what is the standard rate of tax in ireland
12.5 %
5229153
in line with the OECD average for overall Consumption taxes (e.g. VAT and Excise combined), ranking 16th of out 35 OECD countries. In October 2013, the Department of Finance "Tax Policy Group", highlighted that the distortion of Irish GDP impacted this metric and that Ireland's "Consumption Tax as % of GNP" ratio at 12%, and "VAT as % of GNP" ration at 8%, was at the EU–27 average for both metrics. Ireland's taxation system is distinctive for its low "headline" rate of corporation tax at 12.5% (for trading income), which is half the OECD average of 24.9%. While Ireland's corporate
Taxation in the Republic of Ireland
5157136
overhauled its tax code, there have been no inversions of UK firms to Ireland; of the 3 main UK–controlled firms in Ireland (see "Table 1"): While national tax policy is excluded from EU treaties, the EU has challenged Ireland's tax code under State-aid legislation. Seamus Coffey's 2016 "Review of Ireland's Corporation Tax Code" chronicled how the EU withdrew the exemption from State-aid rules for Ireland's special tax rate of 10% in 1996–1998, however, Ireland countered the EU withdrawal by lowering the entire Irish standard rate of corporate tax from 40% to 12.5% over 1996–2003 (see ). In October 1994, the
Corporation tax in the Republic of Ireland
5157147
rate was phased-out and ended on 31 December 2003 for new schemes, with expiry for all existing IFSC schemes in 2005, and all existing manufacturing schemes by 2010. To counter the EU's decision to withdraw State-aid approval for Ireland's special rate, the Irish State reduced the Irish "standard rate" of corporation tax from 40% in 1995, to 12.5% by 2003; splitting the standard rate into trading and non-trading rates in 2000. Ireland's corporate tax code has gone through distinct phases of development, from building a separate dentify from the British system, to most distinctively, post the creation of the Irish
Corporation tax in the Republic of Ireland
20697444
Grand Canyon", in the BEA analysis of Ireland's ETR. The disconnect lies in the distinction between Ireland's corporation tax "regime" versus Ireland's corporation tax "rate", which was highlighted by the EU Commission's 2016 findings against Apple's double Irish tax system in Ireland. According to the Irish Revenue, Apple had being paying the full Irish 12.5% tax rate on what Revenue considered to be "taxable profits" in Ireland The EU Commission found a very different situation: Experts note the potency of Ireland's "corporation tax regime", and O'Rourke's BEPS tools, as opposed to the "headline" 12.5% corporate tax rate. The Irish ETRs
Feargal O'Rourke
508638
waiting for the OECD). The U.S. GILTI and BEAT tax regimes are targeted at U.S. multinationals in Ireland, while the EU's Digital Services Tax is also directed at perceived abuses by Ireland of the EU's transfer pricing systems (particularly in regard to IP-based royalty payment charges). For example, the new U.S. GILTI regime forces U.S. multinationals in Ireland to pay an effective corporate tax rate of over 12%, even with a full Irish IP BEPS tool (i.e. "single malt", whose effective Irish tax rate is circa 0%). If they pay full Irish "headline" 12.5% corporate tax rate, the effective corporate
Corporate haven
5157078
consistently been between 10 and 15% of Total Irish Tax, the additional employment contribution made by U.S. multinationals in Ireland, has led to strong growth in overall Irish Total Taxes. The top 50 Irish companies, ranked by 2017 Irish registered revenues, are as follows: From the above table: The tax schemes used by U.S. multinationals in Ireland are called base erosion and profit shifting (BEPS) tools by tax academics. Whereas Ireland's "headline" corporation tax rate is 12.5%, Ireland's BEPS tools enable an effective tax rate of 0% to 3% to be achieved, depending on which BEPS tool is used. Ireland
Corporation tax in the Republic of Ireland
15009978
most contested aspects of Ireland's economy is the "aggregate" "effective tax rate" (ETR) of Ireland's corporate tax regime. The Irish State refutes tax haven labels as unfair criticism of its low, but legitimate, 12.5% Irish corporate tax rate, which it defends as being the "effective" tax rate ("ETR"). Independent studies show that Ireland's "aggregate" effective corporate tax rate is between 2.2% to 4.5% (depending on assumptions made). This lower "aggregate" effective tax rate is consistent with the "individual" effective tax rates of U.S. multinationals in Ireland, as well as the IP-based BEPS tools openly marketed by the main Irish tax-law
Double Irish arrangement
5157107
TP–based BEPS tool users are the life sciences manufacturers. The "headline" tax rate is the rate of taxation that is applied to the profits that a tax-code deems to be taxable after deductions. The "effective" tax rate is the rate of taxation implied by the actual quantum of tax paid versus profits before all deductions are applied. The gap between the Irish corporate "headline" rate of 12.5%, and the much lower Irish corporate "effective" rate of 2–4%, is a source of controversy: The Irish State asserts Ireland's ETR similar to the Irish "headline" CT rate of 12.5%. This is an
Corporation tax in the Republic of Ireland
508588
tax haven ask the question, "Are we a tax haven ?" For example, when it was shown in 2014, prompted by an October 2013 Bloomberg piece, that the effective tax rate of U.S. multinationals in Ireland was 2.2% (using the U.S. Bureau of Economic Analysis method), it led to denials by the Irish Government and the production of studies claiming Ireland's effective tax rate was 12.5%. However, when the EU fined Apple in 2016, Ireland's largest company, €13 billion in Irish back taxes (the largest tax fine in corporate history), the EU discovered that Apple's effective tax rate in Ireland
Corporate haven
5157122
group for the inversion to be fully considered as outside of the U.S. tax-code. Once inverted, the U.S. company can use Irish multinational BEPS strategies to achieve an effective tax rate well below the Irish headline rate of 12.5% on non–U.S. income, and also reduce U.S. taxes on U.S. income. In September 2014, "Forbes Magazine" quoted research that estimated a U.S. inversion to Ireland reduced the U.S. multinational's "aggregate" tax rate from above 30% to well below 20%. In July 2015, the "Wall Street Journal" noted that Ireland's lower ETR made U.S. multinationals who inverted to Ireland highly acquisitive of
Corporation tax in the Republic of Ireland
18492788
during talks brokered by Richard Haass and Professor Meghan O'Sullivan. These talks began in September 2013, and broke up on 31 December of that year without agreement. Several other ongoing political contentions were also resolved by the Stormont House Agreement. These include the devolution of Corporation Tax to Northern Ireland. Within Northern Ireland there has been an all-party consensus on the need to devolve corporation tax to allow the Province to compete for business with the Republic of Ireland. This is because the Republic of Ireland's rate of tax is 12.5%, considerably lower than the UK rate of 20%, which
Stormont House Agreement
5157111
into Ireland's tax systems, used the U.S. Bureau of Economic Analysis data filed by U.S. multinationals on their global operations, to estimate that the effective tax rate of U.S. multinationals in Ireland for 2011 was 2.2% to 3.8% (depending on assumptions). In November 2014, the "Tax Justice Network", in their "Ireland Country Report" from the 2013 Financial Secrecy Index, said the Irish State's claims that the effective tax rate was 12.5% were "misleading", and that Ireland's corporate ETR was between 2.5% to 4.5%, depending on the various assumptions used. In November 2017, Irish economist David McWilliams writing in the "Irish
Corporation tax in the Republic of Ireland
20766482
Commentators note the "plausible deniability" provided by Irish privacy and data protection laws, that enable the State to function as a tax haven while maintaining OECD compliance. They ensure the State entity regulating each tax tool are "siloed" from the Irish Revenue, and public scrutiny via FOI laws. The Irish State refutes tax haven labels as unfair criticism of its low, but legitimate, 12.5% Irish corporate tax rate, which it defends as being the "effective" tax rate ("ETR"). Independent studies show that Ireland's "aggregate" effective corporate tax rate is between 2.2% to 4.5% (depending on assumptions made). This lower "aggregate"
Ireland as a tax haven
5157064
rank Ireland as the largest tax haven; larger than the Caribbean tax haven system. Ireland's "headline" corporation tax rate is 12.5%, however, foreign multinationals pay an of under 4% on global profits "shifted" to Ireland, via Ireland's global network of bilateral tax treaties. These lower effective tax rates are achieved by a complex set of Irish base erosion and profit shifting ("BEPS") tools which handle the largest BEPS flows in the world (e.g. the Double Irish as used by Google and Facebook, the Single Malt as used by Microsoft and Allergan, and Capital Allowances for Intangible Assets as used by
Corporation tax in the Republic of Ireland
508589
was circa 0.005% for the 2004-2014 period. Experts in the Tax Justice Network confirmed that Ireland's effective corporate tax rate was not 12.5%, but closer to the BEA calculation. It is not just Ireland however. The same BEA calculation showed that the ETRs of U.S. corporates in other corporate tax havens was also very low: Luxembourg (2.4%), the Netherlands (3.4%). When tax haven academic Gabriel Zucman, published a multi-year investigation into corporate tax havens in June 2018, showing that Ireland is the largest global corporate tax haven (having shielded $106 billion in profits in 2015), and that Ireland's effective tax
Corporate haven
5229156
(1 January to 31 December). The change coincided with the introduction of the euro in Ireland. For administrative purposes, taxable income is expressed under four schedules: Since 1 January 2015, the tax rates apply as follows: There are 2 tax brackets, 20% (the "standard rate") and the balance of income at 40% (the "higher rate"). The brackets depend upon the individual's category. The €43,550 amount may, for married couples, be increased by the lesser of: €25,550 or the income of the second spouse. This brings the total maximum standard rate band for a married couple to €69,100, twice the single
Taxation in the Republic of Ireland
2267265
payable or refundable. The employer is responsible for sending the Income Tax on to HMRC each month, along with various other employment taxes. The amounts deducted from each payment to individual employees must be reported using an electronic submission on or before the day payment is made. PAYE in Ireland includes deduction of income tax and PRSI (Pay Related Social Insurance) by employers from payments to employees. The amount is determined by employers based on a Certificate of Tax Credits and Standard Rate (Certificate) provided by Ireland Revenue (Revenue). PAYE applies to earnings of all kinds arising from your employment,
Pay-as-you-earn tax
1434167
That's because corporate earnings have already been taxed, which means that dividends are taxed twice. Corporate income tax is 20%. In France there is a tax of 30% on dividends. 60% on the business owners. In Germany there is a tax of 25% on dividends, known as "Abgeltungssteuer", plus a solidarity tax of 5.5% on the dividend tax. Effectually there is a tax of 26.375%. In Hong Kong, there is no dividend tax. In Iran there are no taxes on dividends, according to article (105). In Ireland, companies paying dividends must generally withhold tax at the standard rate (, 20%)
Dividend tax
5229191
a gain on the sale of assets, called "chargeable assets". The standard CGT rate is 33% in respect of disposals made from midnight on 7 December 2013. The rate of tax for disposals made in previous years is less: details can be obtained from the Revenue Commissioners. Any person (including a company) resident or ordinarily resident in Ireland is liable to CGT on all chargeable gains accruing on all disposals of chargeable assets. A person resident or ordinarily resident, but not domiciled, in Ireland is only liable to CGT on disposals of assets outside of Ireland where the gains are
Taxation in the Republic of Ireland
17567030
Taxation in Serbia The standard Corporate tax rate in Serbia is 15%, although some deductions might apply. The standard VAT rate is 20% and the lower rate is 10%. Income from dividends is a subject to a 15% tax. Serbia has tax treaties with most countries in, but few outside, Europe. The standard personal tax rate is 10%. If the individual earns more than 3 times average salary, an additional tax rate of 10% is applied. For a person earning six times the average salary, an additional 15% is applied on top of the previously described taxes. It must be
Taxation in Serbia
5229164
as getting tax relief. In some cases the tax must be claimed retrospectively; in others it is processed as an increase to tax credits. The vast majority are only allowed at the standard tax rate of 20%. A person purchasing private medical insurance is entitled to tax relief at 20%, which is usually given at source – the person pays 80% of the cost, and the government pays the rest directly to the insurance company. Persons aged over 50 are entitled to a further tax credit, which is normally paid in full to the insurance company to offset the considerably
Taxation in the Republic of Ireland
20766483
effective tax rate is consistent with the "individual" effective tax rates of U.S. multinationals in Ireland (U.S.–controlled multinationals are 14 of Ireland's largest 20 companies, and Apple alone is over one-fifth of Irish GDP; see "low tax economy"), as well as the IP–based BEPS tools openly marketed by the main tax-law firms in the Irish International Financial Services Centre with ETRs of 0–3% (see "effective tax rate"). Two of the world's main , estimated Ireland's "effective corporate tax rate" to be 4%: James R. Hines Jr. in his 1994 Hines–Rice paper on tax havens, estimated Ireland's effective corporate rate was
Ireland as a tax haven
19787459
rate to be specified by the Scottish Ministers in a later order. The initial rate of tax was set at £82.60 for the standard rate and £2.60 for the lower rate. As of 1 April 2016, these increased, with the standard rate of Scottish Landfill Tax set at £84.40 per tonne, and a lower rate of £2.68 per tonne applying to "qualifying materials", which includes deposits such as waste soils and minerals. Tax revenues are collected by Revenue Scotland. Landfill Tax (Scotland) Act 2014 The Landfill Tax (Scotland) Act 2014 is an Act of the Scottish Parliament, introduced to the
Landfill Tax (Scotland) Act 2014
9834935
(Belasting Personenauto’s Motorrijwielen) tax. This tax is based on the CO emission of the specific car. The average tax amount per vehicle in the Netherlands is €2.700. Finland also operates a system which charges a separate vehicle tax in addition to VAT. This system has also attracted controversy, due to what some consider a "heavy" car tax. Finnish cars are the oldest in Europe and the death rate is highest in Scandinavia. The government also saturates the writing of car taxes. Denmark has the highest vehicle tax in Europe (the second heaviest in the world after Singapore). The tax is
Vehicle registration tax (Ireland)
4465686
The corporate income tax rate is 6.5%. Alaska does not have an individual income tax. Reference: The corporate income tax rate is 4.9%. Reference: The standard corporate rate is 8.84%, except for banks and other financial institutions, whose rate is 10.84%. Colorado has a flat rate of 4.63% for both individuals and corporations. Connecticut's corporate income tax rate is 7.5%. Reference: Delaware's corporate income tax rate is 8.7%. State income tax Most individual U.S. states collect a state income tax in addition to federal income tax. The two are separate entities. Some local governments also impose an income tax, often
State income tax
8979398
potential quantum of fine is $3–5bn. The US Tax Cuts and Jobs Act of 2017 changes Facebook's global tax calculations. Facebook Ireland will now be subject to the US GILTI tax of 10.5% on global intangible profits (i.e. Irish profits). On the basis that Facebook Ireland is paying some tax, the effective minimum US tax for Facebook Ireland will be circa 11%. In contrast, Facebook Inc. would incur a special IP tax rate of 13.125% (the FDII rate) if it's Irish business was relocated back to the US. Higher tax relief in the US (21% vs. Irish at the GILTI
Facebook
12342948
13.125% rate. The GILTI tax regime places a penalty on foreign-based IP (i.e. like in Ireland) that brings its effective rate above the FDII rate (i.e. incentivizes re-location of IP to the US). Experts believe that the TCJA neutralises Ireland's "multinational tax schemes". The EU Commission's impending 2018 "digital tax" is also designed to curb the Irish "multinational tax schemes". By taxing turnover, it acts as an "override" on the Irish "multinational tax schemes". It has been described by Seamus Coffey, Chairperson of the Irish Fiscal Advisory Council as "a more serious threat to Ireland than Brexit". The following table
Economy of the Republic of Ireland
5229170
a "pay and file" system. Employees, pensioners, and directors generally have tax deducted from their income by their employers as it is paid. Under this system, tax is calculated by the employer on each pay day, withheld, and paid over to Revenue Employers receive notification of the tax credit and standard rate band applicable to the employee from Revenue. A PAYE employee need only file a tax return on form 12 if requested to do so by an inspector of taxes, if she has other undeclared income, or if she wishes to claim reliefs which are not available on another
Taxation in the Republic of Ireland
869348
carbon tax rates were doubled in Norway to a rate of 0.96 NOK per liter/standard cubic meter of mineral oil and natural gas. As of 2016, the tax rate has been increased to 1,02 NOK per liter or standard cubic meter of oil and natural gas. Despite this increase, there is intention to reduce the tax in the future if there is a rise in the EU ETS price from the rate it was when the increased carbon tax rate was implemented. According to the Norwegian Ministry of the Environment, taxes have been the most important tool for reducing emissions
Carbon tax
508623
This BEPS tool can be continually replenished by acquiring new offshore IP with each new "product cycle". In addition, Ireland's 2015 Finance Act removed the 80% cap on this tool (which forced a minimum 2.5% effective tax rate), thus giving Apple a 0% effective tax rate on the "onshored" IP. Ireland then restored the 80% cap in 2016 (and a return to a minimum 2.5% effective tax rate), but only for new schemes. Thus, Apple was able to achieve what Pfizer-Allergan could not, by making use of Ireland's advanced IP-based BEPS tools. Apple avoided any U.S regulatory scrutiny/blocking of its
Corporate haven
18258179
goods and services. The standard rate of value-added tax is 21%. A lower rate of 12% applies to social housing, meals and margarine. Another reduced rate of 6% applies to foods, drinks, hotels and medicine. Certain goods and services are exempted from VAT by law, this includes exports, and financial services. The Belgian VAT is part of the European Union value added tax system. Smaller businesses with a turnover lower than €25000 are exempt as of 01/01/2016. Corporate tax applies at a standard rate of 33.99%. The effective corporate tax rate in Belgium can be lowered through the use of
Taxation in Belgium
18140589
There are three VAT rates in Czech Republic with the standard rate at 21%. This rate is applied on most taxed goods and services. The First reduced rate is 15% and the second reduced rate is 10%. Both of the reduced rates are subject to specific and different taxable goods and services. Legal Entities residing in the Czech Republic need to pay corporate income tax on their worldwide income. Foreign companies are taxed on income that is sourced in Czech Republic only. The standard corporate tax rate is 19%. Investment funds have a special tax rate of 5% and for
Taxation in the Czech Republic
17567031
clear that all the tax rates described are cumulatively applied, one on top of the other. Obligatory contributions for state funds by an employee (up to a certain amount) include: Obligatory contributions for state funds by an employer (also capped) include: The effective personal income tax rate is therefore somewhere in the range 20%-41%. Capital gains are not subject to personal income tax. Taxation in Serbia The standard Corporate tax rate in Serbia is 15%, although some deductions might apply. The standard VAT rate is 20% and the lower rate is 10%. Income from dividends is a subject to a
Taxation in Serbia
14228383
the credit will still be claimable in future years, as long as the couple does not claim the increase in standard-rate band for dual-income couples. For the purpose of the tax credit, the following persons are dependent persons: The dependent person must live with the carer, unless they are related, in which case they must live within 2 km of the carer. The Single Person Child Carer credit of €1,650 is awarded, in addition to the personal tax credit, to a person who is widowed, deserted, separated, or unmarried, where a child resides with them for all or part of
Tax credits in the Republic of Ireland
5157098
a CAIA BEPS scheme with a cap of 50% (i.e. similar to getting 50%–relief against capitalised IP, for a net effective Irish tax rate of 6.25%). As with the CAIA BEPS scheme, the KDB is limited to specific "qualifying assets", however, unlike CAIA tool, these are quite narrowly defined by the 2015 "Finance Act". The Irish KDB was created with tight conditions to ensure OECD compliance and thus meets the OECD's "modified Nexus standard" for IP. This has drawn criticism from Irish tax advisory firms who feel that its use is limited to pharmaceutical (who have the most "Nexus" compliant
Corporation tax in the Republic of Ireland
3762835
millage rate. The tax determined from multiplying the ad valorem assessment times the ad valorem tax rate is typically collected by the tax collector or tax commissioner. The third largest source of government revenues is value-added tax (VAT), charged at the standard rate of 20% on supplies of goods and services. It is therefore a tax on consumer expenditure. Certain goods and services are exempt from VAT, and others are subject to VAT at a lower rate of 5% (the reduced rate) or 0% ("zero-rated"). The Goods and Services Tax (GST) (French: ) is a multi-level value-added tax introduced in
Ad valorem tax
5157070
Income tax, and the two main Irish consumption taxes of VAT and Excise, have consistently been circa 80% of the total Irish Exchequer Tax Revenue, with the balance being Corporate tax. Ireland's economic model was transformed from a predominantly agricultural-based economy to a knowledge-based economy, when the EU agreed to waive EU State-aid rules to allow Ireland's special rate of 10% for manufacturing (created in 1980–81 with the EU's agreement), to be extended to the special economic zone called the International Financial Services Centre ("IFSC") in Dublin city centre in 1987. The transformation was accelerated when Ireland's standard corporate tax
Corporation tax in the Republic of Ireland
17770185
Domestic rates in Northern Ireland Domestic rates are the local government taxation in Northern Ireland. Rates are a tax on property. Domestic rates consist of two components, a regional rate set by the Northern Ireland Assembly and a district rate set by local councils. Rate levels are set annually. Valuation and rating of property is handled by Land and Property Services. Domestic rates are unique to Northern Ireland, in the rest of the United Kingdom the local taxation is Council Tax. Land and Property Services is the authority responsible for registering and valuing property. The domestic rates are based on
Domestic rates in Northern Ireland
16448176
The standard rate for the employee is 6.35%. The employer pays what corresponds to 29.90% of the employee salary. The current maximum monthly Social Security base is EUR3,596.98 (2015). Any income exceeding that maximum base is not subject to both employee and employer contributions. Taxation in Spain Taxes in Spain are levied by national (federal), regional and local governments. Tax revenue in Spain stood at 36.3% of GDP in 2013. A wide range of taxes are levied on different sources, the most important ones being income tax, social security contributions, corporate tax, value added tax; some of them are applied
Taxation in Spain
15009984
U.S. multinationals like Pfizer announced in Q1 2018, a post-TCJA global tax rate for 2019 of circa 17%, which is close to the circa 15–16% 2019 tax rate announced by past U.S. corporate tax inversions to Ireland, Eaton, Allergan, and Medtronic. As the TCJA was being passed in December 2017, the new corporate tax provisions were recognised by the Irish media, as a challenge. Donald Trump had "singled out" Ireland in 2017 speeches promoting the TCJA, and Trump administration economic advisor, Stephen Moore, predicted "a flood of companies" would leave Ireland due to the TCJA. Leading U.S. tax academic, Mihir
Double Irish arrangement
3664562
Deposit interest retention tax Deposit interest retention tax (DIRT) is a form of tax on interest earned on bank accounts in Republic of Ireland that was first introduced in the 1980s. In Ireland, income from any source is reckonable for taxation purposes. The Revenue Commissioners believed that the large majority of interest earners were declining to report it and that the most efficient method to collect at least the basic rate tax would be to deduct it at source. After PAYE, it was Ireland's second experience of a withholding tax. DIRT is deducted at source by financial institutions. The rate
Deposit interest retention tax
17010966
from a cantonal tax rate on net license income reduced by 80% the effective corporate income tax rate is 8.8% Criticism Resources Patent box A patent box is a special tax regime used by several countries to incentivise research and development by taxing patent revenues differently from other commercial revenues. It is also known as intellectual property box regime, innovation box or IP box. In the early 1970s Ireland introduced the first scheme in its Corporation Tax. Section 34 of the 1973 Finance Act allowed total tax relief in respect of royalties and other income from licenses patented in Ireland.
Patent box
2749837
income. Nonresidents are subject to tax only on Ecuador-source income. Capital gains are treated as ordinary income and taxed at the normal corporate rate. The standard rate is 22%, with a reduced rate of 15% applying where corporate profits are reinvested for the purchase of machinery or equipment and/or the acquisition of new technology. Companies engaged in the exploration or exploitation of hydrocarbon also are subject to the standard corporate tax rate. Personal taxation: Resident individuals are taxed on their worldwide income; nonresidents are taxed only on Ecuadorian-source income. An individual is deemed to be resident if he/she is in
Capital gains tax
5157110
Paradise: Foreign Tax Havens and American Business"; which estimated in Appendix IV that Ireland's "aggregate" effective corporate rate (ETR) was 4%. In October 2013, Bloomberg commissioned a "Special Investigation" into the tax affairs of U.S. multinationals in Ireland, which estimated that the effective tax rate of all U.S. multinationals in Ireland had fallen to 3% by 2010. The report featured research into the "architect" of the Double Irish BEPS tool, PWC tax partner Feargal O'Rourke, who Bloomberg noted was regarded as a "hero" in Ireland. In February 2014, Trinity College, Dublin Professor of Finance, Dr. Jim Stewart, author of studies
Corporation tax in the Republic of Ireland
20655109
what they referred to as a special tax arrangement between Apple and Ireland which allowed Apple to pay a corporate tax rate of less than 2%. In June 2014, an investigation was opened by the European Commissioner for Competition on behalf of the EU Commission (SA 38373). The Ireland case was opened in conjunction with two other similar cases; involving Starbucks (Netherlands) and Fiat (Luxembourg). The Commissioner noted concerns that discretion in transfer pricing rules had been used to give Apple selective advantage. They believed that this violated Article 107(1) of the Treaty on the Functioning of the European Union
EU illegal State aid case against Apple in Ireland
20713861
from income with origin in Ukraine, but not every kind of income is subject to the tax. Permanent establishment of non-residents are considered separate entity. Tax rate differs between these categories. For residents the tax rate is 18% with few exceptions. For example, insurance companies have to pay 0 to 3% of their income as a special corporate tax, that lowers taxable profit. Value added tax is levied on production and import of goods and services and the exports. There are 3 rates, at which the tax is paid. The tax rate of most common of them, standard rate, is
Taxation in Ukraine
4298664
bond indexation. The indexation of tax rate is to avoid an increase in effective and marginal tax rates due to inflation pushing taxpayers taxable income into higher tax brackets even though their pre tax purchasing power has not changed. Tax codes of various countries can be very complicated. As a result, certain types of taxes may be partially or entirely subject to deindexation even though the main tax rate structure is not. This is the case in the US where the standard tax rate is indexed to inflation. But, its parallel Alternative Minimum Tax (AMT) code is not. As a
Indexation
5229163
is increased by €575 for each of the couple's first two dependent children and by €830 for each subsequent child. A person or couple earning slightly over the limit may claim what is known as marginal relief. In this case, income over the exemption limit is charged to tax at a flat rate of 40%. A person or couple may choose to be taxed under marginal relief or the regular tax system, and will be granted whichever system is more beneficial, including retroactively. Some items of expenditure can be deducted from a person's income for tax purposes, generally referred to
Taxation in the Republic of Ireland
6577846
at a basic rate of 20%, or the tax allowance can be split across both sources of income. Non-standard codes are used when usual tax free allowances do not apply. Where no allowances exist, code BR is used to tax at basic rate (20%), and code D0 is used to tax at higher rate (40%). If no tax is to be collected, code NT is used. If tax has to be collected on an income above PAYE earnings, a K code is used. This works as equivalent to a negative tax allowance. Tax code (PAYE) In the UK, every person
Tax code (PAYE)
5229155
multinationals (see "Irish effective corporate tax rate"). Ireland's Corporate Tax System has seen Ireland "labelled a tax haven", and in June 2018, academics estimated that Ireland was the largest "global tax haven". Ireland's reputation as a tax haven for foreign multinationals to avoid global taxes contrasts with that fact that Ireland's overall tax receipts are in line with the EU and OECD averages (when properly adjusted using Irish GNI*, and not the distorted Irish GDP). Income tax is charged in respect of all property, profits, or gains. Since 2002, Ireland has operated a tax year coinciding with the calendar year
Taxation in the Republic of Ireland
508602
to make in the Tax Cuts and Jobs Act of 2017 tax reforms (e.g. territorial system, lower headline rate, benefitical IP-rate). Some leading modern corporate tax havens are synonymous with offshore financial centres (or OFCs), as the scale of the multinational flows rivals their own domestic economies (the IMF's sign of an OFC). The American Chamber of Commerce Ireland estimated that the value of U.S. investment in Ireland was €334bn, exceeding Irish GDP (€291bn in 2016). An extreme example was Apple's "onshoring" of circa $300 billion in intellectual property to Ireland, creating the leprechaun economics affair. However Luxembourg's GNI is
Corporate haven
15432801
a new principal residence within eighteen months after the sale of a previous principal residence had occurred. In general, the income tax rate for corporations is 30%. However, nonprofit educational institutions and hospitals enjoy a much lower rate of 10%. The transfer of the net estate is taxed at a flat rate of 6%. There is a standard deduction amounting to P5,000,000. The total value of gifts made in a calendar year shall be taxed at a flat rate of 6%. There is a standard deduction amounting to P250,000. The value-added tax (VAT) rate since 2006 is 12%. The following
Taxation in the Philippines
5157127
Pfizer disclosed that post the TCJA its global tax rate for 2019 would be 17%, similar to the circa 15–16% 2019 tax rate of past U.S. corporate tax inversions to Ireland, Eaton, Allergan, and Medtronic. In March 2018, the Head of Life Sciences in "Goldman Sachs", Jami Rubin, stated that: "Now that [U.S.] corporate tax reform has passed, the advantages of being an inverted company are less obvious". In August 2018, U.S. multinational Afilias, who had been headquartered in Ireland since 2001, announced that as a result of the TCJA, it was moving back to the U.S. , there have
Corporation tax in the Republic of Ireland
4058041
standard withholding tax rate of interest and royalty under domestic law is both 20%. According to the newest tax treaty China signed with Russia, the withholding tax rate of interest is 0 and the withholding tax rate of royalty is 6%. This can obviously reduce the tax cost of enterprises, increase the willing of "going global" and the competitiveness of domestic enterprises, and bring the goodness. Though signing double taxation avoidance agreement is a way to solve the tax problems, there still can be other problems led out, or we can call it "side effect". The intention of tax treaties
Double taxation
869286
standard deviation of $83/tC. The wide range of estimates is explained mostly by underlying uncertainties in the science of climate change (e.g., the climate sensitivity, which is a measure of the amount of global warming expected for a doubling in the atmospheric concentration of ), different choices of discount rate, different valuations of economic and non-economic impacts, treatment of equity, and how potential catastrophic impacts are estimated. One specific issue arises over coming to a consensus on what discount rate to use. Some, like Nordhaus, advocate for a discount rate that is pegged to current market interest rates, as we
Carbon tax
2787126
insured workers. Currently for the fiscal year ending 2016, the grant stands at a maximum of €500 per ear. Irish taxpayers can also claim tax relief, at the standard rate, as hearing aids are recognised as a medical device. Hearing aids in the Republic of Ireland are exempt from VAT. Hearing aid providers in Ireland mostly belong to the Irish Society of Hearing Aid Audiologists. Ordinary hearing aids are regulated medical devices under Federal Food and Drug Administration (FDA) rules. A 1976 statute explicitly prohibits any state requirement that is "different from, or in addition to, any requirement applicable" to
Hearing aid
14686686
what they actually do and whether or not students will be forced to pay more, not how the Government markets them." A graduate tax has also been proposed in Ireland. Since 1995, the "Free Fees Initiative" has meant that almost all students in the Republic of Ireland from the European Economic Area and Switzerland do not have to pay fees, with the government paying them on their behalf. However, they must pay a "student contribution" (formally called the "student services charge" and informally known as the "registration charge"), which for the academic year 2010/11 was set at a maximum rate
Graduate tax
4655096
with starting in 1987 under a minority Fianna Fáil government but with help from the opposition led by Alan Dukes of Fine Gael under what was known as the "Tallaght Strategy", with economic reform, tax cuts, welfare reform, more competition and a reduction in borrowing to fund current spending. This policy was largely continued by succeeding governments. Considerable support from the European Union was the only positive aspect. In the 1990s, the Republic's economy began the 'Celtic Tiger' phase. High FDI rate, a low corporate tax rate, better economic management and a new 'social partnership' approach to industrial relations together
Economic history of the Republic of Ireland
15235753
tax rate from 39.6% to 35%, the elimination of the individual mandate created by the Affordable Care Act, the limitation of the state and local tax deduction to $10,000 of taxable income, an increase in the standard deduction, and a reduction in the corporate tax rate from 35% to 21%. The reduction of the corporate tax rate is permanent. The personal income tax cuts are temporary. In October 2017, Tenney joined other Members of Congress and Ivanka Trump at an event to advocate for the doubling of the child tax credit; this provision was included in the Tax Cuts and
Claudia Tenney
2970344
profits, and dividend payments were then taxed as income, remained unchanged until 1973, when a partial imputation system was introduced for dividend payments. Unlike the previous imputation system, the tax credit to the shareholder was less than the corporation tax paid (corporation tax was higher than the standard rate of income tax, but the imputation, or set-off, was only of standard rate tax). When companies made distributions, they also paid the advance corporation tax (known as ACT), which could be set off against the main corporation tax charge, subject to certain limits (the full amount of ACT paid could not
United Kingdom corporation tax
661403
jointly) was increased from $5,720/year to $29,750/year. This package ultimately consolidated tax brackets from fifteen levels of income to four levels of income. The standard deduction, personal exemption, and earned income credit were also expanded, resulting in the removal of six million poor Americans from the income tax roll and a reduction of income tax liability across all income levels. The higher standard deduction substantially simplified the preparation of tax returns for many individuals. For tax year 1987, the Act provided a graduated rate structure of 11%/15%/28%/35%/38.5%. Beginning with tax year 1988, the Act provided a nominal rate structure of
Tax Reform Act of 1986
15107551
at 19.5%. In 2010, the tax on "ordinary income" is split in a local tax ("kommunale skattøre") of 12.80%, a regional tax ("fylkeskommunale skattøre") of 2.65% and a tax to the central government ("fellesskatt") of 12.55%. The current income tax system has two standard deductions: minimum standard deduction ("minstefradrag") and personal allowance ("personfradrag"). The minimum standard deduction is set as a proportion of the income with upper and lower limits. For wage income, the rate is 45% and the upper limit is NOK 97,610 in 2018. The lower limit is the so-called special wage income allowance ("lønnsfradrag"), which is NOK
Taxation in Norway
2321699
vary across municipalities, a common property assessment or valuation criteria is laid out in provincial legislation. The trend is to use a market value standard for valuation purposes with varying revaluation cycles. Multiple provinces established an annual reassessment cycle where market activity warrants, while others have longer periods between valuation periods. In Ontario, for most properties (e.g., residential, farms), property taxes can be calculated by multiplying the phased-in assessment indicated on the Property Assessment Notice by the tax rate. The municipal tax rate x phased-in assessment for the particular taxation year = municipal portion of tax. The county/regional tax rate
Property tax
5157113
in Appendix I of the study that Ireland's "aggregate" effective corporate tax rate was 4%. Over the years, the largest U.S. multinationals in Ireland, who are both Ireland's largest companies and pay most of Ireland's corporation tax (see low tax economy), have filed various accounts showing their Irish ETR. As discussed above, because Ireland refused to ratify the 2013 EU Accounting Directive, many of these multinationals have switched to "unlimited liability companies" in Ireland, which do not file accounts; thus the information is only available in a few cases. However, where U.S. multinationals have disclosed Irish financials, they all imply
Corporation tax in the Republic of Ireland
15107550
card threshold" ("frikortgrense"). This threshold is NOK 54 650 in 2018. Then, social security contribution is paid at a levelling rate of 25% (of the income above NOK 54 650) until this gives a higher total tax than using the standard tax rate on all personal income. Then the general rates are used. Ordinary income ("alminnelig inntekt"), which consists of all taxable income (wages, pensions, business income, taxable share income and other income) minus deductions (losses, debt interest, etc.), is taxed at a flat rate of 23% in 2018. Residents of northern Troms and Finnmark have a lower tax rate,
Taxation in Norway
3455879
allowances for intangible assets scheme (which has an Irish effective tax rate of <3%). A key IDA Ireland target market is Japan, which is a large global source of life sciences manufacturing enterprises, and also has one of the highest corporate tax rates in the world. The majority of foreign multinationals in Ireland are also concentrated in a small group of very large technology and life science firms. These firms have the "intellectual property" (or IP) needed to use Ireland's IP-based BEPS tax tools (which have effective Irish corporate tax rates of <3%). Ireland's largest company Apple, post their giant
IDA Ireland
16596072
value of the land only, improvements are not considered. Very few exemptions are considered on the land tax and even public institutions are subject to the land value tax. Land that is the site of a church is exempt, but other land held by religious institutions is not exempt. The tax has contributed to a high rate (~90%) of owner-occupied residences within Estonia, compared to a rate of 67.4% in the United States. Estonia natural person income tax is considered to be proportional, but, due to basic exemption, it is actually progressive. Standard rate for natural persons in year 2015
Taxation in Estonia
508646
use of tax havens. In 2010, Hines produced a table of U.S. multinational investment in havens, and produced the following ranking of the ten largest U.S. corporate tax havens: Tax haven academic Gabriel Zucman's (et alia) June 2018 list calculates the actual quantum of actual taxes shielded (versus counting legal Orbis database connections, or company subsidiaries) by profit shifting. Ireland now exceeds the aggregate Caribbean complex (ex. Bermuda), in terms of being the largest overall global corporate tax haven (see ). Ireland is also the largest EU-28 corporate tax haven. Ireland's effective tax rate is really 4%. The U.K. is
Corporate haven
8979399
rate) and accelerated capital expensing, would make this effective US rate circa 12%. The closeness of the net effective tax costs of having Facebook Ireland, in Ireland, or relocated back to the US, was shown when Reuters revealed that Facebook Ireland is going to move 1.5bn non-EU accounts back to the US to limit exposure to the EU Commission's May 2018 GDPR. To irrevocably limit financial exposure to the EU's GDPR, these 1.5bn non-EU accounts (and their commercial processing) must be moved to the US. Facebook said that this move "did not carry tax implications", a statement which was mistakenly
Facebook
10941035
Motor tax in the Republic of Ireland Motor Tax (Irish: "Cáin Mhótair") is an annual duty payable on motor vehicles (subject to exemptions) in Ireland for use in public places. A new system for new private cars was introduced on 1 July 2008 where the tax rates are based on the carbon dioxide emissions of the car while in operation. Prior to this, tax rates are assessed on engine displacement - this includes used imports first registered in their original country of sale before July 2008. Motorcycles are all taxed the same regardless of engine displacement, with a special rate
Motor tax in the Republic of Ireland
17609706
welfare function is inequality averse, then the optimal capital tax may be arbitrarily close to 100%, as increases to the capital tax rate lowers inequality but imposes no deadweight loss; this is in contrast to the standard assumption in optimal labor tax research in which inequality can be reduced by increased progression of the tax system, but at the cost of imposing a deadweight loss via a distorting reduction in labor supply - thus for any given level of post tax and transfer income inequality, reducing the progression of the labor tax system and increasing the capital tax rate in
Optimal capital income taxation
5157139
on revenues which would translate into an effective 10–15% tax rate (using pre-tax margins of 20–30% for Apple, Google and Microsoft); it is also expensible against national tax, and so the DST would reduce net Irish tax (e.g. Google Ireland would offset its DST against Irish CT). In April 2018, the EU Commission's GDPR rules forced Facebook to move 1.5 billion of the 1.9 billion Facebook accounts hosted in Ireland ( 79% of the 2.4 billion total global Facebook accounts), back to the U.S. The April 2018 Irish High Court ruling in the Max Schrems EU data-protection case could make
Corporation tax in the Republic of Ireland
5842913
tax). Motor vehicle and boat sales are taxed at only the 6.25% state rate; there is no local sales and use tax on these items. In addition, a motor vehicle or boat purchased outside the state is assessed a use tax at the same rate as one purchased inside the state. The sales tax is calculated on the greater of either the actual purchase price or the "standard presumptive value" of the vehicle, as determined by the state, except for certain purchases (mainly purchases from licensed dealers or from auctions). Lodging rates are subject to a 6% rate at the
Sales taxes in the United States
20711961
Australian corporate tax rate The Australian company tax rate has varied over time. It has been a flat rate and reached its peak of 49%. Before 1987, Australia had the classical dividend taxation system, whereby a company's profit would be taxed at the company tax rate and a shareholder would be taxed on a dividend received, giving raise to what is described as double taxation. In 1987, the Australian dividend imputation system was introduced to stop the double taxation, and to create a "level playing field". The company tax rate was reduced to 39% in 1988 and 33% in 1993,
Australian corporate tax rate
5229217
Motor tax may be paid for three, six, or 12 months, although paying annually is cheaper. It can be paid online; verification of insurance details is required to get a tax disc. The tax for private cars first registered from July 2008 is calculated on the basis of carbon dioxide emissions; for cars registered before that, the rate depends on engine displacement. Goods vehicle tax rates are determined based on gross vehicle weight, the tax for buses is based on the number of seats, and flat rates apply to other types of vehicles. Tax evasion in Ireland, while a common
Taxation in the Republic of Ireland
20766486
this, Ireland has a special lower salary tax rate scheme, and other tax bonuses, for employees of foreign multinationals earning over €75,000 ("SARP"). The OECD's "Hierarchy of Taxes" pyramid (from the Department of Finance Tax Strategy Group's 2011 tax policy document) summarises Ireland's tax strategy. EU and U.S. studies that attempted to find a consensus on the definition of a tax haven, have concluded that there is no consensus (see tax haven definitions). The Irish State, and its advisors, have refuted the tax haven label by invoking the 1998 OCED definition of a "tax haven" as the consensus definition: Most
Ireland as a tax haven
11190742
minus either (1) two times the standard deduction allowed to dependents under §63(c)(5)(A) or (2) that deduction plus the itemized deductions directly connected with the production of the unearned income. Under §1(g)(3)(A), the tax rate applied to the net unearned income is the difference between the parent's applicable tax rate and the tax rate that would have applied had the child's unearned income been added to the parent's income. Starting in 2008 the kiddie tax provision will apply to dependents under 19 and dependent full-time students under 24. To qualify, those ages 19 to 23 who are full-time students must
Kiddie tax
6560406
made from money on which income tax or contributions tax has already been paid, and typically no further tax is required to be withheld from that contribution when it is made to a fund. Both contribution types are subject to annual caps. Where the annual cap is exceeded, additional tax is payable, either at the marginal tax rate for concessional contributions, or an additional 31.5% for non-concessional contributions, which is in addition to the standard tax rate of 15% payable on contributions, making a total of 46.5%. Investment earnings of the superannuation fund (i.e. dividends, rental income etc.) are taxed
Superannuation in Australia
11426408
same "intra-community transaction" rules to all of Europe on a bilateral basis resulting in legally tax-free silver coin availability throughout all of Europe. Precious metals are subject to tax as collectibles, with any profit being taxed at the collectibles capital gains rate. This is normally the standard income tax rate, with metal held over 1 year is subject to a maximum of 28%. Note that many people unfamiliar with the collectibles tax rates (including some well-known websites) incorrectly think that precious metals are taxed at a flat 28% (because they interpret the word "maximum" in "maximum 28% rate"). Taxation of
Taxation of precious metals
869321
per tonne of CO. As of the year 2002, the standard carbon tax rate since 1996 amounts to 100 DKK per tonne of CO, equivalent to approximately €13 or US$18. Net carbon emission tax from fuel combustion can vary depending on the level of pollution each source emits, the tax rate varies between 402 DKK per tonne of oil to 5.6 DKK per tonne of natural gas and 0 for non-combustible renewables. The rate for electricity is 1164 DKK per tonne or 10 øre per kWh, equivalent to .013 Euros or .017 US dollars per kWh. The CO tax applies
Carbon tax
18299560
Taxation in Croatia Taxes in Croatia is levied by both the central and the regional governments. Tax revenue in Croatia stood at 26.6% of GDP in 2013. Most important revenue sources, include the income tax, social security contributions, corporate tax and the value added tax, which are all applied on the national level. Income earned in Croatia is subject to a progressive income tax, of three different brackets. VAT in Croatia is levied at three different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent apply on different goods and services. The 13% rate
Taxation in Croatia
15356666
for a combination of classes III/V or IV/IV. In the former case, the spouse with higher earnings receives the twice the basic exemption rate, while the second earner is taxed at very low earnings. In the latter case, both spouses are taxed based on the standard exemption rate. The choice of tax classes only matters for the withholding tax and hence for the income that is immediately at disposal. After the income tax assessment, which happens a few months after the tax year has ended, the tax rebate is not affected by the choice of tax class. Beyond, employers are
Taxation in Germany
5813158
to Finance Minister McCreevy who adjusted the new gross roll-up tax regime to all OECD funds. When Minister McCreevy announced the SSIA savings scheme, Hobbs launched the Consumers Association of Ireland 'Savermark' standard that required banks to link deposit interest to the ECB base rate movements to prevent margins widening. Hobbs accused the Life Insurance industry of colluding to avoid the 'Savermark' pricing and called for a Competition Authority investigation. He presented the RTÉ show "Rip-Off Republic" in 2005, a show preoccupied with artificially high development land prices, the perceived high personal taxes, corporate margins and cartels/monopolies in Ireland. In
Eddie Hobbs
13595534
at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. However, the shape of the curve is uncertain and disputed among economists. Under some assumptions, such as revenue being a continuous function of the rate of taxation, the maximum illustrated by the Laffer curve is a result of Rolle's theorem, which is a standard result in calculus. One implication of the Laffer curve is that reducing or increasing tax rates beyond a certain point is counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be
Laffer curve
5229154
tax is only 16% of Total Net Revenues (see above), Ireland's corporate tax system is a central part of Ireland's "economic model". Not only do foreign multinationals pay 80% of Ireland's corporation tax, but they also directly employ 25% of the Irish labour force, and pay 50% of all Irish salary taxes; in 2016, they were 57% of all Irish non-farm OECD value-add (see "multinational economy"). A source of controversy is the "effective" tax rate of Ireland corporation tax system, of which the independent evidence is that it is less than 4%, and as low as 0.005% for major U.S.
Taxation in the Republic of Ireland
12435132
does not count toward the maximum 55.38% marginal tax, and one can be exempted from paying this tax by opting out of being a member of the state church. Denmark has a non-deductible value added tax (VAT) of 25%, - MOMS (, formerly "meromsætningsafgift"). The tax is subject to the European Union value added tax Directives. In Denmark, VAT is generally applied at one rate, and with few exceptions is not split into two or more rates as in other countries (e.g. Germany), where reduced rates apply to essential goods such as foodstuffs. The current standard rate of VAT in
Taxation in Denmark
17010946
Patent box A patent box is a special tax regime used by several countries to incentivise research and development by taxing patent revenues differently from other commercial revenues. It is also known as intellectual property box regime, innovation box or IP box. In the early 1970s Ireland introduced the first scheme in its Corporation Tax. Section 34 of the 1973 Finance Act allowed total tax relief in respect of royalties and other income from licenses patented in Ireland. The concept was applied in 2001 by the French Tax Authorities as a reduced rate of tax on revenue from IP licensing
Patent box
5157143
December 2017 with the passing of the Tax Cuts and Jobs Act (TCJA) by the Trump administration. Parts of the TCJA are specifically targeted at Irish BEPS tools as used by U.S. multinationals in Ireland. The TCJA introduces many of the changes that the UK made to its tax code in 2009-2012, including moving to a "territorial tax" system and reduction of headline rate of tax; the UK changes reversed many of the UK corporate tax inversions to Ireland. However the TCJA goes even further and the GILTI–FDII–BEAT tax regime are a more severe "carrot and stick" to encourage U.S.
Corporation tax in the Republic of Ireland
5701038
income (all income minus allowable deductions). The rate on taxable income between $15,164 and $35,952 is 2.0%; from $35,952 to $56,742 it is 4.0%; from $56,742 to $78,768 it is 6.0%; from $78,768 to $99,548 income has an 8.0% rate. On taxable income from $99,548 to $508,500 the rate is 9.3%. Taxable income from $508,500 to $610,200 the tax is 10.30% (of all income over $508,500). Taxable income from $610,200 to $1,017,000 the tax is 11.30% of all income over $610,200. All income over $1,017,000 has a tax of 13.3%. The standard deduction for a married couple is now $212.00.
Economy of California
20766477
to be a major architect of the ICAV), and there are explicit QIAIF rules to help with re-domiciling of Cayman/BVI funds into Irish ICAVs. There is evidence Ireland meets the captured state criteria for tax havens. When the EU investigated Apple in Ireland in 2016 they found private tax rulings from the Irish Revenue giving Apple a tax rate of 0.005% on +€100 billion of profits. When the Irish Finance Minister Michael Noonan was alerted by an Irish MEP in 2016 to a new Irish BEPS tool to replace the double Irish (called the single malt), he was told to
Ireland as a tax haven
12549390
however, this is a definition omits income that would be considered taxable under the US Bureau of Economic Analysis ("BEA") method of assessing "effective" taxation. Under the BEA definition, Ireland's "effective" 2015 corporation tax rate is 2.5%. Ireland further upgraded its holding company regime (to minimize pass-through taxes), and introduced the first OECD compliant "Knowledge Development Box" ("KDB") with a 6.5% rate. Ireland then experienced a boom in much larger US corporate inversions, and particularly from the Pharmaceutical industry (see last 5 years): As well as the 3rd largest recipient of US corporate inversions, the UK is the most interesting
Tax inversion
14044256
Taxation in Bangladesh In Bangladesh, the principal taxes are Customs Duties, Value-Added-Tax (VAT), Supplementary Duty and personal income taxes and corporate income taxes. The standard rate of VAT is 15% levied on transaction value of most of the imports and supplies of goods and services. The tax law imposes income tax at 25 percent on listed entities and 35 percent for non-listed entities. Corporate tax rate changes announced this year include: Certain companies remain taxed at different rates. For example: Generally, a company’s export earnings are 50 percent exempt. For companies, the tax day (i.e. tax return due date) is
Taxation in Bangladesh
19819340
revenue from VAT was 15.47 billion yuan ($2.2 billion) which made up 33.9 percent of China's total tax revenue for the year. The standard rate of VAT in China is 16%. There is a reduced rate of 13% that applies to products such as books and types of oils. The European Union value added tax (EU VAT) covers consumption of goods and services and is mandatory for member states of the European Union. The EU VAT's key issue asks where the supply and consumption occurs thereby determining which member state will collect the VAT and which VAT rate will be
Value-added tax
17089869
and provided forward funding of the program to ensure an additional 20,000 students could be served over the next 10 years. Tax Reform The North Carolina General Assembly has enacted sweeping tax reforms during Barefoot's time in the Senate. The personal income tax rate has dropped from 7.75% in 2013 to 5.49% in 2017, the corporate income tax rate has dropped from 6.9% in 2013 to 3% in 2017, and the sales tax rate was lowered and capped at 4.75%. The legislature also increased the standard tax deduction for taxpayers filing as Married Filing Jointly from $6,000 to $17,500 in
Chad Barefoot
10292733
These include: Determinations of what is taxable and at what rate are made at the federal level based on U.S. tax law. Many but not all states incorporate federal law principles in their tax laws to some extent. Federal taxable income equals gross income (gross receipts and other income less cost of goods sold) less tax deductions. Gross income of a corporation and business deductions are determined in much the same manner as for individuals. All income of a corporation is subject to the same federal tax rate. However, corporations may reduce other federal taxable income by a net capital
Corporate tax in the United States
11077859
the appropriate amount for personal exemptions under § 151(d)(1) (as adjusted annually for inflation under § 151(d)(4)). Finally, the taxpayer subtracts either the appropriate standard deduction under § 63(c) or the total of itemized deductions under § 63(d) to arrive at the taxpayer's taxable income for that tax year. Taxable income serves as the base against which the taxpayer's tax rate is applied. After multiplying taxable income by the tax rate, the taxpayer may subtract the amount of any credits, then must add any additions to tax (such as the Alternative Minimum Tax). This calculation results in the taxpayer's tax
Tax ladder
6511591
which the standard is 2% of taxable income. As with many other countries, income tax is withheld from wages and salaries in Australia, often resulting in refunds payable to taxpayers. An employee must quote to employers their Tax File Number (TFN) so the employer can withhold tax from their pay. While it is not an offence to fail to provide an employer, a bank or financial institution with a TFN, in the absence of this number, payers are required to withhold tax at the rate of 47% (the highest marginal rate plus Medicare levy) from the first dollar. Likewise, banks
Income tax in Australia
17010952
gross patent income is taxed at the standard corporation tax rate of 34% (including a 3% surtax). This results in an effective tax rate of 5.1% on the qualifying income. The Luxembourg IP regime has been abolished. IP regimes claimed before July 2016 can still continue to benefit from the preferential rate for the next 5 years. It is expected that Luxembourg creates a new IP regime following the OECD criteria. In Luxembourg IP regime became effective in January 2008 and amended in 2008 to also exclude qualifying IP assets from Luxembourg’s net wealth tax. The scheme applies to the
Patent box
16143030
a year. Companies offering this once per year make it possible for their employees to buy this card in the month that they pay-out the bonuses or other yearly incentives. As any bonuses or other 'additional' pay are subjected to the highest tax-rate for that employee he/she can make the best savings when buying the card in that month. If one's normal salary is just under the standard cut-off rate for the high tax bracket (nearly) all additional pay for bonuses etc. will be in the high tax-rate; and if one then purchases the 'tax saver' ticket from their extra
Leap card
5157126
Tax Cuts and Jobs Act (TCJA) overhauled the U.S. tax-code and replicated many of the changes the UK made to their tax-code in 2009–2012 to successfully combat inversions (see below). In particular, the TCJA moved the U.S to a hybrid–"territorial tax" system, reduced the headline rate from 35% to 21% and introduced a new GILTI–FDII–BEAT regime designed to remove incentives for U.S. multinationals to execute corporate tax inversions to Ireland. In December 2017, U.S technology firm Vantiv, the world's largest payment processing company, confirmed it had abandoned its plan to execute a corporate tax inversion to Ireland. In Q1 2018,
Corporation tax in the Republic of Ireland
8078018
the year. As of 2006, there are three methods of rate calculation for FBT: flat rate (64%), multi-rate and short form multi-rate options. . Fringe benefits tax (New Zealand) Fringe benefits tax (FBT) within the system of taxation in New Zealand is the tax applied to most, although not all, fringe benefits ("perks"), including the ones provided through someone other than an employer. FBT is paid to Inland Revenue by the employer and is calculated with reference to the taxable value of the benefit provided to the employee or associate. Legislation governing what a fringe benefit is, and is not,
Fringe benefits tax (New Zealand)