Last Friday one of the British
customers told me that in Italy pension contributions are (too) high. Adding
taxes and contributions, her income is halved.
In light of that meeting, given
that I agree with her, I compared the tax and contributions rate in the world
(usually I have to observe "only" 6 different countries).
In the world, there is a, more or
less, general decrease in tax rates but not in contribution rate.
The United States, this year, has
reduced the corporate tax rate to 21% (perhaps with negative effects on
bilateral agreements), Netherlands’ government has proposed to cancel the
taxation on the dividends, France, this year, has lowered the rate at 28% for
incomes up to 500,000 euro, the United Kingdom, from 1st April 2017, lowered
the corporate tax (our IRES) to 19%, in Italy the IRES (the tax for limited
companies) ) was lowered to 24% and a simplified tax system was created for
small traders.
As described in the table below, where the main European
Union countries are present (source: il Sole 24 Ore), considering only the tax
rate Italy is in the middle of the European ranking but adding the tax and the contribution
rate, unfortunately, It’s in the 4th place preceded by: France, Greece and
Germany.
The United Kingdom has a much
better tax and contribution rate (it is second only to Ireland) but,
considering the great uncertainty brought by the Brexit, the figure can only be
seen as significant until March 2019. Afterwards, the consequences of the exit
of the United Kingdom from the European Union could lead to negative
consequences that can not be offset by low tax and low pension contribution rate.
Country
|
Company tax
|
Pension contribution
+ company tax
|
%
|
%
|
|
E.U.
|
||
France
|
33,33
|
62,20
|
Greece
|
29,00
|
51,70
|
Spain
|
25,00
|
46,90
|
Netherlands
|
25,00
|
40,70
|
Italy
|
24,00
|
48,00
|
Portugal
|
21,00
|
39,80
|
U.K
|
19,00
|
30,70
|
Germany
|
15,83
|
48,90
|
Ireland
|
12,50
|
26,00
|
Extra E.U.
|
||
Brazil
|
34,00
|
68,40
|
Mexico
|
30,00
|
52,10
|
Australia
|
30,00
|
47,50
|
China
|
25,00
|
67,30
|
Japan
|
23,20
|
47,40
|
Turkey
|
22,00
|
41,10
|
USA
|
21,00
|
43,80
|
Russia
|
20,00
|
47,50
|
Canada
|
15,00
|
20,90
|
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