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TAX DATABASEKEY TAX RATE INDICATORS
Update June 2020
This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Colombia was not an OECD Member at the time of the last update of the Tax Database and is therefore not included in this publication. Accordingly, Colombia does not appear in the list of OECD Members and is not included in the zone aggregates.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
The use of this work, whether digital or print, is governed by the Terms and Conditions to be found atwww.oecd.org/termsandconditions.
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© OECD 2020
TAX DATABASE - KEY INDICATORS
This summary presents comparativeinformation on a range of statutory taxrates and tax rate indicators in OECDcountries, encompassing personalincome tax rates and social securitycontributions, corporate income taxrates and value-added taxes.
These indicators provide a baseline ofinformation on tax settings in 2019 andin early 2020. Since then, manycountries have introduced a range ofshort-term tax measures in response toCOVID-19, which are detailed inhttps://www.oecd.org/tax/covid-19-tax-policy-and-other-measures.xlsm.
CONTENTS
Overview 3
Taxes on Labour 4
Personal Income Taxes 10
Corporate Income Taxes 14
Value Added Tax 18
Further Reading 20
OECD TAX DATABASE 2020 - 3
TAX RATES ON LABOUR, CORPORATE INCOME AND CONSUMPTION
TAXES ON LABOUR
The average tax wedge for all four family types variedsignificantly between 2000 and 2019. Since 2000, allfour family types experienced a continuous decrease in theirtax wedge, reaching a temporary low during the financialcrisis in 2009. In the three years following the crisis, the taxwedge rose again for all four family types. However, the taxwedge of all four family types is now lower than in 2000.
The tax wedge of the average worker isthe highest throughout the observedperiod, now stabilising at 36%, which isclose to but slightly below the level of2000.
A similar trend can be observed for the taxwedge of the two-earner marriedcouple and the tax wedge of the one-earner married couple, which are nowat 32.9% and 26.4% respectively.
The average tax wedge of the singleperson with two children earning 67%of the average wage is the lowest of allfour family types throughout the wholeperiod. After experiencing a short increasebetween 2009 and 2013, it has nowreached an all-time low of 15.8% of totallabour costs.
The average tax wedge measures the effective tax rateon labour costs as the difference between the labourcosts to the employer and the corresponding net take-home pay of the employee. It equals the sum of personalincome tax, employee and employer social securitycontributions (SSCs) plus any payroll taxes, minus anycash benefits received by the employee, expressed as apercentage of labour costs (gross wages plus employerSSCs and payroll taxes).
4 – OECD TAX DATABASE 2020
10
15
20
25
30
35
40
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Single person at 100% of the average wage (AW), no childTwo-earner married couple, one at 100% of AW and the other at 67%, two childrenOne-earner married couple at 100% of AW, two childrenSingle person at 67% of AW, two children
OECD average tax wedge, 2000-2019as % of total labour costs
OECD TAX DATABASE 2020 - 5
Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
TAXES ON LABOUR
Compared to 2000, the average OECD tax wedge in 2019 has decreased for alleight family types, on average by 2.2 percentage points. The largest decrease overthis period occurred for the single worker with two children earning 67% of theaverage wage (4.2 percentage points).
The OECD average tax wedge as a share of total labour costs differs significantlyacross family types. In 2019, it ranged from
15.8% for a single person with two children earning 67% of the average wage to
40.3% for a single person without children earning 167% of the average wage.
6 – OECD TAX DATABASE 2020
0
10
20
30
40
Single personat 67% of AW,
no child
Single personat 100% of
AW, no child
Single personat 167% of
AW, no child
Single personat 67% of AW,two children
One-earnermarried
couple at100% of AW,two children
Two-earnermarried
couple, one at100% of AWand the otherat 67%, two
children
Two-earnermarried
couple, bothat 100% ofAW, twochildren
Two-earnermarried
couple, one at100% of AWand the other
at 67%, nochild
2019 2000
OECD average tax wedge, 2000 and 2019as % of total labour costs
OECD TAX DATABASE 2020 - 7
Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
TAXES ON LABOUR
Across OECD countries, the sum of income tax, employer social securitycontributions (SSCs) and employee SSCs as a share of labour costs for the averageworker ranged from 52.2% in Belgium to 7.0% in Chile, with an average of 36.0%.
of the countries havea tax wedge between30% and 45%.65%
The percentage of labour costs paid inincome tax varies considerably acrossOECD countries. The lowest figures arein Chile (0.05%) and Korea (6.0%) andthe highest values are in Denmark(35.6%), with Australia and Iceland bothover 20%.
The total of employee and employer SSCs as a percentage of labour costs exceeds 20%in more than half of the OECD countries. In five OECD countries, it represents at leastone-third of labour costs: Austria, the Czech Republic, France, Germany and the SlovakRepublic.
8 – OECD TAX DATABASE 2020
0
10
20
30
40
50
BEL
DEU
ITA
AUT
FRA
HUN
CZE
SVN
SWE
LVA
FIN
SVK
PRT
GRC
ESP
TUR
LUX
NLD
EST
LTU
OECD NO
RPO
LDN
KIR
LIS
LJP
NGB
RCA
NUS
AAU
SKO
RIS
RCH
EME
XNZ
LCH
L
Income tax plus employee and employer social security contributions (SSC), 2019as % of total labour costs
Note: Single individual without children at the income level of the average worker. Includes payroll taxes where applicable.Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
The tax wedge of the average worker in OECD countries is
comprised primarily of employer SSCs (13.8% of labour
costs), followed by income tax (13.7%) and employee SSCs
(8.5%).
OECD TAX DATABASE 2020 - 9
PERSONAL INCOME TAXES
In 2019, a top statutory PIT rate of more than30% applied in all but five OECD countries. Inthree of these countries – the Czech Republic(15%), Estonia (20%) and Hungary (15%) – asingle rate PIT applies to all levels of taxableincome.
Eleven OECD countries (Sweden, Japan,Denmark, France, Greece, Austria, Canada,Portugal, Belgium, the Netherlands and Finland,listed in descending order) apply a top PIT rate ofmore than 50%, with thresholds ranging from 1.1times the average wage in Belgium to 22.7 timesthe average wage in Austria.
The top statutory personalincome tax (PIT) rate is thecombined central governmentand sub-central governmentpersonal income tax rate thatapplies for gross wage earningsin the highest earnings bracket ofthe PIT rate schedule. Taxcredits and tax deductions arenot taken into account. Theearnings threshold is given by thebottom end of this bracket, i.e.the lowest income where the topPIT rate first applies, expressedas a multiple of the averagewage.
10 – OECD TAX DATABASE 2020
AUS
AUTBEL CAN
CHL
CZE
DNK
EST
FIN FRADEU
GRC
HUN
ISLIRL ISRITA
JPN
KOR
LVA
LTU
LUX
NLD
NZLNOR
POL
PRT
SVK
SVN
ESP
SWE
CHE
TUR
GBRUSA
0
10
20
30
40
50
60
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Top PIT rate (in %)
Threshold at which the top PIT rate applies (as a multiple of the average wage)
average
Top statutory PIT rates, 2019against their thresholds
Note: The figure includes data for all OECD countries except Mexico. Mexico, which is an outlier, has been excluded to improve the readability of the graph. In Mexico, a top PIT rate of 35% applies above a threshold of 26.6 times the average wage.Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
In these three countries, a single rate PITapplies to all levels of taxable income.
OECD TAX DATABASE 2020 - 11
PERSONAL INCOME TAXES
In 2019, top PIT rates ranged from morethan 55% in Sweden, Japan, Denmark andFrance to 25% and below in the SlovakRepublic, Estonia, the Czech Republic andHungary.
Compared to 2000, top PIT rates havedecreased in the majority of OECDcountries, with the largest decrease inHungary, from 40% to 15%.
However, compared to 2007, 23 OECDcountries have increased their top PITrates, leading to an increase in the OECDaverage PIT rate between 2007 and 2019.
In 2019, the OECD average top PIT rate reached a level close to 43%, 2.6 percentage points lower than in 2000.
12 – OECD TAX DATABASE 2020
0
10
20
30
40
50
60
SWE
JPN
DNK
FRA
AUT
GRC
CAN
PRT
BEL
NLD
FIN
ISR
SVN
IRL
DEU
ITA
AUS
ISL
KOR
LUX
GBR
USA
ESP
OECD CH
ENO
RTU
RCH
LME
XNZ
LPO
LLV
ALT
USV
KES
TCZ
EHU
N
2019 2000 2007
Top statutory PIT rates (in %), 2000, 2007 and 2019
OECD TAX DATABASE 2020 - 13
Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
CORPORATE INCOME TAXES
In 2020, combined statutory CIT rates in OECDcountries ranged from 9% in Hungary to over30% in Portugal and France.
Between 2000 and 2020, statutory CIT rates havedecreased in all but one OECD country, leading to adecrease in the OECD average statutory CIT rate of 9percentage points. Five OECD countries (NewZealand, the United States, Norway, Sweden and theUnited Kingdom) did not change their statutory CITrates between 2000 and 2007, but lowered them inthe years after the 2007 financial crisis.
Chile was the only country to have a higher CITrate in 2019 compared to 2000, with its CIT rateincreasing from 15% to 25%.
The combined statutorycorporate income tax (CIT)rate shows the combinedcentral and sub-central headlinetax rate faced by corporations.It is given by the centralgovernment rate (lessdeductions for sub-nationaltaxes) plus the sub-central rate.Where a progressive (asopposed to flat) rate structureapplies, the top marginal rate isshown.
14 – OECD TAX DATABASE 2020
0
10
20
30
40
50
FRA
PRT
AUS
MEX
DEU
JPN
NZL
ITA
KOR
G20
CAN
USA
AUT
BEL
CHL
NLD
ESP
LUX
GRC
OECD IS
REU
-22
DNK
NOR
TUR
SWE
CHE
SVK
EST
FIN ISL
LVA
CZE
POL
SVN
GBR
LTU
IRL
HUN
2020 2000 2007
Note: The averages are unweighted averages. The EU-22 average includes all EU countries that are members of the OECD. The G20 average includes all G20 countries, excluding the EU.Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
Combined statutory CIT rates (in %), 2000, 2007 and 2020
OECD TAX DATABASE 2020 - 15
CORPORATE INCOME TAXES
While the OECD average statutory CIT rate wasequal to the EU-22 average of 32.2% in 2000, itwas more than 1 percentage point higher thanthe EU-22 average in 2020, at 23.3% comparedto 22.2%.
The G20 average was the highest of the threestatutory CIT rate averages between 2000 and2020. The gap between the G20 average andthe OECD average statutory CIT rate hasremained relatively stable at around 3.5percentage points throughout the period.
The statutory CIT rate measuresthe marginal tax that would bepaid on an additional unit ofincome, in the absence of otherprovisions in the tax code.However, it does not reflect anyspecial regimes or rates targetedto certain industries or incometypes, nor does it take intoaccount the breadth of thecorporate tax base to which therate applies.
The OECD average, the EU-22 average and the average for the G20 countriesaverage combined statutory CIT rates decreased strongly between 2000 and2020, most visibly in the course of the financial crisis between 2007 and 2008.
16 – OECD TAX DATABASE 2020
23.3
32.2
22.2
34.7
26.9
20
25
30
35
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
OECD Average EU-22 Average G20 Average
Combined statutory CIT rates (in %), 2000-2020
Note: The averages are unweighted averages. The EU-22 average includes all EU countries that are members of the OECD. The G20 average includes all G20 countries, excluding the EU.Source: OECD (2020). OECD Tax Database. oe.cd/tax-database.
OECD TAX DATABASE 2020 - 17
VALUE ADDED TAX
In 2019, standard VAT rates rangedfrom 27% in Hungary to less than10% in Japan, Switzerland andCanada.
Compared to 2005, the standard VATrate increased in two thirds of OECDcountries (24), leading to an increase inthe OECD average standard VAT rate.Since reaching its peak of 19.3% in2015, the OECD average standard VATrate has remained stable.
In 2019, the average standard VATrate of the 22 OECD countries thatare members of the EU was at21.8%, which is significantly higherthan the OECD average.
The Value Added Tax (VAT) (and itsequivalent in several jurisdictions, the Goodsand Services Tax, or GST) is a specific type ofturnover tax levied at each stage in theproduction and distribution process. Althoughthe liability for VAT falls on the suppliers ofgoods or services, the tax burden is designedto fall on final consumers, making the VAT atax on final consumption of goods orservices.
The standard VAT rate generally applies toall goods and services, unless adviseddifferently by legislation. However, mostOECD countries continue to apply a widevariety of reduced rates and exemptions tosupport various policy objectives (see: OECDConsumption Tax Trends, 2018).
18 – OECD TAX DATABASE 2020
0
5
10
15
20
25
HUN
DNK
NOR
SWE
FIN
GRC ISL
IRL
POL
PRT
ITA
SVN
EU-2
2BE
LCZ
ELV
ALT
UNL
DES
PAU
TES
TFR
ASV
KGB
ROE
CD CHL
DEU
TUR
ISR
LUX
MEX
NZL
AUS
KOR
JPN
CHE
CAN
2019 2005
Standard VAT rates (in %), 2005 and 2019
Note: The averages are unweighted averages including the countries for which data was available by the time this graph was composed. The OECD average includes all OECD countries but the United States(which do not apply a VAT). The EU-22 average includes all OECD countries that are members of the EU. Country-specific notes can be found here: https://www.oecd.org/tax/consumption-tax-trends-19990979.htmSource: National delegates, position as of 1 January of the respective year.
OECD TAX DATABASE 2020 - 19
OECD (2020), Taxing Wages 2020, OECD Publishing, Paris, oe.cd/TaxingWages.
OECD (2019), Corporate Tax Statistics, OECD Publishing, Paris, oe.cd/corporate-tax-stats.
OECD (2018), Consumption Tax Trends 2018: VAT/GST and Excise Rates, Trends and Policy Issues, OECD Publishing, Paris, oe.cd/consumption-tax-2018.
Key links: Access the data: stats.oecd.org/Index.aspx?DataSetCode=TABLE_I1 Tax Database webpage: oe.cd/tax-database
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