Jimmy Deenihan
Question:90 Mr. Deenihan asked the Minister for Finance the personal income tax rates in the EU member states; and if he will make a statement on the matter. [15823/97]
Written Answers. - Income Tax Rates.
Comparable data on personal income tax rates in the EU member states is not readily available. The structure of personal income tax systems vary considerably between countries, with some having significant local income tax rates applied in addition to the state income tax rates. Comparing personal income tax rates between countries is therefore difficult.
Subject to the above reservations the Revenue Commissioners have, however, prepared the attached summary schedule which may be of interest to the Deputy. The figures indicate state and local taxes where appropriate.
|
EU Country |
Rates of Income Tax |
Year |
|
Austria |
10%, 22%, 32%, 42%, 50% |
1966 |
|
Belgium |
25%, 30%, 40%, 45%, 50%, 52.5%, 55% |
1996 |
|
Denmark (1) |
10%, 16%, 31% |
1996 |
|
Finland (2) |
7%, 17%, 21%, 27%, 33%, 39% |
1996 |
|
France |
12%, 25%, 35%, 45%, 50%, 56.8% |
1996 |
|
Germany |
0%, 25.9%, 25.9% -53%, 53% |
1997 |
|
Greece |
5%, 15%, 30%, 40%, 45% |
1996 |
|
Ireland (3) |
26%, 48% |
1997 |
|
Italy |
10%, 22%, 27%, 34%, 41%, 46%, 51% |
1996 |
|
Luxembourg |
0%, 10%, 20% and 15 higher rates which increase by increments of 2% per rate up to 50% |
1996 |
|
Netherlands |
37.5%, 50%, 60% |
1996 |
|
Portugal |
15%, 25%, 35%, 40% |
1996 |
|
Spain |
Seventeen rates moving incrementally from 20% to 56% |
1996 |
|
Sweden |
31%, 56% (includes local taxes) |
1996 |
|
United Kingdom |
20%, 23%, 40% |
1997 |
(1) Municipal taxes are also levied. The average rate was 30.5%.
(2) Municipal income tax is levied at a flat rate. The rate varies between 15 per cent and 19.5 per cent depending on the municipality.
(3) In the case of taxpayers taxed under the marginal relief system, a rate of 40 per cent applies up to the income level at which it becomes more beneficial for the taxpayer to be taxed under the normal tax system.
Jimmy Deenihan
Question:91 Mr. Deenihan asked the Minister for Finance if he will quantify the Exchequer requirement to reduce the lower income tax rate from 26 pence to 25 pence per pound and the upper income tax rate from 48 pence to 45 pence. [15824/97]
I am informed by the Revenue Commissioners that the full year costs to the Exchequer, by reference to the income tax year 1998-99, of the changes mentioned by the Deputy are estimated as follows: reduction of the standard rate of income tax from 26 per cent to 25 per cent would cost £105 million in a full year and reduction of the 48 per cent rate of income tax to 45 per cent would cost £163 million in a full year.