regarding the place of residence of the average production worker. But note that in calculating the per capita part of the local inhabitants’ tax, the rate is the one that is applicable in cities with a population of over half a million is used. 5.2. Employer contributions to private pension and health schemes 334

No information available. © OECD/OCDE 2004

Japan – japon

2003 Parameter values Allowances for central tax Employment income deduction

Central gov't tax schedule

Ave_earn basic_al spouse_al child_al emp_inc_min emp_inc_sch

tax_sch

380000 760000 380000 650000 0.4 0.3 0.2 0.1 0.05 0.1 0.2 0.3 0.37

1800000 3600000 6600000 10000000 3300000 9000000 18000000

Central gov't tax reduction Allowances for state/local tax Prefectual tax Municipal tax

Local gov't tax reduction Social seurity contributions

Employer contribution proportion

cgtax_redn_rt cgtax_redn_max s_basic_al s_spouse_al s_child_al pref_per_cap mun_per_cap local_sch loctax_redn_rt loctax_redn_max SSC_pens pens_ceil SSC_sick sick_ceil SSC_unemp SSC_empr SSC_empr_unemp SSC_empr_oth

0.2 250000 330000 660000 330000 1000 3000 0.05 0.10 0.13 0.15 40000 0.0679 7440000 0.041 11760000 0.007 1.14486 0.015 0.0064

2000000 7000000

335

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Japanese system are mostly on an individual basis. But the tax allowances for the spouse and for children are relevant only to the calculation for the principal earner. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. 2003 Tax equations Line in country table and intermediate steps

1. Earnings

Variable name

Range

Equation

P

basic_al + Married*(earn=0)*spouse_al + Children*child_al + MAX(emp_inc_min, Tax(earn,emp_inc_sch)) + SSC

S

basic_al + MAX(emp_inc_min, Tax(earn,emp_inc_sch)) + SSC

earn

2. Allowances: tax_al= basic_al + spousal_al+c hild_al + work_al + SSC tax_al= basic_al + work_al + SSC 3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

CG_tax_excl

B

Positive(Tax(tax_inc,tax_sch)MINA(cgtax_redn_rt*Tax(tax_inc,tax_sch), cgtax_redn_max))

5. CG tax before credits

6. Tax credits :

tax_cr

B

0

7. CG tax

CG_tax

B

CG_tax_excl

local_inc_pri nc

P

local_inc_sp

S

local_tax

P

Positive(earn-(s_basic_al+Married*(earn_sp=0)* s_spouse_al+Children*s_child_al+MAX(emp_inc_min, Tax(earn,emp_inc_sch)) + SSC)) Positive(earn-(s_basic_al+MAX(emp_inc_min, Tax(earn,emp_inc_sch)) + SSC)) pref_per_cap+mun_per_cap+Positive( Tax(local_inc_princ,local_sch)MINA(loctax_redn_rt*Tax(local_inc_princ, local_sch), loctax_redn_max)) (earn>0)*(pref_per_cap+mun_per_cap+Positive( Tax(local_inc_sp,local_sch)MINA(loctax_redn_rt*Tax(local_inc_sp, local_sch),loctax_redn_max)))

8. State and local taxes Taxable income for local taxes

Tax

S

9. Employees' soc security

SSC

B

SSC_pens*MIN(earn,pens_ceil)+SSC_sick*MIN(earn,sick_c eil)+SSC_unemp*earn

11. Cash transfers

cash_trans

B

0

13. Employer's soc security

SSC_empr

B

SSC_pens*MIN(earn,pens_ceil)+SSC_sick*MIN(earn,sick_c eil)+(SSC_empr_unemp+SSC_empr_oth)*earn

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

336

© OECD/OCDE 2004

KOREA – CORÉE Chapter 1

The national currency is the Won (KRW). In 2003 KRW 1194.11 was equal to USD 1 (average of nine months daily exchange rates). In this year, the Average Production Worker earned KRW 24 467 930 (Secretariat Estimate). 1.

Personal Income Tax System

1.1. Central government income tax system 1.11. Tax unit Principle: Each individual is taxed on his/her own income. Non – taxable wage income • national pension, medical insurance, unemployment insurance and work injury insurance that are borne by employer • overtime payment to productive workers: up to KRW 2 400 000 of overwork payment of productive workers in manufacturing and mining sectors whose monthly wage is less than KRW 1 000 000 per month is non taxable. 1.12. Allowances and tax credits 1.121. Standard reliefs The standard reliefs are taken as deductions from gross income: • Employment income deduction: the following deduction from gross income is allowed for wage and salary income earners: Salary

Deduction

Up to KRW 5 000 000 KRW 5 000 000 to KRW 15 000 000 KRW 15 000 000 to KRW 30 000 000 KRW 30 000 000 to KRW 45 000 000 Over KRW 45 000 000

Total amount KRW 5 000 000 plus 47.5% of the salary over KRW 5 000 000 KRW 9 750 000 plus 15% of the salary over KRW 15 000 000 KRW 12 000 000 plus 10% of the salary over KRW 30 000 000 KRW 13 500 000 plus 5% of the salary over KRW 45 000 000

• Basic allowance: a taxpayer can deduct KRW 1 000 000 from his/her income for each person who meets one of following conditions: – taxpayer him/herself – taxpayer’s spouse whose taxable income is under KRW 1 000 000; – taxpayer’s (including the spouse's) dependents (parents, siblings, children) within the same household whose taxable income is under KRW 1 000 000 and whose ages are as follows: 1. parents: aged 60 years (female: aged 55 years) or over 2. brother/sister: aged 60 years (female: aged 55 years) or over, or aged 20 years or under 3. children: aged 20 years or under. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

• Additional allowance: a taxpayer can deduct KRW 1 000 000 (500 000 in the case of [c]/[d]) from his/her gross income when the taxpayer or his/her dependents fall into the following categories (for this report, only cases [c] and [d] would be applicable): – a person aged 65 years or over (a) – a handicaped person (b) – a female wage earner who is the head of a household with dependents or a female wage earner with spouse (in the case of this report, any female wage earner would be entitled to this allowance)* (c) – a child aged 6 years or under (provided to female wage earners or to a male wage earner without a spouse). (Under the assumptions of this report, any female wage earner is not entitled to this allowance.) (d) • Extra allowance: – an income earner who is not claiming any other dependents may deduct KRW 1 000 000 from gross income – a single income earner with a single dependent (e.g., spouse, child) may deduct KRW 500 000 from gross income • Compulsory social security contribution – National pension deduction: Employees can deduct 100 per cent of their contribution of National Pension – Medical insurance premium and Unemployment insurance premium deduction: employees can deduct 100% of their contribution to authorities. • Tax credits: for wage and salary income earners, the following tax credit is allowed. Calculated tax

Amount of tax credit

Up to KRW 500 000 Over KRW 500 000

50% of calculated tax KRW 250 000 plus 30% of the calculated tax over KRW 500 000 (limit: KRW 450 000)

1.122. Main non-standard tax reliefs Wage and salary income earners may deduct from gross income the expenses for the following items during the tax year : • Insurance premiums (a): general insurance premium up to KRW 1 000 000 and medical insurance premium and unemployment insurance premium (without ceiling) • Medical expense (b): up to KRW 5 000 000. Full deductions are allowed for medical expenses exceeding 3% of taxable income for the taxpayer's parents who live with the taxpayer, as well as medical expenses for rehabilitation of handicapped persons. • Educational expense (c): Tuition fees for pre-school, elementary, middle school and college (but graduate school fee deduction is allowed only for taxpayer himself), either for the taxpayer himself or his/her dependents (including the taxpayer's spouse, children, and siblings), can be deducted from gross income. Deductible amount is full for taxpayer, and for dependents as follows: – For pre-school: up to KRW 1 500 000 per child; – For elementary, middle and high school: up to KRW 2,000 000 per student; – For college/university: up to KRW 5,000 000 per student.

338

* This extra allowance was introduced to promote female work-force participation. The presence of this allowance necessitates further specifying the demographic make-up of each family type considered within this report. To that end, for Korea, it is assumed that with the exception of the single parent with two children, the principal wage earner is a male.

© OECD/OCDE 2004

Korea – Corée

• Saving/Payment for housing (d): up to KRW 6 000 000 full amount paid for the interest of long-term mortgage loans for purchasing a house by a taxpayer who does not own a house or owns one which is not more than 85m2 plus 40 per cent of the amount repaid for the loan for leasing house or the amount contributed to a savings account for housing. • Charities (e): deductible amount is as follows: – donation to a government body, donation for national defence, natural disaster, certain charitable associations: total amount up to gross income – donations to public welfare, religious associations: up to ten percent of gross income. • Credit card purchase (f): deduction for credit card purchase is newly added to the non-standard allowances. Employees can deduct 20 per cent (30% in the case of debit card) of the amount of credit card purchase which is over 10% of his/her annual salary. (limit: lesser of 5 million Won or 10% of his/her annual salary). • Lump-sum tax relief: Any taxpayer whose total deductible expense for (a), (b), (c), (d), (e) and (f) is not over KRW 600 000 may deduct KRW 600 000 from their gross income as a lump-sum tax relief. This lump-sum relief is used in the calculations for this Report. 1.13. Tax schedule Over (KRW)

Not more than (KRW)

Marginal tax rate (%)

0 10 000 000 40 000 000 80 000 000

10 000 000 40 000 000 80 000 000

9 18 27 36

1.2. Local income tax 1.21. Tax base The local income tax base is the income tax paid to the central government. 1.22. Tax rate A uniform rate of 10 per cent is applied. However, the local government can adjust the rate between the lower limit of 5 per cent and upper limit of 15 per cent. 1.23. Tax rate (selected for this study) A country-wide rate of 10 per cent. 2.

Compulsory Social Security Contribution to Schemes Operated Within the Government Sector All compulsory social security contributions can be deducted in calculating taxable income

2.1. Employees’ contribution 2.11. National pension 4.5 per cent of standardised average monthly wage income (for the purposes of this report, standardised average monthly wage income is taken to mean gross earnings) to a maximum of KRW 1 944 000. 2.12. Medical insurance Insurance premium is charged at 1.97 percent of standardised average monthly wage income. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.13. Unemployment insurance 0.45 per cent of gross income. 2.14. Work injury insurance Employer only. 2.2. Employers’ contribution 2.21. National pension 4.5 per cent of standardised average monthly wage income to a maximum of KRW 1 944 000. 2.22. Medical insurance • insurance premium is charged at 1.97 percent of standardised average monthly wage income 2.23. Unemployment insurance • insurance premium is charged between 0.7 per cent and 1.3 per cent of gross income; • insurance premium selected for this study is 0.7 per cent. 2.24. Work injury insurance • insurance premium is a specific rate for each industry set by the Labour Minister that is applied to gross income; • average rate of all industries (selected for this study) is 1.36 per cent. 3.

Universal Cash Transfers None.

4.

Main Changes in Tax/Benefit System since 2000 with Regard to APW • 2000: contribution to National Pension are to be deductible from 2001, upper cap of employment income deduction limit (KRW 12 000 000) is abolished from 2001 • 2001: personal income tax rates are lowered by 10% (rates of 10, 20, 30 and 40% became 9, 18, 27 and 36%) from 2002 • 2002: limits of deduction for education fees are expanded from 2003 for pre-school : from KRW 1 000 000 to KRW 1 5000 000 for elementary, middle school and high school : from KRW 1 500 000 to KRW 2 000 000 for college and university : from KRW 3 000 000 to KRW 5 000 000 limit of deduction for interest of long-term mortgage loan for housing is expanded from KRW 3 000 000 to KRW 6 000 000 from 2003 • 2003: employment income deduction and tax credit applicable to low income are increased.

The deduction rate for the taxable wage income ranged from 5 000 000 to 15 000 000 is increased from 45 per cent to 47.5 per cent. 340

The tax credit rate for calculated tax ranged below KRW 500 000 is increased from 45 per cent to 50 per cent and the limit of tax credit is up from KRW 400 000 to KRW 450 000. © OECD/OCDE 2004

Korea – Corée

5.

Memorandum Item

5.1. Identification of the Average Production Worker (APW) Sector used: manufacturing Geographical coverage: whole country Type of workers: production workers (male and female). 5.2. Method to calculate earnings The Report on Monthly Labor Survey covering data in the first half of 2003 by the Ministry of Labor is used to calculate the annual earnings of the APW. The statistics were obtained through a sample survey of 5 300 firms with ten or more regular employees throughout the whole country. Basic method of calculation used: average monthly earnings x 12. 5.3. Employer’s reserve for employee’s retirement payment An employer should pay to a retiree the retirement payment which is not less than 30 days’ wage and salary per one year of service (about 8.3 per cent of gross income or more). An employer can contribute to the Retirement Payment Reserve Fund established within the company or Retirement Insurance Fund established outside the company to prepare for the retirement payment. Such contribution is treated as business expense under certain constraints. Because contribution to the Retirement Fund is not compulsory, this survey does not include such contribution except the contribution converted to employer's contribution to the national pension plan (see § 2.21).

341

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values APW earnings Tax allowances spouse dependents including children extra allowance 1 extra allowance 2 lump-sum additional allowance 2 max number of kids permited to be under 7 Employment income deduction limit 1 rate 1 Employment income deduction limit 2 rate 2 Employment income deduction limit 3 rate 3 Employment income deduction limit 4 rate 4 Tax credit threshhold maximum credit tax credit rate 1 tax credit rate 2 Tax schedule

Ave_earn basic_al spouse_al dep_al ext1_all ext2_all lump_sum add_all child_und7_max empded2003

Local tax rate Social security contributions

local_rate SSC_pens SSC_pens_max SSC_sick SSC_unemp emp_pens emp_sick emp_unemp emp_inj

Employer contributions

tax_thresh cred_max cred_rate1 cred_rate2 tax_sch

24467930 1000000 1000000 1000000 1000000 500000 600000 500000 1 5000000 0.475 15000000 0.15 30000000 0.1 45000000 0.05 500000 450000 0.5 0.3 0.09 0.18 0.27 0.36 0.1 0.045 1944000 0.0197 0.0045 0.045 0.0197 0.007 0.0136

Secretariat Estimate

10000000 40000000 80000000

342

© OECD/OCDE 2004

Korea – Corée

The equations for the Korean system are independent between spouses except that the principal earner has tax allowances for the spouse and for any children. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables married and children. A reference to a variable with the affix total indicates the sum of the relevant variable values for the principal and spouse. And the affixes princ and spouse indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with spouse values taken as 0. 2003 Tax equations Line in country table and intermediate steps

1. Earnings 2. Allowances: employment income basic spouse

3. 4. 5. 6.

Variable name

Range

earn emp_al bas_al sp_al

B B P

dependents extra and additional allowances

dp_al ext_al_princ

P P

extra and additional allowances

ext_al_spouse S

Social Security Contribution (SSC) SSC_unemp

SSC_pens, SSC_sick P

lump-sum Total

lump_sum tax_al

Credits in taxable income CG taxable income CG tax before credits Tax credits :

taxbl_cr tax_inc CG_tax_excl tax_cr

7. CG tax 8. State and local taxes 9. Employees' soc security 11. Cash transfers 13. Employer's soc security

Equation

CG_tax local_tax SSC cash_trans SSC_empr

Empincded(earn,employment income dedeuction) basic_al Married*spouse_al*(earn_spouseEmpincded(earn_spouse,emp inc ded)<=spouse_al) Children*dep_al ((Married*(earn_spouse-Empincded(earn_spouse,emp inc ded)<=sp_al)+Children)=0)*ext1_all+((Children+Married*(e arn_spouse-Empincded(earn_spouse,emp inc ded)<=sp_al))=1)*ext2_all+(Married=0)*(Children>0)*(Marri ed=0)*(Children>0)*(add_all*MIN(Children,child_und7_max )) MINA(earn_spouse,(Empincded(earn_spouse,emp inc ded)+bas_al+ext1_all+add_all*Married*(earn_spouseEmpincded(earn_spouse,emp inc ded)>Bas_al)

MIN(earn *(SSC_pe ns),19440 00)+IF(ea rn*(SSC_ sick+SSC _unemp) <=lump_ sum,0,ear n*(SSC_s ick+SSC_ unemp)) B IF(earn*(SSC_sick+SSC_unemp)<=lump_sum,lump_sum,0) B MINA(earn, bas_al+emp_al+sp_al+dp_al+ext_al_princ+ext_al_spouse+l ump_sum+SSC) B 0 B Positive(earn-tax_al) B Tax(tax_inc,tax_sch) B IF(CG_tax_excl<=tax_thresh,cred_rate1* CG_tax_excl,MIN((cred_rate1*tax_thresh+ cred_rate2*(CG_tax_excl-tax_thresh)),cred_max)) B CG_tax_excl-tax_cr B local_rate*CG_tax B MIN(AA7*(SSC_pens),ssc_pens_max)+IF(AA7*(SSC_sick+SSC _unemp)<=lump_sum,0,AA7*(SSC_sick+SSC_unemp)) J 0 B MIN(AA7*(SSC_pens),ssc_pens_max)+earn*(emp_pens+em p_sick+emp_unemp+emp_inj)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

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LUXEMBOURG Chapter 1

La monnaie nationale est l'Euro (EUR). En 2003, EUR 0.9001 étaient égal à 1 USD. Cette année là un ouvrier moyen gagnait EUR 32 198 (estimation du Secrétariat). 1.

Systèmes d’imposition sur le revenu

1.1. Impôts perçus par l’administration centrale 1.11. Unité fiscale Les époux sont imposés collectivement sur leur revenu. Les revenus des enfants mineurs sont à prendre en compte dans le calcul du revenu imposable des époux. Ne tombent cependant pas sous l’imposition collective les revenus que les enfants tirent d’une occupation salariée. 1.12. Allégements fiscaux et crédits d’impôt 1.121. Allégements forfaitaires sous forme de déductions de revenu • Les salariés peuvent déduire à titre de frais professionnels autre que les frais de déplacement un minimum forfaitaire de EUR 540. Ce minimum est déductible à défaut de frais effectifs plus élevés. • Les frais de déplacement du contribuable entre son domicile et le lieu de son travail sont déductibles comme frais d’obtention à concurrence d’un minimum de EUR 396. A partir du 4ème kilomètre cette déduction forfaitaire augmente de EUR 99 par kilomètre. Elle est plafonnée à EUR 2 970. • A l’instar des autres contribuables, les salariés qui n’ont pas de dépenses spéciales (intérêts débiteurs, primes et cotisations d’assurance autres que celles de sécurité sociale) ont droit à la déduction d’un forfait pour dépenses spéciales de EUR 480. En cas de primes effectives d’assurances, ces primes peuvent être déduites jusqu’à concurrence des montants maximaux prévus par la loi. • Les salariés bénéficient d’un abattement de revenu imposable spécial qualifié d’abattement compensatoire et fixé à EUR 600. • Si les deux époux sont salariés et imposables collectivement ils ont droit à un abattement supplémentaire professionnel du revenu imposable d’un montant de EUR 4 500. • Cotisations sociales: Les cotisations versées en raison de l’affiliation obligatoire d’assurance maladie et d’assurance pension, sont déductibles dans leur intégralité. • Assurance dépendance: La contribution dépendance ne rentre pas parmi les dépenses déductibles prévues dans le cadre de l’impôt sur le revenu. 1.122. Allégements non forfaitaires sous forme de déduction de revenu

344

• Les intérêts débiteurs sont déductibles dans la mesure où ils ne sont pas à considérer comme dépenses d’exploitation ou frais d’obtention et à condition de ne pas être en rapport économique avec des revenus exemptés. Toutefois les intérêts ne peuvent être déduits que jusqu’à concurrence d’un montant annuel de EUR 672. Ce plafond est majoré de EUR 672 pour le conjoint et de EUR 672 pour chaque enfant ouvrant droit à une modération d’impôt. © OECD/OCDE 2004

Luxembourg

• Sont déductibles les primes versées à des compagnies agréées dans les pays de l’U.E., à titre d’assurance vie, décès, accidents, invalidité, maladie ou responsabilité civile ainsi que les cotisations versées à des sociétés de secours mutuels reconnues. Toutefois elles ne sont déductibles que jusqu’à concurrence de plafonds d’égale valeur prévue pour les intérêts. • Sont déductibles au titre d’un contrat individuel de prévoyance-vieillesse, les versements effectués auprès d’une compagnie d’assurances ou d’un établissement de crédit. • Les cotisations versées à des caisses d’épargne logement agréées sont déductibles jusqu’à concurrence de plafonds d’égale valeur prévue pour les intérêts. • Les intérêts débiteurs en relation avec la valeur locative de l’habitation occupée par le propriétaire ne peuvent être déduits que jusqu’à concurrence d’un plafond annuel. Pendant les cinq premières années le plafond est de EUR 1 500, les cinq années suivantes il est de EUR 1 125 pour passer ensuite à EUR 750. Ces plafonds sont majorés d’un montant égal pour le conjoint et pour chaque enfant ouvrant droit à une modération d’impôt. • Sur demande les contribuables peuvent obtenir un abattement de revenu imposable du fait de charges extraordinaires qui sont inévitables et qui réduisent d’une façon considérable leur faculté contributive (par exemple frais de maladie non couverts par une caisse, entretien de parents sans ressources, frais de funérailles non couverts par une caisse de décès ou la fortune du défunt), frais de domesticité ou de garde d’enfant, charges pour enfant(s) ne faisant pas partie du ménage du contribuable, charges pour enfant(s) dans un ménage monoparental). 1.13.

Allégements tarifaires

L’impôt sur le revenu est déterminé sur la base du tarif suivant (montants en euros): 0 % pour la tranche de revenu inférieure à 8 % pour la tranche de revenu comprise entre 10 % pour la tranche de revenu comprise entre 12 % pour la tranche de revenu comprise entre 14 % pour la tranche de revenu comprise entre 16 % pour la tranche de revenu comprise entre 18 % pour la tranche de revenu comprise entre 20 % pour la tranche de revenu comprise entre 22 % pour la tranche de revenu comprise entre 24 % pour la tranche de revenu comprise entre 26 % pour la tranche de revenu comprise entre 28 % pour la tranche de revenu comprise entre 30 % pour la tranche de revenu comprise entre 32 % pour la tranche de revenu comprise entre 34 % pour la tranche de revenu comprise entre 36% pour la tranche de revenu dépassant 38% pour la tranche de revenu dépassant

9 750 9 750 11 400 13 050 14 700 16 350 18 000 19 650 21 300 22 950 24 600 26 250 27 900 29 550 31 200 32 850 34 500

et et et et et et et et et et et et et et et

11 400 13 050 14 700 16 350 18 000 19 650 21 300 22 950 24 600 26 250 27 900 29 550 31 200 32 850 34 500

L’impôt à charge des contribuables célibataires est déterminé par l’application du tarif de base au revenu imposable. L’impôt à charge des contribuables mariés correspond au double de la cote qui correspond à l’application du tarif à la moitié de revenu imposable (classe 2). Pour les personnes veuves, les personnes qui bénéficient d’une modération d’impôt pour enfant et les personnes de plus de 64 ans (classe 1a), l’impôt est calculé de la façon suivante : le tarif est appliqué au revenu imposable ajusté réduit de la moitié de son complément à EUR 39 000, sans que pour autant le taux marginal d’imposition ne puisse dépasser 38 pour cent. L’impôt à charge d’un contribuable ayant droit à une modération d’impôt pour enfant(s) est diminué de EUR 900 par enfant à porter en déduction dans la limite de l’impôt dû. L’impôt sur le revenu déterminé par application des dispositions tarifaires au revenu imposable est à majorer de 2.5 pour cent au titre de l’impôt de solidarité perçu en vue du financement du fonds pour l’emploi. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.14. Allégements de revenu Sur demande un contribuable peut obtenir un abattement de revenu de EUR 3 480 par an pour un enfant à charge qui ne fait pas partie de son ménage. Les ménages monoparentaux ont droit à un abattement de revenu de EUR 1 920 s’ils ont un enfant dans le ménage. 1.2. Impôts des collectivités décentralisées (communes) Aucun prélèvement particulier sur le revenu des contribuables n’est opéré en faveur des communes, qui participent directement au produit de l’impôt sur le revenu perçu par l’Etat. Cette participation est de 18 pour cent du produit de l’impôt, déduction faite d’une somme forfaitaire à fixer annuellement par la loi budgétaire. 2.

Cotisations sociales obligatoires versées à des régimes de caractère public Part patronale (%)

a) Assurance vieillesse et invalidité b) c) d) e)

Assurance maladie Assurance dépendance Santé au travail Assurance accidents

Part salariale(%)

8

8

4.90

4.90 1

Plafonds cotisables(en euros)

(6 843,7 x 12 =) 82 124,4 même plafonds que a)

0.11 Taux variable en raison de la probabilité des accidents (0.66 - 6)1

1. Pour l’assurance-accidents, on admet pour le calcul de la part du patron un taux de 0.86 pour cent.

Aucune distinction n’est faite selon la situation de famille ou le sexe. 3.

Prestations sociales d’application générale

3.1. Pour les personnes mariées Aucune. 3.2. Pour enfants à charge Tout enfant élevé dans le Grand Duché ouvre droit, pour celui qui en a la charge à une allocation familiale mensuelle. Les allocations familiales sont régulièrement adaptées au coût de la vie. Au 1er juillet 2002 elles sont de : 1 enfant bénéficiaire 2 enfants bénéficiaires 3 enfants bénéficiaires

EUR 172.36 EUR 409.28 EUR 745.44

A partir du troisième enfant bénéficiaire, les allocations sont relevées de EUR 336 par enfant en plus du troisième. Les montants indiqués ci-dessus sont à majorer de EUR 15.02 en faveur des enfants âgés de plus de 6 ans et de EUR 45.06 au profit des enfants ayant atteint l’âge de 12 ans. 4. 346

Principales modifications intervenues depuis 2001 Prévoyance vieillesse à titre individuel. © OECD/OCDE 2004

Luxembourg

5.

Rubrique pour mémoire

5.1. Identification de l’ouvrier moyen Les gains horaires moyens bruts par branche d’activité et selon le sexe sont déterminés à la suite des enquêtes semestrielles sur les gains et la durée du travail dans l’industrie. Ces enquêtes concernent la rémunération brute perçue pour les heures normales (heures de travail + heures de congé) ainsi que la rémunération versée pour les heures supplémentaires. Le gain horaire brut comprend les primes et indemnités telles que les primes de rendement, de production ou de productivité. Par contre les rémunérations non-périodiques (gratifications, participations aux bénéfices) qui ne sont pas versées systématiquement pour chaque période de paie, n’en font pas partie. Toutefois, afin de permettre la comparaison entre pays, le salaire brut annuel est ajusté en fonction de la moyenne des rémunérations non-périodiques calculée à la suite des enquêtes triennales sur le coût de la main-d’oeuvre. En ce qui concerne la durée du travail, les heures prises en considérations sont les heures de travail effectivement offertes tant celles constituant la durée du travail normal que celles offertes au travail supplémentaire, au travail de nuit ou du dimanche.

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values APW earnings Tax allowances: general compensation professional expenses travel expenses extra if both spouses earning Low earner allowance Low earner allowance (couples) Class 1a limit Tax schedule

Ave_earn gen_dedn comp_al prof_exp travel_exp extra_dedn allow_1 allow_2 cl_1a_lim tax_sch

Child credit maximum Social Minimum Salary Multiplier for unemployment Social security contributions

Child benefit (1 child) 2 children extra age 6-11

ch_cred min_salary unemp_rate SSC_rate SSC_ceil infirm infirm_abatement workhealth SSC_empr SSC_acc CB_1 CB_2 CB_ex

Class 1a Discount Maximum Marginal Rate

discount max_rate

Employer contributions

32198 480 600 540 396 4500 39000 0 0.08 0.1 0.12 0.14 0.16 0.18 0.2 0.22 0.24 0.26 0.28 0.3 0.32 0.34 0.36 0.38 900 16424.8 1.025 0.129 82124 0.01 0.25 0.0011 0.129 0.0086 172.36 409.28 15.02

Secretariat estimate

9750 11400 13050 14700 16350 18000 19650 21300 22950 24600 26250 27900 29550 31200 32850 34500

0.5 0.38

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Luxembourg

The equations for the Luxembourg system are on a joint basis except for social security contributions. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings

earn

2. Allowances: basic work-related other Total

basic work_rel other_al tax_al

J J J J

IF(earn_spouse=0,1,2)*(gen_dedn+comp_al) IF(earn_spouse=0,1,2)*(prof_exp+travel_exp) (earn_spouse>0)*extra_dedn min(basic+work_rel+other_al+SSC_ded_total,earn)

3. Credits in taxable income family quotient

taxbl_cr quotient

J J

0 1+Married

4. CG taxable income unadjusted taxable income

tax_inc

J

earn_tax_al

5. CG tax before credits

tax_excl

J

(Children=0)*IF(Married=0,IF(tax_inc<=allow_1,0,Tax(tax_i nc,tax_sch)*unemp_rate),IF(tax_inc<=allow_2,0,quotient*T ax(tax_inc/quotient,tax_sch)*unemp_rate)) + (Children>0)*IF(Married=0,IF(tax_inc<=allow_2,0,Taxclass1 a(tax_inc,tax_sch,discount,cl_1a_lim,max_rate)*unemp_rat e),IF(tax_inc<=allow_2,0,quotient*Tax(tax_inc/ quotient,tax_sch)*unemp_rate))

6. Tax credits :

tax_cr

J

MIN(tax_excl,Children*ch_cred)

7. CG tax

CG_tax

J

Positive(tax_excl-tax_cr)

8. State and local taxes

local_tax

J

0

9. Employees' soc security

SSC

B

SSC_rate*MIN(earn,SSC_ceil)+infirm*Positive(earninfirm_abatement*min_salary) SSC_rate*MIN(earn,SSC_ceil)

SSC_ded

B

11. Cash transfers

deductible portion

cash_trans

J

((Children=1)*(CB_1+CB_ex)+ (Children=2)*(CB_2+2*CB_ex))*12

13. Employer's soc security

SSC_empr

B

(SSC_empr+workhealth)*MIN(earn,SSC_ceil)+SSC_acc*MI N(earn,min_salary)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

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MEXICO – MEXIQUE Chapter 1

The national currency is the peso (MXN). In 2003 MXN 10.6588 was equal to USD 1 (average of 9 months daily exchange rates). The estimated earnings of the Average Production Worker for 2003 are MXN 62 687 (Secretariat Estimate). 1.

Personal Income Tax

1.1. Central government income tax 1.11. Tax unit Each person is taxed separately. 1.12. Tax allowances and tax credits 1.121. Standard tax reliefs There are two basic allowances, a yearly holiday bonus and an end-of-year bonus. • Holiday Bonus: Mexico's Labour Law stipulates a minimum holiday bonus of 25 percent of six days of the worker’s wage. The maximum exemption according to Tax Law is equivalent to 15 days of minimum wage (the minimum wage for the whole country).1 Given these two restrictions, the allowance is estimated as the minimum established by the Labour Law, up to the amount that is exempt according to Tax Law. • End-of-year bonus: The minimum end-of-year bonus established in the Labour Law is 15 days of the worker’s wage. Tax Law exempts end-of-year-bonuses up to 30 days of the legal minimum wage (the amount for the whole country). The allowance is estimated as the minimum established by the Labour Law, up to the maximum amount that is exempt according to Tax Law. 1.122. Main non-standard tax reliefs • Deductions: • Compulsory school transportation costs. • Medical expenses: An unlimited deduction is allowed for taxpayer’s medical expenses. For those made by the taxpayer, on behalf of his or her spouse and straight line relatives, the deduction is allowed only if the person, for whom he makes the expense, earns less than the minimum annual wage of his geographical area. • Funeral charges: for the spouse and straight-line relatives up to a minimum annual wage of the taxpayer’s geographical area. • Charitable donations made to institutions such as: Federal, state, and municipal governments. Schools, colleges, and universities, hospitals or medical research centres and all other non-profit organisations listed in the law. 350

• Deposits on special savings accounts, insurance plans, and contributions to mutual funds related © OECD/OCDE 2004

Mexico – Mexique

to retirement pensions are considered eligible up to 10 per cent of taxable income, and cannot exceed 75 792 MXN. • Health insurance for individuals, if the beneficiary is the taxpayer, and/or his family. • Beginning in 2003, real interest expenditure for the payment of mortgage loans for housing purposes that do not exceed 4 849 837 MXN. Real interest expenditure is considered the excess of interest expense over the inflation rate. 1.123. Tax credits The tax credit is a variable amount that depends on the worker’s income. This credit is revised yearly; in 2003, the estimated credit for the highest income bracket is equivalent to 2 010.89 MXN. The new Income Tax Law clarifies that employers must pay the worker’s salary tax credit,2 which includes the worker’s tax liability and the excess over that amount that is paid to them in cash. Employers reduce the salary tax credit from their own federal tax liabilities. 1.124. Others There is a fiscal subsidy that depends on the employee’s taxable income and on the percentage that average fringe benefits given by the employer to all workers represent of such income. As income increases the absolute amount of the subsidy increases, but at a diminishing rate, so that the percentage it represents decreases; on the other hand, the amount diminishes with the decrease of the share of fringe benefits. An adjustment factor is estimated to account for the share of fringe benefits, following Article 114 of the Income Tax Law of 2002, using the formula 1-(2x[1-TIP]). TIP denotes the Taxable Income Proportion and represents the sum of total salaries and wages in the manufacturing industry divided by the total amount of remuneration including fringe benefits. The credit that accounts for this fiscal subsidy is derived on the basis of a schedule where there is a base credit amount and an applicable credit rate that is specified for each bracket. For a given level of taxable income, one determines the applicable bracket and then the credit itself is derived using the formula: adjustment factor x (base credit + additional credit rate x applicable tax rate x [taxable income less inferior limit of bracket]). 1.13. Tax schedule The tax schedule is as follows: Taxable income(MXN) Minimum Tax (MXN) Inferior Limit

Superior Limit

0 5 610.37 47 619.34 83 686.75 97 282.22 116 473.28 234 909.94

5 610.36 47 619.33 83 686.74 97 282.21 116 473.27 234 909.93 And over

0 168.27 4 369.10 10 500.74 13 899.60 20 040.65 59 124.79

Tax on the amount in excess of inferior limit (%)

3 10 17 25 32 33 34

In 2003 the tax rate for the highest income bracket is 34 per cent versus 35 per cent in 2002; the number of brackets was reduced to seven. 1.2. State and local income taxes States do not levy taxes on income. 1.3. Payroll taxes. In 2002 a federal payroll tax of 3 per cent was included in a transitory article of the income tax law, and in 2003 it was increased to 4 per cent. The tax applies to the wages and salaries paid.3 © OECD/OCDE 2004

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2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector4

2.1. Employees’ contributions Social security contributions are divided as follows: For sickness and maternity insurance, 0.625 per cent of the workers monthly wage,5 plus 1.2 per cent of the amount in excess of three times the minimal legal wage (the amount that applies within the Federal District of Mexico City). For disability, and life insurance, 0.625 per cent of the monthly wage. 6

2.2. Employers’ contributions • For sickness and maternity 17.15 per cent7 of the minimum legal wage per worker (the amount that applies within the Federal District of Mexico City), plus 3.55 per cent8 of the amount in excess of three times the minimum legal wage (the amount that applies within the Federal District of Mexico City), plus 1.75 of the monthly wage. • For disability and life insurance, 1.75 per cent of worker’s monthly wage. • For social services and nursery, 1 per cent of worker’s monthly wage. • For insurance for work injuries of employees, 3.2 per cent of worker’s monthly wage.9 3. Universal Cash Transfers 3.1. Transfers related to marital status None. 3.2. Transfers for dependent children None. 4.

Main Changes in the Tax/Benefit System since 1995

The Social Security Law enacted in July 1997, changes fundamentally the financing of nongovernment employees’ social security, which shifted from a pay-as-you-go scheme to funded individual accounts. The government no longer manages these accounts; new private financial institutions were created specifically for this purpose. However, the contractual obligation is between the workers and the government, not with the private administrator of the fund, because legally they are still considered as contributions to social security, independently of whom may manage the fund. It should be noted that the federal government also contributes to each pension account, and guarantees a minimum pension to every beneficiary of the social security system, again independently of the administration of the fund. 5.

Memorandum Items

5.1. Method used to identify an average production worker and to calculate his gross earnings The income data refer to production workers in the manufacturing sector. Source: Estimation for the year 2002 based on data of the Monthly Industrial Survey, National Institute of Statistics, Geography and Data Processing (INEGI), 2002. It should be noted that in the sample used for this survey, medium and large size firms are over-represented. In Mexico, there are no state or local government income taxes. Information on non-standard tax reliefs is not available.

352

Figures for 1999 and subsequent years cannot be compared with preliminary figures from previous editions of this publication for two reasons: first, the wage level of the average production worker is now based on observed data instead of being estimated; second, social security contributions taken into account no longer include contributions made by employers and employees to privately managed © OECD/OCDE 2004

Mexico – Mexique

individual accounts. Contributions no longer included in the calculation of social security contributions are specified in the table below. Account

Employers’ contributions Employees’ contributions

Per cent of workers Monthly wage

Retirement Discharge and old age insurance Housing Fund (INFONAVIT) Discharge and old age insurance

2.00 3.15 5.0 1.125

5.2. Main employers' contributions to private pension, health, etc. schemes No information available.

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values Average earnings/yr Allowances (general min wage per day) (general min wage per day for the Federal District of Mexico City) Income tax

min_wage_FD tax_table

Tax credit basic

Basic_crd

Other credit/subsidy

Other_crd

adjustment factor Employees SSC

adj_fac SSC_rate SSC_rate_sur SSC_empr SSC_empr_min SSC_empr_sur

Employers SSC Payroll tax

Ave_earn

62287

min_wage

41.53 43.65 0.00 5610.37 47619.34 83686.75 97282.22 116473.28 234909.94 0.00 20006.76 29458.61 30009.47 39277.45 40012.91 42814.08 50285.61 53350.74 60343.00 70400.53 80457.40 83493.46 0.00 5610.37 47619.34 83686.75 97282.22 116473.28 234909.94 370250.40 0.4621 0.0125 0.0120 0.0770 0.1715 0.0355 0.0400

0.00 168.27 4369.10 10500.74 13899.60 20040.65 59124.79 4603.22 4601.26 4601.26 4598.84 4442.13 4325.47 4325.47 4006.30 3674.20 3332.24 2867.53 2461.03 2010.89 0.00 84.07 2184.58 5249.98 6949.74 10020.16 25654.08 39458.70

0.030 0.100 0.170 0.250 0.320 0.330 0.340

0.50 0.50 0.50 0.50 0.50 0.40 0.30 0.00

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The equations for the Mexican system in 2003 are on an individual basis. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

1. Earnings

earn

2. Allowances

tax_al

Range

Equation

B

MIN(earn*(6/365)*0.25,min_wage*15)+MIN(earn*(15/ 365),min_wage*30)

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,Tax_sch)

6. Tax credits

tax_cr

B

VLOOKUP(tax_inc,Basic_crd,2)+adj_fac*(VLOOKUP(tax_inc ,Other_crd,2)+VLOOKUP(tax_inc,Other_crd,3)*VLOOKUP(t ax_inc,tax_table,3)*(tax_incVLOOKUP(tax_inc,tax_table,1)))

7. CG tax

CG_tax

B

CG_tax_excl-tax_cr

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

earn*SSC_rate+Positive(earn-(3*365*min_wage_FD))* SSC_rate_sur

11. Cash transfers

cash_trans

B

0

13. Employer's soc security

SSC_empr

B

earn*SSC_empr+(365*min_wage_FD)*SSC_empr_min+ Positive(earn-(3*365*min_wage_FD))*SSC_empr_sur

14. Employer´s payroll tax

PYRT

B

(PYRT*earn)-(0.34*(PYRT*earn))

Memorandum item: Non-wastable tax credit tax expenditure component taxexp B tax_cr-transfer cash transfer component transfer B IF(CG_tax<0,-CG_tax,0) Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation)

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© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

NOTES 1. There are three minimum wage rates established in Mexico depending upon geographical location. For the purposes of the Taxing Wages publication, the calculations are either based on the minimum wage that applies within the Federal District of Mexico City or a representative value for the country as a whole. The latter is used in the evaluation of the holiday bonus and the end-of-year bonus. 2. The salary tax credit is initially a labour cost for the employer, but it is fully compensated because the employer reduces its salary tax credit expense from its own federal tax liabilities. For the purpose of Taxing Wages’ country tables it is not included in the average and marginal “tax wedge” formulas. 3. This is an optional tax in a sense that the employer can choose from the following two options: they can choose to pay and deduct the payroll tax, obtaining in full the salary tax credit as in the past; or, they can choose to not to pay the tax, but then he can take credit only for the difference between the full salary tax credit and the corresponding payroll tax. Taking in account the increase in the payroll tax rate from 3 to 4 per cent, the payroll tax continues to be lower that the salary tax credit. Thus, for the purposes of the Taxing Wages publication, it is assumed that the full value of the payroll tax is applied to the wages paid. 4. Ley del Seguro Social y Reglamento para el Pago de Cuotas del Seguro Social, July 1998. 5. In this case, monthly wage includes total fringe benefits. 6. This rate will decrease 0.16 percentage points on an annual basis until 2007. 7. This rate will increase 0.65 percentage points on an annual basis until 2007. 8. This rate will decrease 0.49 percentage points on an annual basis until 2007. 9. The amount of the work injury fee depends on the risk level in which the company is classified. The average risk premium for 1998 was 5.19 per cent. However, a methodological change was made due to access to up-todate information. This figure is now estimated as a weighted average, which accounts for the number of workers in each of the 100 risk levels in which a company can be classified.

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© OECD/OCDE 2004

Chapter 1

NETHERLANDS – PAYS-BAS The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned EUR 31 790 (Secretariat estimate). 1.

Personal Income Tax System (Central Government)

1.1. Central government income tax There are three categories (‘boxes’) of taxable income: • Taxable income from work and owner-occupied housing • Taxable income from a substantial interest in a limited liability company • Taxable income from savings and investments. This description is limited to the most relevant aspects of taxable income from the first category, ‘taxable income from work and owner-occupied housing’, because of its relevance for the APW. 1.11. Tax unit Husband and wife are taxed separately on their personal income, which includes, besides income from business, profession and employment, all pensions and social security benefits. Certain parts of income may be freely split between husband and wife, such as the net-income from owner-occupied housing and the income from savings and investments. 1.12. Tax allowances 1.121. Standard allowances Related to wage earnings: • Employees’ social security contributions (see § 2.1.) are deductible with the exception of the health insurance contribution. The employers’ health insurance contribution is subject to tax. 1.122. Non-standard allowances applicable to APW Related to wage earnings: • For distances of more than 10 km between home and work, forfaitary amounts for travel expenses with public transportation are deductible. The maximum deduction for employees who travel by public transport is EUR 1 773 for distances of more than 80 km. If the travel expenses are reimbursed or the employer provides transport, there is no deduction; the reimbursement is untaxed (also for employees who travel by car) if below certain specified amounts. The fixed deductible amount for employees who travel by bike has been rescinded beginning from January 2003. • Employee contributions to private (company provided) pension schemes. © OECD/OCDE 2004

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Related to owner-occupied housing: • Excess of mortgage interest over net imputed rent. Related to personal circumstances: • Medical expenses and other exceptional expenses: for a single person the expenses are deductible in excess of 11.2 per cent of the income if the income is more than EUR 6 643 and less than or equal to EUR 51 750. If the income is lower than or equal to EUR 6 643 the non-deductible limit is EUR 744 and if the income is higher than EUR 51 750 the non-deductible limit is EUR 5 796. For a person with a partner, the joint income is used to determine the non-deductible amounts. • Some educational expenses: in direct connection with vocational education. Expenses above the threshold of EUR 500 are deductible. Expenses above EUR 15 000 are not deductible; • Donationsto certain institutions (charity) that serve the public good are deductible if in excess of 1 per cent of the income and in excess of EUR 60. No more than 10 percent of the income may be deducted in this way. 1.13. Tax schedule The tax schedule for income from work and owner-occupied housing is as follows: Social securities contributions

Slice of Taxable Income (EUR)

Tax Rate (%)

0-15 883 15 883-28 850 28 850-49 464 49 464 and over

1.7 7.2 42 52

< 65 years

31.2 31.2 – –

> 65 years

13.3 13.3 – –

The contributions for the general social security schemes are levied on the first and second slice of income from work and owner-occupied housing. These social security contributions are not deductible for income tax purposes. Individuals of 65 years and over pay 13.3 per cent (for widows and orphans pensions and exceptional medical expenses) and individuals younger than 65 years pay 31.2 per cent (for widows and orphans pensions, exceptional medical expenses, and old age income provision). For further information see 2.1. 1.14. Tax credits 1.141.Standard tax credits The tax credits are applied to the combined amount of income tax levied and premiums paid for the general social security schemes (see 1.13). The share of the credit attributed to tax is related to the ratio of the tax rate to the sum of the tax rate and the social security contributions rate in the first bracket of the tax schedule. As that ratio is currently 5.2 percent (= 1.7% / [1.7% + 31.2%]), only 5.2 percent of the (tax) credit is attributed to tax; the remaining 94.8 percent being attributed to the social security contributions. In the country tables the social security contributions on taxable income are net of credits. • General tax credit. This credit amounts to EUR 1 766. • Work credit: This credit is the sum of 1.725 percent of the income from work with a maximum of EUR 138 and 10.662 per cent of the income from work with a franchise of EUR 8 001. The maximum work credit is EUR 1 104;

358

• Child credit: A single person with children below 18 years of age receives a credit of EUR 41 if his or her income does not exceed EUR 58 214. A taxpayer with a partner is only entitled to the child credit if his or her income exceeds the income of the partner and the joint income does not exceed EUR 58 214; © OECD/OCDE 2004

Netherlands – Pays-Bas

• Additional child credit: If a person receives the ordinary child credit and the joint income does not exceed EUR 27 438, he or she is also entitled to the additional child credit of EUR 534; If the joint income is above EUR 27 438 but below EUR 29 108 the additional child credit amounts to EUR 354; • Combination credit: A taxpayer with children below the age of 12 years is entitled to a combination credit of EUR 214, if his/ her income from work exceeds EUR 4 206; • Single parent credit: A single parent under certain conditions is entitled to the single parent credit of EUR 1 348; • Additional single parent credit: A single parent who is entitled to the single parent credit receives an additional credit of 4.3 per cent of his or her income from work, with a maximum of EUR 1 348. The amount of the tax credit is limited to the amount of tax and premiums payable (wastable). If, however, a taxpayer with insufficient income to fully exploit his/her tax credit has a partner with a surplus of tax & premiums payable over his/her own tax credit, the tax credit of the former taxpayer is increased by (at most) the surplus tax and premiums payable by his/ her fiscal partner. As a consequence, the tax credit of the former taxpayer will exceed tax and premiums payable, resulting in a payout of the residual tax credit to the taxpayer by the tax authority. 1.2. State and local income taxes These are not used in the Netherlands. 2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1. Employees’ contributions Schemes for employees: • Unemployment: 5.8 per cent of the gross earnings between EUR 14 877 and EUR 43 065 (this contribution is only for the general unemployment fund); • Public insurance for medical care if gross earnings are below EUR 32 050: 1.7 per cent of the gross earnings below EUR 29 493 plus a fixed amount of EUR 325 a year for each adult. General schemes (levied combined with income tax on income from work and owner-occupied housing; see § 1.13): • Old age pension: 17.9 per cent of taxable income in the first and second tax bracket. This scheme does not apply to individuals aged 65 or over; • Widows and orphans pension: 1.25 per cent of taxable income in the first and second tax bracket; • Exceptional medical expenses and disability: 12.05 per cent of taxable income in the first and second tax bracket. 2.2. Employers’ contributions Schemes for employees: • Unemployment: 1.55 per cent of the gross earnings between EUR 14 877 and EUR 43 065 for the general unemployment fund and a contribution of 1.3 per cent of the gross earnings below EUR 43 065 for the industrial insurance associations redundancy payments fund; • Invalidity: 7.4 percent of gross earnings below EUR 43 065; • Public insurance for medical care if gross earnings are below EUR 32 050: 6.75 per cent of gross earnings below EUR 29 493. © OECD/OCDE 2004

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3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children Families with children receive a tax free benefit, depending on the number and age of the children. For a family with two children in the age group of 6 to 12 years the total benefit amounts to EUR 1 709 a year. 4.

Main Changes in the Tax/Benefit Systems Since 2000

In 2001 the tax system has been changed thoroughly. The tax rates have been lowered; and, the basic allowance and its supplements have been transformed into tax credits. The deduction for labour costs has also been replaced by a tax credit. Certain other deductions have been reduced or abolished. Extra tax credits for households with children were introduced. In 2002 and 2003 the tax system has only changed marginally, after the tax reform of 2001. 5.

Memorandum Items

5.1. Identification of the APW and calculation of the APW’s gross earnings The calculation of the annual gross earnings of an APW is based upon data on gross earnings of fulltime workers in the manufacturing industry. These data have been obtained through a yearly sample survey carried out by the Central Bureau of Statistics Included in the APW annual salary are irregular payments, such as holiday allowances, loyalty payments, and bonuses. Payments for working overtime are not included. Because the Central Bureau of Statistics does not report separate figures for manual workers in the manufacturing industry, the wage for manual workers is estimated by taking 90 per cent of the wage for all workers, including white collars workers and supervisors. As the figures for 2001 are not yet available, the 2000 figure was taken, adjusted for the wage increase in 2001 as reported in the Macro Economic Outlook of the CPB Netherlands Bureau for Economic Policy Analysis. The APW salaries in 2002 and 2003 are estimated by the OECD Secretariat based on wage increase estimates from the December 2002 issue of the OECD Economic Outlook. 5.2. Main employers’ contributions to private pension, health and related schemes In addition to the obligatory contributions to social security schemes many employers pay contributions to private pension schemes. Employers have to pay at least 70 per cent of the gross wage of their sick employees for up to a year. In practice, most (collective) labour contracts stipulate that in the case of illness the employee is entitled to 100 per cent of his gross wage. Most employers have insured themselves privately for the risks of their employees being sick. 5.3. Wage-cost-reduction for employers

360

If a full-time employee earns less than EUR 17 576 the employer is entitled to a reduction of EUR 1 687 of the wage tax paid as withholding tax. For part-time employees a pro rata amount can be calculated. Similar reduction schemes exist with respect to employees, who receive a vocational training in addition to their job. The employer has a right to a reduction of EUR 2 485 of the wage tax paid as withholding tax, as long as the full-time employee annual salary does not exceed EUR 20 533. If an employer qualifies for both wage-cost reductions, then the sum of reductions is restricted to a maximum of EUR 3 363. © OECD/OCDE 2004

Netherlands – Pays-Bas

2003 Parameter values Social security contributions Employees' schemes Medical care

General schemes

Tax schedule Tax credits

Family cash transfers

Ave_earn SSC_ceil Unemp_rate1 Unemp_franchise1 Med_rate Med_limit Med_ceil Med_adult Med_child Old_rate Wid_rate Ex_med_rate Gen_Schemes_thrsh Unemp_empr1 Unemp_empr2 Unemp_unempr_franchise1 Unemp_unempr_franchise2 Inv_empr_rate Inv_empr_franchise Med_empr Med_franchise Tax_sch "tax_sch_lowest" "tax_thrsh_1" Gen_credit Emp_credit1 Emp_credit2 Emp_credit1_thr Emp_credit2_thr Ch_credit Ch_credit_thr Ex_ch_credit Ex_ch_credit_thr add_ex_ch_credit add_ex_ch_credit_thr Comb_credit Comb_credit_franchise Sing_par_credit Ex_sing_par_credit_per Ex_sing_par_credit_max Ch1_trans Ch2_trans

31790 43065 0.058 14877 0.017 32050 29493 325 0 0.179 0.0125 0.1205 28850 0.0155 0.013 14877 0 0.074 0 0.0675 0 0.017 0.072 0.42 1766 138 966 8001 17061 41 58214 354 29108 180 27438 214 4208 1348 0.043 1348 854 1708.54

Secretariat estimate

15883 28850 49464

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Netherlands system in 2003 are mostly repeated for each individual of a married couple. But the tax credit of the spouse depends also on the tax paid by the principal if the spouse's income is zero or very low, and the cash transfers are calculated only once. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixe “_spouse” indicates the value for the spouse. No affixe is used for the principal values. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. Part of the tax credit is attributed to income tax; another part to Social Security Contributions. 2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings (gross) Earnings (net) 2. Social security contributions 3. Credits in taxable income

gr_earn earn SSC_al taxbl_cr

B B B

4. CG taxable income 5. CG tax before credits

tax_inc CG_tax_excl / tax_liable tax_cr

gr_earn SSC_f(earn;Unemp_rate1;SSC_ceil;Unemp_franchise1) IF(earn>Med_limit;0;SSC_f(earn;Med_empr;Med_ceil;Med_ franchise)) earn-SSC_al+taxbl_cr Tax(tax_inc;Tax_sch)

P

tax_cr_spouse

S

6. Tax credits income tax

tax_cr_inc

B

7. CG tax 8. State and local taxes 9. Employees' soc security' based on earnings

CG_tax local_tax SSC_earn

B B P

Tax credits :

B B

SSC_earn_spouse S

based on taxable income

SSC_taxinc

B

Total employees' soc security

SSC_liable

J

tax_cr_SSC

J

SSC total_payments cash_trans take_home_pay SSC_empr

J J J J B

Total 10. Total payments 11. Cash transfers 12. Net pay & cash transfers 17. Employer's soc security

362

MIN(CG_tax_excl+SSC_taxinc,Gen_credit+Emp_credit(tax_i nc)+IF(Children>0,IF(tax_inc+tax_inc_spouse0,earn>Comb_credit_franchise),Comb_c redit,0) + IF(AND(Children>0,Married=0),Sing_par_credit+MIN(Ex_si ng_par_credit_max,Ex_sing_par_credit_per*tax_inc),0)) IF(Married>0;MIN(CG_tax_excl_spouse+SSC_taxinc_spouse +CG_tax_excl+SSC_taxinctax_cr;Gen_credit+Emp_credit(tax_inc_spouse)+IF(AND(Ch ildren>0;earn_spouse>Comb_credit_franchise);Comb_credi t;0));0) tax_sch_lowest/ SUM(Old_rate+Wid_rate+Ex_med_rate+tax_sch_lowest)*(t ax_cr+tax_cr_spouse) tax_liable-tax_cr_inc 0 SSC_f(earn;Unemp_rate1;SSC_ceil;Unemp_franchise1)+SSC _f(earn;Unemp_rate2;SSC_ceil;Unemp_franchise2)+IF(earn >=Med_limit;0;SSC_f(earn;Med_rate;Med_ceil;Med_franchi se)+(1+Married*IF(earn_spouse=0;1;0))*Med_adult) SSC_f(earn_spouse;Unemp_rate1;SSC_ceil;Unemp_franchis e1)+SSC_f(earn_spouse;Unemp_rate2;SSC_ceil;Unemp_fra nchise2)+IF(earn_spouse>=Med_limit;0;Med_rate*MINA(e arn_spouse;Med_ceil)+IF(earn_spouse=0;0;Med_adult)) (Old_rate+Wid_rate+Ex_med_rate)*MINA(tax_inc;Gen_Sch emes_thrsh) SSC_earn+SSC_taxinc+SSC_earn_spouse+SSC_taxinc_spou se SUM(Old_rate+Wid_rate+Ex_med_rate)/ SUM(Old_rate+Wid_rate+Ex_med_rate+tax_sch_lowest)*(t ax_cr+tax_cr_spouse) SSC_liable-tax_cr_SSC CG_tax+local_tax+SSC IF(Children=1;Ch1_trans;IF(Children=2;Ch2_trans;0)) gr_earn_total-total_payments+cash_transfer taxbl_cr+SSC_f(earn;Unemp_empr1;SSC_ceil;Unemp_unem pr_franchise1)+SSC_f(earn;Unemp_empr2;SSC_ceil;Unemp _unempr_franchise2)+SSC_f(earn;Inv_empr_rate;SSC_ceil;I nv_empr_franchise)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

© OECD/OCDE 2004

Chapter 1

NEW ZEALAND – NOUVELLE-ZÉLANDE (2003-2004 Income tax year)

The national currency is the New Zealand dollar (NZD). In 2003, NZD 1.7643 was equal to USD 1 (average of nine months daily exchange rates). In that year the Average Production Worker earned NZD 41 452 (Secretariat estimate). 1.

Personal Income Tax System

1.1. Central/federal government income taxes 1.11. Tax unit Members of the family are taxed separately. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • The Low Income Rebate applies where income is under NZD 38 000. It is calculated at 4.5 cents in every dollar of income where income is under NZD 9 500. Where the income is in the range NZD 9 500 – 38 000, the maximum rebate of NZD 427.50 is reduced by 1.5 cents for every dollar over NZD 9 500. • The Transitional Tax Allowance is available to persons with income under NZD 9 880. This rebate is limited to those in full-time employment or who would have been in full-time employment but for sickness or accident. The rebate is NZD 728, reduced by 20 cents on each dollar earned over NZD 6 240 – thus the rebate runs out at NZD 9 880. • Children: No credit to parents. A child under 15 years of age, or under 18 and attending an educational institution, may claim the child rebate against their own earnings. The rebate is calculated as 15 per cent of gross earnings from employment, up to a maximum allowance of NZD 156 on NZD 1 040 of income. Investment earnings are excluded from the calculation of this rebate. 1.122. Main non-standard tax reliefs applicable to an APW None. 1.13. Schedule • Rates of income tax for individuals: Year ended 31st March 2004. • On so much of the income as does not exceed NZD 38 000: 19.5 per cent • On so much of the income as exceeds NZD 38 000 but does not exceed NZD 60 000: 33 per cent • On so much of the income as exceeds NZD 60 000: 39 per cent © OECD/OCDE 2004

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1.2. State and local income taxes New Zealand has no state or local income tax. 2.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

New Zealand has no compulsory social security contributions to schemes operated within the Government sector. It should be noted that there is an accident compensation scheme administered by the Accident Compensation Corporation for residents and temporary visitors to New Zealand. This scheme is funded in part by premiums paid by employees and employers. For employees, the premium represents 1.2 per cent of their gross earnings. For employers, the premiums are based on a percentage of the total payroll and the applicable rate varies depending upon the associated accident risk (the average rate is 0.9 per cent). This scheme is not considered as a compulsory social security contribution for the purposes of the Report. 3.

Universal Cash Transfers

3.1. Amount for marriage None. 3.2. Amount for children The Parental Tax Credit provides NZD 150 per week for the first eight weeks of each child's life. This tax credit abates under the same regime as the Family Support Tax Credit (FSTC), although it is unaffected until both the FSTC and Child Tax Credit have been abated to zero. 3.3. Family support tax credit For an eldest child aged 16-18, the rate of family support tax credit is NZD 3 120 per year, while the rate of NZD 2 444 applies if the eldest child is younger than 16. For subsequent children the rate depends on the age of the child; NZD 3 120 per year for 16-18 year-olds, NZD 2 080 per year for 1315 year-olds and NZD 1 664 per year for children under 13 years of age. The total credit is abated by 18 cents on each dollar earned in range NZD 20 000 – 27 000 and by 30 cents on each dollar earned over NZD 27 000. The abatement is based on the combined income of husband and wife. 3.4. Child tax credit The Child tax credit is available to families not receiving an income-tested benefit, veteran’s pension, New Zealand superannuation, student allowance or a weekly accident compensation for a period of more than 3 months. The level of assistance it provides is NZD 780 per child per year. It is affected by the abatement regime used with the family support tax credit, although it is unaffected until the latter has been abated to zero. In effect it is part of the family support tax credit. 3.5. Family tax credit The Family tax credit is a scheme that ensures a guaranteed minimum family net income for all fulltime earners with dependent children. The guaranteed minimum after-tax income is NZD 290 per week plus family support tax credit. 4. Main Changes in Tax/Benefit Systems Since 2002 (Year Ended 31st March 2003) 364

None. © OECD/OCDE 2004

New zealand – nouvelle-Zélande

5.

Memorandum Items

5.1. Method used to identify APW and to calculate the APW’s gross earnings The Annual Earnings figure is taken from the Quarterly Employment Survey. The series is EESQ.SBAC9Z. The average weekly manufacturing income for each quarter is multiplied by 13 and the totals for the four quarters are added together. 5.2. Employer’s contributions to private pension, health schemes, etc. No information available.

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003-2004 Parameter values Income tax schedule Income under NZ$38000 rebate Income under NZ$9880 rebate Family support credit

Guaranteed minimum family income

Ave_earn Tax_sch reb_38000_rate reb_38000_thrsh1 reb_38000_redn1 reb_9880 reb_9880_thrsh reb_9880_redn Fam_sup_eld Fam_sup_oth Fam_sup_thrsh1 Fam_sup_rate1 Fam_sup_thrsh2 Fam_sup_rate2 Min_inc

41452 0.195 0.330 0.390 0.045 9500 0.015 728 6240 0.20 3224 2444 20000 0.18 27000 0.3 15080

Secretariat estimate 38000 60000

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New zealand – nouvelle-Zélande

The equations for the New Zealand system in 2003 are mostly repeated for each individual of a married couple. But the cash transfer is calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0. 2003-2004 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings

earn

2. Allowances

tax_al

B

0

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

earn

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,Tax_sch)

6. Tax credits : Guaranteed minimum income Under 38000 rebate

GMI rebate_34200

P B

rebate_9880

B

tax_cr

B

(Children>0)*Min_inc Taper(reb_38000_rate*min(tax_inc, reb_38000_thrsh1),tax_inc, reb_38000_thrsh1, reb_38000_redn1) Taper(MIN(reb_9880, CG_tax_excl-rebate_34200), earn reb_9880_thrsh, reb_9880_redn) rebate_38000+rebate_9880

7. CG tax

CG_tax

B

CG_tax_excl-tax_cr

8. Local tax

local_tax

B

0

9. Employees' soc security

SSC

B

0

fam_sup_cr

P

fam_tax_cr

P

Under 9880 rebate Total credit

11. Cash transfers: Family support credit

amily tax credit Cash transfers 13. Employer's soc security

cash_trans

J

Taper(Taper( Fam_sup_eld*(Children>0)+ Fam_sup_oth*Positive(Children-1), earn_total, Fam_sup_thrsh1, Fam_sup_rate1), earn_total, Fam_sup_thrsh2, Fam_sup_rate2-Fam_sup_rate1) Positive(GMI-(earn_total-CG_tax_excl_total+ rebate_38000_total+ rebate_9880_total)) fam_sup_cr + fam_tax_cr

SSC_empr

B

0

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

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Chapter 1

NORWAY – NORVÈGE The national currency is the Kroner (NOK). In 2003 NOK 7.1313 was equal to USD 1 (average of nine months daily exchange rates). In that year the Average Production Worker earned NOK 307 307 (Secretariat estimate). 1.

Personal Income Tax System

The personal income tax has two tax bases: personal income and ordinary income. Personal income is defined as income from labour and pensions. Personal income is a gross income base from which no deduction may be made. Ordinary income includes all types of taxable income from labour, pensions, business and capital. Certain costs and expenses, including interest paid on debt, are deductible in the computation of ordinary income. 1.1. Central government income tax 1.11. Tax unit The tax unit is in most cases the individual (tax class 1), but joint taxation (tax class 2) is also possible and more favourable if the spouse has little or no own income. Single parents are also entitled to be taxed under the tax class 2 schedule. Children less than 17 years old are generally taxed together with their parents, but may be taxed individually. All other income earners are taxed individually (class 1). 1.12. Tax allowances applicable to an APW There are no tax allowances applicable to an APW under the central government income tax (surtax). The tax base is personal income from which no deductions are allowed. As part of the overall tax rate of 28 per cent on ordinary income, 11.76 per cent is considered as central government income tax. 1.13. Rate schedule (surtax) Rate (%)

Class 1 (NOK)

Class 2 (NOK)

0 up to 13.5 19.5

340 700 340 700 – 872 000 872 000 and over

364 000 364 000 – 872 000 872 000 and over

1.2. Local government income tax

368

The overall tax rate on ordinary income is 28 per cent. The local government (municipal and county) income tax is 16.24 per cent points of the overall rate. Tax on ordinary income is levied after taking into account a standard allowance of NOK 31 600 (class 1) and NOK 63 200 (class 2) in 2003. The deductions in the computation of ordinary income are: © OECD/OCDE 2004

Norway – Norvège

1.21. Standard reliefs • Basic allowance: each individual gets a minimum allowance equal to 24 per cent of personal income, with a minimum of NOK 4 000 and a maximum of NOK 45 700. For wage income each individual can choose a separate allowance of NOK 31 800 instead of the basic allowance. Hence, a wage earner would opt to choose this separate allowance as long as it exceeds the basic allowance to which they are entitled to. 1.22. Non-standard reliefs The main non-standard allowances deductible from ordinary income are: • Parent allowance: Documented expenses for child care limited to: – maximum NOK 25 000 for one child – maximum NOK 30 000 for two or more children. The allowance applies in general to the spouse who has the highest income. Unused parent allowance may be transferred to the spouse. The allowance is also applicable to single parents. • Travel expenses related to work exceeding NOK 9 200 • Labour union fees up to NOK 1 450 • Donations to voluntary organisations up to NOK 6 000 • Contributions to individual pension agreement schemes (IPA), maximum NOK 40 000 • Premiums and contributions to occupational pension schemes in the private and public sector, unlimited • Unlimited deduction for interest payments. The main non-standard tax credits are : • Home savings scheme (BSU): The BSU scheme aims to encourage young people (under 34 years old) to save for a future home purchase. A wastable tax credit of 20 per cent of annual savings up to NOK 15 000 in special accounts is granted. Total savings may not exceed NOK 100 000. 1.3. Limitation on total tax payable The total tax payable on ordinary income and net wealth may not exceed 80 per cent of ordinary income. If that is the case the tax on net wealth should be reduced. For net wealth exceeding NOK 1 000 000, the tax levied may not be less than 0.6 per cent of the surplus net wealth. 2.

Social Security Contributions

2.1. Contributions to the national insurance scheme 2.11. Employees’ contributions Employees’ contributions to the National Insurance Scheme generally amount to 7.8 per cent of personal wage income. Employees do not make contributions if their wage income is less than NOK 23 000. Once wage income exceeds this floor, an alternative calculation is made where the contributions equal 25 per cent of the wage income in excess of the floor. The actual contributions made would represent the minimum between the alternative calculation and 7.8 per cent of the total wage income. Contributions from the self-employed are 10.7 per cent of personal income attributable to labour up to twelve times “G”, which represents the basic amount that is used in the calculation of pensions from the National Insurance Scheme, and 7.8 per cent of the income that exceeds this threshold. In 2003, the average “G” is NOK 55 964. Self-employed in primary industries pay 7.8 per cent on their entire labour income. © OECD/OCDE 2004

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2.12. Employers’ contributions Employer’s social security contributions are due for all employees in both the private and the public sector. The contribution is geographically differentiated according to the municipality where the employee resides. The rates are 14.1, 10.6, 6.4, 5.1 or 0 per cent of gross wage. The highest rate applies to central parts of southern Norway. The weighted average rate is approximately 12.8 per cent. The employer’s social security contributions for employees aged 62 years and older are 4 percentage points lower than the standard rate, although not below zero per cent. Where the gross wage of an employee exceeds sixteen times “G”, which represents the basic amount that is used in the calculation of pensions from the National Insurance Scheme, employers are required to make a supplementary contribution amounting to 12.5 percent of the income that exceeds this threshold. In 2003, the average “G” is NOK 55 964. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children (child support) The following transfers are available: NOK 11 664 per child aged 0 – 18 years Single parents receive transfers for one more child than the actual number. For children who are 1 and 2 years old there is an additional child support of NOK 7 884 per child, but this will be abolished from August 1, 2003. Families living in the northernmost part of Norway receive extra child support of NOK 3 792 per year for each child aged 18 or under. 4.

Main Changes in Tax/Benefit Systems Since 2001 • The additional child support of NOK 7 884 for children aged 1 and 2 years is abolished from August 1, 2003. • An allowance of maximum NOK 6 000 for donations to voluntary organisations was introduced from January 1, 2003. Previously this allowance was coordinated with the allowance for labour union fees (with a combined maximum allowance). • From July 1, 2002 the employer’s social security contribution-rates for employees aged 62 years or older were reduced by 4 percentage points, although not below zero per cent.

5.

Memorandum Items

5.1. Identification of an APW and calculation of earnings The wage series used refers to production workers in the manufacturing sector (mining is excluded). The figures relate to production workers only and do not include white-collar workers, supervisory workers, etc. The figures relate to manufacturing establishments affiliated with the Norwegian Employers' Confederation. The calculation of annual wage earnings is as follows: Annual wages + estimated payment for overtime. The annual wages are calculated as the agreed payment for a wage earner working a normal agreed working-year. The calculation includes bonus payments and other allowances, but payments for overtime, sick leave, and an establishment’s indirect wage costs are not taken into account. 5.2. Employers’ contributions to private health and pension schemes 370

No information available. © OECD/OCDE 2004

Norway – Norvège

2003 Parameter values APW-wage Central rate (pers) class 1

Ave_earn Tax1_sch

class 2

Tax2_sch

Central rate (ord) Local rate (ord) Allowances

Cent_rate_ord Local_rate Class_al_1 Class_al_2 Basic_min Basic_max Basic_rel_rate Basic_min_wage SSC_rate SSC_empr SSC_low_lim SSC_low_rate SSC_G SSC_Gmult SSC_rate_sup Child_sup

Basic relief

Soc security contribs Employer Trygd. low.lim pct.rate Ref. Income "G" "G" Multiple Supplemental Rate Child cash transfer

307307 0 0.135 0.195 0 0.135 0.195 0.1176 0.1624 31600 63200 4000 45700 0.24 31800 0.078 0.128 23000 0.25 55964 16 0.125 11664

Secretariat estimate 340700 872000 364000 872000

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the system for Norway in 2003 may be calculated on an individual or joint basis for married couples. Social security contributions are calculated on an individual basis. The calculation for Class 2 is always chosen for single parents and is chosen for married couples whenever this gives a lower value of tax than the corresponding Class 1 calculations. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

1. Earnings

earn

2. Allowances: Class 1 tax allowance (ordinary)

tax_al tax1_al_princ

Range

Equation

J P

IF(class=1,tax1_al_princ+tax1_al_spouse, tax2_al) MIN(MAX(Basic_min_wage,MIN(earn_princ*Basic_rel_rate,Ba sic_max)) +Class_al_1,earn_princ) MIN(MAX(Basic_min_wage,MIN(earn_spouse*Basic_rel_rate, Basic_max)) +Class_al_1,earn_spouse) MIN(MAX(Basic_min_wage,MIN(earn_princ*Basic_rel_rate,Ba sic_max)), earn_princ)+MIN(MAX(Basic_min_wage,MIN(earn_spouse* Basic_rel_rate,Basic_max)),earn_spouse)+Class_al_2

Class 1 tax allowance (ordinary)

tax1_al_spouse S

Class 2 tax allowance (ordinary)

tax2_al

J

3. Credits in taxable income

taxbl_cr

J

0

4. CG taxable income (ordinary) Class 1 taxable income Class 2 taxable income

tax1_inc tax2_inc

B J

Positive(earn-tax1_al) Positive(earn_total-tax2_al)

5. CG tax Class 1 tax (personal+ordinary) Class 2 tax (personal+ordinary)

CG_tax CG1_tax CG2_tax

B J

IF(class=1, CG1_tax,CG2_tax) Tax(earn,Tax1_sch)+Cent_rate_ord*tax1_inc Tax(earn_total,Tax2_sch)+Cent_rate_ord*tax2_inc

6. Tax credits :

tax_cr

P

0

7. CG tax

CG_tax

B

CG_tax

8. State and local taxes Class 1 local tax Class 2 local tax Favourable class

local_tax local1_tax local2_tax class

J B J J

IF(class=1, local1_tax_total, local2_tax) (Local_rate*(tax1_inc_princ+tax1_inc_spouse))-tax_cr (Local_rate*tax2_inc)-tax_cr 1+((CG2_tax_excl+local2_tax)<(CG1_tax_excl_total+local1_ta x_total))

9. Employees' soc security

SSC

B

MIN(earn*SSC_rate, Positive(SSC_low_rate*(earnSSC_low_lim)))

11. Cash transfers

cash_trans

J

(children>0)*Child_sup

13. Employer's soc security

SSC_empr

B

earn*SSC_empr+Positive(earnSSC_G*SSC_Gmult)*SSC_rate_sup

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

372

© OECD/OCDE 2004

POLAND – POLOGNE Chapter 1

The national currency is the Zloty (PLN). In 2003, PLN 3.8884 was equal to USD 1 (average of nine months daily exchange rates). In that year, the Average Production Worker earned PLN 27 193 (Secretariat Estimate). 1. Personal income tax system Any individual who has residency in Poland is liable to tax on the basis of world-wide income, irrespective of the source and origin of that income. (The term “residency” is understood similarly to Article 4 paragraph 2 point a) of the OECD Model Tax Convention on Income and Capital) 1.1. Central government income tax 1.11. Tax unit Individuals are taxed on their own income, but couples married during the whole calendar year can opt to be taxed on their joint income. In the latter case, the ‘splitting’ system applies: the tax bill for the couple is twice the income tax due on half of joint income, provided the joint income does not include capital income taxed at the flat 20 per cent rate. Single individuals with dependant children are also entitled to use the splitting system (their family quotient is two). For the purposes of this report, it is assumed that married couples are taxed on joint income. 1.111. Tax base 1.111.1. Gross employment income For taxation purposes, taxable gross employment income in Poland includes both cash income and the value of benefits in kind. More specifically, gross employment income includes base salary, overtime payments, bonuses, awards, compensation for unused holidays, and costs that are paid in full or in part by the employer on behalf of the employee. 1.111.2. Capital gains and capital income Capital gains are taxed as personal income of individuals. Starting from 1 March 2002 individual taxpayers are liable to pay tax on their gains from savings (i.e. on interest or other revenues earned from deposits at taxpayers’ bank accounts or from other forms of saving, keeping or investing money). This tax has been set at flat rate of 20 per cent and is to be withheld at source. 1.111.3. Dividend income Dividends from joint stock companies and participation in the profits of limited liability companies are distributed from the net after-tax profit of a company. Dividends and shared profits, as well as undistributed retained earnings, are not added to income from other sources. This type of income is taxed at a flat 15 per cent rate without allowing for any deductible costs. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.111.4. Other income – definition Income from each source is defined as the surplus of revenues from that source over the costs involved in generating that revenue in a given tax year. If in a given tax year losses from any source of income exceed the taxpayer’s income from that source, then the taxpayer has the right to deduct the loss in the next five years, providing that the sum of deduction in any concerned tax year will not exceed 50 per cent of the loss. Any loss relief then still unused is not available to be carried forward. 1.111.5. Rental income Rental income is calculated as the difference between rent received less associated costs lumped together with income from other sources. 1.111.6. Royalty income Individuals who earn royalty income are allowed a standard cost deduction of 50 per cent of gross royalties or the actual cost incurred, whichever is greater. This net income is then added to income from other sources and taxed at progressive rates. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic relief: A non-refundable tax credit of PLN 530.18 is available for all tax payers. • Marital status relief: None. • Relief for children: None. • Relief for health insurance contributions: A tax credit is provided that almost equals health insurance contribution paid to the National Health Fund. The contribution is 8 per cent of the basis; tax relief is 7.75 per cent of the basis. In the following calculations the rate of 7.75 per cent is taken into account. • Relief for other social security contributions: An allowance is provided for the remaining social insurance premiums of the taxpayer if they have not been deducted as revenue earning costs. • Relief for selected work- related expenses. Standard deductions depend on the number of workplaces and on whether dwelling place and work place are the same or not. The annual deductible amounts in PLN are:

same as dwelling place different from dwelling place

one workplace

two/more workplaces

1 199.52 1 443.90

1 799.37 2 249.21

1.122. Main non-standard tax reliefs applicable to an average production worker • A 19 per cent credit against income tax is applicable in the following circumstances: • For expenditures related to: a) purchase of land or right of perpetual usufruct of a land designated for the construction of an apartment building – smaller or equal to 350 square meters; b) construction of an apartment building; c) building contribution or housing contribution paid to a housing co-operative, purchase of a newly constructed apartment building or a living accommodation in such a building from persons, who constructed the building as part of their business activity; 374

d) construction of an additional storey or extension of a building for the purposes of living accommodation. © OECD/OCDE 2004

Poland – Pologne

Limit for items specified under letters b to d equal to PLN 30 590 (during the period of validity of the law), but only if taxpayer acquired a right to this deduction before December 31, 2001. • For costs incurred for repair and modernisation of a building, but not more than PLN 5 670 and in the case of a living accommodation not exceeding PLN 4 725. The minimum amount of expenses giving rise to a deduction is PLN 567. The limits for repair and modernisation deductions are determined for three years (2003-2005); • For costs related to supplementary education and vocational upgrading of a taxpayer, but not more than PLN 433.20; • For the purchase of educational equipment and aids, but not more than PLN 433.20; • Of expenses for children commuting to schools situated outside the place of permanent residence; • For expenses for education in schools of higher education, but not more than PLN 760. Deductions from income: • Interest costs associated with housing loans or credits, provided that these taxpayers had not already benefited from housing reliefs in years 1992 –2001; • Expenditure incurred for the construction of a multi-family apartment building where at least five living accommodations are to be let, and expenditures for the acquisition of the plot for the construction of such buildings, but not more than PLN 161 000 per living accommodation to be let, but only if taxpayer acquired a right to this deduction before December 31, 2000; • Expenses for the purpose of rehabilitation; • Donations for the purposes of science, education, culture, health protection and social aid, supporting social initiatives to build roads and telecommunications networks in rural areas and to supply water thereto – up to 15 per cent of the income; for the purposes of religious practice and charitable welfare activities, public security, environment protection, as well as for the purposes connected with housing for local self-governments and for constructing watchtowers or the units of fire protection – up to 10 per cent of income. 1.13. Tax schedule The tax schedule is as follows: Tax base (in PLN)

Over 37 024 74 048

Tax amount

Below 37 024 74 048

19 % of the tax base, less a basic tax credit of PLN 530.08 PLN 6 504.48 + 30% of surplus over PLN 37 024 PLN 17 611.68 + 40% of surplus over PLN 74 048

1.2. State and local income tax There are no regional or local income taxes. 1.3. Wealth tax There is no wealth tax. 2.

Social Security Contributions

2.1. Employees’ contributions Employees pay 18.71 per cent of gross wage. This contribution includes half of the contribution for the old age and disability insurance and health/maternity insurance. Employees also pay 7.75 per cent of their gross wages less the social security contributions described above as a contribution to the National Health Fund. © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.2. Employers’ contributions In respect of income paid under an employment contract with a Polish entity, employers have an obligation to pay social security contributions equal to 20.43 per cent of gross wages; 17.88 percentage points of this contribution is assessed for social insurance (ZUS), 2.45 percentage points for the Labour Fund and 0.15 percentage points for the Benefits Guarantee Fund. Social insurance contribution (ZUS) divides into two parts: • 16.26 percentage points are aimed for pensions and disability payments • 1.62 percentage points (on average) are aimed for industrial accidents fund. The rate varies across industries and is subject to change. In the calculations contained in this Report, a rate of 1.62 per cent is used. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children Average non-taxable family benefit of PLN 42.50 monthly per child are paid to employees whose annual income per each household member, in the calendar year preceding a period of collecting benefit, did not exceed PLN 548 (or PLN 612 in case of single parent) per month. Benefit is granted for a period of 12 months (1.06. – 31.05) (in year 2003 exceptionally: 18 months although the calculations only reflect the normal 12 month payment), thus the right to benefit is tested once a year. 4.

Main Changes in Tax/benefit Systems Since 2002

New, simpler way of tax payment on account of the annual tax for the taxpayers who carry on business activity or begin their business activity was introduced in 2002. • Every month taxpayers may pay on account of their annual tax sums which are equal 1/12 of their income from previous year. • Tax Credit for taxpayers who begin their business activity: in the year followingthe one in which a taxpayer begin his business activity (in form of SME) he is released from the duty of furnishing monthly tax declaration and he is allowed to pay on account of his annual tax sums which are equal 1/12 of his income from previous year. 5.

Memorandum Items

5.1. Identification of APW and valuation of earnings The Polish Central Statistical Office calculates average monthly wages and salaries for employees on the basis of reports of enterprises. The figures include overtime and bonus payments and also include information for part-time employees converted to full-time equivalents. Male and female workers are included. The information, which includes estimates for different sectors, is published in the monthly Statistical Bulletin. 5.2. Employers’ contributions to private pension, health and related schemes 376

No information provided. © OECD/OCDE 2004

Poland – Pologne

2003 Parameter values APW earnings Work expenses Income tax schedule

Ave_earn work_exp tax_sch

Basic credit Health insurance Social security contributions Employers Employees Family benefit income limit income limit for single parent

basic_cr health_ins

25738 1443.9 0.19 0.3 0.4 530.08 0.0775

SSC_empr SSC fam_ben fam_ben_lim fam_ben_lim_sp

0.2043 0.1871 510 6576 7344

Secretariat Estimate 37024 74048

377

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Polish system are mostly calculated on a family basis. The standard functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Two additional functions (Tax93 and ftax) have been incorporated to carry out an iterative calculation for central government tax. These allow for the fact that the church tax is calculated as 9 per cent of Central Government tax and is also allowed as a deduction when calculating taxable income. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings Quotient for tax calculation

earn quotient

J

1+MAX(Married,(Children>0))

2. Allowances:

tax_al

J

work_exp+MIN(earn_spouse,work_exp)

3. Credits in taxable income

taxbl_cr

J

0

4. CG taxable income

tax_inc

J

earn-tax_al-SSC*earn

5. CG tax before credits

CG_tax_excl

J

quotient*Tax(tax_inc/quotient,tax_sch)

6. Tax credits : Basic credit Health insurance Total tax credits

basic_cr health_ins tax_cr

J B J

basic_cr*(1+Married) health_ins*(earn-SSC) basic_cr+health_ins

7. CG tax

CG_tax

J

Positive(CG_tax_excl-tax_cr)

8. State and local taxes

local_tax

J

0

9. Employees' soc security

SSC_emp_cont

B

SSC*earn_total+health_ins*(earn-SSC*earn)

11. Cash transfers

Cash_tran

J

((earn_total/(1+Married+Children))
13. Employer's soc security

SSC_empr_contr B

SSC_empr*earn_total

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

378

© OECD/OCDE 2004

Chapter 1

PORTUGAL La monnaie nationale est l’Euro (EUR). En 2003 EUR 0.9001 étaient égal à 1 USD (moyenne journalière des taux de change sur neuf mois). Pour cette année là on estime qu’un ouvrier moyen gagnait EUR 8 677 (Estimation du Secrétariat). 1.

Système d'imposition sur le revenu

1.1. Impôt sur le revenu perçu par l'administration centrale 1.11. Unité fiscale L'unité d'imposition est le revenu de la famille, y compris le revenu des enfants qui sont à charge des parents. L'impôt est calculé sur le revenu global net des différentes catégories de revenus, c'est-àdire après les déductions spécifiques de chaque catégorie et des allégements forfaitaires et non forfaitaires. 1.12. Allégements forfaitaires, non forfaitaires et crédits d'impôt 1.121. Allégements forfaitaires Déduction forfaitaire jusqu’au limite de 72 pour cent de 12 fois le salaire minimum plus élevé*. Lorsque les cotisations obligatoires aux régimes de protection sociale et les sous régimes légaux de santé dépassent cette limite, la déduction sera celle correspondant au montant total desdites cotisations. Les cotisations syndicales dans la partie qui ne constituent pas des contreparties des prestations de santé, éducation, d’aide au 3ème âge, habitation, d’assurance ou de sécurité sociale, dans la limite de 1 pour cent du revenu brut du contribuable, majorées de 50 pour cent. 1.122. Allégements non forfaitaires Pour les revenus mis à disposition à partir du 1er janvier 1999, on a remplacé la majorité des allégements forfaitaires par des crédits d’impôt (voir § 1.14). Allégements non forfaitaires encore en vigueur : • Pensions alimentaires obligatoires par détermination judiciaire ou par accord judiciairement homologué. 1.13. Cotisations de sécurité sociale Les cotisations de sécurité sociale ne sont déductibles que dans le cas où leur montant, pour chaque contribuable est supérieur à EUR 3 081.02. Dans ce cas cette déduction remplace celle de la déduction forfaitaire sur le salaire (voir § 1.121). * Le montant correspondant est égal à EUR 3 081.02 (72% x 12 x356.60).

© OECD/OCDE 2004

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Crédits d'impôt Crédit de base • EUR 178.30 pour chaque contribuable marié ; • EUR 213.96 pour le contribuable non marié ; • EUR 285.28 pour le contribuable dans le cas des familles monoparentales ; • EUR 142.64 pour chaque enfant à charge; • EUR 196.13 pour chaque ascendant dont le revenu n’est pas supérieur à la pension sociale minimale. Autres crédits d’impôts • Dépenses de santé non remboursées, notamment par la sécurité sociale : 30 pour cent des dépenses de santé et des intérêts d’emprunts destinés à faire face à ces dépenses, sans plafond quand ces dépenses sont exonérées de TVA ou assujetties au taux réduit ou, dans les autres cas, avec une limite de EUR 54.89 ou 2.5 pour cent des dépenses de santés exonérées de TVA ou assujetties au taux réduit et des intérêts d’emprunts destinés à faire face à ces dépenses. • Dépenses d’éducation de l’assujetti et de ses dépendants : 30 pour cent des dépenses dans la limite de 160 pour cent du salaire minimum plus élevé (EUR 570.56). Pour les ménages avec 3 ou plusieurs dépendants à charge, cette limite est majorée de 30 pour cent du salaire minimum plus élevé (EUR 106.98) pour chaque dépendant, dès qu’existent des frais d’éducation à tous ces dépendants. • Dépenses de maisons de santé ou de retraite pour les assujettis, leurs ascendants et collatéraux jusqu’au 3ème degré dont les revenus ne dépassent pas le salaire minimum national : 25 pour cent des dépenses avec la limite de EUR 309.48. Les crédits d’impôts afférents aux dépenses d’éducation et aux maisons de santé ou de retraite sont plafonnés globalement à EUR 710.97. • Charges d’acquisition, de construction ou d'amélioration d’immeubles pour l’habitation principale et permanente des assujettis ou pour donner en location aux fins d’habitation permanente: 30 pour cent des intérêts et des amortissements des dettes dans la limite de EUR 527.99. • Acquisition d’équipements nouveaux pour l’utilisation d’énergies renouvelables : 30 pour cent des montants dépensés dans la limite de EUR 700. • Primes d’assurance vie et d’accidents personnels qui garantissent exclusivement les risques de décès, invalidité ou de retraite vieillesse : 25 pour cent des montants des primes payés dans l’année à laquelle le revenu se rapporte, dans la limite de EUR 54.89 pour les contribuables non mariés et EUR 109.78 pour les deux conjoints. • Primes d’assurance maladie : 25 pour cent des montants des primes payés dans l’année à laquelle le revenu se rapporte, dans la limite de EUR 73.19 pour les contribuables non mariés et EUR 146.38 pour les deux conjoints majorés de EUR 36.60 pour chaque enfant à charge. • Plans Individuels d’Epargne Retraite (PPR) : 25 pour cent des montants placés dans l’année à laquelle le revenu se rapporte dans la limite du plus bas des montants suivants : 5 pour cent du revenu brut imposable ou EUR 661.41, pour les contribuables non mariés ou pour chaque conjoint. • Plans d’Epargne en Actions (PPA) : 7.5 pour cent des montants placés dans l’année à laquelle le revenu se rapporte dans la limite de EUR 199.95 pour les contribuables non mariés ou pour chaque conjoint. • Comptes d’Epargne Logement (PPH) : 25 pour cent des montants placés dans l’année à laquelle le revenu se rapporte dans la limite de EUR 575.57.

380

• Acquisition d’ordinateurs à usage personnel, programmes d’ordinateur, modems, cartes REDIS, terminaux et coûts de liaison à l’Internet: 25 pour cent des montants dépensés dans la limite de EUR 182.97. © OECD/OCDE 2004

Portugal

• Frais entraînés en connexion avec un conseil juridique ou une aide judiciaire : 20 pour cent des montants des dépensés dans la limite de EUR 136.97. • Dons accordés selon les conditions prévues dans le Statut du Mécénat. (Dons accordés à l’administration centrale, régionale ou locale, Institutions particulières de solidarité sociale, musées, bibliothèques, écoles, instituts et associations d’enseignement, d’éducation et de recherche, personnes juridiques d’utilité publique administrative, etc.) : 25 pour cent des dons accordés limités dans certains cas à 15 pour cent de l’impôt payable par le donneur. 1.15. Situation familiale Pour tenir compte de la situation familiale on a institué l'imposition conjointe des revenus de l'unité familiale moyennant l'utilisation de la méthode du “splitting”, pour la détermination du revenu imposable. 1.151. Détermination du revenu imposable Pour la détermination du revenu imposable, auquel sont applicables les taux du barème de l'impôt, le revenu est divisé par 2. 1.16. Barème d'imposition (applicable aux revenus de 2003) Revenu imposable (EUR) (R)

Jusqu'à Plus de 4 182.12jusqu'à Plus de 6 325.45 jusqu'à Plus de 15 682.96 jusqu’à Plus de 36 070.79 jusqu’à Plus de

Taux marginal (%)(T)

Montant à déduire (EUR) (K)

12 14 24 34 38 40

–83.64 716.19 2 284.48 3 727.32 4 772.85

4 182.12 6 325.45 15 682.96 36 070.79 52 276.51 52 276.51

Pour ce qui concerne les contribuables dont le revenu est surtout du travail dépendant (revenus salariaux), le revenu disponible, après l’application des taux du barème au revenu imposable, ne peut pas être inférieur au salaire minimum national majoré de 20 pour cent, ni entraîner un impôt sur les revenus, dont l'assiette imposable après application du quotient conjugal soit égale ou inférieure à EUR 1 667.63. Dans la Région Autonome des Açores, les taux d’imposition sont réduits de 20 pour cent pour les personnes physiques résidantes. Dans la Région Autonome de Madeire le barème applicable est : Revenu imposable (EUR) (R)

Jusqu'à Plus de 4 182.12 jusqu'à Plus de 6 325.45 jusqu'à Plus de 15 682.96 jusqu’à Plus de 36 070.79 jusqu’à Plus de

Taux marginal (%) (T)

4 182.12 6 325.45 15 682.96 36 070.79 52 276.51 52 276.51

10 12 23 33 37 39

Montant à déduire (EUR) (K)

–83.64 779.44 2 347.74 3 790.57 4 836.10

Formule de calcul de l'impôt ( I = Impôt dû): • Contribuables non mariés: I = R x T - K - C • Contribuables mariés (ayant un seul ou deux salaires/voir § 1.151): I ={[ (R : 2) x T - K] x 2 } – C Avec: R = Revenu imposable, après déduction des allégements forfaitaires et non forfaitaires (voir § 1.122, § 1.122 et 1.151) T = Taux correspondant à l'échelon du revenu imposable K = Montant à déduire dans chaque échelon © OECD/OCDE 2004

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C = Crédits d'impôt (voir § 1.14) 1.17. Situations familiales particulières 1.171. Contribuable/conjoint handicapé(s), avec un degré d'incapacité égal ou supérieur à 60 pour cent : • la déduction forfaitaire sur le revenu salarial est relevée de 50 pour cent ; • le crédit d'impôt de base est relevé de 50 pour cent ; • les revenus salariaux sont exonérés de 50 pour cent dans la limite d’exonération de EUR 13 774.86; • les revenus des pensions sont exonérés de 30 pour cent dans la limite d’exonération de EUR 7 778.74. 1.172. Enfants à charge handicapés, avec un degré d'incapacité égal ou supérieur à 60 pour cent : • le crédit d'impôt de base est relevé de 50 pour cent ; 1.18. Ne sont pas imposables • Les allocations éventuelles destinées à des dépenses d'assistance médicale ou d'hospitalisation du contribuable lui-même, dûment documentées ; • les allocations familiales attribuées conformément à la loi ; • les allocations pour pertes éventuelles, à concurrence du montant correspondant à 5 pour cent de la rémunération mensuelle fixe, pour ce qui est des contribuables qui sont teneurs de caisse des entreprises ; • les frais de séjour à concurrence de la limite des montants établis pour les fonctionnaires de l' État ; • les allocations pour repas jusqu'à la limite du montant établi pour les fonctionnaires de l' État, accru de 50 pour cent ou 70 pour cent dans le cas d’allocation pour repas avec des “coupons repas”. 2.

Cotisations sociales obligatoires versées à des régimes de caractère public

Taux et plafond : les taux de cotisations de sécurité sociale frappent les salaires bruts sans aucun plafond. 2.1. Cotisations des salariés En règle générale, le taux des cotisations des salariés est de 11 pour cent du revenu brut, sans aucun plafond. 2.2. Cotisations patronales Le taux des cotisations de sécurité sociale des employeurs est de 23.75 pour cent du salaire brut, sans aucun plafond. 2.3. Fonctions de protection sociale couvertes • Santé (maladie, invalidité, accidents du travail, maladie professionnelle) ; • Vieillesse, survie ; • Maternité ; • Famille (Allocations familiales) ; 382

• Chômage. © OECD/OCDE 2004

Portugal

3.

Prestations sociales en espèces d’application générale

3.1. Prestations au titre des enfants à charge Le principe de base est d’accorder des prestations sociales mensuelles plus élevées pour des ménages dont le revenu brut est plus bas. Les montants mensuels pour des enfants à charge sont divisés en quatre échelons selon le revenu annuel de la famille y compris les allocations de vacances et de Noël (14 mois) : • 1er échelon pour les familles dont le revenu annuel est inférieur à 1.5 fois le salaire minimum annuel (jusqu’à EUR 7 488.60 en 2003) • 2e échelon pour les familles dont le revenu annuel est supérieur à 1.5 fois et inférieur à 4 fois le salaire minimum annuel (entre EUR 7 488.60 et EUR 19 969.60 en 2003) • 3e échelon pour les familles dont le revenu annuel est supérieur à 4 fois et inférieur à 8 fois le salaire minimum annuel (entre EUR 19 969.60 et EUR 39 939.20 en 2003) • 4e échelon pour les familles dont le revenu annuel est supérieur à 8 fois le salaire minimum annuel (supérieur à EUR 39 939.20 en 2003). Chaque échelon est aussi divisé en fonction de l’âge de l’enfant à charge. Dans les premiers 12 mois de vie de l’enfant les prestations sociales sont majorées. Ainsi, les nouvelles prestations sociales, au 1er janvier de 2003, sont les suivantes : Age inférieur à 12 mois Nombre d’enfants

Échelon 1 Échelon 2 Échelon 3 Échelon 4

1-2

89.04 77.74 66.49 41.16

Au-delà de 2

133.65 112.74 89.39 53.57

Age supérieur à 12 mois 1-2

26.76 20.86 17.86 15.72

Au delà de 2

40.15 30.58 24.21 20.45

Il y a aussi un régime spécial d’allocation familiale pour les enfants handicapés. Les prestations en espèces ici mentionnées (3.1 et 3.2) ne sont pas imposables. 4.

Principales modifications apportées au système fiscal et au régime des prestations sociales depuis 2000 Il n’y a pas eu de modifications.

5.

Rubriques pour mémoire

5.1. Méthode suivie pour l'identification et le calcul des gains bruts de l'ouvrier moyen On a pris en considération toutes les personnes qui participent directement à la production ou à des activités auxiliaires de l'établissement, y compris le personnel chargé de l'exécution de toute opération intégrant le processus productif, c'est-à-dire, le personnel affecté à la production, la transformation ou l'assemblage ; le personnel de magasin, d'emballage, de maintien et de réparation, les conducteurs, les gardiens et les employés qui travaillent dans l'établissement. Le concept de rémunération mensuelle adopté est le suivant : Montant des rémunérations versées au personnel au cours du mois avant déduction des impôts et des cotisations obligatoires. Donc, il englobe : les traitements et les salaires de base du personnel dont la rémunération est effectuée en fonction du temps de travail, à la pièce ou à la tâche ; les prestations en nature ou en habitation lorsque celles-ci peuvent être considérées comme faisant partie intégrante des traitements et des salaires ; les subventions en espèces de repas, de logement, de transport ; les primes pour travail de nuit régulier et les primes d'ancienneté, aussi bien que les primes d'assiduité, d'encouragement et de productivité ; les allocations familiales, les rémunérations versées en raison © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

des heures supplémentaires et des jours non ouvrables. Pour toutes prestations, subventions et primes sont seulement considérées celles qui sont payées régulièrement à chaque période de paye. Les paiements en nature sont pris en considération dans le concept de rémunération. Ces avantages en nature sont retenus dans les statistiques pour leur valeur imposable. Le gain moyen annuel est fondé sur la moyenne des gains du mois d’avril et du mois d’octobre multiplié par un coefficient qui représente le poids des primes et des allocations annuelles reçues (y inclus les subsidies de vacances et le paiement de l’allocation de Noël), lequel est fournit par l’enquête du coût de la main-d’oeuvre de 1992. La formule utilisée est la suivante: Gain moyen annuel = Gain moyen mensuel pondéré par le coefficient x 12. 5.2. Description des principales cotisations patronales à des régimes privés de retraite, d'assurance maladie, etc. Les entités patronales sont tenues, en dehors du système de sécurité sociale, d'effectuer l’assurance (auprès des compagnies d’assurances privées) des employés en matière d’accident du travail. Elles peuvent aussi, bien qu’à titre facultatif, établir une assurance vie pour leurs employés.

384

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Portugal

2003 Parameter values APW earnings Tax allowances

Ave_earn Perc max_al

8677 1 3081.02

Tax credits Married (basic) Single (basic) Single parent Each child credit Tax schedule

married_cred single_cred singlepar_cred child_cred tax_sch

Social security contributions ceiling Child benefit - Schedule

tax_floor SSC_rate SSC_empr ch_ben_sch

178.3 213.96 285.28 142.6 0.12 0.14 0.24 0.34 0.38 0.4 1667.63 0.11 0.2375 0 7488.61 19969.6 39939.2

Secretariat estimate

4182.12 6325.4 15682.96 36070.79 52276.51

321.12 250.32 226.32 188.64

1st echelon 2nd echelon 3rd echelon 4th echelon

385

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the Portugese system in 2003 are mostly calculated on a family basis. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings Divisor for tax calculation

earn divisor

J

1+Married

2. Allowances:

tax_al

J

MAX((MIN(perc*earn_princ,max_al)+MIN(perc* earn_spouse,max_al)),SSC_princ+SSC_spouse)

3. Credits in taxable income

taxbl_cr

J

0

4. CG taxable income

tax_inc

J

earn-tax_al

5. CG tax before credits

CG_tax_excl

J

IF(tax_inc/divisor>tax_floor,Tax(tax_inc/ divisor,tax_sch)*(1+Married),0)

6. Tax credits : Basic credit

basic_cr

J J

Child credit Total

child_cr tax_cr

J J

IF(Married,2*married_cred, IF(children,singlepar_cred,single_cred)) Children*child_cred basic_cr+child_cr

7. CG tax

CG_tax

J

Positive(CG_tax_excl-tax_cr)

8. State and local taxes

local_tax

J

0

9. Employees' soc security

SSC

B

earn*SSC_rt

11. Cash transfers

cash_trans

J

Children*vlookup(earn,ch_ben_sch,2,1)

13. Employer's soc security

SSC_empr

B

earn*SSC_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

386

© OECD/OCDE 2004

SPAIN – ESPAGNE Chapter 1

The national currency is the Euro (EUR). In 2003, EUR 0.9001 was equal to USD 1 (average of nine months daily exchange rates). In that year the Average Production Worker earned EUR 16 975 (Secretariat estimate). 1.

Personal Income Tax System

1.1. Central government income tax 1.11. Tax unit As a general rule, the tax unit is the individual. Nevertheless, families have the options of being taxed: • As married couples filing jointly on the combined income of both spouses and dependents. • As heads of households (only unmarried or separated individuals with dependents). 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic reliefs: A personal allowance of EUR 3 400 is granted for each individual. For married couples filing jointly the allowance amounts to EUR 3 400 for each spouse. This figure is EUR 5 550 for heads of households. • Dependent children (under 25 years): EUR 1 400 for the first dependent child; EUR 1 500 for the second one; EUR 2 220 for the third and EUR 2 300 for the fourth. • Child care allowance: an additional allowance of EUR 1 200 for each of the above dependent children under 3 years. • Maternity tax credit: a non-wastable tax credit addressed to working females with children under 3 years of age up to EUR 1 200 • Relief for social security contributions: All these payments are fully deductible. • Work related expenses: Net work income (gross income less employee social security contributions) may be reduced according to the following rules: • Taxpayers with net employment income equal or less than EUR 8 200: EUR 3 500 • For those with a net employment income between EUR 8 200.01 and EUR 13 000: EUR 3 500 less the result of multiplying by 0.2291 the difference between net income and EUR 8 200. • Taxpayers with net income over EUR 13 000 or non employment income over EUR 6 500: EUR 2 400. • Extending labour market participation allowance: taxpayers extending their labour market participation beyond the retirement age (65) may increase the work-related expense allowance by 100%. • Geographic mobility allowance: unemployed taxpayers accepting a job in a different location may also increase the work related allowance by 100 per cent. • Disabled workers allowance: an allowance of EUR 2 800 for disabled salary earners. Those with re© OECD/OCDE 2004

387

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

duced mobility may claim an augmented allowance of EUR 6 200. As a result of the application of the above rules, net income can not become negative. 1.122. Main non-standard reliefs applicable to an APW • Contributions to approved Mutual, Superannuation Funds and Mutual Insured Plans: Contributions made by each member of the household, may reduce taxable income up to a maximum limit of EUR 8 000 yearly. Contributions made by taxpayers exceeding 52 years of age may be increased by EUR 1 250 for each additional year up to a maximum limit of EUR 24 250. Also, those households whose second earner has net work income below EUR 8 000 may reduce taxable income up to a maximum of EUR 2 000 on a yearly basis, if the principal earner contributes to a Pension Fund for her/him. • Relief for subscriptions paid in respect of membership of a trade union and business or professional associations (last item is limited to mandatory membership) up to EUR 300.51. • Relief for expenses made for the legal defence of the taxpayer for labour-related conflicts up to a maximum limit of EUR 300. Other non-standard reliefs provided as deductions are: • Investment in the acquisition and rehabilitation of own-housing: – As a general rule, 15 per cent of the investment made during the year with a maximum limit of EUR 9 015.18. – By using external funds (e.g. loans, mortgage): The first two years after the acquisition or rehabilitation: 25 per cent of the first EUR 4 507.59 and 15 per cent of the rest, with a maximum of EUR 9 015.18. In subsequent years: 20 per cent and 15 per cent, respectively. • Gifts: 10 per cent of the amounts donated to foundations and associations declared of public benefit. 25 per cent if these amounts are donated to some special legally approved foundations and associations and other private and public institutions. • Investments and expenses in goods of cultural interest: 15 per cent of the amounts granted to the importation, restoration, exhibition, etc. of certain goods listed in the General Registrar of Goods of Cultural Interest. The last two amounts shall not exceed 10 per cent of taxable income. 1.13. Tax schedule General rates of tax – resident individuals Taxable income ( EUR)

Tax at the lower limit ( EUR)

Tax rate on taxable income in excess of the lower limit (%)

0.00 362.40 1 914.72 4 156.32 8 900.64

9.06 15.84 18.68 24.71 29.16

Tax at the lower limit (EUR)

Tax rate on taxable income in excess of the lower limit (%)

0.00 237.60 1 037.28 2 155.68 4 515.36

5.94 8.16 9.32 12.29 15.84

0.00-4 000.00 4 000.00-13 800.00 13 800.00-25 800.00 25 800.00-45 000.00 Over 45 000.00

1.2. State and local income taxes Regional rates of tax – resident individuals Taxable income (EUR)

388

0.00-4 000.00 4 000.00-13 800.00 13 800.00-25 800.00 25 800.00-45 000.00 Over 45 000.00

© OECD/OCDE 2004

Spain – Espagne

2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

Social Security contributions are assessed on the basis of employees’ gross earnings taking into account certain ceilings of gross employment income. In 2003, these ceilings are: • Lower ceiling: EUR 6 318 • Upper Ceiling: EUR 32 191.20 These ceilings are based on a full-time job. For part-time workers, ceilings are proportional to the real hours worked (the tax equations used for this Report do not take into account the lower ceiling). 2.1. Employees’ contributions • Old age pension/sickness and disability 4.7 per cent • Unemployment 1.55 per cent • Professional Training 0.1 per cent 2.2. Employers’ contributions • Old age pension/sickness and disability 23.6 per cent • Unemployment/Work injuries 6.0 per cent • Wages fund 0.4 per cent • Professional Training 0.6 per cent 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children Up to EUR 291 per child for taxpayers with annual gross earnings below EUR 9 138 in 2003, based on the assumptions made for the APW family-type (two children). 4.

Main Changes in Tax/Benefit Systems in 2003

Effective as of 1 January, the government has made modifications to the Personal Income Tax Law providing for targeted reductions in taxpayers’ tax burden in order to achieve specific policy objectives as described below: • Recognise the central role of households. Increasing the existing family allowances for dependents, ascendants and the disabled. Creating new allowances for taxpayers with children under three years and for assistance to the elderly. • Reduce taxation of labour income. Increasing the existing work related allowance and creating new work related allowances for workers extending their labour market participation beyond the official retirement age (65 years), and for those unemployed taxpayers accepting a job in a different location. • Increase the supply of rental housing. A new tax incentive has been created allowing landlords the possibility of reducing their net capital income by a 50 per cent. • Improve female’s labour market participation. A non-wastable tax credit has been introduced for female employees with children less than three years of age. • Alleviate the taxation of saving and capital gains. Eliminating taxation of accrued capital gains in investment funds amounts are transferred from one fund to another and reducing the tax rate (from 18 to 15 per cent) of long term capital gains (>1 year). © OECD/OCDE 2004

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

5.

Memorandum Items

5.1. Identification of an APW and calculation of earnings Refer to the information provided in Part III and Annex IV of this Report.

390

© OECD/OCDE 2004

Spain – Espagne

2003 Parameter values APW earnings Work related allowance

Basic Allowance Dependent children

Ave_earn wr_rate wr_lim_max wr_lim_min wr_lim_min_1 wr_allow_max wr_allow_min bas_allow_sing bas_allow_fam1 bas_allow_fam2 dep_child tax_sch_sg

pension_rate unemp_rate oth_rate pension_empr unemp_empr oth_empr

16975 0.2291 13000 8200 8200.01 3500 2400 3400 6800 5550 1450 0 4000 13800 25800 45000 0 4000 13800 25800 45000 0.047 0.0155 0.001 0.236 0.06 0.01

min_lim top_lim

0 32191.2

tax_sch_sa

Social security contributions -unemployment -other Employer -unemployment -other Social security contributions at the level of an APW

Secretariat estimate

0 362.4 1914.72 4156.32 8900.64 0 237.6 1037.28 2155.68 4516.36

9.06% 15.84% 18.68% 24.71% 29.16% 5.94% 8.16% 9.32% 12.29% 15.84%

391

© OECD/OCDE 2004

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The equations for the Spanish system are mostly applied on a joint (family) basis for married couples - except that individual taxation is chosen when this gives a lower value. But social security contributions are calculated for individuals. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_sp” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_sp” values taken as 0. 2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

1. Earnings

earn

B

2. Allowances: Basic, individual Basic, family

tax_allow basic_ind basic_fam

B,J B J

Work related, individual

work_ind

B

Work related, family

work_fam

J

Child, individual

child_ind child_fam taxbl_cr tax_inc

P S J B, J B, J

tax_inc_ind tax_inc_fam

B J

liable_sing_1 liable_sing_2 liable_joint CG_tax_ind_ex

P S J B

for individual taxation: earn=earn_princ, or earn=earn_sp for joint (family) taxation: earn=earn_princ+earn_sp (earn_princ+earn_sp)-tax_inc IF(earn=0,0,bas_allow_sing) IF(AND(Married=0,Children=0),0,IF(AND(Married=0,Children >0), bas_allow_fam2,bas_allow_fam1)) IF(earn-SSC<=wr_lim_min,wr_allow_max,IF(earnSSC<=wr_lim_max, wr_allow_max-wr_rate*((earn-SSC)(wr_lim_min+1)),wr_allow_min)) IF(AND(earn_sp=0,Married=0,Children=0),0,IF(earn_totalSSC_fam<=wr_lim_min, wr_allow_max,IF(earn_totalSSC_fam<=wr_lim_max,wr_allow_max-wr_rate*((earn_totalSSC_fam)-(wr_lim_min+1)),wr_allow_min))) IF(earn_sp=0,dep_child*Children,dep_child/2*Children) IF(earn_sp=0,0,dep_child/2*Children) IF(earn_sp=0,dep_child*Children,dep_child/2*Children) 0 IF(AND(Married=0,Children=0),tax_inc_princ,MINA(tax_inc_p rinc+tax_inc_sp, tax_inc_fam)) Positive(earn-(basic_ind+work_ind+child_ind +SSC)) IF(AND(Married=0,Children),0,Positive(earn(basic_fam+work_fam+child_fam +SSC_princ+SSC_sp))) Tax(tax_inc_princ, TAX_SCH_S) Tax(tax_inc_spouse, TAX_SCH_S) Tax(tax_inc_total, TAX_SCH_F) MAXA(0,VLOOKUP(tax_inc_ind,tax_sch_sg,2)+(tax_inc_indVLOOKUP(tax_inc_ind,tax_sch_sg,1))*VLOOKUP(tax_inc_ind, tax_sch_sg,3)) MAXA(0,VLOOKUP(tax_inc_fam,tax_sch_sg,2)+(tax_inc_famVLOOKUP(tax_inc_fam,tax_sch_sg,1))*VLOOKUP(tax_inc_fam ,tax_sch_sg,3)) 0 CG_tax_ind_ex CG_tax_fam_ex MAXA(0,VLOOKUP(tax_inc_ind,tax_sch_sa,2)+(tax_inc_indVLOOKUP(tax_inc_ind,tax_sch_sa,1))*VLOOKUP(tax_inc_ind, tax_sch_sa,3)) MAXA(0,VLOOKUP(tax_inc_fam,tax_sch_sa,2)+(tax_inc_famVLOOKUP(tax_inc_fam,tax_sch_sa,1))*VLOOKUP(tax_inc_fam ,tax_sch_sa,3)) IF(AND(earn>0,earn<=min_lim),min_lim*(pension_rate+une mp_rate+oth_rate), IF(earn>=top_lim,top_lim*(pension_rate+unemp_rate+oth_r ate),earn* (pension_rate+unemp_rate+oth_rate))) SSC_princ+SSC_sp 0 IF(AND(earn>0,earn<=min_lim),min_lim*(pension_empr+un emp_empr+ oth_umpr),IF(earn>=top_lim,top_lim*(pension_empr+unem p_empr+oth_empr), earn*(pension_empr+unemp_empr+oth_empr)))

Child, family 3. Credits in taxable income 4. CG taxable income

5. CG tax before credits

CG_tax_fam_ex J 6. Tax credits : 7. CG tax 8. State and local taxes

9. Employees' soc security

11. Cash transfers 13. Employer's soc security

392

tax_cr CG_tax_ind CG_tax_fam local_tax_ind

B,J B J B

local_tax_fam

J

SSC

B

SSC_fam cash_trans SSC_empr

J J B

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only S calculated for spouse only J calculated once only on a joint basis

© OECD/OCDE 2004

Chapter 1

SLOVAK REPUBLIC – RÉPUBLIQUE SLOVAQUE The national currency is the Slovak Koruny (SKK). In 2003 SKK 37.4595 was equal to USD 1 (average of nine months daily exchange rates). In that year, the average production worker earned SKK 150 000 (national estimate). 1.

Personal Income Tax System

1.1. Central government income taxes 1.11. Tax unit The tax unit is the individual. 1.12. Tax allowances and tax credits 1.121. Standard reliefs Basic relief: SKK 38 760 allowance for all individuals, 8 400 SKK per year, if the taxpayer receives partial disability pension; 16 800 SKK per year, if the taxpayer receives full disability pension or other income on the grounds of disability. Marital status relief: An additional allowance of SKK 12 000 is given in respect of a spouse living in a common household if that spouse earns no more than SKK 38 760. Relief for children: One spouse may claim an allowance of SKK 16 800 per child for children of the household who satisfy one of the following criteria: (1) aged below 18, (2) aged below 26 and receiving fulltime education, (3) aged below 26 and physically or mentally disabled provided that the child is not in receipt of a state disability payment. The allowances are given irrespective of the child’s own income. Relief for social and health security contributions: Employee’s social security contributions (see § 2.1.) are deductible for income tax purposes. 1.122. Main non-standard tax reliefs applicable to an APW Charitable donations allowance: A tax allowance of up to 10 per cent of taxable income is available for donations made to municipalities or legal entities for financing of social, health, cultural, humanitarian, religious, ecological and sport activities. Minimal limit for donations is SKK 500. Supplementary pension insurance: It is possible to deduct premiums paid to the supplementary pension insurance by tax payer up to 10% of his income, with the maximum limit of 24 000 SKK per year. 1.13. Tax schedule The tax schedule is as follows:

© OECD/OCDE 2004

Taxable income (SKK)

Tax at lower limit (SKK)

0-90 000 90 000-180 000 180 000-396 000 396 000-564 000 564 000 and more

0 9 000 27 000 87 480 146 280

Tax rate on taxable income in excess of the lower limit (%)

10 20 28 35 38

393

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.2. State and local income tax Out of the total revenue from the income tax from dependent personal services and emoluments collected by the State, an amount of SKK 7 801 millions is transferred into the budget of municipalities. No separate state and local income tax exist. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees’ contributions Compulsory contributions of 12.8 per cent of gross wages and salaries (with no limit) are paid by all employees into government operated schemes. The total is made up as follows: – Health Insurance – Social Insurance of which: – Sickness – Retirement – Unemployment

4.0 per cent 8.8 per cent 1.4 per cent 6.4 per cent 1.0 per cent

2.2. Employers’ contributions The total contribution for employers is 38 per cent of gross earnings. The contribution consists of the health insurance contribution (10 per cent of gross wages and salaries) and social insurance (28 per cent). 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children The central government pays an allowance in respect of each dependent child in the amount of 270 SKK. An additional benefit based on the family income level is provided if family income does not exceed two times the relevant minimum living standard (MLS). The limits of family income bands are defined as multiples of the MLS. Family income includes the earnings of both parents net of income tax and the employee’s social security and health insurance contributions. Non-taxable family additional benefit is paid as follows: Family income Age of Child

Below 6 6 to 15 Over 15

Up to 1.37 MLS

1.37 – 2.2 MLS

Total payment SKK per month

410 560 620

210 320 350

The monthly MLS for the APW-type family with children can be calculated by adding the following amounts (in SKK): MLS

1. Adult 2. Adult Child

394

3 930 2 750 1 780

An additional allowance is paid by the local government to low-income families. The transferred amount varies according to the types of allowance and the income of family and is not taken into consideration within this Report. © OECD/OCDE 2004

Slovak Republic – République Slovaque

3.3. Transfers related to social status* To determine the claim to state social benefits (for example the allowance for housing costs) the following threshold amounts are relevant: • 3 000 SKK monthly, in the case of one adult, who is – the parent of dependent a child or – dependent child, whose income is considered separately. • 2 100 SKK monthly, in the case of – jointly considered person, who is the parent of dependent child, – jointly considered person, who is a husband of the parent of dependent child, – wife of a soldier conducting military service or civil service, – a person, to whom a soldier conducting military service or civil service has a maintaining obligation set by court, in the case of a dependent child. • 1 770 SKK monthly, in the case of a dependent child over the age of 15 years, • 1 660 SKK monthly, in the case of a child of 6 up to 15 years of age, • 1 350 SKK monthly, in the case of a child up to 6 years of age. A family is entitled to a social allowance if net monthly income of the members of the family does not reach these amounts. The extent of the allowance varies in accordance of the type. 4.

Main Changes in Tax/Benefit Systems since 2002

The system of the children benefits was changed. The amount of 270 SKK is paid for each child without reference to the family income. Only an additional benefit is dependent on the family income. 5.

Memorandum Items

5.1. Identification of APW and valuation of earnings The average earnings of an APW are estimated by the Slovak Statistical Office from employer survey data. The figures include overtime and bonus payments and also include information for parttime employees converted to full-time equivalents. Male and female workers are included.

* The transfers related to social status do not affect the calculations in this Report.

© OECD/OCDE 2004

395

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values Basic allowance Spouse Child Income tax schedule

Ave_earn basic_al spouse_al child_al tax_sch

Social security contributions SSC_rate Employers SSC_empr Minimum living standard (MLS) basic_adult basic_adult1 basic_child Cash transfers transf_1 transf_2 transf_3

150000 38760 12000 16800 0.1 0.2 0.28 0.35 0.38 0.128 0.38

90000 180000 396000 564000

3930 2750 1780 560 320 270

396

© OECD/OCDE 2004

Slovak Republic – République Slovaque

2003 Tax equations Line in country table and intermediate steps

Variable name

1. Earnings

earn

2. Allowances: Basic Spouse Children Total

basic_allce spouse_allce ch_al tax_al

Range

Equation

B P P B

basic_al IF(earn_spouse>basic_al,0,Married*spouse_al) Children*child_al basic_allce+spouse_allce+ch_al+SSC

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch)

6. Tax credits :

tax_cr

B

0

7. CG tax

CG_tax

B

CG_tax_excl

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

earn*SSC

11. Cash transfers Net family income Minimum living standard (montly) Total cash transfers

net_inc MLS cash_trans

J J J

earn_total-CG_tax_total-SSC_total basic_adult+basic_adult1+Children*basic_child Children*(transf_3+(IF(net_inc<=(1.37)*MLS*12,transf_1*12,I F(net_inc<=(2.2)*MLS*12,transf_2*12,0))))

13. Employer's soc security

SSC_empr

B

earn*SSC_empr

397

© OECD/OCDE 2004

SWEDEN – SUÈDE Chapter 1

The national currency is the Swedish Kroner (SEK). In 2003, SEK 8.2478 was equal to USD 1 (average of nine months daily exchange rates). In that year, the average production worker earned SEK 247 908 (Secretariat estimate). 1.

Personal Income Tax Systems

1.1. Central government income taxes 1.11. Tax unit Spouses are taxed separately. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic reliefs: A basic allowance is given for assessed earned income. For central government taxation, the basic allowance is given for the central government tax and varies between SEK 11 400 and SEK 25 900, depending on income. For individuals paying central government income tax this basic allowance has reached its lowest level, 11 400 SEK. The basic allowance amount depends on the assessed earned income and the basic amount (38 600 SEK). Assessed-Earned- Income (SEK) Relative to Basic Amount (BA)

Percentage of BA at lower bracket

0-1,49 1,49-2,72 2,72-3,10 3,10-6,87 6,87-

For exceeding income, % of BA

0,423 0,423 0,67 0,67 0,293

+0,2 –0,1

• Standard marital status reliefs: None. • Relief(s) for children: None. • Reliefs for social security contributions and other taxes: An allowance of 25 per cent of the compulsory social security contribution paid by the employee is granted. • Work-related expenses: None. • Other: None. 1.122. Main non-standard tax reliefs applicable to an APW • Interest on qualifying loans: Interest payments are offset against capital income. The resulting net capital income is the tax base. A tax credit is given in the case of negative capital income.

398

• Contributions to pensions, life insurance, superannuation schemes: For an APW a deduction of maximum SEK 19 300 (0,5 per cent of the basic amount) can be claimed for premiums paid to private pension arrangements. For higher income groups the deduction is limited to SEK 38 600. © OECD/OCDE 2004

Sweden – Suède

• Medical expenses: None. • Other: allowances are given for: – the amount of commuting expenses exceeding SEK 7 000. – other types of work-related expenses exceeding SEK 1 000. Examples are costs of tools, workrelated phone calls on private telephone. – increased living expenses while on business trips, e.g. such as use of private car if costs are not reimbursed by the employer. – double housing expenses due to temporary work at other geographical locations (too far from home for commuting), or if the family for some reason can not move, even if the job is of a permanent nature. – traveling expenses for traveling home if working in a place other than the place of residence. – pension premiums. – unemployment insurance fee. 1.13. Tax schedule Taxable Income (SEK)

0-284 300 284 300-430 000 Over 430 000

Tax (SEK)at lower bracket

0 0 29 140

For exceeding income, %

20 25

1.14. Tax credits A tax credit equal to 75 per cent of the compulsory social security contributions paid by the employee is granted. A tax credit equal to 25 per cent of the trade union dues and 40 per cent of the unemployment insurance fee is granted. This credit is a non-standard relief. 1.2. Local government income taxes 1.21. General description of the systems Sweden has both a central government and a local government personal income tax. They are completely co-coordinated in the assessment process and refer to the same period, i.e. the income year coincides with the calendar year. 1.22. Tax base The tax base is the same as for central government income tax. The basic allowance for individuals paying local government tax varies between SEK 11 400 and SEK 25 900, depending on income. For an APW this basic allowance amounts to SEK 13 100. 1.23. Tax rates The local government personal income tax is proportional and differs between municipalities. The average rate amounted to 31.17 per cent in 2003, with the maximum and minimum rates being 33.72 per cent and 28.9 per cent, respectively. Besides the proportional tax every individual also has to pay a lump sum tax of SEK 200. © OECD/OCDE 2004

399

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees’ contributions A general pension contribution of 7 per cent of personal income is paid by employees and selfemployed where income is equal to or greater than 42.3 per cent of the basic amount underlying the basic allowance (see §1.121). The contribution cannot exceed SEK 23 000 and the tax credit is maximised to SEK 17 200. 2.2. Employers’ contributions Contributions from the employer are calculated as a percentage of the total sum of salaries and benefits for a year. For self-employed the base is net business income. The rates for 2003 are listed below. Program

Retirement pension Survivor’s pension Parental insurance Health insurance Labour market Occupational health General wage tax Total

Employer (%)

Self-employed (%)

10.21 1.70 2.20 11.08 3.70 0.68 3.25 32.82

10.21 1.70 2.20 11.81 1.16 0.68 3.25 31.01

A general discount applies both for employers and self-employed. The discount amounts to 5 per cent of the base and cannot exceed SEK 42 600 (it is not included in the calculations underlying this Report). The social security contributions are not applicable for employees or self-employed aged 65 or more. For the latter a special wage tax, which amounts to 24.26 per cent, is applicable. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children The transfers are tax exempt and independent of the parent’s income. The transfers for each child are as follows: First child Second child Third child Fourth child Fifth and subsequent child

4.

11 400 11 400 14 448 20 520 22 800

Main Changes in Tax/Benefit Systems Since 1998

A tax credit of SEK 1 320 was introduced for low- and average income earners in 1999. The credit is reduced by 1.2 per cent of taxable income above SEK 135 000. This reduction was abolished 2003 and was replaced by an increase in the basic allowance. A tax credit of 25 per cent of the social security contribution paid by employees and self-employed was introduced in 2000. The tax credit for 2003 amounts to 75 per cent.

400

The central government income tax bracket is indexed with the consumer price index plus 2 per cent. In order to reduce the number of people paying the central income tax there have been additional increases of the tax bracket since 2000. © OECD/OCDE 2004

Sweden – Suède

Child allowance was raised by SEK 1200 in 2000. The basic allowance has been increased both in 2001, 2002 and 2003. Unemployment benefit was raised in 2001 by SEK 100 to SEK 680 per day. 5.

Memorandum Items

5.1. Identification of an APW and calculation of earnings Basic data for gross earnings are taken from the series Official Statistics of Sweden, published by Statistics Sweden. The wage series used is that of adult production workers in manufacturing. The calculation is based upon total average hourly earnings in the 2nd quarter of the calendar year. To arrive at the annual wage average hourly earnings have been multiplied by the normal amount of hours worked during the year. The figures are representative for the country as a whole. 5.2. Employer contributions to private health, pension, etc. schemes There are a handful of widespread private social security-type schemes. The employers’ contributions to these systems equaled 5 per cent of wage earnings in 2002. This figure is taken from the official statistics of labour costs in manufacturing prepared by Statistics Sweden.

401

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values APW-wage Central income tax

Ave_earn

247908

tax_rate tax_rate2 tax_thrsh tax_thrsh2

0.2 0.05 284300 430000

Secretariat estimate

Basic Allowance gr1 gr2 gr3 gr4 gp1 gp2 gp3 gp4 gp5 central Local income tax soc. security amount

1.49 2.72 3.1 6.87 0.423 0.2 0.1 0.293 0.67 1

basic_amt basic_ant local_rate min_taxl

38600 40800 0.3117 200

SSC_rate SSC_empr SSCR SSCC CB TC1 TC1gr1 TC1gp1 TC2gp1 PRT

0.07 0.3282 49 8.07 11400 0 0 0 0.75 0.0325

Soc security contrib employer rounding ceiling Child benefit Tax credits

402

© OECD/OCDE 2004

Sweden – Suède

The equations for the Swedish system are mostly repeated for each individual of a married couple. But the cash transfer is calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

central*MINA(TRUNC(MAXA(gp_1*basic_amt,(gp_1+ gp_2*(gr_2-gr_1))*basic_amt-gp_2*MAXA(gr_2* basic_amtTRUNC(earn,-2),0)-gp_3*MAXA(TRUNC(earn,-2)gr_3*basic_amt,0)),-2),earn) basic_al+SSC-tax_cr2

1. Earnings

earn

2. Allowances:

basic_al

B

tax_al

B

Total 3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-basic_al-(SSC-tax_cr2))

5. CG tax before credits

CG_tax_excl

B

tax_rate*Positive(tax_inc-tax_thrsh)+ tax_rate2* Positive(tax_inc-tax_thrsh2)

6. Tax credits :

tax_cr1

B

tax_cr2 tax_cr

B

IF(earn
7. CG tax

CG_tax

B

CG_tax_excl-MINA(earn*local_rate,tax_cr1)-tax_cr2

8. State and local taxes Allowances Local tax

local_allce local_tax

B P

basic_al + SSC TRUNC(local_rate*Positive(TRUNC(earn,-2)-(local_allcetax_cr2)),0) +min_taxl TRUNC(local_rate*Positive(TRUNC(earn,-2)-(local_allcetax_cr2)),0)

S 9. Employees' soc security

SSC

B

(earn>=gp_1*basic_amt)*MINA(TRUNC((TRUNC(earn,2)*SSC_rate+SSCR),-2), TRUNC((SSCC*basic_ant*SSC_rate+SSCR),-2))

11. Cash transfers

cash_trans

J

Children*CB

13. Employer's soc security

SSC_empr

B

TRUNC(earn*SSC_empr)

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

403

© OECD/OCDE 2004

SWITZERLAND – SUISSE Chapter 1

La monnaie nationale est le Franc suisse (CHF). En 2003, CHF 1.3577 étaient égal à USD 1 (moyenne journalière des taux de change sur neuf mois). Cette année là, un ouvrier moyen gagnait CHF 65 256 (estimation du Secrétariat). Les impôts cantonaux et communaux sur le revenu sont très importants par rapport à l'impôt fédéral direct (IFD). On a retenu ici, à titre d'exemple du régime d'imposition des 26 cantons, celui qui est pratiqué dans le canton de Zurich. L'impôt local sur le revenu n'est pas déductible pour le calcul de l'impôt fédéral sur le revenu. 1.

Systèmes d'imposition sur le revenu

1.1. Impôt sur le revenu perçu par l'administration fédérale (Confédération) 1.11. Unité fiscale Les revenus des époux qui vivent en ménage commun s'additionnent quel que soit le régime matrimonial. Les revenus non salariaux des enfants sous autorité parentale sont ajoutés à ceux du détenteur de cette autorité. Les revenus salariaux des enfants sont imposés séparément ou sont parfois exonérés d'impôt, par exemple à Zurich. 1.12. Allégements fiscaux et crédits d'impôts 1.121. Allégements forfaitaires pour l’imposition postnumerando • Abattement à la base – L'IFD ne connaît pas d'abattement à la base. • Abattement pour enfants – Un montant de 5 600 CHF est déduit pour chaque enfant âgé de moins de 18 ans; cet abattement est également accordé pour les enfants plus âgés lorsqu’ils font un apprentissage ou des études. • Abattements au titre des cotisations sociales et autres impôts – Les cotisations de l'assurance vieillesse et invalidité (5.05 pour cent du revenu salarial brut) et de l'assurance chômage (1.25 pour cent du revenu jusqu’à 106 800 CHF avec un maximum de 1 602 CHF et de 0.5 pour cent de plus de 106 800 CHF à 267 000 CHF avec un maximum de 1 602 CHF) sont entièrement déductibles. Les cotisations obligatoires à la caisse de pension sont entièrement déductibles. Les cotisations à des assurances maladie et assurances sur la vie sont déductibles à concurrence de 3 000 CHF pour les personnes mariées et de 1 500 CHF pour les personnes veuves, divorcées et célibataires (ces cotisations ne sont pas considérées comme une cotisation sociale). Ces montants augmentent de 700 CHF pour chaque enfant à charge. • Frais professionnels

404

– Un abattement correspondant à 3 pour cent du revenu net (revenu brut moins les cotisations versées à l’assurance vieillesse et invalidité, à l’assurance chômage et à la prévoyance professionnelle) est accordé. Il se monte au minimum à 1 900 CHF et au maximum à 3 800 CHF. © OECD/OCDE 2004

Switzerland – Suisse

1.122. Principaux allégements non forfaitaires applicables à un ouvrier moyen • Intérêts des emprunts éligibles : – C'est le principal allégement non forfaitaire applicable à un ouvrier moyen. Il est alloué pour toute sorte d'emprunts. • Dépenses médicales : – Les frais provoqués par la maladie, les accidents ou l’invalidité, du contribuable ou d’une personne à sa charge, sont déductibles lorsque le contribuable supporte lui-même ces frais et que ceux-ci excèdent 5 pour cent du revenu net. Mouvements de passage importants entre allégements fiscaux forfaitaires et non forfaitaires: Aucun. 1.13. Base d'imposition Du revenu brut, sont déductibles

Personne célibataire (CHF)

Dépenses professionnelles1 Abattement personnel Abattement pour 2 enfants à charge Cotisations sociales – Assurance vieillesse – Assurance chômage – Caisse de pension Déductions pour primes d’assurances maladie et intérêts de capitaux, au maximum3 Déduction pour couple à deux revenus

Personne mariée, 2 enfants (CHF)

1 900 - 3 800 – –

1 900 - 3 800 – 11 200

5.05% 1.25%2 5%

5.05% 1.25%2 5%

1 500 plus 700 par enfant

3 000 plus 700 par enfant 7 000

1. 3 pour cent du revenu net, minimum 1 800 CHF, maximum 3 800 CHF. 2. 1.25 pour cent du revenu jusqu’à 106 800 CHF et de 0.5 pour cent de plus de 106 800CHF à 267 000 CHF. 3. Vu qu’il s’agit d’une déduction maximum et qu’il faut justifier les primes effectivement versées, on se base sur des montants calculés en pour cent du revenu brut, à savoir: – personnes vivant seules 3.6 pour cent min. 1 080 CHF, max. 1 500 CHF – familles monoparentales 5.1 pour cent min. 1 500 CHF, max. 2 400 CHF – couples mariés, sans enfant 7.2 pour cent min. 1 710 CHF, max 3 000 CHF – couples mariés avec deux enfants 7.2 pour cent min. 2 140 CHF, max 4 400 CHF.

1.14. Barème d'imposition postnumerando 1.141. Taux pour les personnes vivant seules Revenu imposable (CHF)1

Jusqu'à 16 100 16 100 à 27 900 27 900 à 36 500 36 500 à 48 600 48 600 à 63 800 63 800 à 68 800 68 800 à 91 100 91 100 à 118 400 118 400 à 154 700 154 700 à 664 300 664 400 Plus de 664 4002

Montant de base (CHF)

Plus % de la partie qui dépasse (CHF)

– 25.40 116.25 191.90 511.35 962.70 1 259.70 2 731.50 5 133.90 9 126.90 76 406.00 –

1. Les fractions inférieures à 100 CHF sont négligées. 2. Le modèle de calcul ignore cette partie du barème.

© OECD/OCDE 2004

– – 0.77 16 100 0.88 27 900 2.64 36 500 2.97 48 600 5.94 63 800 6.60 68 800 8.80 91 100 11.00 118 400 13.20 154 700 – – 11.5 du revenu total 405

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.142. Taux pour les époux vivant en ménage commun et les contribuables veufs, séparés, divorcés ou célibataires qui tiennent ménage commun avec leurs propres enfants. Revenu imposable (CHF)1

Jusqu'à 27 400 27 400 à 44 700 44 700 à 51 300 51 300 à 66 200 66 200 à 79 400 79 400 à 91 000 91 000 à 101 000 101 000 à 109 300 109 300 à 115 900 115 900 à 120 900 120 900 à 124 300 124 300 à 126 000 126 000 à 127 700 127 700 à 788 400 788 400 plus de 788 4002

Montant de base (CHF)

Plus % de la partie qui dépasse (CHF)

– 25 198 330 777 1 305 1 885 2 485 3 066 3 594 4 044 4 384 4 571 4 775 90 666 –

– 1 2 3 4 5 6 7 8 9 10 11 12 13 –

– 27 400 44 700 51 300 66 200 79 400 91 000 101 000 109 300 115 900 120 900 124 300 126 000 127 700 – 11.5 du revenu total

1. Les fractions inférieures à 100 CHF sont négligées. 2. Le modèle de calcul ignore cette partie du barème.

1.2. Impôts des collectivités décentralisées (Canton et commune de Zurich) 1.21. Description générale du système Le système des impôts cantonaux et communaux a les mêmes caractéristiques que le système de l'impôt fédéral direct. La base d'imposition est constituée par les revenus provenant de toutes les sources. Des abattements sont prévus pour les intérêts des dettes et les cotisations de sécurité sociale ainsi que pour les dépenses médicales. Une fois fixé le montant simple de l'impôt, le canton, la commune et la paroisse lèvent leur impôt en appliquant un multiple qui peut d'ailleurs varier annuellement. En 2003, par exemple, le canton applique un multiple de 1.00 ; la commune de Zurich 1.22 et la paroisse réformée 0.10. Le montant simple de l'impôt est donc multiplié par un total de 2.32. Toutefois, suite à la décision de ne plus tenir compte de l’impôt paroissial dans les “ Statistiques des recettes publiques ”, on n’en tient pas compte dans les calculs des Impôts sur les salaires. Le montant simple de l'impôt est donc multiplié par un total de 2.22. 1.22. Base d'imposition Du revenu brut, sont déductibles 1

Dépenses professionnelles Abattement personnel Abattement pour 2 enfants à charge Cotisations sociales – Assurance vieillesse – Assurance chômage – Caisse de pension Déductions pour primes d’assurances maladie et intérêts de capitaux, au maximum3 Déduction pour couple à deux revenus

406

Personne célibataire CHF

Personne mariée,2 enfants CHF

1 900 - 3 800 – –

1 900 - 3 800 – 10 800

5.05% 1.25%13 5%

5.05% 1.25%13 5%

2 300 plus 700 par enfant

4 600 plus 700 par enfant 5 200

1. 3 pour cent du revenu net, minimum 1 800 CHF, maximum 3 800 CHF. 2. 1.25 pour cent du revenue jusqu’à 106 800 CHF et de 0.5 pour cent de plus de 106 800 CHF à 267 000 CHF. 3. Vu qu’il s’agit d’une déduction maximum et qu’il faut justifier les primes effectivement versées, on se base sur des montants calculés en pour cent du revenu brut, à savoir : – personnes vivant seules 3.6 pour cent min. 1 080 CHF, max 2 300 CHF. – familles monoparentales 5.1 pour cent min. 1 500 CHF, max 3 700 CJF. – couples mariés, sans enfant 5.7 pour cent min. 1 710 CHF, max 4 600 CHF. – couples mariés avec deux enfants 7.2 pour cent min. 2 140 CHF, max 6 000 CHF.

© OECD/OCDE 2004

Switzerland – Suisse

1.23. Taux d'imposition postnumerando Impôt cantonal sur le revenu (Zurich) a)

Taux simples de l'impôt sur le revenu pour les personnes mariées, divorcées, veuves ou célibataires vivant en ménage commun avec des enfants : Revenu imposable (CHF)1

Montant de base (CHF)

Jusqu'à 11 000 11 000 à 16 400 16 400 à 23 200 23 200 à 31 400 31 400 à 40 900 40 900 à 53 100 53 100 à 80 300 80 300 à 107 500 107 500 à 148 300 148 300 à 197 200 197 200 à 250 200 250 200 à 311 400 plus de 311 400

– – 108 312 640 1 115 1 847 3 751 5 927 9 599 14 489 20 319 27 663

Plus % de la partie qui dépasse (CHF)

0 2 3 4 5 6 7 8 9 10 11 12 13

– 11 000 16 400 23 200 31 400 40 900 53 100 80 300 107 500 148 300 197 200 250 200 311 400

1. Les fractions inférieures à 100 CHF sont négligées.

b)

Taux simples de l'impôt sur le revenu pour les autres contribuables (célibataires sans enfants). Revenu imposable (CHF)1

Montant de base (CHF)

Jusqu'à 5 500 5 500 à 9 600 9 600 à 13 700 13 700 à 20 400 20 400 à 28 600 28 600 à 38 100 38 100 à 49 000 49 000 à 63 900 63 900 à 92 500 92 500 à 121 000 121 000 à 165 900 165 900 à 224 300 plus de 224 300

– – 82 205 473 883 1 453 2 216 3 408 5 982 8 832 13 771 20 779

Plus % de la partie qui dépasse (CHF)

0 2 3 4 5 6 7 8 9 10 11 12 13

– 5 500 9 600 13 700 20 400 28 600 38 100 49 000 63 900 92 500 121 000 165 900 224 300

1. Les fractions inférieures à 100 CHF sont négligées.

c)

Multiple annuel en pourcentage des taux légaux simples : – Canton de Zurich – Commune de Zurich – (Impôt paroissial catholique romain) – Réformé).

100 122 12 (p.m.) 10 (p.m.)

Est ajouté un impôt personnel de 24 CHF. 1.24. Taux d'imposition retenu pour cette étude Pour cette étude ont été retenus les taux d'imposition de l'administration fédérale et des administrations cantonale et communale. © OECD/OCDE 2004

407

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.

Cotisations sociales obligatoires versées à des régimes de caractère public

2.1. Cotisation des salariés 2.11. Retraite • 5.05 pour cent du revenu brut pour l'assurance vieillesse, • 5 pour cent du revenu brut pour la caisse de pension. 2.12. Maladie – 2.13. Chômage 1.25 pour cent du revenu jusqu’à 106 800 CHF avec un maximum de 1 602 CHF et de 0.5 pour cent de plus de 106 800 CHF à 267 000 CHF avec un maximum de 1 602 CHF. 2.14. Accidents de travail – 2.15. Allocations familiales – 2.16. Autres – 2.2. Cotisations patronales 2.21. Retraite • 5.05 pour cent du revenu brut pour l'assurance vieillesse, • 5 pour cent du revenu brut pour la pension. 2.22. Maladie – 2.23. Chômage 1.5 pour cent du revenu jusqu’à 106 800 CHF avec un maximum de 1 602 CHF et de 1 pour cent de plus de 106 800 CHF à 267 000 CHF avec un maximum de 1 602 CHF. 2.24. Accidents de travail – 2.25. Allocations familiales

408

L'employeur verse une prestation au titre des enfants à charge. La prestation de la Confédération s'élève à 2 602 CHF par enfant et par an. Voir sous rubrique 3.2. Elle est imposable avec les autres éléments du revenu. © OECD/OCDE 2004

Switzerland – Suisse

2.26. Autres – 3.

Prestations sociales d'application générale

3.1. Prestations liées à l'état matrimonial Des prestations à ce titre ne sont pas versées. 3.2. Prestations au titre d'enfants à charge L'employeur verse une prestation au titre des enfants à charge. La prestation de la Confédération s'élève à 2 602 CHF par enfant et par an. Voir sous rubrique 2.25 . Elle est imposable avec les autres éléments du revenu. 4.

Principales modifications apportées au système fiscal et au régime des prestations sociales depuis 1998

Le 1er janvier 1999, le canton de Zurich a passé de l’imposition praenumerando bisannuelle à l’imposition postnumerando annuelle sur le revenu acquis pour les personnes physiques. Il en résulte que l’impôt fédéral direct se base aussi sur l’imposition postnumerando annuelle. 5.

Rubrique pour mémoire

5.1. Identification de l'ouvrier moyen Il s'agit des ouvriers masculins et féminins dans l'industrie, les arts et métiers. Le revenu indiqué est la moyenne des revenus des ouvriers du même secteur. L'extension géographique porte sur l'ensemble du pays, tandis que le montant de l'impôt est calculé pour le canton et la commune de Zurich. 5.2. Méthode de calcul utilisée • Allocations chômage: non comprises • Indemnités maladie: non comprises • Indemnités congés payés: comprises • Heures supplémentaires: comprises • Primes périodiques en espèces: comprises • Avantages accessoires: non compris • Méthode de base utilisée pour le calcul: le salaire mensuel est multiplié par 12 • Terme de la période annuelle d'imposition du revenu: 31 décembre • Période de référence utilisée pour le calcul de salaire: du 1er janvier au 31 décembre de l'année.

409

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2003 Parameter values APW earnings Tax allowances Partner Allowance Partner income local Single parent Workrelated Allowances for local tax Federal tax Single

Married

Ave_earn Child_al partner_central partner_local sing_par_al work_exp work_exp_min work_exp_max local_basic local_child IFD_min_s IFD_sch_s

IFD_min_m IFD_sch_m

Cantonal tax Single

Zurich_min Zurich_sch_s

Married

Zurich_sch_m

65256 5600 7000 5200 0 0.03 1900 3800 0 5400 25.4 0 0.0077 0.0088 0.0264 0.0297 0.0594 0.066 0.088 0.11 0.132 0.132 25 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0.13 24 0 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13 0 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.11 0.12 0.13

Secretariat estimate

16100 27900 36500 48600 63800 68800 91100 118400 154700 664400 27400 44700 51300 66200 79400 91000 101000 109300 115900 120900 124300 126000 127700 788400 5500 9600 13700 20400 28600 38100 49000 63900 92500 121000 165900 224300 11000 16400 23200 31400 40900 53100 80300 107500 148300 197200 250200 311400

410

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Switzerland – Suisse

2003 Parameter values (cont.) Canton and Commune Tax Mutiple Social security contributions Pension

statetax_mult old_age pension_rate

2.22 0.05 0.0505

Unemployment

unemp_rate unemp_rate2 unemp_ciel unemp_ciel2 other_rate child_rate single_rate married_rate fed_dedn fed_dedn_c local_dedn local_dedn_c

0.0125 0.005 106800 267000 0.036 0.072 0.051 0.057 1500 700 2300 700

income ceiling Other insurance

Federal deductible limit deductible extra for child Cantonal deductible limit deductible extra for child Min other insurance deduction Single single parents married couples married couples with children Child cash transfer

min_dedn_s min_dedn_sp min_dedn_m min_dedn_mc child_ben

1080 1500 1710 2140 2602

411

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

partner_central*(earn_spouse>0) Children*Child_al+ (Children>0)*(Married=0)*sing_par_al SSC MAX(work_exp_min,MIN(work_exp_max,work_exp*(earnSSC_al))) MAX(MINA((1+Married)*IF(Married=0 ,IF(Children>0,single_rate,other_rate),other_rate) *earn_total, (1+Married)*fed_dedn+Children*fed_dedn_c), IF(Married,IF(Children>0,min_dedn_mc,min_dedn_m), IF(Children>0,min_dedn_sp,min_dedn_s))) partner_al+children_al+SSC_al+work_al+oth_al

1. Earnings

earn

2. Allowances: Children Soc sec contributions Work related

partner_al children_al SSC_al work_al

J J B B

oth_al

J

Other

tax_al

J

3. Credits in taxable income

Total

taxbl_cr

J

Cash_tran

4. CG taxable income

tax_inc

J

positive(earn_total-tax_al+taxbl_cr)

5. CG tax before credits

CG_tax_excl

J

IF(Married+Children=0,Tax(tax_inc,IFD_sch_s) +IFD_min_s*(Tax(tax_inc,IFD_sch_s)>0),Tax(tax_inc,IFD_sch_ m) +IFD_min_m*(Tax(tax_inc,IFD_sch_m)>0))

6. Tax credits :

tax_cr

J

0

7. CG tax

CG_tax

J

CG_tax_excl

8. State and local taxes

local_tax_inc

J

IF(Married,IF(Children>0,min_dedn_mc,min_dedn_m), IF(Children>0,min_dedn_sp,min_dedn_s)))(earn_spouse>0)*partner_local IF((Married+Children)>0, Tax(local_tax_inc,Zurich_sch_m)*statetax_mult + (1+Married)*Zurich_min * (Tax(local_tax_inc,Zurich_sch_m)>0), Tax(local_tax_inc,Zurich_sch_s)*statetax_mult +(Tax(local_tax_inc,Zurich_sch_s)>0)*Zurich_min)

B

(pension_rate+old_age)*earn + IF(earn<=unemp_ciel,earn*unemp_rate , IF(earn<=unemp_ciel2,unemp_ciel*unemp_rate + (earnunemp_ciel) * unemp_rate2 , unemp_ciel*unemp_rate+unemp_ciel2*unemp_rate2))

local_tax

9. Employees' soc security

SSC

11. Cash transfers

Cash_tran

J

Children*child_ben

13. Employer's soc security

SSC_empr

B

SSC

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

412

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Chapter 1

TURKEY – TURQUIE The national currency is the Lira (TRL). In 2003, TRL 1 521 262 was equal to USD 1 (estimated average of nine months daily exchange rates). In that year, the Average Production Worker earned TRL 12 233 294 119 (Country estimate). 1.

Personal Income Tax Systems

1.1. Central government income tax 1.11. Tax unit Spouses are taxed separately on earned income. This applies since 1 January 1999. 1.12. Tax allowances and tax credits Income tax is levied on the real net value of wage and salary. The real net value of wage and salary is calculated by making the following deductions from the total cash payments made and fringe benefits given by the employer: • Legal deductions for public institutions such as OYAK (Social Aid Institution for Military Officers) • Contributions to social security organisations and premiums for social insurance (provided that the organisation or the institution are resident in Turkey) • Premiums paid by the wage-earner for himself (or herself) and his (or her) spouse and dependent children for personal insurance covering, death, accident, illness, disablement, maternity, birth and education, provided that the insurance is contracted with a company established in or with a main office in Turkey and provided that the premiums or contributions do not exceed the amount normally calculated as a contribution of wage-earners to legally established social security organisations on a monthly basis. After calculating the real net value of the wage and salary, the deductions mentioned below are made to obtain taxable income. 1.121. Standard reliefs: • Basic reliefs: In general, taxpayer’s income of TRL 1 500 000 a day, TRL 45 000 000 a month or TRL 540 000 000 a year is deductible from gross income as a basic allowance. • Reliefs for disabled: Disabled allowance is added to the basic allowance for disabled workers: eight times as much as basic relief for first degree disabled workers, four times for second degree disabled workers and two times for third degree disabled workers. • Reliefs for social security contributions: Employees' social security contributions are deductible from gross income. This contribution is 15 per cent of gross income as stated by the social insurance act. The contribution to the unemployment fund is included in this amount and amounts to 1 per cent of the gross income. It is applied after 01.06.2000. • Work-related expenses: None. © OECD/OCDE 2004

413

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

1.122. Main non-standard tax reliefs applicable to an APW • Special Tax Credit for Wage and Salary Earners: This provision applies to all wage and salary earners. The basic requirement is to provide the appropriate invoice/receipt for five types of expenditures and to file a special expenditure deduction return. Base for the tax credit is 1/3 of expenses. Upper limit for the tax credit is 35 per cent of the tax base. 1.13. Tax schedule The tax schedule in 2003 was as follows: Taxable income(one million TRL)

Tax on lower threshold(one million TRL)

Up to 5 000 5 000 up to 10 000 10 000 up to 24 000 24 000 up to 60 000 60 000 up to 120 000 120 000 and over

750 2 150 5 150 15 950 36 950

Tax on excess amount above lower threshold (%)

15 20 25 30 35 40

1.2. State and local income taxes Income tax is levied only by the central government. 1.3 Stamp tax The stamp tax base is gross earnings. The tax rate is 0.006 per cent for the year 2003. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees' contributions 2.11. Pensions (disability, old age and death insurance) 9 per cent 2.12. Sickness 5 per cent 2.13. Unemployment 1 per cent 2.2. Employers’ contributions 2.21

Pensions 11 percent (disability, old age and death insurance)

2.22. Sickness 6 percent 2.23. Unemployment 2 per cent 2.24. Work injury varies from 1.5 per cent to 7.0 percent according to the industry (includes occupational disease insurance). For the purposes of this report, the lowest rate is used (1.5 per cent). 2.25

Others (maternity insurance) 1.0 per cent

There is no distinction by marital status or sex and the contributions apply to gross earnings. Compulsory social security contributions of employees and their employers are calculated according to the above mentioned schemes. 414

For employees whose gross earnings are below the base or above ceiling earnings, which are determined at least twice a year, these contribution rates are applied to the base or ceiling amounts © OECD/OCDE 2004

Turkey – Turquie

respectively. The ceiling that is used in this Report amounts to TRL 24 550 723 350 (the base is not taken into consideration within the calculations). 3.

Universal Cash Transfers

Employees obtain universal cash transfers according to the collective labour agreements that are signed between the employer and the labour union. These agreements vary according to bargaining power of the parties for all sectors in the economy. This is the reason why there is no standard amount reflecting the general transfers. 4.

Main Changes in Tax/Benefit System Since 2000 None.

5.

Memorandum Items

5.1. Identification of an APW The earnings figure refers to all production workers in the manufacturing sector. The data have been built up from monthly data and refer to the calendar year. 5.2. Contribution to private pension and health schemes In accordance with Article 128 of Social Insurance Act No. 506, business enterprises as employers are permitted only to make arrangements for pension to their employees on their retirement in addition to national retirement schemes. Such additional pension arrangements, which are optional, are not widely used. 5.3. Saving Premium and Employer Contribution According to the Act No. 4447, this was abolished on June 1, 2000.

415

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2003 Parameter values Average earnings/yr Allowances Income tax

Ave_earn Basic_al Tax_sch

Stamp tax Employees SSC

Stamp_rate SSC_rate SSC_ceil SSC_empr

Employers SSC

12233294119 540000000 0.15 0.20 0.25 0.30 0.35 0.40 0.006 0.15 24550723350 0.215

5000000000 10000000000 24000000000 60000000000 120000000000

416

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Turkey – Turquie

The equations for the Turkish system are on an individual basis. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Variable name

Range

Equation

Basic_al+SSC

1. Earnings

earn

2. Allowances:

tax_al

B

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income Stamp tax

tax_inc stamp_tax

B B

Positive(earn-tax_al) earn*stamp_rate

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch) + stamp_tax

6. Tax credits :

tax_cr

B

0

7. CG tax

CG_tax

B

CG_tax_excl

8. State and local taxes

local_tax

B

0

9. Employees' soc security

SSC

B

Min(earn,SSC_ceil)*SSC_rate

11. Cash transfers

cash_trans

B

0

13. Employer's soc security

SSC_empr

B

Min(earn,SSC_ceil)*SSC_empr

Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

417

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UNITED KINGDOM – ROYAUME-UNI Chapter 1

(Income Tax Year 2003-2004)

The national currency is the Pound Sterling (GBP). In 2003, GBP 0.6210 was equal to USD 1 (average of nine months daily exchange rates). In 2003-2004, the Average Production Worker earned GBP 20 276 (Secretariat estimate). 1. 1.1.

Personal Income Tax System Central government income taxes

1.11. Tax unit The tax unit is the individual, but certain reliefs depend on family circumstances (see § 1.121). 1.12. Tax allowances and tax credits (All figures shown are those applying at the start of the tax year in April). 1.121. Standard reliefs • Basic reliefs: A personal allowance of GBP 4 615 is granted to each individual. • Standard marital status reliefs: None. • Working Tax Credit (WTC): A non-wastable tax credit available to low income families with or without children. It is available for families with children where one person works at least 16 hours a week. It is also available for people with a disability who work at least 16 hours a week and for families without children where one person works at least 30 hours a week. The amount depends upon the hours worked, the ages of children, eligible childcare costs, and gross income. A family with a child 16 or under where the claimant (or, where applicable, their partner both claimants jointly) works at least 30 hours a week, would get a maximum credit of GBP 3 645 per year before taking into account eligible childcare costs.* This credit is reduced by 37 pence for each GBP 1 of net income above a threshold of GBP 5 060 per year. Extra amounts are available where one or, where applicable, both claimants are disabled. WTC was introduced on 6th April 2003. • Relief for social security contributions and other taxes: None. • Child Tax Credit (CTC): A non-wastable tax credit available to low and middle income families with children. It provides support for children until 1st September following their 16th birthday, and beyond that date to the age of 19 for those who continue in full-time non-advanced education. The amount depends on gross income and the number and age of the children. A family with two children would get a maximum credit GBP 3 435 per year, which is reduced by 37 pence for each GBP 1 of gross income above a threshold of GBP 13 230 if the family is not working. A higher threshold

418

* The amount of credit received is calculated by dividing separately each element of the credit by the number of days in the tax year and rounding up to the nearest penny to give a daily rate. These daily rates are then multiplied by the number of days in the relevant period (for the purposes of this Report, the tax year) and added together.

© OECD/OCDE 2004

United Kingdom – Royaume-Uni

applies Iif the family is working, their CTC is reduced at the same rate once their WTC has been tapered to zero.. All families with children and gross income up to GBP 50 000 are entitled to at least GBP 545. Extra amounts are available for children less than one year old and for children with disabilities. CTC was introduced on 6th April 2003*. 1.122. Main non-standard tax reliefs applicable to an APW. • Work-related expenses: Flat rate expenses for tools and special clothing are allowed to certain occupational categories. Since this provision is not applicable to all manufacturing occupations, and hence average production workers, and because the rates vary slightly across categories, this relief is considered here as non-standard; • Contributions to approved superannuation schemes or personal pension schemes are deducted when calculating taxable income. Premiums on approved life assurance policies payable to life assurance companies attract 12.5 per cent tax relief for policies entered into force before 13 March 1984. 1.13. Tax schedule Taxable income (GBP)

0-1 960 1 960-30 500 Over-30 500

Rate %

10 22 40

1.2. State and local income tax There are no regional or local income taxes. 2. 2.1.

Compulsory Social Security Contributions to Schemes Operated Within the Government Sector Employees’ contributions

National Insurance contributions are payable by employees earning more than GBP 89 in any week. These are 11 per cent of earnings between GBP 89 and GBP 595 and 1 per cent of earnings above GBP 595 for employees not contracted out of the state additional (earnings related) pension' scheme (a supplement to the basic retirement pension). For employees who are contracted out, there is a rebate of 1.6 per cent on earnings between GBP 77 and GBP 595. Depending on eligibility criteria members of the National Insurance scheme qualify for pensions, sickness, industrial injury, unemployment benefits, etc. All employees earning under GBP 89 per week have no National Insurance contribution liability but a notional contribution will be deemed to have been paid in respect of earnings between GBP 77 and GBP 89 to protect benefit entitlement. 2.2. Employers’ contributions Employer's contributions are not payable for employees earning less than GBP 89 per week. The rate of employers’ contributions for employees not contracted out of the additional (earnings related) scheme is 12.8 per cent of earnings above GBP 89 per week. For employees who are contracted out, there is a rebate of 3.5 per cent on earnings between GBP 77 and GBP 595 per week. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None (widows’ benefit is covered by the government pensions scheme noted above). © OECD/OCDE 2004

419

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

3.2. Transfers for dependent children Child benefit of GBP 16.05 per week is paid in respect of each child in the family up to age 16 (or 19 if still in full-time non-advanced education) with a further GBP 10.75 per week paid for each subsequent child. A premium of GBP 1.50 per week is paid to one parent families in respect of the first child in addition to child benefit. Although the lone parent element of child benefit has been abolished since 6 July 1998, lone parents with protected rights are still eligible for this. None of these payments is subject to tax. 4.

Memorandum Items

4.1. Identification of APW and valuation of earnings The annual New Earnings Survey (results of which are published in Labour Market Trends) shows the average weekly earnings of full-time employees in manual occupations in the manufacturing sector (1992 SIC) in April each year. It covers men and women at adult rates in the United Kingdom (excluding Northern Ireland). The annual figure used for the gross earnings of the APW in the United Kingdom is the annual equivalent of the arithmetic average of the weekly earnings figures for April at the beginning and end of the fiscal year, as published in Labour Market Trends. The earnings figures exclude the earnings of those whose pay was affected by absence (due to sickness etc.). They include overtime, payment by results and shift payments. But they do not include benefits in kind (which could in some circumstances be included in the employee's taxable income in the United Kingdom). 4.2. Employers’ contributions to private pension, health etc. schemes About half of all wage earners are covered by private occupational pension schemes. A limited number is covered by private health schemes financed in whole or in part by employers.

420

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United Kingdom – Royaume-Uni

2003-2004 Parameter values Average earnings/yr Allowances

Ave_earn Basic_al Married_al Married_rate Tax_sch

20276 4615 0 0 0.1 0.22 0.4

SSC_sch

Child benefit (first) Child benefit (others) One parent benefit

SSC_rate2 ST CB_first CB_others CB_onepar

0 0.11 0.01 0.128 4628 16.05 10.75 1.50

NEW TAX CREDITS WTC Basic element Couple/Lone parent 30 Hour element

WTC_Basic WTC_couple_or_lone WTC_30hr

1525 1500 620

CTC Family element Child element Baby element

CTC_family CTC_child CTC_baby

545 1445 545

Income tax Employees SSC Primary threshold Upper earnings limit Employers SSC

Threshold

Days in tax year

NTC_1st_thres NTC_1st_taper NTC_2nd_thres NTC_2nd_taper numdays

Secretariat Estimate

1960 30500 4628 30940

PT UEL

5060 0.37 50000 0.067 366

421

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Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the UK system are mostly on an individual basis. But the tax credit for married couples is relevant only to the calculation for the principal earner, and child benefit and WFTC are calculated only once. This is shown by the Range indicator in the table below. The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003-2004 Tax equations Line in country table and intermediate steps

1. Earnings

Variable name

Range

Equation

earn

2. Allowances:

tax_al

B

Min(Basic_al, earn)

3. Credits in taxable income

taxbl_cr

B

0

4. CG taxable income

tax_inc

B

Positive(earn-tax_al)

5. CG tax before credits

CG_tax_excl

B

Tax(tax_inc,tax_sch)

6. Tax credits (nonwastable)

tax_cr

J

IF(Children>0,IF((earn_total)>NTC_2nd_thres, Taper(ROUNDUP(CTC_family/numdays,2)/ numdays,earn_total,NTC_2nd_thres,NTC_2nd_taper),MAX(Ta per(ROUNDUP(CTC_family/ numdays,2)*numdays+Children*ROUNDUP(CTC_child/ numdays,2)*numdays+ROUNDUP(WTC_Basic/ numdays,2)*numdays+ROUNDUP(WTC_30hr/ numdays,2)*numdays+ROUNDUP(WTC_couple_or_lone/ numdays,2)*numdays,earn_total,NTC_1st_thres,NTC_1st_tap er),ROUNDUP(CTC_family/ numdays,2)*numdays)),Taper(ROUNDUP(WTC_Basic/ numdays,2)*numdays+ROUNDUP(WTC_30hr/ numdays,2)*numdays+IF(Married=1,ROUNDUP(WTC_couple _or_lone/ numdays,2)*numdays,0),earn_total,NTC_1st_thres,NTC_1st_t aper))

7. CG tax

CG_tax

B

8. State and local taxes

local_tax

B

CG_tax_excl-tax_cr 0

9. Employees' soc security

SSC

B

Tax(earn,SSC_sch)+(earn>PT)*PT*SSC_rate1

11. Cash transfers

cash_trans

J

52*((CB_first*(Children>0)+ CB_others*Positive (Children1))+ (Married=0)*(Children>0)*CB_onepar))

13. Employer's soc security

SSC_empr

B

(earn>ST)*(earn-ST)*SSC_rate2

Memorandum item: Non-wastable tax credit tax expenditure component taxexp J tax_cr-transfer cash transfer component transfer J IF(CG_tax_excl<0,-CG_tax_excl,0) Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis

422

© OECD/OCDE 2004

UNITED STATES – ÉTATS-UNIS Chapter 1

The national currency is the dollar (USD). In 2003, the average production worker earned USD 33 459 (Secretariat estimate). 1.

Personal Income Tax System

1.1. Central/federal government income taxes 1.11. Tax unit Families are generally taxed in one of three ways: • As married couples filing jointly on the combined income of both spouses; • As married individuals filing separately and reporting actual income of each spouse; or • As heads of households (only unmarried or separated individuals with dependents). All others, including dependent children with sufficient income, file as single individuals. 1.12. Tax allowances and tax credits 1.121. Standard reliefs • Basic reliefs: In 2003 a married couple filing a joint tax return is entitled to a standard deduction of USD 9 500. The standard deduction is USD 7 000 for heads of households and USD 4 750 for single individuals. This relief is indexed for inflation. More liberal standard deductions are available for taxpayers who are age 65 or older and taxpayers who are blind. Special rules apply to children who have sufficient income to pay tax and are also claimed as dependents by their parents. • In addition to the standard deduction, in 2003 a USD 3 050 personal exemption is given every taxpayer (including both husband and wife filing a joint return). The personal exemption is indexed annually for inflation. The deduction for personal exemptions is reduced by 2 percent for each USD 2 500 by which the taxpayer’s income exceeds USD 209 250 for married couples, USD 139 500 for single taxpayers, and USD 174 400 for heads of households. All of a taxpayer’s exemptions are phased out simultaneously. • Standard marital status reliefs: Married couples generally benefit from a more favourable schedule of tax rates for joint returns of spouses (see § 1.13). There are no other general tax reliefs for marriage. • Relief for children: For each child and other person claimed as a dependent on a taxpayer’s return, the taxpayer is entitled to a dependency exemption of USD 3 050 in 2003. Low income workers with dependants are allowed a refundable (non-wastable) earned income credit. For taxpayers with one child, the credit is 34 per cent of up to USD 7 490 of earned income in 2003. The credit phases down when income exceeds USD 13 730 (14 730 for married taxpayers) and phases out when it reaches USD 29 666 (30 666 for married taxpayers). The earned income threshold and the phase-out threshold are indexed for inflation. For taxpayers with two or more children, the credit is 40 per cent of up to USD 10 510 of earned income in 2003. The credit phases down when income exceeds USD 13 730 (14 730 for married taxpayers) and phases out when it reaches USD 33 692 (34 692 for married taxpayers). © OECD/OCDE 2004

423

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Beginning in 1998, taxpayers are permitted a tax credit for each qualifying child under the age of 17. In 2003 the maximum credit is USD 1 000. The maximum credit is reduced for taxpayers with income in excess of certain thresholds. The credit is reduced by USD 50 for each USD 1000 of income in excess of USD 110 000 for married taxpayers (USD 75 000 for single and head of household taxpayers). These threshold amounts are not indexed for inflation. A taxpayer with three or more qualifying children may be allowed a supplemental refundable (non-wastable) child credit, subject to certain restrictions. • Relief for low income workers without children: In 1994 and thereafter, low income workers without children are eligible for the earned income credit. In 2003 low income workers without children are permitted a non-wastable earned income credit of 7.65 per cent of up to USD 4 990 of earned income. The credit phases down when income exceeds USD 7 240 and phases out when income reaches USD 12 230. This credit is available for taxpayers at least 25 years old and under 65 years old. • Relief for social security and other taxes. There is no special relief for social security taxes although the non-wastable earned income credits described above are sometimes considered an offset to social security contributions made by eligible employees. Furthermore, only a portion of social security benefits are subject to tax. 1.122. Main non-standard reliefs applicable to an APW The basic non-standard relief is the deduction of certain expenses to the extent that, when itemised, they exceed in aggregate the standard deduction. For the purposes of this Report, it is assumed that workers claim the standard deduction. The principal itemised deductions claimed by individuals where the standard deduction is not being claimed are: • Medical and dental expenses that exceed 7.5 per cent of income; • State and local income, real property, and personal property taxes (but not sales taxes); • Home mortgage interest; • Investment interest expense up to investment income with an indefinite carry forward of disallowed investment interest expense; • Contributions to qualified charitable organisations (including religious and educational institutions); • Casualty and theft losses to the extent that each loss exceeds USD 100 and that all such losses combined exceed 10 per cent of income; and • Miscellaneous expenses such as non-reimbursed employee business expenses (union dues, work shoes, etc.), investment expenses, tax return preparation fees and educational expenses required by employment, to the extent that, in aggregate, they exceed 2 per cent of income. Otherwise allowable itemised deductions are reduced by 3 per cent of the amount by which income exceeds USD 139 500. However, the reduction is limited to 80 per cent of the total of otherwise allowable itemised deductions other than the allowable itemised deductions for medical expenses, investment interest, theft and casualty losses, and gambling losses. In 2000, the most recent year for which such statistics are available, the 31 per cent of taxpayers with income between USD 30 000 and USD 40 000 (the APW range) who itemised their deductions claimed average deductions as follows: medical expenses, USD 1 184; taxes paid, USD 2 661; charitable contributions, USD 1 530; interest expense, USD 5 063.

424

Contributions to pension and life insurance plans. No relief is provided for employee contributions to employer sponsored pension plans or for life insurance premiums. However, tax relief is provided for certain retirement savings. © OECD/OCDE 2004

United States – États-Unis

1.13. Tax schedule Federal Income Tax rates Taxable Income Bracket (USD)1 Marginal Tax Rate (%) Single individual

Joint Return of Married Couple

0-7 000 7 000-28 400 28 400-68 800 68 800-143 500 143 500-311 950 More than 311 950

0 – 14 000 14 000 – 56 800 56 800 – 114 650 114 650 – 174 700 174 700 – 311 950 more than 311 950

10 15 25 28 33 35

1. The taxable income brackets are indexed for inflation.

1.2. State and local income taxes 1.21. General description of the system The District of Columbia and 43 of the 50 States impose some form of individual income tax. In addition, some local governments (cities and counties) impose an individual income tax, although this is not generally the case. State individual income tax structures are usually related to the federal tax structure by the use of similar definitions of taxable income, with some appropriate adjustments. This linkage is not a legal requirement but a practical convention that functions for the convenience of the taxpayer who must fill out both federal and State income tax returns. The APW calculations assume that the average production worker lives in Detroit, Michigan. The state of Michigan permits a personal exemption of USD 3 100 for the taxpayer, the taxpayer’s spouse and each child and taxes income at the rate of 4.0 per cent. The city of Detroit permits a personal exemption of USD 750 and taxes income at the rate of 2.55 per cent. Michigan provides a credit for city taxes paid. If the city income tax paid is USD 100 or less, the credit is 20 per cent of the city income tax paid. If the city income tax paid is over USD 100 but not over USD 150, the credit is 10 per cent of the excess of the city income tax paid over USD 100 plus USD 20. If the city income tax paid is over USD 150, the credit is 5 per cent of the excess of the city income tax paid over USD 150 plus USD 25. 2.

Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employees’ contributions 2.11. Pensions The rate for employee contributions is 7.65 per cent (6.2 per cent for old age, survivors, and disability insurance, and 1.45 per cent for old age hospital insurance). The 6.2 per cent rate applies to earnings up to USD 87 000. Beginning in 1994, there is no limit on the amount of earnings subject to the 1.45 per cent rate. There is no distinction by marital status or sex. 2.12. Other No compulsory employee contributions exist. 2.2. Employers’ contributions 2.21. Pensions Employers match the employees’ tax of 6.2 per cent on earnings up to USD 87 000 and 1.45 per cent of all earnings (without limit). © OECD/OCDE 2004

425

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

2.22. Unemployment Employers are required by the federal government to pay unemployment tax of 6.2 per cent on earnings up to USD 7 000. Taxes are also paid to various state-sponsored unemployment plans which may generally be credited against the required federal percentage. 2.23. Injury The States require various payments for workman’s compensation insurance. 3.

Universal Cash Transfers

3.1. Transfers related to marital status None. 3.2. Transfers for dependent children No general cash transfers exist, although low-income mothers qualifying for categorical welfare grants may receive cash transfers. 4.

Principal Changes since 2002

Beginning in 2003, the child credit was increased from USD 600 to USD 1 000. The standard deduction for married taxpayers was increased to twice the standard deduction for single taxpayers. The size of the 15 per cent tax bracket for married taxpayers was increased to twice the width of the 15 per cent tax bracket for single taxpayers. The taxable income level for the 10 per cent rate bracket was increased from USD 6 000 to USD 7 000 for single individuals and from USD 12 000 to USD 14 000 for married taxpayers. Income tax rates in excess of 15 per cent (27 per cent, 30 per cent, 35 per cent, and 38.6 per cent) were reduced to 25 per cent, 28 percent, 33 per cent, and 35 per cent. 5.

Memorandum Items

5.1. Identification of an APW at the wage calculation 5.11. The APW is identified from monthly data compiled from establishment questionnaires covering more than 30 million non-agricultural wage and salary workers. The data refer to all nonsupervisory workers in the manufacturing sector regardless of gender. 5.12. The following information is used to calculate annual wage earnings for year 2002. Fifty-two weeks are assumed for regular earnings and fifty weeks (two weeks vacation) for overtime. Average hourly earnings including overtime Average hours per week including overtime Average weekly wage earnings including overtime Average hourly wage earnings excluding overtime Average hours worked per week excluding overtime Average weekly wage earnings excluding overtime Estimated gross annual wage earnings excluding overtime Estimated annual overtime wage earnings Estimated gross annual wage earnings

USD 15.30 40.9 USD 625.77 USD 14.56 36.8 USD 535.81 USD 27 862.02 USD 4498.10 USD32 360.12

5.2. Employer contributions to private social security arrangements Employers commonly contribute to private pension plans, health insurance and life insurance. Data for these contributions are available only on a total workforce basis. It is not possible to state with accuracy the levels applicable to the APW. The following are estimates for 1993 for all non-agricultural employees:

426

Per cent of workers covered USD per covered employee

Pension

Health

49 1 364

61 3 407

Life

64 882

© OECD/OCDE 2004

United States – États-Unis

2003 Parameter values APW earnings Standard deductions Personal exemption Dependency exemption Personal exemption reduction unit of earnings threshold single (no children) threshold single (with children) threshold joint Federal tax schedules

Ave_earn Married_al hh_al single_al pers_ex dep_ex ex_dedn_rate ex_dedn_unit ex_thrsh_s ex_thrsh_hh ex_thrsh_m Fed_sch_s

Single individuals

Married filing jointly

Fed_sch_m

Head of household

Fed_sch_h

Earned income credit

EIC_sch no children 1 child 2 or more children chcrd_max chcrd_rdn chcrd_thrsh_m chcrd_thrsh_oth chcrd_ref_perct chcrd_ref_thresh Detroit_ex Detroit_rate Mich_ex Mich_rate Mich_cr_sch

Child credit

Detroit Michigan credit schedule on city tax maximum Pension contributions Ceiling for employers

Mich_cr_max pens_rate hosp_rate pens_ceil

33459 9500 7000 4750 3050 3050 0.02 2500 139500 174400 209250 0.1 0.15 0.25 0.28 0.33 0.35 0.1 0.15 0.25 0.28 0.33 0.35 0.1 0.15 0.25 0.28 0.33 0.35 rate 0.0765 0.34 0.4 1000 50 110000 75000 0.1 10500 750 0.0255 3100 0.04 0.2 0.1 0.05 10000 0.062 0.0145 87000

Secretariat Estimate

7000 28400 68800 143500 311950 14000 56800 114650 174700 311950 10000 38050 98250 159100 311950 income limit 4990 7490 10510

threshold 6240 13730 13730

thresh-married 7240 14730 14730

phase-out 0.765 0.1598 0.2106

100 150

427

© OECD/OCDE 2004

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

The equations for the US system in 2003 are mostly calculated on a family basis. There is a special function EIC which is used to calculate the earned income credit. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, with “_spouse” values taken as 0.

2003 Tax equations Line in country table and intermediate steps

Range

Equation

1. Earnings

earn

2. Allowances:

tax_al

J

IF(Married,Married_al, IF(Children=0,single_al,hh_al))+ Taper((1+Married)*pers_ex+ Children*dep_ex,earn_total, IF(Married,ex_thrsh_m, IF(Children=0,ex_thrsh_s,ex_thrsh_hh)), ex_dedn_rate/ ex_dedn_unit)

3. Credits in taxable income

taxbl_cr

J

0

4. CG taxable income

tax_inc

J

positive(earn-tax_al+taxbl_cr)

5. CG tax before credits

CG_tax_excl

J

Tax(tax_inc,IF(Married,Fed_sch_m, IF(Children,Fed_sch_h,Fed_sch_s)))

6. Tax credits :

EIC ch_crd_max

J J

ch_crd_tax ch_crd_ref

J

EIC(Children,earn_total,EIC_sch) Children*Positive((chcrd_maxchcrd_rdn*Positive(TRUNC(earn,-3)IF(Married>0,chcrd_thrsh_m,chcrd_thrsh_oth))/1000)) IF(ch_crd_tax>0,MIN(ch_crd_max,CG_tax_excl),0) IF(ch_crd_tax
tax_cr

J

7. CG tax

CG_tax

J

8. State and local taxes

local_tax

9. Employees' soc security

428

Variable name

CG_tax_excl-tax_cr Detroit_rate* Positive(earn_totalDetroit_ex*(1+Married+Children))+ Mich_rate*Positive(earn_totalMich_ex*(1+Married+Children))MIN(Mich_cr_max,Tax(AJ7,Mich_cr_sch))

SSC

B

11. Cash transfers

Cash_tran

J

13. Employer's soc security

SSC_empr

B

earn*(pens_rate+hosp_rate) pens_rate*MIN(earn,pens_ceil)+hosp_rate*earn

Memorandum item: non-wastable tax credits tax expenditure component taxexp (rate_rd_crd+EIC)-transfer cash transfer component transfer IF(CG_tax<0,-CG_tax,0) Key to range of equation B calculated separately for both principal earner and spouse P calculated for principal only (value taken as 0 for spouse calculation) J calculated once only on a joint basis Function EIC(children, income, schedule,married) C = 1 + children If C > 2 Then C = 3 rate = schedule(C, 1) limit = schedule(C, 2) threshold = schedule(C, 4) phaseout = schedule(C, 5) If married Then threshold=schedule(C,3) If income < threshold Then If income < limit Then EIC = income * rate Else EIC = limit * rate End If Else EIC = (limit * rate) - (phaseout * (income - threshold)) End If If EIC < 0 Then EIC = 0 Else EIC = EIC End If End Function

© OECD/OCDE 2004

Annex I

TAX BURDEN TRENDS, 1996-2003 Annexe I

ÉVOLUTION DE LA CHARGE FISCALE SUR LES SALAIRES, 1996-2003

Annexe Tableau I.1. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 67% du salaire d'un ouvrier moyen Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

16.9

17.9

18.6

19.0

18.4

19.2

20.3

20.2

18.6

19.4

20.1

20.5

18.4

19.2

20.3

20.2

18.6

19.4

20.1

20.5

18.4

19.2

24.8

24.7

Austria

4.1

4.3

4.8

5.1

3.5

4.0

4.3

4.6

22.2

22.4

22.9

23.2

21.6

22.1

22.3

22.7

37.4

41.1

41.5

41.6

40.1

39.7

39.9

40.2

Belgium

20.2

20.5

20.9

20.9

21.0

21.0

20.5

19.4

33.3

33.6

33.9

33.9

34.1

34.0

33.6

32.5

50.5

49.5

51.1

51.0

49.9

49.1

48.5

47.5

Canada

18.0

17.7

17.2

16.3

16.2

15.4

14.2

14.2

23.3

23.1

22.6

21.8

22.0

21.3

19.1

19.4

27.9

27.9

27.3

26.6

26.8

26.4

27.3

27.6

8.4

8.5

8.4

8.4

8.7

8.7

9.0

9.2

20.9

21.0

20.9

20.9

21.2

21.2

21.5

21.7

41.4

41.5

41.4

41.4

41.6

41.6

41.8

42.0

Denmark

31.6

30.7

29.4

28.6

27.7

28.0

27.4

27.4

41.3

41.4

40.0

40.8

40.8

40.0

39.3

39.3

41.3

41.7

40.4

41.3

41.2

40.6

39.9

39.9

Finland

23.6

22.2

22.0

20.3

20.5

19.7

19.2

18.9

31.2

29.8

29.5

27.6

27.5

26.2

25.2

24.9

45.3

44.2

44.0

42.6

42.5

41.0

40.2

39.5

France

4.3

6.3

9.7

10.1

8.8

7.4

6.8

6.8

23.2

23.9

22.9

23.5

22.2

20.9

20.0

20.4

44.3

41.6

39.4

40.3

39.6

38.4

37.6

37.6

15.4

15.6

15.4

15.2

15.0

13.8

14.0

14.4

35.6

36.7

36.5

36.0

35.5

34.3

34.6

35.5

46.5

47.7

47.5

47.0

46.5

45.5

45.8

46.7

Australia

Czech Republic

Germany Greece

0.7

0.9

1.1

0.0

0.0

0.0

0.0

0.0

16.6

16.8

17.0

15.9

15.9

15.9

15.9

15.9

34.9

35.0

35.1

34.3

34.3

34.3

34.3

34.3

Hungary

10.5

10.7

10.1

12.4

14.4

14.8

11.3

5.6

22.0

22.2

21.6

24.9

26.9

27.3

23.8

18.1

46.8

47.8

47.4

48.2

46.2

45.8

46.0

41.0

Iceland

11.7

12.2

15.0

15.4

16.6

17.5

18.8

19.1

12.1

12.6

15.3

15.7

16.8

17.7

19.1

19.4

15.2

15.9

18.8

19.6

20.6

21.8

23.1

23.8

Ireland

17.1

16.0

14.7

12.4

11.1

8.0

7.2

7.1

20.2

18.5

16.9

14.8

11.1

10.3

9.6

9.6

26.5

24.9

23.4

21.5

18.1

17.3

16.7

16.7

Italya

14.4

14.9

15.8

15.8

14.8

14.3

14.5

12.7

24.3

25.1

25.0

25.0

23.9

23.5

23.7

21.8

48.3

48.8

44.4

44.1

43.3

42.8

42.6

41.3

Japan

5.6

6.6

4.8

5.1

5.2

5.2

4.7

4.9

12.6

13.6

11.8

15.1

15.2

15.2

18.3

16.5

18.4

19.4

17.7

23.1

23.1

23.2

29.0

26.1

Korea

0.7

0.4

0.3

0.8

1.0

1.0

0.9

0.9

3.0

4.3

5.1

7.5

7.7

7.7

5.4

5.4

5.2

11.2

13.5

14.9

15.2

15.1

12.9

12.9

Luxembourg

7.3

7.7

5.9

6.3

6.8

5.0

3.4

3.7

19.8

20.3

19.0

20.0

20.8

18.9

17.1

17.4

29.1

29.7

28.9

29.5

30.4

28.8

27.1

27.3 12.4

Mexico

-6.2

-6.8

-6.2

-6.2

-5.4

-4.8

-4.1

-3.6

-0.9

-4.4

-3.8

-5.0

-4.2

-3.5

-2.9

-2.4

20.5

17.3

17.6

9.3

9.9

9.2

11.3

Netherlands

4.8

3.8

6.5

5.1

4.9

3.5

3.6

2.7

35.0

34.7

30.1

31.0

31.2

26.7

26.8

27.6

39.3

38.8

39.2

40.2

40.6

36.8

37.0

37.6

New Zealand

20.7

20.3

19.0

18.6

18.7

18.8

18.9

18.9

20.7

20.3

19.0

18.6

18.7

18.8

18.9

18.9

20.7

20.3

19.0

18.6

18.7

18.8

18.9

18.9

Norway

18.3

18.3

18.4

18.3

18.0

17.6

17.5

17.4

26.1

26.1

26.2

26.1

25.8

25.4

25.3

25.2

34.4

34.3

34.5

34.4

34.2

33.8

33.8

33.7

Poland

16.5

15.3

14.2

5.2

5.2

4.4

4.6

4.7

16.5

15.3

14.2

30.0

30.0

29.4

29.6

29.7

43.6

42.9

42.1

41.9

41.9

41.4

41.6

41.6

3.1

3.3

3.2

2.7

2.9

1.7

1.8

1.9

14.1

14.3

14.2

13.7

13.9

12.7

12.8

12.9

30.6

30.8

30.7

30.2

30.4

29.5

29.6

29.6

-

-

-

-

3.8

4.9

4.5

4.8

-

-

-

-

16.6

17.7

17.3

17.6

-

-

-

-

39.5

40.4

40.1

40.3

Portugal Slovak Republic

© OECD/OCDE 2004

Spain Sweden Switzerland Turkey

7.9

8.3

8.6

5.5

5.9

6.7

7.5

5.8

14.3

14.7

15.0

11.9

12.3

13.0

13.8

12.2

34.4

34.8

35.1

32.6

32.8

33.4

34.0

32.8

26.6

26.5

25.6

24.8

23.5

22.3

21.0

21.4

31.6

32.4

32.6

31.7

30.5

29.3

28.0

28.4

48.6

49.2

49.3

48.7

47.7

46.8

45.8

44.8

7.7

7.3

7.4

7.3

7.0

7.0

7.0

7.0

19.2

18.9

18.9

18.8

18.5

18.5

18.5

18.3

27.6

27.3

27.3

27.2

27.0

26.9

26.9

26.6

20.9

20.7

21.6

12.7

13.2

13.7

13.6

13.2

32.6

34.5

33.5

24.1

27.2

29.7

28.6

28.2

42.1

45.0

43.0

34.5

39.1

42.6

41.3

40.9

United Kingdom

14.0

13.6

13.6

12.9

12.6

12.3

12.4

12.7

21.7

21.3

21.3

20.0

19.4

18.7

18.8

20.0

26.8

28.4

28.5

25.8

25.3

24.5

24.5

26.2

United States

16.1

16.1

16.0

16.1

15.9

14.2

14.1

13.9

23.8

23.8

23.7

23.8

23.5

21.9

21.8

21.5

29.2

29.2

29.1

29.2

29.0

27.4

27.3

27.1

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

430 Annex Table I.1. Evolution of the tax burden, 1996-2003, single persons without children at 67% of average earnings

© OECD/OCDE 2004

Annex Table I.2. Evolution of the tax burden, 1996-2003, single persons without children at 100% of average earnings Annexe Tableau I.2. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 100% du salaire d'un ouvrier moyen Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

22.7

23.3

23.9

24.4

22.8

23.3

24.0

24.0

24.4

24.8

25.4

25.9

22.8

23.3

24.0

24.0

24.4

24.8

25.4

25.9

22.8

23.3

28.3

28.3

Austria

9.2

10.2

10.5

10.8

9.8

10.2

10.5

10.8

27.3

28.3

28.6

28.8

27.9

28.3

28.6

28.9

41.5

45.6

45.8

45.9

44.9

44.5

44.7

45.0

Belgium

27.4

27.6

27.8

27.9

27.9

27.8

27.2

26.6

41.3

41.5

41.8

41.9

41.9

41.7

41.2

40.6

56.4

56.6

56.8

56.9

56.2

55.6

55.1

54.5

Australia

Canada

22.2

22.1

21.5

20.8

20.7

19.3

17.9

18.1

27.6

27.7

27.1

26.5

26.6

25.5

24.4

24.6

32.1

32.3

31.7

31.1

31.3

30.4

32.2

32.4

Czech Republic

10.0

10.4

10.3

10.2

10.7

10.7

11.2

11.6

22.5

22.9

22.8

22.7

23.2

23.2

23.7

24.1

42.6

42.9

42.8

42.7

43.1

43.1

43.5

43.8

Denmark

36.0

35.1

33.7

33.0

32.4

32.6

31.7

31.8

44.8

44.9

43.4

44.2

44.1

43.3

42.3

42.4

44.8

45.1

43.7

44.5

44.4

43.6

42.7

42.7

Finland

29.5

28.0

27.9

26.3

26.6

25.9

25.4

25.1

37.6

35.8

35.5

33.7

33.6

32.4

31.5

31.2

50.3

48.9

48.8

47.4

47.3

45.9

45.2

44.5

France

8.9

10.5

14.1

14.3

13.4

13.5

13.6

13.2

27.8

28.1

27.3

27.7

26.8

27.0

26.8

26.8

49.7

48.7

47.6

48.1

48.2

48.3

48.2

48.3

21.0

21.2

21.1

21.2

21.5

20.1

20.4

20.8

41.3

42.3

42.1

41.9

42.0

40.7

41.0

41.9

51.2

52.3

52.2

51.9

51.8

50.8

51.1

52.0

Germany Greece

1.9

2.0

2.4

1.9

2.2

1.8

0.4

0.0

17.8

17.9

18.3

17.8

18.1

17.7

16.3

15.9

35.8

35.8

36.1

35.7

36.0

35.7

34.6

34.3

Hungary

18.1

17.8

17.4

17.6

18.9

19.2

16.9

13.0

29.6

29.3

28.9

30.1

31.4

31.7

29.4

25.5

52.0

52.0

51.6

50.7

49.6

49.0

49.0

45.7

Iceland

21.5

21.2

22.5

22.3

23.1

23.5

24.8

25.1

21.7

21.5

22.7

22.5

23.2

23.7

25.1

25.3

24.5

24.4

25.9

26.0

26.7

27.5

28.8

29.3

Ireland

22.3

20.5

19.7

19.3

15.2

12.0

11.4

11.4

28.5

26.0

24.9

24.3

20.3

16.9

16.4

16.4

36.1

33.9

33.0

32.4

28.9

25.8

24.5

24.5

Italya

18.1

18.8

19.9

20.0

19.3

18.6

18.9

18.0

28.0

29.0

29.1

29.1

28.5

27.8

28.1

27.2

50.8

51.5

47.5

47.2

46.7

46.1

46.0

45.3

Japan

6.7

8.0

6.8

6.1

6.2

6.2

5.6

5.8

13.7

15.0

13.8

16.1

16.2

16.2

19.3

17.4

19.4

20.7

19.6

24.0

24.1

24.2

29.8

27.0

Korea

1.9

1.7

1.6

2.1

2.5

2.5

2.2

2.3

4.2

5.6

6.4

8.8

9.2

9.2

6.7

6.8

6.3

12.4

14.7

16.1

16.5

16.6

14.1

14.1

13.4

13.8

11.6

12.1

12.6

10.8

8.3

8.7

25.9

26.4

24.6

25.8

26.6

24.8

22.1

22.5

34.5

35.2

33.8

34.6

35.5

33.9

31.3

31.7

0.0

-1.2

0.0

0.0

1.3

1.9

2.1

2.9

5.3

1.4

2.6

1.6

2.9

3.4

3.7

4.4

25.4

20.8

21.9

14.1

15.4

14.4

16.1

17.3

Luxembourg Mexico

5.8

6.5

7.2

6.3

7.6

8.8

9.2

8.5

39.2

39.3

34.4

35.4

36.2

32.9

33.1

34.0

43.8

43.6

43.5

44.3

45.1

42.3

42.5

43.0

New Zealand

22.3

21.6

20.0

19.4

19.5

19.5

20.1

20.6

22.3

21.6

20.0

19.4

19.5

19.5

20.1

20.6

22.3

21.6

20.0

19.4

19.5

19.5

20.1

20.6

Norway

21.9

21.7

21.8

21.6

21.4

21.0

21.0

21.0

29.7

29.5

29.6

29.4

29.2

28.8

28.8

28.8

37.6

37.4

37.5

37.3

37.2

36.9

36.9

36.8

Poland

18.0

16.9

15.8

6.6

6.6

6.0

6.1

6.2

18.0

16.9

15.8

31.4

31.4

31.0

31.1

31.2

44.7

43.9

43.2

43.0

43.0

42.7

42.8

42.9

7.1

7.2

7.1

6.6

6.7

5.4

5.5

5.6

18.1

18.2

18.1

17.6

17.7

16.4

16.5

16.6

33.8

33.9

33.8

33.4

33.5

32.5

32.6

32.6

-

-

-

-

6.0

6.8

5.9

6.3

-

-

-

-

18.8

19.6

18.7

19.1

-

-

-

-

41.2

41.7

41.1

41.4

Spain

13.5

13.8

13.8

11.8

12.1

12.6

13.0

12.2

19.9

20.2

20.2

18.2

18.5

18.9

19.3

18.5

38.8

39.0

39.0

37.5

37.6

37.9

38.2

37.6

Sweden

28.8

28.5

27.5

27.2

25.8

24.6

23.4

23.8

33.7

34.5

34.4

34.1

32.8

31.7

30.4

30.8

50.2

50.7

50.7

50.5

49.5

48.5

47.6

46.6

Switzerland

10.8

10.3

10.4

10.2

9.8

9.9

9.9

9.9

22.4

21.9

21.9

21.7

21.3

21.4

21.4

21.2

30.4

30.0

30.0

29.8

29.5

29.5

29.6

29.2

Turkey

23.8

23.9

25.2

15.2

14.7

14.9

15.0

14.7

31.6

33.1

33.1

22.9

28.7

30.9

30.0

29.7

38.3

40.7

39.8

30.3

40.4

43.6

42.4

42.1

United Kingdom

17.4

16.7

16.7

16.3

15.8

15.5

15.6

15.8

25.8

25.2

25.2

24.4

23.6

23.2

23.2

24.3

32.6

32.0

32.0

30.8

30.1

29.5

29.5

31.1

United States

18.2

18.2

18.1

18.2

17.9

16.8

16.6

16.4

25.8

25.8

25.8

25.8

25.5

24.4

24.3

24.1

31.1

31.1

31.0

31.1

30.8

29.8

29.7

29.4

Portugal Slovak Republic

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

431

Annex I/Annexe I

Netherlands

Annexe Tableau I.3. Évolution de la pression fiscale, 1996-2003, célibataire sans enfant, salaire égal à 167% du salaire d'un ouvrier moyen Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

Australia

31.0

31.8

32.5

32.8

30.3

31.4

32.9

32.9

32.7

33.3

34.0

34.3

30.3

31.4

32.9

32.9

32.7

33.3

34.0

34.3

30.3

31.4

36.7

36.7

Austria

14.5

16.6

16.9

17.2

16.4

17.0

17.3

17.6

32.6

34.7

35.0

35.3

34.4

35.1

35.4

35.7

45.8

50.5

50.7

50.8

49.9

49.7

50.0

50.2

Belgium

34.2

34.4

34.7

34.8

34.9

34.7

34.2

33.5

48.2

48.5

48.7

48.8

49.0

48.8

48.2

47.6

61.6

61.8

62.0

62.0

61.8

61.4

60.9

60.3

Canada

29.9

29.5

28.8

28.1

27.3

24.8

23.5

23.8

33.6

33.1

32.5

31.9

31.0

28.6

27.5

27.7

36.5

36.0

35.4

34.8

34.0

31.5

33.1

33.3

Czech Republic

13.3

13.4

13.4

13.2

13.7

13.8

14.3

14.8

25.8

25.9

25.9

25.7

26.2

26.3

26.8

27.3

45.0

45.1

45.1

44.9

45.3

45.4

45.8

46.2

Denmark

44.5

43.2

41.4

41.3

40.8

41.3

40.5

40.6

52.6

52.2

50.4

51.6

51.5

50.9

50.1

50.1

52.6

52.4

50.6

51.8

51.6

51.1

50.3

50.3

Finland

36.3

35.0

34.9

33.5

33.7

33.1

32.6

32.3

44.7

43.0

42.6

40.9

40.8

39.7

38.8

38.5

56.0

54.6

54.5

53.1

53.0

51.7

51.1

50.4

France

13.6

15.3

18.9

19.0

18.0

18.2

18.3

17.7

31.4

31.5

30.7

31.0

30.5

30.7

30.8

30.5

53.5

50.3

49.5

49.9

50.5

50.7

50.8

50.7

Germany

28.3

28.5

28.3

28.6

30.2

29.1

29.3

29.9

46.7

47.7

47.5

47.5

48.6

47.5

47.8

48.8

54.9

56.1

56.0

55.8

56.6

55.6

55.9

57.0

Greece

5.9

6.3

7.4

7.3

8.0

7.8

7.3

7.5

21.8

22.2

23.3

23.2

23.9

23.7

23.2

23.4

38.9

39.2

40.0

40.0

40.5

40.3

40.0

40.2

Hungary

27.4

25.7

25.2

26.5

27.9

28.4

28.0

27.5

38.9

37.2

36.7

39.0

40.4

40.9

40.5

40.0

58.3

56.8

56.4

56.3

56.2

55.9

56.4

55.8

Iceland

29.3

28.4

33.5

34.8

35.3

35.4

36.7

34.8

29.4

28.6

33.6

34.9

35.4

35.5

36.8

35.0

31.9

31.3

36.3

37.9

38.3

38.7

40.0

38.5

Ireland

32.6

31.5

30.2

30.0

26.7

23.1

22.4

23.1

39.1

37.4

35.9

35.4

32.1

28.1

27.4

28.2

45.7

44.1

42.8

42.3

39.4

35.8

34.5

35.2

Italya

23.2

23.5

24.6

24.6

24.7

23.9

24.1

24.5

33.0

33.6

33.8

33.8

33.9

33.0

33.3

33.7

53.6

54.0

50.9

50.6

50.7

50.0

49.9

50.2

Japan

11.4

12.7

11.8

9.3

9.5

9.6

8.5

8.9

17.0

18.2

17.4

19.3

19.5

19.6

22.1

20.5

21.4

22.6

21.9

26.9

27.1

27.2

32.3

29.6

Korea

4.7

4.5

4.0

6.3

7.4

7.6

7.2

5.2

7.0

8.3

8.9

13.0

14.1

14.3

13.9

12.1

9.0

15.0

16.9

20.0

21.1

21.2

20.7

19.0

23.0

23.6

20.8

21.5

22.0

20.3

17.4

17.8

35.5

36.2

33.9

35.1

36.0

34.2

31.2

31.6

43.0

43.8

42.0

42.9

43.8

42.2

39.3

39.6

Luxembourg Mexico

7.7

7.3

7.8

7.7

8.4

9.0

9.3

9.6

13.0

10.6

11.1

9.9

10.5

11.0

11.3

11.5

31.4

28.5

28.9

21.6

22.0

21.0

22.4

23.0

Netherlands

20.7

21.2

21.9

21.5

22.2

20.5

20.8

20.2

42.2

42.4

38.9

39.1

39.3

34.8

34.9

35.1

44.2

44.1

44.4

44.2

44.3

40.2

40.3

39.9

New Zealand

26.5

26.2

24.8

24.3

24.8

25.2

25.9

26.4

26.5

26.2

24.8

24.3

24.8

25.2

25.9

26.4

26.5

26.2

24.8

24.3

24.8

25.2

25.9

26.4

Norway

29.6

29.5

29.6

29.4

29.2

28.9

28.4

28.3

37.4

37.3

37.4

37.2

37.0

36.7

36.2

36.1

44.4

44.3

44.4

44.3

44.2

43.9

43.5

43.3

Poland

19.8

18.2

17.1

7.7

7.7

7.3

7.3

7.4

19.8

18.2

17.1

32.5

32.5

32.3

32.4

32.4

45.9

44.8

44.0

43.9

44.0

43.8

43.8

43.9

Portugal

13.4

13.6

13.5

13.2

13.4

12.1

12.4

12.5

24.4

24.6

24.5

24.2

24.4

23.1

23.4

23.5

38.9

39.1

39.0

38.8

38.9

37.9

38.1

38.1

-

-

-

-

8.8

10.3

10.1

10.7

-

-

-

-

21.6

23.1

22.9

23.5

-

-

-

-

43.2

44.3

44.1

44.6

Spain

17.9

17.9

18.0

16.9

17.1

17.5

17.9

17.3

23.8

24.0

24.3

23.3

23.5

23.9

24.2

23.6

40.7

41.0

41.9

41.3

41.4

41.7

42.0

41.5

Sweden

37.6

37.6

36.7

34.7

33.3

32.0

30.5

31.2

41.7

42.3

42.0

40.3

38.9

37.6

36.0

36.7

56.2

56.6

56.4

55.1

54.1

53.0

51.8

51.2

Switzerland

16.1

15.4

15.5

15.2

14.6

14.6

14.6

14.6

27.7

27.0

27.0

26.7

26.2

26.2

26.2

25.9

35.2

34.5

34.6

34.3

33.8

33.8

33.8

33.4

Turkey

27.5

28.0

29.5

17.9

18.0

17.8

17.3

17.5

32.2

33.6

34.2

22.4

26.9

31.7

32.3

32.5

36.4

38.3

38.3

27.1

35.0

42.9

44.3

44.5

United Kingdom

20.0

19.2

19.2

19.0

18.3

18.1

18.2

18.3

28.0

27.0

27.0

26.6

26.0

26.2

26.1

26.9

34.6

33.6

33.6

33.5

33.0

33.0

32.9

34.2

United States

24.1

24.2

24.1

24.3

24.1

23.0

22.7

21.9

31.8

31.9

31.7

31.9

31.7

30.6

30.3

29.6

36.6

36.7

36.6

36.8

36.6

35.6

35.3

34.6

Slovak Republic

© OECD/OCDE 2004

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

432 Annex Table I.3. Evolution of the tax burden, 1996-2003, single persons without children at 167% of average earnings

© OECD/OCDE 2004

Annex Table I.4. Evolution of the tax burden, 1996-2003, single parent with two children at 67% of average earnings Annexe Tableau I.4. Évolution de la pression fiscale, 1996-2003, parent isolé ayant deux enfants , salaire égal à 67% du salaire d'un ouvrier moyen Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

Australia

11.8

12.9

13.8

14.3

17.4

19.0

20.2

20.2

-10.2

-9.7

-6.4

-4.1

-11.0

-11.8

-6.7

-6.4

-10.2

-9.7

-6.4

-4.1

-11.0

-11.8

-0.7

-0.4

Austria

-4.7

-5.2

-5.0

0.7

-0.5

0.3

0.9

1.6

-4.1

-5.7

-5.2

-7.1

-10.5

-9.5

-8.3

-8.1

16.3

19.8

20.1

18.6

15.7

15.3

16.2

16.3

Belgium

13.5

13.6

13.9

14.1

14.3

14.4

13.9

13.2

10.8

11.3

11.5

11.8

12.5

13.2

12.6

12.1

33.8

32.6

34.5

34.6

33.5

33.1

32.3

31.7

Canada

-0.5

-1.0

-2.9

-6.7

9.7

9.4

6.3

6.4

4.8

4.4

2.5

-1.2

-2.4

-2.7

-9.9

-9.8

10.6

10.3

8.4

5.1

4.0

3.9

1.2

1.4

3.7

3.9

3.1

2.5

3.2

3.2

3.9

4.5

0.3

0.5

-15.5

-15.9

-14.2

-11.8

-10.7

-7.1

26.2

26.3

14.5

14.1

15.4

17.2

18.0

20.7

Denmark

31.6

30.7

29.4

28.6

27.7

28.0

27.4

27.4

13.6

14.1

12.9

13.6

14.8

14.1

13.8

13.9

13.6

14.5

13.4

14.3

15.4

14.9

14.5

14.6

Finland

23.6

22.2

22.0

20.3

20.5

19.7

19.2

18.9

10.3

9.5

9.2

8.0

8.9

8.4

7.8

8.3

28.7

27.9

27.9

27.0

27.7

26.7

26.3

26.0

France

2.7

3.7

7.6

7.6

7.6

6.8

4.5

4.8

11.8

12.2

11.5

12.0

12.0

11.3

9.2

9.9

36.0

32.7

30.4

31.3

31.6

30.8

29.1

29.4

-2.1

-3.0

-2.5

-4.1

-5.3

-5.9

-6.6

-5.6

18.1

18.1

18.6

16.6

15.2

14.6

14.1

15.4

31.9

32.3

32.7

30.9

29.6

29.2

28.8

30.1

Czech Republic

Germany

2003

Greece

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

15.9

15.9

15.9

15.9

15.9

15.9

15.9

15.9

34.3

34.3

34.3

34.3

34.3

34.3

34.3

34.3

Hungary

10.5

10.7

10.1

4.0

4.9

0.0

0.0

0.0

-7.4

-6.1

-7.0

-10.1

-5.9

-7.8

-8.3

-9.3

26.8

28.8

28.1

24.0

22.1

19.5

23.2

21.3

Iceland

11.7

12.2

15.0

15.4

16.6

17.5

18.8

19.1

-23.5

-18.7

-11.6

-8.7

-5.5

-5.3

-5.1

-3.5

-19.1

-14.2

-7.0

-3.8

-0.7

-0.1

0.1

2.1

Ireland

9.5

8.1

7.3

3.1

2.2

0.0

0.0

0.0

-5.7

-9.8

-14.5

-14.2

-9.5

-10.5

-22.4

-25.1

2.6

-1.2

-5.5

-5.2

-0.9

-1.9

-12.8

-15.3

Italya

9.2

10.0

10.5

10.5

9.2

8.1

7.0

5.4

8.0

5.9

3.8

3.1

2.3

1.3

2.4

1.2

37.1

35.7

28.7

27.7

27.1

26.3

26.6

25.8

Japan

2.1

2.6

0.9

1.4

2.1

2.1

1.6

1.8

9.1

9.6

7.9

11.4

12.1

12.1

15.2

13.3

15.1

15.6

14.1

19.7

20.3

20.4

26.3

23.3

Korea

0.0

0.0

0.0

0.2

0.5

0.6

0.3

7.5

2.3

3.9

4.9

6.9

7.2

7.3

4.8

14.4

4.5

10.9

13.3

14.4

14.8

14.7

12.4

21.1

Luxembourg

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-4.2

-4.4

-6.8

-8.9

-8.2

-8.0

-11.5

-10.9

8.0

8.0

6.2

4.1

4.9

5.1

1.9

2.5

-6.2

-6.8

-6.2

-6.2

-5.4

-4.8

-4.1

-3.6

-0.9

-4.4

-3.8

-5.0

-4.2

-3.5

-2.9

-2.4

20.5

17.3

17.6

9.3

9.9

9.2

11.3

12.4 18.0

Mexico Netherlands

3.4

2.8

3.9

2.8

2.4

2.3

2.3

2.0

16.9

17.2

8.6

9.5

10.9

5.8

4.6

5.0

22.3

22.4

20.5

21.5

23.1

18.7

17.8

New Zealand

3.1

-0.8

-2.1

-2.6

18.7

18.8

18.9

18.9

3.1

-0.8

-2.1

-2.6

-1.1

0.2

2.0

3.7

3.1

-0.8

-2.1

-2.6

-1.1

0.2

2.0

3.7

Norway

10.8

10.8

12.1

12.1

11.7

13.2

13.2

13.1

-3.7

-3.9

-1.4

0.0

2.4

2.1

3.0

3.8

7.9

7.7

10.0

11.2

13.5

13.2

14.0

14.7

Poland

16.5

15.3

14.2

5.2

5.2

4.4

4.6

4.7

8.0

7.4

4.7

24.0

24.2

23.6

23.9

24.1

37.9

37.5

35.7

36.9

37.1

36.5

36.8

37.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

3.5

3.9

3.4

3.4

3.5

-0.2

-0.2

-0.1

22.0

22.4

22.0

22.0

22.0

19.1

19.0

19.1

-

-

-

-

0.0

1.7

0.8

1.5

-

-

-

-

-14.1

-7.9

-8.1

0.3

-

-

-

-

17.3

21.8

21.6

27.8

Portugal Slovak Republic Spain Sweden Switzerland

1.1

1.4

0.7

0.0

0.0

0.0

0.0

0.0

7.5

7.8

7.1

6.4

6.4

6.4

6.3

6.4

29.3

29.5

29.0

28.4

28.3

28.3

28.3

28.3

26.6

26.5

25.6

24.8

23.5

22.3

21.0

21.4

20.3

21.4

20.1

19.5

16.9

14.5

13.6

14.7

40.1

40.9

39.9

39.5

37.5

35.7

35.0

34.1

4.0

4.1

2.6

2.6

2.9

2.8

2.9

4.3

2.8

3.0

1.9

1.8

2.3

2.3

2.2

14.2

12.9

13.0

12.0

12.0

12.4

12.4

12.1

20.9

20.7

21.6

12.7

13.2

13.7

13.6

13.2

32.6

34.5

33.5

24.1

27.2

29.7

28.6

28.2

42.1

45.0

43.0

34.5

39.1

42.6

41.3

40.9

United Kingdom

11.5

11.1

11.2

11.3

-9.7

-14.2

-15.7

-16.5

6.5

6.7

7.1

6.7

-14.6

-19.3

-20.6

-20.2

12.6

15.1

15.5

13.4

-6.3

-10.8

-12.1

-10.8

United States

-2.6

-2.2

-2.8

-6.2

-6.0

-9.9

-9.7

-11.6

5.0

5.5

4.8

1.5

1.6

-2.2

-2.0

-4.0

11.8

12.2

11.6

8.5

8.6

5.0

5.2

3.4

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

433

Annex I/Annexe I

4.7

Turkey

Annexe Tableau I.5. Évolution de la pression fiscale, 1996-2003, couple marié disposant d'un salaire unique égal à 100% du salaire d'un ouvrier moyen et ayant deux enfants Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

21.5

20.8

21.6

22.2

22.8

23.3

24.0

24.0

15.0

14.5

15.5

16.1

13.5

14.2

15.6

15.6

15.0

14.5

15.5

16.1

13.5

14.2

20.4

20.4

Austria

4.0

5.0

5.4

9.2

8.2

8.7

9.0

9.3

10.4

10.7

11.3

10.0

7.6

8.2

8.9

8.9

28.0

32.2

32.7

31.6

29.5

29.0

29.5

29.5

Belgium

16.3

16.5

16.8

17.0

17.1

17.1

16.7

15.8

19.8

20.2

20.5

20.7

21.1

21.6

21.0

20.3

40.4

40.8

41.1

41.2

40.5

40.3

39.7

39.0

Canada

12.1

12.6

12.2

10.2

16.4

15.3

14.1

14.3

17.6

18.2

17.7

15.9

16.0

14.8

14.3

14.5

22.7

23.4

22.9

21.2

21.4

20.4

23.1

23.3

5.4

5.2

4.7

4.3

4.8

4.8

5.4

5.9

7.3

7.1

-3.4

-2.1

-1.0

3.1

3.8

6.3

31.4

31.2

23.4

24.4

25.2

28.2

28.7

30.6

Denmark

28.8

27.8

26.6

26.2

25.7

26.2

25.7

25.7

31.1

31.1

29.7

30.7

30.7

30.2

29.7

29.7

31.1

31.3

30.1

31.1

31.0

30.7

30.1

30.1

Finland

29.5

28.0

27.9

26.3

26.6

25.9

25.4

25.1

27.1

25.7

25.3

23.9

24.3

23.5

22.8

22.8

42.0

40.8

40.7

39.6

39.9

38.8

38.3

37.8

France

2.7

3.7

7.6

7.6

7.6

7.0

7.1

7.1

15.1

15.3

14.6

15.0

15.0

14.4

14.6

15.1

40.7

39.5

38.5

38.9

39.8

39.4

39.5

40.0

Germany

1.6

1.0

1.3

0.0

-0.9

-1.7

-2.4

-1.5

21.9

22.1

22.4

20.7

19.6

18.9

18.3

19.5

35.0

35.6

35.9

34.4

33.3

32.7

32.2

33.5

Australia

Czech Republic

Greece

2.1

2.5

2.8

1.9

2.3

2.0

0.9

0.0

18.0

18.4

18.7

17.8

18.2

17.9

16.8

15.9

35.9

36.2

36.5

35.8

36.1

35.9

35.0

34.3

Hungary

18.1

17.8

17.4

12.0

12.6

9.2

8.0

4.8

12.6

12.9

12.3

9.1

11.6

9.9

8.5

4.8

40.4

40.8

40.3

35.9

35.0

32.8

33.9

30.5 8.9

Iceland

5.9

6.8

10.5

11.3

12.0

12.6

13.3

13.1

-10.4

-6.8

-1.0

1.3

3.2

3.0

3.2

3.6

-6.6

-2.8

3.1

5.8

7.6

7.8

8.0

Ireland

15.4

14.1

12.9

10.1

5.0

2.9

2.5

2.9

16.7

14.6

13.2

10.5

5.4

2.3

-0.7

-2.6

25.6

23.8

22.5

20.1

15.5

12.8

9.1

7.4

Italya

14.4

15.3

15.7

15.8

14.9

13.4

11.8

11.1

17.7

17.0

15.7

15.5

14.8

13.5

14.7

14.2

43.8

43.3

37.5

37.0

36.5

35.4

35.9

35.5

Japan

2.0

2.6

0.7

1.5

2.0

2.0

1.4

1.6

9.0

9.6

7.7

11.5

12.0

12.0

15.1

13.2

15.1

15.6

14.0

19.8

20.2

20.4

26.2

23.2

Korea

0.8

0.9

0.7

1.3

1.7

1.8

1.6

1.7

3.1

4.7

5.6

8.0

8.4

8.5

6.1

6.2

5.3

11.6

13.9

15.4

15.8

15.9

13.6

13.6

Luxembourg

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

1.4

1.3

-0.2

-1.3

-0.8

-0.7

-3.0

-2.6

12.9

13.0

12.0

10.7

11.4

11.5

9.2

9.6

Mexico

0.0

-1.2

0.0

0.0

1.3

1.9

2.1

2.9

5.3

1.4

2.6

1.6

2.9

3.4

3.7

4.4

25.4

20.8

21.9

14.1

15.4

14.4

16.1

17.3

Netherlands

4.4

3.5

5.9

4.8

4.9

8.3

8.7

8.2

28.0

27.9

22.4

23.6

25.0

22.1

22.1

23.3

33.5

33.0

33.2

34.1

35.5

33.0

33.1

33.7

New Zealand

18.8

16.2

14.8

14.1

19.5

19.5

20.1

20.6

18.8

16.2

14.8

14.1

15.5

16.7

18.8

20.4

18.8

16.2

14.8

14.1

15.5

16.7

18.8

20.4

Norway

17.1

17.1

17.4

17.4

17.1

18.1

18.1

18.1

15.5

15.4

16.2

16.8

17.6

17.5

17.9

18.3

25.0

24.9

25.6

26.2

26.9

26.9

27.2

27.6

Poland

15.9

14.7

13.5

4.6

4.7

4.0

4.2

4.2

10.3

9.5

7.2

25.4

25.6

25.0

29.2

29.2

39.5

38.9

37.4

38.1

38.2

37.8

41.2

41.3

3.5

3.1

3.0

2.4

2.7

0.1

0.3

0.3

9.5

9.4

9.0

8.4

8.7

6.1

5.4

5.6

26.9

26.8

26.5

26.0

26.2

24.1

23.6

23.7

-

-

-

-

2.0

3.5

2.6

3.1

-

-

-

-

-3.2

1.4

0.9

6.6

-

-

-

-

25.2

28.5

28.2

32.3

Portugal Slovak Republic

© OECD/OCDE 2004

Spain Sweden Switzerland Turkey

6.6

6.8

6.4

2.5

3.0

3.6

4.2

3.4

13.0

13.2

12.8

8.9

9.3

10.0

10.5

9.7

33.5

33.7

33.3

30.4

30.6

31.1

31.5

30.9

28.8

28.5

27.5

27.2

25.8

24.6

23.4

23.8

26.2

27.2

26.1

26.0

23.7

21.8

20.8

21.6

44.6

45.2

44.4

44.4

42.6

41.1

40.3

39.5

5.6

5.1

5.2

5.0

4.9

5.0

5.1

5.2

9.2

8.2

8.3

8.4

8.2

8.4

8.6

8.5

18.6

17.7

17.8

17.8

17.7

17.9

18.1

17.8

23.8

23.9

25.2

15.2

14.7

14.9

15.0

14.7

31.6

33.1

33.1

22.9

28.7

30.9

30.0

29.7

38.3

40.7

39.8

30.3

40.4

43.6

42.4

42.1

United Kingdom

15.7

15.1

15.1

15.2

13.3

10.3

9.3

8.7

17.7

17.3

17.4

16.2

14.1

10.8

9.9

10.3

25.3

24.8

24.9

23.3

21.4

18.2

17.3

18.3

United States

10.4

10.7

10.2

7.4

7.6

4.3

3.9

1.4

18.0

18.3

17.9

15.0

15.3

12.0

11.5

9.1

23.9

24.1

23.7

21.1

21.3

18.3

17.8

15.5

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

434 Annex Table I.5. Evolution of the tax burden, 1996-2003, one-earner married couple with two children at 100% of average earnings

© OECD/OCDE 2004

Annex Table I.6. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 33%, with two children Annexe Tableau I.6. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100% et l'autre à 33% du salaire d'un ouvrier moyen, et ayant deux enfants Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

19.0

19.1

19.8

20.2

19.3

19.8

20.8

20.7

17.8

17.8

18.5

19.0

15.8

16.3

17.5

17.5

17.8

17.8

18.5

19.0

15.8

16.3

22.2

22.2

Austria

3.9

4.7

4.9

7.7

7.0

7.3

7.5

7.8

13.2

13.4

13.9

12.9

11.0

11.5

12.0

12.0

30.2

34.3

34.6

33.8

32.1

31.5

31.9

31.9

Belgium

20.9

21.1

21.5

21.6

21.8

21.9

21.0

19.6

27.0

27.4

27.7

27.9

28.3

28.7

27.8

26.5

45.8

44.5

44.7

44.8

45.6

45.0

44.1

41.0

Canada

16.2

16.4

15.9

14.2

17.7

16.6

15.3

15.4

21.5

21.9

21.3

19.7

20.0

18.8

18.4

18.2

26.3

26.7

26.1

24.6

25.0

24.0

26.6

26.5

6.0

6.2

5.8

5.5

5.9

5.9

6.4

6.9

11.6

11.7

7.7

9.5

10.2

12.4

12.9

14.3

34.5

34.6

31.6

33.0

33.5

35.1

35.5

36.5

Denmark

31.6

30.7

29.4

28.6

27.7

28.0

27.4

27.4

36.5

36.5

35.1

35.8

35.8

35.0

34.4

34.4

36.5

36.8

35.4

36.3

36.2

35.6

34.9

34.9

Finland

26.0

24.4

24.3

22.9

23.2

22.3

21.9

21.5

26.1

24.5

24.2

22.9

23.1

22.1

21.4

21.3

41.2

39.9

39.9

38.8

39.0

37.7

37.2

36.5

France

2.7

4.9

8.5

8.7

8.0

6.8

7.2

7.1

16.7

18.0

17.0

17.6

16.9

15.8

16.1

16.5

41.3

39.5

38.2

38.8

39.2

38.4

38.6

39.0

Germany

8.9

8.6

8.7

7.7

6.8

5.7

5.2

5.8

29.2

29.6

29.7

28.5

27.3

26.3

25.8

26.9

41.1

41.9

42.0

40.8

39.7

38.9

38.5

39.6

Greece

1.6

2.0

2.2

1.5

1.8

1.6

0.7

0.0

17.5

17.9

18.1

17.4

17.7

17.5

16.6

15.9

35.6

35.8

36.0

35.5

35.7

35.5

34.8

34.3

Hungary

14.1

13.4

13.1

11.0

11.4

8.9

7.3

3.6

12.8

12.5

12.1

11.9

13.8

12.5

10.8

6.7

40.6

41.3

41.0

39.2

36.6

34.7

36.7

32.8

Iceland

12.6

13.0

15.4

15.7

16.7

17.5

18.8

19.1

3.4

5.3

8.6

10.1

12.0

12.2

13.0

13.7

6.8

8.8

12.3

14.2

16.0

16.6

17.3

18.4

Ireland

17.1

16.0

14.7

12.4

11.1

8.0

7.2

7.1

18.3

16.5

15.0

12.8

11.4

7.6

4.8

3.0

26.5

24.9

23.5

21.5

20.3

16.8

13.6

12.0

Italya

13.8

15.0

15.1

15.1

13.7

12.9

12.4

10.0

21.4

22.5

21.8

21.7

20.4

19.6

19.9

17.6

46.3

47.0

42.0

41.6

40.6

40.0

39.8

38.1

Japan

3.9

4.7

3.0

3.3

3.7

3.7

3.2

3.4

10.9

11.7

10.0

13.3

13.7

13.7

16.8

14.9

16.8

17.6

16.1

21.4

21.8

21.9

27.7

24.8

Korea

0.8

0.6

0.5

1.0

1.2

1.3

1.4

1.5

3.1

4.5

5.4

7.7

7.9

8.0

5.9

6.0

5.2

11.5

13.8

15.1

15.4

15.4

13.4

13.4

Luxembourg

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

4.1

4.1

3.1

2.4

2.9

3.0

1.1

1.4

15.4

15.5

15.0

14.0

14.6

14.7

12.9

13.2

-4.8

-6.2

-5.0

-5.0

-3.7

-2.9

-2.6

-1.9

0.4

-3.7

-2.4

-3.5

-2.1

-1.4

-1.1

-0.4

21.5

18.1

19.0

11.1

12.3

11.6

13.4

14.5

Australia

Czech Republic

Mexico Netherlands

5.3

5.6

6.5

5.5

6.3

6.9

7.1

6.5

31.0

30.9

25.3

26.5

27.7

24.1

24.0

25.0

35.9

34.6

35.3

36.3

37.6

34.5

34.5

35.2

New Zealand

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

Norway

18.3

18.2

18.8

18.6

17.5

18.2

18.3

18.4

19.0

18.8

19.8

20.1

19.8

19.7

20.1

20.5

28.1

27.9

28.8

29.1

28.9

28.8

29.2

29.5

Poland

16.5

15.3

14.2

5.2

5.2

4.4

4.6

4.7

12.2

11.4

9.4

27.0

27.1

26.5

29.6

29.7

40.8

40.2

38.9

39.4

39.5

39.0

41.6

41.6

3.6

3.5

3.4

2.9

3.1

1.0

0.2

0.3

10.8

10.9

10.6

10.1

10.3

8.2

6.8

6.9

27.9

28.0

27.8

27.4

27.5

25.8

24.7

24.8

-

-

-

-

1.5

3.4

2.7

3.2

-

-

-

-

0.8

5.1

4.6

9.0

-

-

-

-

28.1

31.2

30.8

34.0

Portugal Slovak Republic Spain Sweden Switzerland Turkey

8.6

8.9

9.1

6.9

7.5

7.9

8.2

7.6

15.4

15.7

15.8

13.7

13.8

14.2

14.6

13.9

36.3

36.4

36.4

34.8

34.0

34.3

34.6

34.1

28.1

27.9

26.8

26.1

24.7

23.4

22.1

22.2

27.4

28.3

27.5

26.9

24.9

23.0

21.9

22.4

45.5

46.1

45.5

45.1

43.5

42.0

41.2

40.1

6.4

5.8

5.9

5.7

5.5

5.6

5.8

5.9

12.0

11.0

11.1

11.1

10.9

11.1

11.3

11.2

21.1

20.2

20.3

20.3

20.1

20.3

20.5

20.2

22.6

22.7

23.3

14.2

14.0

14.1

14.2

13.8

31.9

33.1

32.8

23.4

28.0

30.1

29.2

28.8

39.8

41.6

40.6

32.2

39.7

42.9

41.7

41.4

13.2

12.7

12.7

12.1

12.6

10.3

10.4

10.7

16.0

15.7

15.8

14.0

14.1

11.4

11.5

12.8

22.6

22.1

22.6

20.1

20.4

17.7

17.7

19.6

United States

13.9

14.0

13.8

11.4

11.3

9.2

9.2

6.8

21.6

21.6

21.4

19.1

19.0

16.8

16.8

14.4

27.2

27.2

27.0

24.8

24.7

22.7

22.7

20.5

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

435

Annex I/Annexe I

United Kingdom

Annexe Tableau I.7. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100% et l'autre à 67% du salaire d'un ouvrier moyen, et ayant deux enfants Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

20.1

20.5

21.2

21.7

21.0

21.7

22.6

22.4

19.8

20.0

20.8

21.3

18.2

18.9

19.9

19.9

19.8

20.0

20.8

21.3

18.2

18.9

24.5

24.4

Austria

5.0

5.8

6.2

8.5

7.3

7.8

8.0

8.3

16.1

16.4

16.9

16.2

14.1

14.7

15.2

15.3

32.6

36.6

36.9

36.4

34.5

34.0

34.4

34.4

Belgium

24.1

24.3

24.6

24.7

25.0

24.9

24.3

23.1

31.8

32.2

32.4

32.6

33.0

33.2

32.6

31.4

49.4

49.2

49.9

50.0

49.4

48.9

48.2

47.2

Canada

19.1

19.1

18.6

17.2

18.9

17.7

16.4

16.6

24.5

24.7

24.1

22.8

23.0

21.8

21.3

21.0

29.2

29.4

28.8

27.6

27.9

26.9

29.3

29.1

7.5

7.6

7.2

7.0

7.4

7.4

7.8

8.1

14.4

14.5

14.5

14.5

15.1

17.6

18.1

18.6

36.6

36.7

36.7

36.7

37.1

39.0

39.3

39.7

Denmark

34.2

33.4

32.0

31.3

30.5

30.8

29.9

30.0

39.5

39.6

38.1

38.9

38.7

38.0

37.1

37.1

39.5

39.8

38.4

39.3

39.1

38.4

37.5

37.5

Finland

27.1

25.7

25.5

23.9

24.2

23.4

22.9

22.6

28.8

27.3

27.0

25.4

25.6

24.6

23.8

23.7

43.3

42.2

42.1

40.8

40.9

39.7

39.0

38.4

France

4.9

6.1

9.9

10.0

9.4

9.1

8.3

8.3

19.8

20.1

19.4

19.8

19.2

19.0

18.1

18.5

43.2

41.4

39.9

40.5

40.7

40.5

39.8

40.1

13.5

13.2

13.2

12.6

12.1

10.8

10.4

11.0

33.7

34.2

34.3

33.3

32.6

31.4

31.1

32.1

44.8

45.7

45.7

44.8

44.0

43.1

42.9

43.9

Australia

Czech Republic

Germany Greece

1.6

1.9

2.2

1.3

1.5

1.3

0.6

0.0

17.5

17.8

18.1

17.2

17.4

17.2

16.5

15.9

35.5

35.8

36.0

35.3

35.4

35.3

34.7

34.3

Hungary

15.1

15.0

14.5

12.2

13.3

11.4

9.3

5.1

16.4

16.6

16.0

15.4

17.7

16.9

14.6

10.1

43.0

43.6

43.2

40.9

39.5

38.0

38.8

34.8

Iceland

17.6

17.6

19.5

19.6

20.5

21.1

22.4

22.7

12.8

13.6

15.6

16.8

18.3

18.4

19.1

19.7

15.8

16.9

19.1

20.6

22.0

22.5

23.1

24.0

Ireland

19.1

18.0

16.6

14.8

13.3

10.4

9.7

9.7

21.1

19.3

17.7

15.9

13.5

11.0

8.8

7.4

28.7

27.0

25.6

24.0

21.8

19.5

17.0

15.7

Italya

16.0

16.7

17.3

17.3

16.3

15.2

14.2

13.1

25.5

26.0

25.6

25.5

24.6

23.5

22.6

21.4

49.1

49.5

44.8

44.5

43.7

42.8

41.8

40.9

Japan

4.8

5.7

4.3

4.2

4.5

4.5

4.0

4.2

11.8

12.7

11.3

14.2

14.5

14.5

17.6

15.8

17.7

18.5

17.3

22.2

22.5

22.6

28.4

25.5

Korea

1.1

1.1

0.7

1.3

1.6

1.7

1.4

1.5

3.4

4.9

5.5

8.0

8.3

8.4

5.9

6.0

5.6

11.8

13.9

15.4

15.8

15.8

13.4

13.4

Luxembourg

0.7

1.3

1.1

3.0

3.7

2.2

0.7

1.1

6.5

7.1

6.2

7.7

8.7

7.4

4.3

5.0

17.5

18.1

17.7

18.7

19.8

18.6

15.8

16.3

-2.4

-3.4

-2.5

-2.5

-1.4

-0.8

-0.4

0.3

2.8

-0.9

0.0

-1.0

0.1

0.7

1.1

1.7

23.4

19.4

20.1

12.2

13.2

12.3

14.2

15.3

Mexico Netherlands

5.4

5.4

6.9

5.8

6.5

6.6

6.9

6.2

33.4

33.5

28.4

29.4

30.5

26.6

26.5

27.3

38.1

38.0

38.1

39.0

40.1

36.7

36.8

37.3

New Zealand

21.7

21.1

19.6

19.1

19.1

19.2

19.6

19.9

21.7

21.1

19.6

19.1

19.1

19.2

19.6

19.9

21.7

21.1

19.6

19.1

19.1

19.2

19.6

19.9

Norway

19.2

19.1

19.6

19.4

19.2

19.6

19.6

19.5

21.3

21.1

22.0

22.2

22.6

22.4

22.6

22.8

30.1

30.0

30.7

30.9

31.4

31.2

31.4

31.6

Poland

17.4

16.3

15.1

6.0

6.0

5.4

5.5

5.6

14.0

13.1

11.3

30.8

30.8

28.0

30.5

30.6

42.0

41.4

40.2

42.6

42.6

40.2

42.3

42.4

4.6

4.7

4.6

4.0

4.2

2.3

2.4

2.4

12.6

12.9

12.6

12.0

12.2

10.2

9.9

10.0

29.4

29.6

29.4

28.9

29.0

27.5

27.2

27.3

-

-

-

-

3.5

4.7

3.9

4.3

-

-

-

-

9.2

11.6

10.5

13.8

-

-

-

-

34.2

35.9

35.1

37.5

Spain

10.0

10.4

10.2

6.9

7.4

8.0

8.5

7.5

16.4

16.8

16.6

13.3

13.7

14.4

14.9

13.9

36.1

36.4

36.2

33.7

33.9

34.4

34.8

34.1

Sweden

27.9

27.7

26.7

26.2

24.9

23.7

22.4

22.9

28.4

29.3

28.7

28.3

26.5

24.8

23.7

24.4

46.2

46.8

46.4

46.1

44.7

43.4

42.5

41.6

8.9

8.2

8.3

8.1

7.8

7.9

8.0

8.1

15.7

14.7

14.8

14.7

14.5

14.6

14.8

14.6

24.4

23.5

23.6

23.5

23.3

23.4

23.6

23.3

Turkey

22.7

22.6

23.8

14.2

14.1

14.4

14.4

14.1

32.0

33.7

33.3

23.4

28.1

30.4

29.4

29.1

40.5

42.6

41.7

32.9

39.9

43.2

41.9

41.6

United Kingdom

15.0

14.5

14.5

14.3

14.5

12.6

12.7

13.0

19.3

18.9

19.0

17.8

17.7

15.5

15.6

16.8

25.9

26.3

26.3

24.3

24.3

22.1

22.1

23.9

United States

15.6

15.6

15.5

13.6

13.4

11.7

11.7

9.7

23.3

23.3

23.1

21.2

21.1

19.3

19.3

17.3

28.7

28.7

28.6

26.8

26.7

25.1

25.1

23.2

Portugal Slovak Republic

© OECD/OCDE 2004

Switzerland

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

436 Annex Table I.7. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 67%, with two children

© OECD/OCDE 2004

Annex Table I.8. Evolution of the tax burden, 1996-2003, two-earner married couple, one at 100% average earnings and the other at 33%, with no children Annexe Tableau I.8. Évolution de la pression fiscale, 1996-2003, couple marié disposant de deux salaires, l'un égal à 100% et l'autre à 33% du salaire d'un ouvrier moyen, et sans enfant Income tax (in % of gross wage)

Income tax plus employee contributions less cash benefits (in % of gross wage)

Income tax plus employee and employer contributions less cash benefits (as % of labour costs)

Impôt sur le revenu (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut)

Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versée (en % des coûts de main-d'œuvre)

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

1996

1997

1998

1999

2000

2001

2002

2003

19.4

20.0

20.6

21.0

19.3

19.8

20.8

20.7

20.7

21.1

21.7

22.1

19.3

19.8

20.8

20.7

20.7

21.1

21.7

22.1

19.3

19.8

25.3

25.2

Austria

6.5

7.3

7.5

7.7

7.0

7.3

7.5

7.8

24.6

25.3

25.6

25.8

25.1

25.4

25.6

25.8

39.4

43.4

43.5

43.6

42.8

42.3

42.4

42.6

Belgium

23.0

23.3

23.6

23.7

23.9

23.9

23.1

21.7

37.0

37.2

37.6

37.7

37.9

37.9

37.0

35.6

53.2

52.0

52.3

52.3

52.8

52.1

51.2

48.3

Canada

19.2

19.1

18.6

17.7

17.7

16.6

15.3

15.4

24.5

24.6

24.0

23.2

23.4

22.6

21.6

21.8

29.1

29.3

28.6

27.9

28.2

27.5

29.5

29.7

8.4

8.8

8.7

8.6

9.1

9.1

9.6

10.0

20.9

21.3

21.2

21.1

21.6

21.6

22.1

22.5

41.4

41.7

41.6

41.5

41.9

41.9

42.3

42.6

Denmark

31.6

30.7

29.4

28.6

27.7

28.0

27.4

27.4

41.3

41.4

40.0

40.8

40.8

40.0

39.3

39.3

41.3

41.7

40.4

41.3

41.2

40.6

39.9

39.9

Finland

26.0

24.4

24.3

22.9

23.2

22.3

21.9

21.5

33.9

32.1

31.8

30.2

30.1

28.8

28.0

27.5

47.4

46.0

45.9

44.6

44.5

43.0

42.4

41.6

France

5.5

6.8

10.5

10.7

10.0

9.6

9.5

9.4

24.5

24.5

23.7

24.1

23.4

23.1

22.8

23.0

46.8

44.3

43.2

43.7

44.0

43.8

43.4

43.8

15.4

15.6

15.4

15.2

15.0

13.8

14.0

14.4

35.6

36.7

36.5

36.0

35.5

34.3

34.6

35.5

46.5

47.7

47.5

47.0

46.5

45.5

45.8

46.7

Australia

Czech Republic

Germany Greece

1.9

2.1

2.5

2.2

2.4

2.1

1.2

0.9

17.8

18.0

18.4

18.1

18.3

18.0

17.1

16.8

35.7

35.9

36.3

36.0

36.2

35.9

35.2

35.0

Hungary

14.1

13.4

13.1

15.2

16.2

16.4

14.0

9.8

25.6

24.9

24.6

27.7

28.7

28.9

26.5

22.3

49.3

49.6

49.4

50.1

47.6

46.9

47.9

44.0

Iceland

12.6

13.0

15.4

15.7

16.7

17.5

18.8

19.1

12.8

13.2

15.5

15.8

16.8

17.8

19.1

19.4

15.8

16.4

19.0

19.7

20.6

21.9

23.1

23.8

Ireland

17.1

16.0

14.7

12.4

11.1

8.0

7.2

7.1

21.9

20.2

18.6

16.3

15.0

11.6

10.9

10.8

29.7

28.2

26.8

24.7

23.5

20.5

19.1

19.1

Italya

14.6

15.8

16.4

16.4

14.9

14.4

14.8

13.5

24.5

26.0

25.6

25.6

24.1

23.6

24.0

22.7

48.4

49.4

44.8

44.5

43.4

42.9

42.9

41.9

Japan

5.7

6.9

5.2

5.2

5.3

5.4

4.7

4.9

12.7

13.9

12.2

15.2

15.3

15.4

18.4

16.5

18.5

19.6

18.1

23.2

23.3

23.4

29.1

26.2

Korea

1.4

1.3

1.2

1.4

1.7

1.7

1.7

1.7

3.7

5.1

6.0

8.1

8.4

8.4

6.2

6.2

5.9

12.0

14.4

15.5

15.8

15.8

13.6

13.6

Luxembourg

4.2

4.7

3.5

3.9

4.3

2.9

2.0

2.2

16.7

17.3

16.5

17.5

18.3

16.8

15.7

15.9

26.5

27.1

26.7

27.3

28.2

26.9

25.7

26.0

-4.8

-6.2

-5.0

-5.0

-3.7

-2.9

-2.6

-1.9

0.4

-3.7

-2.4

-3.5

-2.1

-1.4

-1.1

-0.4

21.5

18.1

19.0

11.1

12.3

11.6

13.4

14.5

Mexico

5.3

5.6

6.5

5.5

6.3

6.9

7.2

6.6

36.2

35.9

30.7

31.8

32.4

28.9

29.1

30.1

40.7

39.3

40.0

41.0

41.6

38.7

38.9

39.6

New Zealand

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

20.8

20.4

19.1

18.6

18.7

18.8

19.3

19.7

Norway

19.9

19.8

19.9

19.6

18.5

18.2

18.3

18.4

27.7

27.6

27.7

27.4

26.3

26.0

26.1

26.2

35.8

35.7

35.8

35.5

34.7

34.4

34.5

34.6

Poland

16.5

15.3

14.2

5.2

5.2

4.4

4.6

4.7

16.5

15.3

14.2

30.0

30.0

29.4

29.6

29.7

43.6

42.9

42.1

41.9

41.9

41.4

41.6

41.6

5.6

5.6

5.5

4.9

5.0

3.5

2.7

2.7

16.6

16.6

16.5

15.9

16.0

14.5

13.7

13.7

32.6

32.6

32.5

32.1

32.2

30.9

30.2

30.3

-

-

-

-

3.5

5.1

4.5

4.9

-

-

-

-

16.3

17.9

17.3

17.7

-

-

-

-

39.3

40.5

40.1

40.4

Spain

10.1

10.4

10.3

8.8

9.1

9.4

9.7

9.1

16.9

17.1

17.1

15.6

15.4

15.8

16.1

15.5

37.4

37.5

37.4

36.2

35.2

35.5

35.7

35.3

Sweden

28.1

27.9

26.8

26.1

24.7

23.4

22.1

22.2

33.1

33.9

33.7

33.0

31.7

30.4

29.1

29.3

49.7

50.2

50.2

49.7

48.6

47.6

46.6

45.4

8.5

7.6

7.6

7.4

7.2

7.3

7.4

7.4

20.1

19.1

19.2

19.0

18.7

18.8

18.9

18.7

28.3

27.5

27.5

27.4

27.2

27.2

27.3

27.0

Turkey

22.6

22.7

23.3

14.2

14.0

14.1

14.2

13.8

31.9

33.1

32.8

23.4

28.0

30.1

29.2

28.8

39.8

41.6

40.6

32.2

39.7

42.9

41.7

41.4

United Kingdom

13.2

12.7

12.7

12.1

12.6

12.4

12.4

12.7

20.8

20.4

20.4

19.2

19.4

18.8

18.8

20.0

27.0

26.4

26.8

25.0

25.3

24.5

24.6

26.2

United States

16.7

16.7

16.6

16.7

16.5

14.8

14.7

13.9

24.4

24.4

24.3

24.4

24.1

22.5

22.4

21.6

29.7

29.8

29.7

29.7

29.5

28.0

27.9

27.2

Portugal Slovak Republic

Switzerland

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

437

Annex I/Annexe I

Netherlands

Annex II

HISTORICAL DATA, 1979-2003 Annexe II

LES DONNÉES HISTORIQUES, 1979-2003

Annexe Tableau II.1. Impôt sur le revenu (en % du salaire brut), 1979-2003, célibataire sans enfant

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italya

© OECD/OCDE 2004

Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

1979 21.9 9.3 15.2 18.3 35.7 26.7 8.5 16.0 1.4 23.7 11.6 7.6 17.4 14.8 26.0 25.7 4.4 10.1 36.5 10.6 42.0 23.2 20.6

1981 23.3 10.2 18.7 19.0 37.8 27.3 8.6 16.4 1.3 16.8 23.4 14.1 8.5 16.8 13.5 26.8 24.7 4.9 11.3 36.1 11.6 35.2 23.4 23.5

1983 22.1 9.4 25.5 18.8 39.4 29.5 8.4 17.1 3.0 16.9 24.6 16.3 9.0 17.4 12.0 26.6 23.3 7.1 12.2 35.5 11.4 30.2 22.7 23.0

1985 21.9 10.2 26.4 19.4 40.0 30.5 7.4 18.1 3.2 14.5 26.8 18.4 8.8 16.7 11.3 27.9 22.7 6.9 10.6 35.6 11.2 22.9 22.3 21.8

1987 22.4 9.5 25.9 21.4 44.0 30.8 6.8 18.6 3.5 12.0 27.9 18.4 8.5 14.0 11.9 26.1 22.7 7.5 12.7 36.6 10.8 22.4 20.3 18.4

1989 22.3 7.0 25.3 20.0 44.0 30.8 6.7 18.6 5.8 17.5 25.5 18.1 7.9 13.5 6.6 12.1 23.4 25.9 6.5 10.4 37.0 10.8 23.5 19.0 18.4

1991 21.5 7.5 25.9 20.4 44.2 28.3 8.1 18.4 3.6 17.9 24.7 16.3 8.5 11.8 6.1 11.5 23.8 24.4 5.9 11.3 28.0 9.6 27.1 18.7 18.4

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

1993 21.6 8.6 26.1 21.1 8.5 44.4 28.6 8.5 18.3 1.7 19.7 23.9 15.8 8.4 12.7 6.5 12.2 24.0 20.9 17.2 6.8 12.3 28.5 11.1 27.4 18.0 18.3

1995 22.5 8.9 27.2 21.7 10.0 37.4 29.3 8.8 20.8 1.7 16.4 20.4 22.4 17.5 6.4 2.5 13.1 2.5 6.7 24.5 21.8 18.1 7.0 13.2 28.7 11.0 25.2 18.2 18.1

1997 23.3 10.2 27.6 22.1 10.4 35.1 28.0 10.5 21.2 2.0 17.8 21.2 20.5 18.8 8.0 1.7 13.8 -1.2 6.5 21.6 21.7 16.9 7.2 13.8 28.5 10.3 24.7 16.7 18.2

1998 23.9 10.5 27.8 21.5 10.3 33.7 27.9 14.1 21.1 2.4 17.4 22.5 19.7 19.9 6.8 1.6 11.6 0.0 7.2 20.0 21.8 15.8 7.1 13.8 27.5 10.4 25.2 16.7 18.1

1999 24.4 10.8 27.9 20.8 10.2 33.0 26.3 14.3 21.2 1.9 17.6 22.3 19.3 20.0 6.1 2.1 12.1 0.0 6.3 19.4 21.6 6.6 6.6 11.8 27.2 10.2 15.2 16.3 18.2

2000 22.8 9.8 27.9 20.7 10.7 32.4 26.6 13.4 21.5 2.2 18.9 23.1 15.2 19.3 6.2 2.5 12.6 1.3 7.6 19.5 21.4 6.6 6.7 6.0 12.1 25.8 9.8 14.7 15.8 17.9

2001 23.3 10.2 27.8 19.3 10.7 32.6 25.9 13.5 20.1 1.8 19.2 23.5 12.0 18.6 6.2 2.5 10.8 1.9 8.8 19.5 21.0 6.0 5.4 6.8 12.6 24.6 9.9 14.9 15.5 16.8

2002 24.0 10.5 27.2 17.9 11.2 31.7 25.4 13.6 20.4 0.4 16.9 24.8 11.4 18.9 5.6 2.2 8.3 2.1 9.2 20.1 21.0 6.1 5.5 5.9 13.0 23.4 9.9 15.0 15.6 16.6

2003 24.0 10.8 26.6 18.1 11.6 31.8 25.1 13.2 20.8 0.0 13.0 25.1 11.4 18.0 5.8 2.3 8.7 2.9 8.5 20.6 21.0 6.2 5.6 6.3 12.2 23.8 9.9 14.7 15.8 16.4

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

440

Annex Table II.1. Income tax (in % of gross wage), 1979-2003, single persons without children

© OECD/OCDE 2004

Annex Table II.2. Income tax plus employee contributions (in % of gross wage), 1979-2003, single persons without children Annexe Tableau II.2. Impôt sur le revenu et cotisations des salariés (en % du salaire brut), 1979-2003, célibataire sans enfant

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1998

1999

2000

2001

2002

2003

Australia

21.9

23.3

22.6

22.9

23.6

23.5

22.8

23.0

24.0

24.8

25.4

25.9

22.8

23.3

24.0

24.0

Austria

23.5

25.1

24.5

26.6

25.9

23.8

24.7

25.9

27.0

28.3

28.6

28.8

27.9

28.3

28.6

28.9

Belgium

25.3

28.8

37.0

38.5

38.0

37.4

37.9

39.2

41.1

41.5

41.8

41.9

41.9

41.7

41.2

40.6

Canada

20.8

22.0

22.3

23.3

25.4

23.8

25.0

26.3

27.1

27.7

27.1

26.5

26.6

25.5

24.4

24.6

-

-

-

-

-

-

-

22.0

23.2

22.9

22.8

22.7

23.2

23.2

23.7

24.1

Denmark

40.1

42.2

44.8

46.3

46.0

46.6

46.7

47.0

45.2

44.9

43.4

44.2

44.1

43.3

42.3

42.4

Finland

29.4

30.0

32.2

34.2

34.2

34.0

31.7

35.7

38.0

35.8

35.4

33.7

33.6

32.4

31.5

31.2

France

20.3

20.5

22.6

22.6

23.5

25.0

25.2

26.9

27.4

28.1

27.3

27.7

26.8

27.0

26.8

26.8

Germany

31.6

32.6

33.9

35.0

35.7

36.0

36.6

36.6

40.5

42.3

42.1

41.9

42.0

40.7

41.0

41.9

Greece

11.6

11.5

16.2

16.4

16.8

19.1

17.4

17.5

17.6

17.9

18.3

17.8

18.1

17.7

16.3

15.9

Hungary

-

-

-

-

-

-

-

-

27.9

29.3

28.9

30.1

31.4

31.7

29.4

25.5

Iceland

-

17.0

17.2

14.7

12.2

17.5

18.1

20.0

20.6

21.2

22.7

22.5

23.2

23.7

25.1

25.3

Ireland Italya

28.1

28.1

33.1

35.3

35.7

33.3

32.4

32.7

29.2

26.0

24.9

24.3

20.3

16.9

16.4

16.4

20.0

22.6

25.8

27.0

27.3

26.7

25.3

25.8

27.5

29.0

29.1

29.1

28.5

27.8

28.1

27.2

Japan

12.5

13.2

13.1

15.8

15.5

14.9

15.5

15.4

13.4

15.0

13.8

16.1

16.2

16.2

19.3

17.4

Korea

-

-

-

-

-

-

-

-

4.8

5.6

6.4

8.8

9.2

9.2

6.7

6.8

29.3

28.8

29.5

28.9

26.2

25.9

24.1

25.2

25.6

26.4

24.6

25.8

26.6

24.8

22.1

22.5

Czech Republic

Luxembourg Mexico

-

-

-

-

-

11.1

10.9

11.3

7.7

1.4

2.6

1.6

2.9

3.4

3.7

4.4

Netherlands

35.5

35.8

40.4

38.0

37.4

35.6

40.4

41.8

40.5

39.3

34.4

35.4

36.2

32.9

33.1

34.0

New Zealand

26.0

26.8

26.6

27.9

26.1

23.4

23.8

24.0

24.5

21.6

20.0

19.4

19.5

19.5

20.1

20.6

Norway

34.4

33.8

33.0

32.7

33.6

33.8

32.2

28.7

29.6

29.5

29.6

29.4

29.2

28.8

28.8

28.8

Poland

-

-

-

-

-

-

-

17.2

18.1

16.9

15.8

31.4

31.4

31.0

31.1

31.2

14.4

15.4

18.1

18.4

18.5

17.4

17.6

16.9

18.0

18.2

18.1

17.6

17.7

16.4

16.5

16.6

Portugal Slovak Republic

-

-

-

-

-

-

-

-

-

-

-

18.8

19.6

18.7

19.1

15.7

16.9

18.1

16.9

18.7

16.4

17.3

18.4

19.6

20.2

20.2

18.2

18.5

18.9

19.3

18.5

Sweden

36.5

36.1

35.5

35.6

36.6

37.0

28.0

29.5

32.6

34.5

34.4

34.1

32.8

31.7

30.4

30.8

Switzerland

20.9

21.9

21.5

21.5

21.1

21.2

19.9

21.4

22.5

21.9

21.9

21.7

21.3

21.4

21.4

21.2

Turkey

49.0

42.2

38.2

31.3

31.8

32.6

34.8

34.3

30.5

32.8

33.1

22.9

28.7

30.9

30.0

29.7

United Kingdom

29.7

31.2

31.7

31.3

29.3

27.3

26.2

25.6

26.7

25.2

25.2

24.4

23.6

23.2

23.2

24.3

United States

26.8

30.2

29.7

28.9

25.6

26.0

26.0

26.0

25.8

25.8

25.8

25.8

25.5

24.4

24.3

24.1

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

441

Annex II/Annexe II

-

Spain

single persons without children Annexe Tableau II.3. Impôt sur le revenu et cotisations des salariés et des employeurs (en % des coûts de main-d'œuvre), 1979–2003 célibataire sans enfant

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1998

1999

2000

2001

2002

2003

Australia

21.9

23.3

22.6

22.9

23.6

23.5

22.8

23.0

24.0

24.8

25.4

25.9

22.8

23.3

28.3

28.3

Austria

36.5

38.6

38.1

40.3

39.6

38.1

39.1

40.0

41.2

45.6

45.8

45.9

44.9

44.5

44.7

45.0

Belgium

47.4

49.8

49.2

51.0

53.5

53.2

53.7

54.6

56.3

56.6

56.8

56.9

56.2

55.6

55.1

54.5

Canada

23.2

24.7

25.6

26.9

29.0

27.2

29.0

30.8

31.5

32.3

31.7

31.1

31.3

30.4

32.2

32.4

-

-

-

-

-

-

-

42.6

43.2

42.9

42.8

42.7

43.1

43.1

43.5

43.8

Denmark

40.6

42.7

46.5

47.8

47.6

46.6

46.7

47.0

45.2

45.1

43.7

44.5

44.4

43.6

42.7

42.7

Finland Francea

41.6

42.4

43.2

45.2

45.5

46.2

44.5

49.3

51.2

48.9

48.8

47.4

47.3

45.9

45.2

44.5

-

-

-

-

-

-

-

-

49.1

48.7

47.6

48.1

48.2

48.3

48.2

48.3

Germany

40.8

41.9

43.4

44.5

45.1

45.5

46.4

46.4

50.2

52.3

52.2

51.9

51.8

50.8

51.1

52.0

Greece

34.3

Czech Republic

25.6

25.5

31.2

31.4

31.6

33.8

33.0

35.3

35.6

35.8

36.1

35.7

36.0

35.7

34.6

Hungary

-

-

-

-

-

-

-

-

51.4

52.0

51.6

50.7

49.6

49.0

49.0

45.7

Iceland

-

18.4

18.8

16.5

13.9

19.5

20.1

22.0

23.1

24.4

25.9

26.0

26.7

27.5

28.8

29.3

Ireland Italyb

33.9

34.7

40.1

42.4

42.8

40.6

39.8

40.0

36.9

33.9

33.0

32.4

28.9

25.8

24.5

24.5

45.3

47.3

50.5

50.0

49.4

51.2

48.8

49.2

50.3

51.5

47.5

47.2

46.7

46.1

46.0

45.3

Japan

16.7

17.3

17.7

21.6

21.4

20.4

21.5

21.2

19.5

20.7

19.6

24.0

24.1

24.2

29.8

27.0

Korea

-

-

-

-

-

-

-

-

6.9

12.4

14.7

16.1

16.5

16.6

14.1

14.1

38.5

38.2

38.6

38.4

35.7

35.5

33.9

34.9

34.3

35.2

33.8

34.6

35.5

33.9

31.3

31.7

Luxembourg Mexico

-

-

-

-

-

23.5

24.4

26.6

27.2

20.8

21.9

14.1

15.4

14.4

16.1

17.3

Netherlands

48.0

48.3

52.0

49.9

49.5

47.0

46.5

45.7

44.8

43.6

43.5

44.3

45.1

42.3

42.5

43.0

New Zealand

26.0

26.8

26.6

27.9

26.1

23.4

23.8

24.0

24.5

21.6

20.0

19.4

19.5

19.5

20.1

20.6

Norway

43.5

43.1

42.3

41.8

42.6

42.7

41.2

36.8

37.5

37.4

37.5

37.3

37.2

36.9

36.9

36.8

Poland

-

-

-

-

-

-

-

44.1

44.7

43.9

43.2

43.0

43.0

42.7

42.8

42.9

28.1

29.9

32.3

34.9

34.5

33.9

33.2

33.3

33.7

33.9

33.8

33.4

33.5

32.5

32.6

32.6

Portugal Slovak Republic

© OECD/OCDE 2004

-

-

-

-

-

-

-

-

-

-

-

-

41.2

41.7

41.1

41.4

Spain

36.4

37.4

38.0

36.6

37.9

35.9

36.5

38.0

38.5

39.0

39.0

37.5

37.6

37.9

38.2

37.6

Sweden

50.7

50.8

50.6

50.9

51.7

52.7

46.0

45.6

49.3

50.7

50.7

50.5

49.5

48.5

47.6

46.6

Switzerland

28.2

29.1

28.8

28.8

28.5

28.6

27.3

28.7

30.6

30.0

30.0

29.8

29.5

29.5

29.6

29.2

Turkey

53.9

47.7

44.8

37.0

40.2

40.1

41.2

40.0

35.3

39.6

39.8

30.3

40.4

43.6

42.4

42.1

United Kingdom

36.1

37.6

38.2

37.8

36.0

34.2

33.2

32.6

33.4

32.0

32.0

30.8

30.1

29.5

29.5

31.1

United States

31.9

35.3

34.9

33.6

30.6

31.1

31.3

31.2

31.0

31.1

31.0

31.1

30.8

29.8

29.7

29.4

a) Employers’ social security contributions not reported by France for period 1979 to 1993. La France n’a pas déclaré de cotisations patronales de sécurité sociale pour la période 1979-1993. b) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers .

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

442 Annex Table II.3. Income tax plus employee and employer contributions (as % of labour costs), 1979–2003

© OECD/OCDE 2004

Annex Table II.4. Income tax (as % of gross wage), 1979–2003, one-earner family with two children Annexe Tableau II.4. Impôt sur le revenu (en % du salaire brut), 1979–2003, couple marié avec un seul salaire et ayant deux enfants

1979 16.8 6.5 8.0 9.7 -

1981 18.0 7.6 11.6 10.6 -

1983 16.3 6.6 18.4 9.0 -

1985 16.8 7.6 19.3 10.3 -

1987 17.8 6.4 19.1 12.3 -

1989 17.9 3.1 14.2 10.9 -

1991 16.8 3.8 15.0 12.1 -

1993 17.0 2.8 15.5 10.3 2.5

1995 22.5 3.5 16.1 11.2 4.5

1997 20.8 5.0 16.5 12.6 5.2

1998 21.6 5.4 16.8 12.2 4.7

1999 22.2 9.2 17.0 10.2 4.3

2000 22.8 8.2 17.1 16.4 4.8

2001 23.3 8.7 17.1 15.3 4.8

2002 24.0 9.0 16.7 14.1 5.4

2003 24.0 9.3 15.8 14.3 5.9

Denmark Finland France

30.3 20.9 0.4

32.6 21.9 0.5

33.8 23.8 0.4

34.3 25.3 0.0

35.7 25.2 0.0

35.6 23.7 0.0

36.0 21.8 1.0

36.2 23.3 1.7

29.4 29.3 1.9

27.8 28.0 3.7

26.6 27.9 7.6

26.2 26.3 7.6

25.7 26.6 7.6

26.2 25.9 7.0

25.7 25.4 7.1

25.7 25.1 7.1

Germany Greece Hungary Iceland Ireland a Italy Japan Korea

9.9 0.0 11.5 9.4 1.8 -

9.7 0.0 10.2 13.0 10.8 2.8 -

10.5 0.0 9.4 14.0 12.5 3.3 -

10.9 0.0 6.4 16.2 16.2 2.8 -

8.6 1.8 4.8 17.9 15.2 2.7 -

9.2 3.7 1.3 17.0 14.8 1.9 -

8.7 0.5 0.3 16.2 12.7 2.4 -

7.9 0.5 2.5 15.9 11.9 2.8 -

9.6 0.8 16.4 3.6 15.4 14.0 1.6 1.5

1.0 2.5 17.8 6.8 14.1 15.3 2.6 0.9

1.3 2.8 17.4 15.4 12.9 15.7 0.7 0.7

0.0 1.9 12.0 15.7 10.1 15.8 1.5 1.3

-0.9 2.3 12.6 16.7 5.0 14.9 2.0 1.7

-1.7 2.0 9.2 17.5 2.9 13.4 2.0 1.8

-2.4 0.9 8.0 13.3 2.5 11.8 1.4 1.6

-1.5 0.0 4.8 13.1 2.9 11.1 1.6 1.7

Luxembourg Mexico Netherlands

3.4 12.5

3.1 11.2

2.7 9.6

2.2 8.4

1.0 8.9

0.0 6.6 9.2

0.0 6.1 10.1

0.0 6.5 9.5

0.0 2.5 4.4

0.0 -1.2 3.5

0.0 0.0 5.9

0.0 0.0 4.8

0.0 1.3 4.9

0.0 1.9 6.9

0.0 2.1 8.7

0.0 2.9 8.2

New Zealand Norway Poland Portugal Slovak Republic

17.0 17.5 4.0 -

21.5 17.0 4.0 -

21.7 15.6 6.0 -

24.8 15.0 6.0 -

24.3 15.2 6.0 -

20.3 18.6 2.1 -

20.8 17.8 1.2 -

22.2 15.9 15.3 1.1 -

22.4 17.0 16.1 3.3 -

16.2 17.1 14.7 3.1 -

14.8 17.4 13.5 3.0 -

14.1 17.4 4.6 2.4 -

19.5 17.1 4.7 2.7 1.5

19.5 18.1 4.0 0.1 3.4

20.1 18.1 4.2 0.3 2.6

20.6 18.1 4.2 0.3 3.1

Spain Sweden Switzerland

6.1 33.7 6.3

6.7 33.7 7.2

7.5 33.3 6.1

5.9 33.9 6.4

8.3 35.0 6.0

5.3 35.7 5.8

6.4 28.0 5.4

5.6 28.5 5.7

6.4 28.7 5.7

6.8 28.5 5.1

6.4 27.5 5.2

2.5 27.2 5.0

3.0 25.8 4.9

3.6 24.6 5.0

4.2 23.4 5.1

3.4 23.8 5.2

Turkey United Kingdom United States

42.0 19.3 11.6

35.2 19.8 14.4

30.2 18.6 15.2

22.9 17.9 14.5

22.4 16.5 13.0

23.5 15.5 11.5

27.1 15.4 11.3

27.4 15.0 11.3

25.2 16.6 11.0

23.4 15.1 10.7

25.2 15.1 10.2

15.2 15.2 7.4

14.7 13.3 7.6

14.9 10.3 4.3

15.0 9.3 3.9

14.7 8.7 1.4

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers

443

Annex II/Annexe II

Australia Austria Belgium Canada Czech Republic

one-earner family with two children Annexe Tableau II.5. Impôt sur le revenu et cotisations des salariés diminués des prestations versées (en % du salaire brut), 1979-20033 couple marié avec un seul salaire et ayant deux enfants

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italya

© OECD/OCDE 2004

Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

1979 13.0 4.2 5.0 9.0 30.3 18.2 6.8 19.9 -7.7 13.4 12.1 6.7 8.1 24.8 10.4 21.8 9.9 9.8 25.9 11.0 49.0 17.7 17.7

1981 15.1 7.1 9.1 10.4 33.1 18.9 6.6 19.8 -7.7 4.5 14.9 11.5 7.6 7.3 25.1 16.8 18.8 10.5 10.6 25.9 12.5 41.4 19.4 21.0

1983 12.9 7.8 19.8 9.4 35.5 19.7 6.4 22.2 -4.1 2.7 19.0 13.6 8.0 5.9 29.9 17.5 17.0 12.3 12.0 25.9 11.7 38.2 19.0 21.9

1985 14.5 8.6 22.6 11.0 35.9 22.6 7.7 23.1 -4.1 -5.2 21.5 18.1 9.8 5.5 27.2 15.5 16.7 13.9 11.3 24.6 10.6 31.3 18.5 21.6

1987 16.2 7.3 22.1 13.1 33.5 22.5 9.3 21.2 15.1 -6.8 22.1 20.3 9.7 2.8 27.0 24.3 17.1 12.5 13.8 25.2 9.9 31.8 17.8 20.2

1989 15.6 5.6 14.5 11.8 32.4 20.0 10.9 22.5 16.9 -14.2 21.5 15.8 8.9 1.2 11.1 25.5 18.0 16.8 8.6 10.8 27.5 10.1 32.6 17.3 19.0

1991 14.4 6.9 16.0 14.0 32.5 17.0 11.2 22.4 14.2 -16.9 20.8 15.5 9.4 1.6 10.9 33.2 20.8 15.2 7.1 12.2 17.0 9.6 34.8 16.5 19.0

1993 14.9 6.5 17.8 15.5 -4.5 32.5 21.5 13.1 21.5 16.3 -14.0 21.3 15.9 9.8 -0.6 11.3 31.1 22.2 13.1 6.4 7.0 11.7 19.1 8.8 34.3 15.9 18.9

a) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

1995 16.1 9.5 19.5 16.6 3.3 30.9 26.3 13.8 25.0 16.7 7.3 -14.5 17.9 19.6 8.6 3.8 1.2 7.7 29.8 22.4 14.9 10.1 9.2 12.8 23.1 9.5 30.5 18.6 18.6

1997 14.5 10.7 20.2 18.2 7.1 31.1 25.7 15.3 22.1 18.4 12.9 -6.8 14.6 17.0 9.6 4.7 1.3 1.4 27.9 16.2 15.4 9.5 9.4 13.2 27.2 8.2 32.8 17.3 18.3

1998 15.5 11.3 20.5 17.7 -3.4 29.7 25.3 14.6 22.4 18.7 12.3 8.6 13.2 15.7 7.7 5.6 -0.2 2.6 22.4 14.8 16.2 7.2 9.0 12.8 26.1 8.3 33.1 17.4 17.9

1999 16.1 10.0 20.7 15.9 -2.1 30.7 23.9 15.0 20.7 17.8 9.1 10.1 10.5 15.5 11.5 8.0 -1.3 1.6 23.6 14.1 16.8 25.4 8.4 8.9 26.0 8.4 22.9 16.2 15.0

2000 13.5 7.6 21.1 16.0 -1.0 30.7 24.3 15.0 19.6 18.2 11.6 12.0 5.4 14.8 12.0 8.4 -0.8 2.9 25.0 15.5 17.6 25.6 8.7 0.8 9.3 23.7 8.2 28.7 14.1 15.3

2001 14.2 8.2 21.6 14.8 3.1 30.2 23.5 14.4 18.9 17.9 9.9 12.2 2.3 13.5 12.0 8.5 -0.7 3.4 24.1 16.7 17.5 25.0 6.1 5.1 10.0 21.8 8.4 30.9 10.8 12.0

2002 15.6 8.9 21.0 14.3 3.8 29.7 22.8 14.6 18.3 16.8 8.5 3.2 -0.7 14.7 15.1 6.1 -3.0 3.7 22.1 18.8 17.9 29.2 5.4 0.9 10.5 20.8 8.6 30.0 9.9 11.5

2003 15.6 8.9 20.3 14.5 6.3 29.7 22.8 15.1 19.5 15.9 4.8 3.6 -2.6 14.2 13.2 6.2 -2.6 4.4 23.3 20.4 18.3 29.2 5.6 6.6 9.7 21.6 8.5 29.7 10.3 9.1

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

444 Annex Table II.5. Income tax plus employee contributions less cash benefits (as % of gross wage), 1979-2003

© OECD/OCDE 2004

Annex Table II.6. Income tax plus employee and employer contributions less cash benefits (as % of labour costs), 1979–2003 one-earner family with two children Annexe Tableau II.6. Impôt sur le revenu et cotisations des salariés et des employeurs diminués des prestations versées (en % des coûts de main-d'œuvre), 1979–2003, couple marié avec un seul salaire et ayant deux enfants

Australia Austria Belgium Canada Czech Republic Denmark Finland Francea Germany Greece Hungary Iceland Ireland Italyb Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

1979 13.0 20.5 33.1 11.7 30.9 32.4 30.7 9.3 20.4 40.9 11.2 20.1 39.4 10.4 32.6 24.3 31.9 42.5 19.2 53.9 25.2 23.5

1981 15.1 23.9 36.0 13.5 33.6 33.2 30.9 9.3 6.2 22.7 41.1 11.9 19.5 39.7 16.8 30.1 25.8 32.7 42.9 20.6 47.7 26.8 26.8

1983 12.9 24.3 35.3 13.3 37.5 32.7 33.3 14.5 4.6 27.4 42.3 12.3 18.1 43.6 17.5 28.5 27.5 33.4 43.2 19.9 44.8 26.6 27.7

1985 14.5 25.6 38.4 15.2 37.7 35.6 34.2 22.9 -3.0 30.0 43.9 16.0 18.1 41.2 15.5 28.0 31.4 32.4 42.5 19.0 37.0 26.2 26.7

1987 16.2 24.4 41.6 17.4 35.5 35.8 32.7 30.3 -4.8 30.6 44.6 15.9 15.3 41.1 24.3 28.4 29.7 34.1 43.0 18.3 40.2 25.6 25.5

1989 15.6 23.3 36.1 15.7 32.4 34.8 34.0 32.0 -11.4 30.0 43.9 14.8 14.0 23.5 38.7 18.0 28.0 26.5 31.6 45.5 18.6 40.1 25.1 24.7

1991 14.4 24.7 37.3 18.5 32.5 32.5 34.3 30.5 -14.0 29.4 40.7 15.3 14.3 24.4 40.1 20.8 26.4 25.4 32.6 37.7 18.0 41.2 24.3 24.8

1995 16.1 27.2 40.3 21.7 28.5 30.9 42.1 39.5 37.3 34.9 37.4 -10.9 26.8 44.9 15.1 6.0 12.7 27.2 34.9 22.4 24.4 39.3 26.6 33.3 42.2 18.9 35.3 26.1 24.4

1997 14.5 32.2 40.8 23.4 31.2 31.3 40.8 39.5 35.6 36.2 40.8 -2.8 23.8 43.3 15.6 11.6 13.0 20.8 33.0 16.2 24.9 38.9 26.8 33.7 45.2 17.7 39.6 24.8 24.1

1998 15.5 32.7 41.1 22.9 23.4 30.1 40.7 38.5 35.9 36.5 40.3 12.3 22.5 37.5 14.0 13.9 12.0 21.9 33.2 14.8 25.6 37.4 26.5 33.3 44.4 17.8 39.8 24.9 23.7

1999 16.1 31.6 41.2 21.2 24.4 31.1 39.6 38.9 34.4 35.8 35.9 14.2 20.1 37.0 19.8 15.4 10.7 14.1 34.1 14.1 26.2 38.1 26.0 30.4 44.4 17.8 30.3 23.3 21.1

2000 13.5 29.5 40.5 21.4 25.2 31.0 39.9 39.8 33.3 36.1 35.0 16.0 15.5 36.5 20.2 15.8 11.4 15.4 35.5 15.5 26.9 38.2 26.2 28.1 30.6 42.6 17.7 40.4 21.4 21.3

2001 14.2 29.0 40.3 20.4 28.2 30.7 38.8 39.4 32.7 35.9 32.8 16.6 12.8 35.4 20.4 15.9 11.5 14.4 34.5 16.7 26.9 37.8 24.1 31.2 31.1 41.1 17.9 43.6 18.2 18.3

2002 20.4 29.5 39.7 23.1 28.7 30.1 38.3 39.5 32.2 35.0 33.9 8.0 9.1 35.9 26.2 13.6 9.2 16.1 33.1 18.8 27.2 41.2 23.6 28.2 31.5 40.3 18.1 42.4 17.3 17.8

2003 20.4 29.5 39.0 23.3 30.6 30.1 37.8 40.0 33.5 34.3 30.5 8.9 7.4 35.5 23.2 13.6 9.6 17.3 33.7 20.4 27.6 41.3 23.7 32.3 30.9 39.5 17.8 42.1 18.3 15.5

445

Annex II/Annexe II

a) Employers’ social security contributions not reported by France for period 1979 to 1993. La France n’a pas déclaré de cotisations patronales de sécurité sociale pour la période 1979-1993. b) As from 1990 on, data on wages have been revised to include only production workers. A partir de 1990, les données concernant les salaires ont été révisées et ne concernent plus que les ouvriers.

1993 14.9 24.3 38.6 20.6 23.1 32.5 38.1 33.6 34.3 -11.2 29.9 42.4 16.0 12.5 26.6 35.7 22.2 23.0 36.8 25.3 32.9 37.7 17.3 40.0 23.8 24.7

Annex III

OVERALL TAX LEVELS AND TAX STRUCTURES IN OECD MEMBER COUNTRIES, 1990-2001 Annexe III

NIVEAU D'IMPOSITION GLOBALE ET STRUCTURE FISCALE DANS LES PAYS MEMBRES DE L'OCDE, 1990-2001

Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

Total tax revenue

Personal income taxes

Social security contributions

All other taxes

Total des recettes fiscales

Impôt sur le revenu des personnes physiques

Cotisations de sécurité sociale

Ensemble des autres impôts

Employees

Employers

Salariés

Employeurs

1990

1995

2001

1990

1995

2001

1990

1995

2001

1990

1995

2001

1990

1995

2001

29 40 43 36 47 45 43 33 29 32 33 39 30 19 41 17 43 38 42 29 33 52 27 20 37 27

30 42 45 36 40 49 45 44 38 32 42 32 33 41 28 21 42 17 42 37 41 40 33 33 48 29 23 35 28

30 45 46 35 38 50 46 45 37 37 39 37 30 42 27 27 41 19 40 34 43 34 34 32 35 51 31 36 37 29

13 8 14 15 25 17 5 9 4 8 11 10 8 4 10 11 17 11 5 7 20 10 5 10 10

12 9 14 13 5 27 16 5 11 4 7 10 10 11 6 4 9 8 16 11 9 6 8 16 10 5 9 10

12 10 14 13 5 26 14 8 10 5 8 15 9 11 5 4 7 6 15 10 8 6 4 7 16 10 8 11 12

6 4 2 1 0 6 5 4 0 2 2 3 0 4 10 3 3 2 0 3 1 2 3

6 5 2 4 1 2 6 7 4 2 0 2 3 4 0 5 11 3 3 2 2 4 1 3 3

6 5 2 4 2 2 4 6 4 2 0 1 2 4 3 5 7 3 3 3 2 3 4 2 3 3

7 9 3 0 9 12 6 4 1 3 9 5 1 5 3 0 7 5 8 14 3 2 4 4

7 9 3 11 0 10 12 7 5 12 2 3 9 5 1 5 3 0 6 12 5 8 11 3 1 3 4

7 9 3 11 0 9 11 7 5 9 3 3 8 5 2 5 5 0 5 10 5 8 9 12 4 4 4 4

17 20 16 17 21 18 21 12 16 22 18 17 14 15 22 17 19 20 20 17 16 18 11 11 21 10

18 19 17 17 21 21 17 22 14 19 21 19 18 19 13 15 23 17 20 21 21 18 18 15 19 11 15 19 11

18 22 18 17 19 21 21 22 13 22 20 19 17 20 13 18 24 19 22 19 24 16 19 17 17 20 14 22 20 10

Australie Autriche Belgique Canada République tchèque Danemark Finlande France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas Nouvelle-Zélande Norvège Pologne Portugal République slovaque Espagne Suède Suisse Turquie Royaume-Uni États-Unis

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

448

Table A. Tax revenues expressed as a percentage of GDP at market prices, 1990-2001 Tableau A. Recettes fiscales exprimées en pourcentage du PIB aux prix du marché, 1990-2001

© OECD/OCDE 2004

© OECD/OCDE 2004

Table B. Tax revenues from personal income taxes as a percentage of GDP and total taxation, 1990-2001 (Countries with non-central government income taxes) Tableau B. Produit des impôts sur le revenu des personnes physiques en pourcentage du PIB et du total des recettes fiscales,1990-2001 (Pays percevant des impôts sur le revenu des collectivités décentralisées) :

State and local government 1

Administration centrale

:

Administrations d'états et locales 1

Percentage of

:

Percentage of

Pourcentage du

:

Pourcentage du

Central government

GDP PIB

GDP Total

1990

PIB

GDP Total

1995

PIB

Total

2001

:

GDP

:

PIB

:

GDP Total

PIB

1990

GDP Total

1995

PIB

Total

2001

Belgium

9

20

7

16

7

14

:

5

12

7

15

8

17

Belgique

Canada

9

25

8

23

8

23

:

6

16

5

15

5

14

Canada

Denmark

12

25

12

25

11

22

:

13

28

14

29

15

31

Danemark

7

15

6

13

6

13

:

9

20

9

19

8

18

Finlande

Finland Iceland

5

15

5

16

7

19

:

4

11

5

15

7

20

Islande

Japan

6

19

4

14

4

13

:

2

8

2

7

2

7

Japon

Korea

0

0

4

18

3

13

:

0

0

0

1

0

2

Norway Spain2

4

9

4

10

4

9

:

7

17

7

16

6

15

Corée

7

20

7

22

6

16

:

1

2

1

2

1

4

Sweden

5

9

1

3

1

1

:

15

29

15

31

16

31

Suède

Switzerland

3

10

2

7

2

6

:

8

29

8

29

8

26

Suisse

United States

8

31

8

29

10

34

:

2

7

2

7

2

8

Norvège Espagne2

Etats-Unis

1. Income-tax sharing arrangements exist in Austria, Germany, Greece, Luxembourg, Portugal and Spain. Il existe également des dispositifs de partage de l'impôt sur le revenu en Allemagne, en Autriche, en Espagne, en Grèce, au Luxembourg et au Portugal. 2. Spain has introduced an income tax of the Autonomous Regions as of 1997; pro memory. A partir de 1997 l'Espagne a introduit un impôt sur le revenu des Régions autonomes; pour mémoire.

Annex III/Annexe III

449

Annex IV

SOURCE OF EARNINGS DATA Annexe IV

SOURCES DES DONNÉES CONCERNANT LES GAINS

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Country

Type of sample

Source

Australia

Representative sample of employers and employees in each industry. Carried out in May

Bureau of Statistics “Distribution and composition of employee earnings and hours”

Austria

Annual Wage Tax Statistics

"Lohnsteuerstatistik"

Belgium

Annual survey by National Bureau of Social Security

“Rapport Annuel d’Office National de Sécurité Sociale”

Canada

Monthly survey of all firms

Statistics Canada, “Employment Earnings and Hours”

Czech Republic

Employer survey data

National Statistical Office

Denmark

Danish Employers Confederation survey of earnings

Annual Report Danish Employers Confederation (Dansk Arbejds – Giverforening)

Finland

Finnish Employers Federation survey of hourly earnings

“Wages Statistics” published by the Central Statistical Office

France

Update of file based upon “annual declarations of salaries”

“Economie et Statistiques”

Germany

Survey carried out by the Federal Statistical Office

“Statistical Yearbook”

Greece

Survey carried out by National Statistics Service and Social Security Institutions

National Statistical Service Labour Statistics

Hungary

Monthly surveys among enterprises with over ten employees.

Central Statistical Office

Iceland

Quarterly survey of weekly earnings by the Wage Investigation Committee which extends to members of the Icelandic Employers’ Confederation all over the country

–

Ireland

Quarterly surveys of industrial employment, earnings and hours worked by Central Statistical Office

–

Italy

Monthly Statistics Bulletin

National Institute of Statistics

Japan

Basic survey of wage structure of all establishments with more than 10 employees

Ministry of Labour, Annual Report

Korea

Major Labour Statistics

Ministry of Labour

Luxembourg

Monthly survey and annual “Social Security Trends”

Statistics Office and Ministry of Labour

Mexico

Manufacturing sector of the economy

Mensual, Instituto Nacional de Estadistica, Geografia e Informatica (INEGI)

Netherlands

April and October sample of non-agricultural wage- Central Bureau of Statistics, Monthly Bulletin of earners social statistics

New Zealand

Department of Statistics PCInfos

Norway

Norwegian Employers Confederation quarterly survey

Portugal

April and October survey of earnings carried out by Ministry of Labour the Ministry of Labour

Poland

Estimates for different sectors

Monthly Statistical Bulletin

Slovak republic

Quarterly and annual statistical data

Slovak Statistical Office

Spain

Monthly survey of firms

Instituto Nacional de Estadistica “Indicadores de Salarios”

Sweden

Second quarter survey of Swedish employers

Statistics Sweden

Switzerland

Statistics of the Federal Office for Industry, the Arts La vie économique, Département fédéral de and Professions l’Economie Publique à Berne

Norsk arbeidsgiverfurenings kvartalsvise lonns-og frauvaersstoatistikk

Turkey

Annual Manufacturing Industry Survey

State Institute of Statistics

United Kingdom

Annual sample of weekly earnings in PAYE (new earnings survey)

Department of Employment “Employment Gazette”

United States

Monthly surveys by Department of Labour on the “Employment and Earnings” basis of a questionnaire covering more than 30 million non-agricultural wage and salary-workers

452

© OECD/OCDE 2004

Annex IV/Annexe IV

Pays

Type d'échantillon

Source

Allemagne Australie

Enquête du Bureau Fédéral de Statistique Échantillon représentatif des employeurs et employés dans chaque industrie. Enquête effectuée en mai. Statistiques annuelles sur l'imposition des salaires Enquête annuelle effectuée par l'Office national de la sécurité sociale Enquête mensuelle auprès de toutes les entreprises Statistiques d’Emploi Enquête sur les salaires effectuée par la Confédération danoise du patronat Enquête mensuelle auprès des établissements

“ Annuaire de statistiques ” Bureau of Statistics “ Distribution and composition of employee earnings and hours”

Autriche Belgique Canada Corée Danemark Espagne États-Unis

Finlande France Grèce Hongrie Islande

Irlande

Italie Japon

Luxembourg Mexique Norvège Nouvelle-Zélande Pays-Bas

Pologne Portugal République slovaque République tchèque Royaume-Uni Suède Suisse Turquie

© OECD/OCDE 2004

Enquête mensuelle du Ministère du travail par voie de questionnaire couvrant plus de 30 millions de travailleurs et employés des secteurs nonagricoles Enquête de la Fédération finlandaise du patronat sur les salaires horaires Mise à jour du fichier établi à partir des “ déclarations annuelles de salaires ” Enquête effectuée par l'Institut de la Statistique et les Etablissements de la Sécurité Sociale Enquêtes mensuelles auprès d’entreprises ayant plus de dix salariés Enquête trimestrielle des gains hebdomadaires par le “ Wage Investigations Committee ” auprès des Membres de la Confédération du Patronat dans tout le pays Enquête trimestrielle du Central Statistical Office sur l'emploi, les gains et la durée du travail dans l'industrie Bulletin mensuel de statistiques Enquêtes de base sur la structure des salaires dans l'ensemble des établissements employant plus de 10 salariés Enquête mensuelles et “ Evolution de la Sécurité Sociale ” (publication annuelle) Industries manufacturières, secteur de l'économie Norwegian Employers Confederation quarterly survey Chiffres du Département des Statistiques PC Infos Enquête par sondage effectuée en avril et en octobre auprès des employés des secteurs non agricoles Éstimations pour différents secteurs Enquête du Ministère de l’Emploi en avril et octobre Enquêtes trimestrielles et annuelle Données provenant d’enquêtes auprès des employeurs Échantillon annuel de gains hebdomadaires (Nouvelle enquête sur les salaires) Enquête trimestrielle de la Confédération du patronat Statistiques de l'Office fédéral de l'industrie, des arts et métiers et du travail Enquête annuelle de l'industrie manufacturière

“ Lohnsteuerstatistik ” “ Rapport Annuel d'Office National de Sécurité Sociale ” Statistiques Canada, “ Emploi, gains et durée du travail ” Ministère du Travail Rapport annuel de la Confédération danoise du patronat (Dansk Arbejdos - Giverforening) Institut National de Statistiques “ Indicateurs de Salaires ” “ Employment and Earnings ”

“ Statistiques sur les salaires ” publiées par l'Office Central des Statistiques “ Économie et Statistiques ” Service National de Statistiques : “ Statistiques sur le travail ” Bureau Central de Statistiques –-

–-

Institut National de Statistiques Ministère du Travail, Rapport annuel

Office des Statistiques et Ministère du Travail Banque Centrale, Banque du Mexique Norsk arbeidsgiverfurenings kvartalsvise lonns-og frauvaersstoatistikk Bureau Central de Statistiques “ Bulletin mensuel de statistiques sociales ” Bulletin mensuel de statistiques Ministère de l’Emploi Bureau National de Statistiques Bureau National de Statistiques Department of employment “ Employment Gazette ” Statistiques Suède “ La vie économique ”, Département fédéral de l’Economie publique Institut national de Statistiques

453

Annex V

EXCHANGE RATES AND PURCHASING POWER PARITIES OF NATIONAL CURRENCIES, 2003 Annexe V

TAUX DE CHANGE ET PARITÉS DE POUVOIR D'ACHAT DES MONNAIES NATIONALES, 2003

Taxing Wages 2002-2003/Les impôts sur les salaires 2002-2003

Monetary unit Unité monétaire

2003 Exchange rates * Purchasing power parities Taux de change * Parités de pouvoir d'achat

Australia AUD 1.59 1.36 Austria EUR 1.11 0.93 Belgium EUR 1.11 0.90 Canada CAD 1.43 1.22 Czech Republic CZK 28.61 14.32 Denmark DKK 6.69 8.51 Finland EUR 5.35 0.99 France EUR 1.11 0.92 Germany EUR 1.11 0.95 Greece EUR 1.11 0.77 Hungary HUF 226.20 125.02 Iceland ISK 77.25 94.60 Ireland EUR 1.11 1.05 Italy EUR 1.11 0.82 Japan JPY 118.31 140.12 Korea KRW 1 194.11 727.78 Luxembourg EUR 1.11 0.98 Mexico MXN 10.66 6.74 Netherlands EUR 1.11 0.94 New Zealand NZD 1.76 1.45 Norway NOK 7.13 9.11 Poland PLN 3.89 1.87 Portugal EUR 1.11 0.72 Slovak Republic SKK 37.46 16.60 Spain EUR 1.11 0.79 Sweden SEK 8.25 9.87 Switzerland CHF 1.36 1.89 Turkey TRL 1 521 262.42 799 288.88 United Kingdom GBP 0.62 0.66 United States USD 1.00 1.00 * Average of 9 months daily rates. Moyenne sur 9 mois des taux journaliers.

Australie Autriche Belgique Canada République tchèque Danemark Finlande France Allemagne Grèce Hongrie Islande Irlande Italie Japon Corée Luxembourg Mexique Pays-Bas Nouvelle-Zélande Norvège Pologne Portugal République slovaque Espagne Suède Suisse Turquie Royaume-Uni États-Unis

456

© OECD/OCDE 2004

OECD PUBLICATIONS, 2, rue André-Pascal, 75775 PARIS CEDEX 16 PRINTED IN FRANCE (23 2004 01 3 P) ISBN 92-64-01523-X – No. 53483 2004