Corporation taxes in the European Union: Slowly moving toward comprehensive business income taxation?
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b le 2 European Union: corporation tax es (CTs) and personal income tax es (PTs) o n corporate source income in 2017 Member State Equity income (profits, di vidends, capital gains) Debt income (interest) CT rate a PT on di vidends CT + PT c (T op) PT on capital gains d PT on interest D ebt/equity ratio Included in g lobal income [(top) PT rates] (T op) PT rate or WHT b Included in global income (T op) PT rate or WHT b T a p rofits (1) C lassical system Denmark 2 2 Y es (27/42) 27 43.1/44.8 27/42 Y es 2 2 4 :1 France e 34.4 Y es (50.23; ex 40) 21 54.2 1 6 Y es 24 – Ireland 12.5 Y es (51) 20 57.1 3 3 Y es 20 – UK 20 Y es (7.5,32.5,38.1; ex £5000) – 26–50.5 2 0 Y es – W orld cap (2) Imputation system Malta 35 Y es b ut full tc 35 35 – N o 15* – T a capital income (1) D ual income tax (DIT) Finland 2 0 N o (30/34; ex 15) 25.5 44/47.2 30/34 No 30* 25% EBITD A Spain 25 No (19–23) 19–23 39.2–42.2 19–23 No 19–23 30% EBITD A Sweden 2 2 N o (30) – 45.4 3 0 N o – — 123 818 S. Cnossen Ta b le 2 continued Member State Equity income (profits, di vidends, capital gains) Debt income (interest) CT rate a PT on di vidends CT + PT c (T op) PT on capital gains d PT on interest D ebt/equity ratio Included in g lobal income [(top) PT rates] (T op) PT rate or WHT b Included in global income (T op) PT rate or WHT b (2) C omprehensi v e b u siness income tax (CBIT) Austria 2 5 N o 27.5* 45.6 27.5* No 27.5* – Bulgaria 10 No 5* 14.5 – No – 3 :1 Croatia 20 No 14.2 31.4 14.2 N o – 4:1 Czech Republic 19 No 15* 31.1 – No 15* 4:1 German y 30.18 No 26.4* 48.6 47.5 N o 26.4* 30% EBITD A Greece 29 No 10* 36.1 1 5 N o 15* 30% EBITD A Hungary 20.6 N o 15* 31.5 1 5 N o 15* 3:1 Latvia 15 No 10* 23.5 1 5 N o 10* 4:1 Lithuania 1 5 N o 15* 27.7 1 5 N o 15* 4:1 Lux embour g 29.22 No (e x 50) 15* 36.7 – No 10* 85:15 Poland 1 9 N o 19* 34.4 1 9 N o 19* 1:1 Portugal 29.5 N o 28* 49.2 2 8 N o 28* 40% EBIT Romania 1 6 N o 5 * 20.2 16* No 16* 3:1 Slo v akia 22 No – 2 2 19/25 No 19* 25% EBITD A Slo v enia 1 7 N o 25* 37.7 2 5 N o 25* 4:1 T a economic re nts Allo w ance for corporate equity (A CE) f Belgium 33.99 No 27 51.8 0 .4 No 27 5:1 123 Corporation taxes in the European Union: Slowly moving… 819 Ta b le 2 continued Member State Equity income (profits, di vidends, capital gains) Debt income (interest) CT rate a PT on di vidends CT + PT c (T op) PT on capital gains d PT on interest D ebt/equity ratio Included in g lobal income [(top) PT rates] (T op) PT rate or WHT b Included in global income (T op) PT rate or WHT b Cyprus g 12.5 N o 17* 27.4 – No 30* – Italy 31.4 N o 26* 49.2 26* No 26* 30% EBITD A No CT or PT Estonia – Y es (20) 20 20 20 No 20* – Netherlands 25 No 15 25 – N o – – Sour ce : A uthor’ s compilation from European Commission ( 2016b )a n d Ernst & Y oung ( 2017a , b ). Data are from secondary sources and m ay not al w ays be accurate or complete. All rates are in % ; W HT = withholding tax; an asterisk (*) means that the tax is final; “e x” means ex empt; EBITD A stands for earnings before interest, tax, depreciation and amortization; tc = tax credit a CT rates include (1) surtax es in Greece (6%) and P ortugal (1.5%; 7 %); (2) surchar g es in Belgium (3%), France (3.3% for lar ge companies), German y (0.82 5%) and Lux embour g (7%); (3) local tax es in Croatia (18% city surchar g e for Zagreb), Finland (19.8 + 1.43%), (German y ; ef fecti v ely 14.35% for B erlin), Hungary (2%), Lux embour g (6.75% for L ux embour g C ity) and Italy (3.9% IRAP). L o w er or graduated CT rates apply to lo w er amounts o f p rofits o r to small b u sinesses in B elgium, Franc e, Hungary , Latvia, Lithuania, the N etherlands, P ortugal, Romania, Slo v enia and Spain. M inimum tax es are le v ied in Austria (creditable against the fi nal C T), H u ngary and Lux embour g b The fi nal P T w ithholding tax is optional in A ustria, German y and Portugal c Calculated as CT + PT(1 − CT), in which PT is the fi nal w ithholding tax or the top PT rate. Further , the assumption is that p rofits are distrib u ted in the y ear in which the y are m ade d PT rates sho w n are for long-term capital gains o n shares sold o n n ational stock ex changes. In the C zech Republic and S lo v enia, a (v anishing) capital ga ins tax applies to shares held more than 5 y ears. Se v eral M ember S tates tax short-term (speculati v e) g ains o n shares h eld less than 1 year as b u siness income or at higher (ef fecti v e) P T rates. V arious Member States ex empt small amounts o f capital gains o r tax them at a lo w er rate. Generally , capital gains are not adjusted for inflation. In addi tion, indi vidual net wealth tax es are le v ied in France (0.5–1.5%) and the N etherlands (1.2%; called presumpti v e income tax). In Lux embour g, corporations are subject to a 0.5% net w ealth tax e In France, rates ha v e to be increased by 15.5% social contrib u tions f In Belgium and Italy , taxable profits are reduced by an allo w ance for corporate equity (A CE) o f 1 .131% (1.631% for S MEs) and 5 .4% (ne w equity only), resp ecti v ely . In Cyprus, the A C E equals the y ield on 10-year go v ernment bonds plus 3%. P ortugal h as a 5 % A CE for m icroenterprises and S MEs g In Cyprus, the di vidend tax of 17% is called defense contrib u tion, which is also le v ied at the rate of 30% on interest and ro yalties 123 820 S. Cnossen effective rates on interest (final withholding tax). Also, the withholding taxes may not apply to returns paid on shares and bonds held abroad, which are usually the subject of double tax treaties and EU directives. Clearly, most Member States appear to have a preference for source taxation of capital income. Exceptionally, Slovakia, Sweden and the UK do not impose a with- holding tax on dividends, while Bulgaria, the Czech Republic, Cyprus, Malta and the Netherlands do not tax capital gains. Interest is not subject to withholding in Bul- garia, the Netherlands, Sweden and the UK. Seven Member States do not restrict the deductibility of interest through a debt/equity ratio or EBITDA percentage (but may apply other restrictions on interest deductibility). In sum, not all Member States tax corporate source income comprehensively at the level of the corporation. Download 0.63 Mb. Do'stlaringiz bilan baham: |
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