Figures issued by the EU showed today that Malta has one of the lowest implicit tax rates on labour.

The largest source of tax revenue in the EU27 is labour taxes, representing nearly half of total tax receipts, followed by consumption taxes at roughly one third and taxes on capital at just under one fifth.

The average implicit tax rate on labour was slightly up in the EU27 in 2010 compared with 2009, ending the steady decline observed from 2000. Among the Member States, the implicit tax rate on labour ranged in 2010 from 21.7% in Malta, 23.4% in Portugal, 24.4% in Bulgaria and 25.7% in the United Kingdom, to 42.6% in Italy, 42.5% in Belgium, 41.0% in France and 40.5% in Austria, Eurostat said in a statement.

The average implicit tax rate on consumption in the EU27, which had been on a downward trend since 2007, increased in 2010. In 2010, implicit tax rates on consumption were lowest in Spain (14.6%), Greece (15.8%), Italy (16.8%), Latvia (17.3%) and Portugal (17.4%), and highest in Denmark (31.5%), Sweden (28.1%), Luxembourg (27.3%), Hungary (27.2%) and the Netherlands (27.0%). (Malta 18.9%)

In the EU27, the average implicit tax rate on capital for the Member States for which data are available was down in 2010 compared with 2009. Implicit tax rates on capital ranged from 6.8% in Lithuania to 37.2% in France. (No rates for Malta)

VAT RATES AND TOP RATE OF TAX ON PERSONAL INCOME

The average standard VAT rate in the EU27 has risen strongly since 2008. In 2012, the standard VAT rate varies from 15.0% in Luxembourg and 17.0% in Cyprus to 27.0% in Hungary and 25.0% in Denmark and Sweden. It was 18% in Malta

The average top personal income tax rate in the EU27 has increased in 2012. The highest top rates on 2012 personal income are observed in Sweden (56.6%), Denmark (55.4%), Belgium (53.7%), the Netherlands and Spain (both 52.0%), Austria and the United Kingdom (both 50.0%), and the lowest in Bulgaria (10.0%), the Czech Republic and Lithuania (both 15.0%), Romania (16.0%) and Slovakia (19.0%). Malta was 35%

Corporate tax rates in the EU27 have risen slightly in 2012, ending a long declining trend. The highest statutory tax rates on 2012 corporate income are recorded in France (36.1%), Malta (35.0% although most is then refunded when dividends are issued) and Belgium (34.0%), and the lowest in Bulgaria and Cyprus (both 10.0%) and Ireland (12.5%).

 

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