Compilation of reports on who pays what tax

Thanks Protocol

I should have specified that I was looking for the up to date information on the following:

The top 20% of taxpapyers pay x% of all income tax.

Brendan
 
The government's tax policy group has a paper on income tax but nothing after 2012. [broken link removed]. I could find anything more recent, which is a pity as I think this is a good document, but it shows that 6% of income earners paid 31% of USC and 5% of earners paid 43% of income tax. No reason to believe things have changed.

This might also be of interest
https://ec.europa.eu/taxation_custo...ation_trends_2017_country_chapter_ireland.pdf
 
Interesting, Revenue are now using the CSO database to provide stats:

[broken link removed]

Data up to 2015.
 
Just looking at the German levels of tax on €18,000...the obvious thing is the glaring difference of some 27% on first €18,000 compared to Ireland at 4% odd.
But looking at Wiki, there appears to be some €8,000+personal tax credit applied to German incomes. I could be wrong but it would appear that they operate a system similar to Ireland pre-Harney/McCreevey?
That is the tax allowance/credit is applied first, then the tax rate applied to the remainder? I could be wrong, but paying 27% on income of €18,000 seems extremely harsh assuming Germany is not, in general, any way particularly cheaper than Ireland?
 
TheBigShort said:
Just looking at the German levels of tax on €18,000...the obvious thing is the glaring difference of some 27% on first €18,000 compared to Ireland at 4% odd.
But looking at Wiki, there appears to be some €8,000+personal tax credit applied to German incomes. I could be wrong but it would appear that they operate a system similar to Ireland pre-Harney/McCreevey?
That is the tax allowance/credit is applied first, then the tax rate applied to the remainder? I could be wrong, but paying 27% on income of €18,000 seems extremely harsh assuming Germany is not, in general, any way particularly cheaper than Ireland?
Click to expand...

Running the figure of €18000 pa for a single person through the German tax calculator below suggests zero taxes payable (excluding Church Tax) but €3740 in Social Charges payable (Pension Insurance, Unemployment Insurance, Care Insurance and Health Insurance).

http://www.brutto-netto-rechner.info/gehalt/gross_net_calculator_germany.php

EDIT: I suspect I may have used the calculator incorrectly. The Insurance figures seem ok but tax of up to €800 euro may apply, depending on individual allowances granted/claimed. There seem to many claimable, with one site stating that €1000 is about a baseline standard . This in addition to standard individual/married allowance.
 
Last edited:
Germany has 20-21% employee social insurance.

There are no allowances, credits, just ceilings.

So on 18k there would be 20-21% SI plus tax.
 
Protocol said:
Germany has 20-21% employee social insurance.

There are no allowances, credits, just ceilings.

So on 18k there would be 20-21% SI plus tax.
Click to expand...

Are you sure, Protocol? I understood there to be a "basic allowance" on which no income tax is charged. For 2017 this is quoted as being €8820 for a single person and €17640 for a married couple.

Is this wrong ?
 
Early Riser said:
Are you sure, Protocol? I understood there to be a "basic allowance" on which no income tax is charged. For 2017 this is quoted as being €8820 for a single person and €17640 for a married couple.

Is this wrong ?
Click to expand...
There are no offsetting allowances on social insurance contributions in most countries. See the publication below which compares taxes in Ireland and other jurisdictions. Page 27 shows a German on €18K paying €4,800 in tax (most likely all social insurance contributions). An Irish person on €18K is shown as paying €600.

Page 19 shows what an outlier Ireland is at lower salary levels.

[broken link removed]
 
Early Riser said:
Are you sure, Protocol? I understood there to be a "basic allowance" on which no income tax is charged. For 2017 this is quoted as being €8820 for a single person and €17640 for a married couple.

Is this wrong ?
Click to expand...

You are correct Early Riser.

The first €8,820 and €17,640 for singles and marrieds respectively are taxed at 0%.
 
Sorry, yes, I meant there are no SI credits, allowances, etc.

It's a straight 20-21% SI on income up to various ceilings.

Whereas we have had various PRSI allowances and exemptions.
 
According to the latest Revenue distribution statistics (2015) the highest earners (€100,000 upwards):

% of Total Cases 5.40%
% of Income 25.98%
% of Tax/USC 45.93%

The highest % discrepancy between % income and % tax/USC was that of two-income couples at 9.80% (Income 15.58%, Tax/USC 25.38%).

The lowest was that of widows at 0.16% (Income 0.20%, Tax/USC 0.36%).

Among income groups the highest discrepancy between income and Tax/USC % was for those with an income of €275,000 and over at 9.40% (Income 8.45%, Tax/USC 17.85%).

I see that the thread on the "squeezed middle" is closed but the statistics for the income bracket €50,000 to €60,000 are:

% of Total Cases 6.48%
% of Income 9.06%
% of Tax/USC 8.58%
 
Last edited:
You must log in or register to reply here.
Back
Top