Excerpts from the
Annual State Revenue Report for 1997

INTERNATIONAL COMPARISONS
(continue)


Table XVI-6
Corporate-Tax Rates, Selected Countries1


Country 1984 1988 1989 1990 1992 1993 1994 1995 1996 1997
Israel 61 45 45 42 40 39 38 37 36 36
United States2 51 45 34 34 34 34 34 35 35 35
United Kingdom 45 35 35 35 33 33 33 33 33 33
Germany3 56 56 56 46 46 41.86 45 48.375 48.375 48.375
France 50 42 39 39 - 33.3 33.3 36.3 36.3 36.3
Italy4 36 36 36 36 36 36 36 36 37 37
Netherlands 43 43 35-40 35-40 35-40 35-40 35-40 35-40 35-37 35-37
Spain 35 35 35 35 35 35 35 35 35
Sweden 52 52 52 52 0 30 28 28 28 28
Canada5 - - 35 35 33 43.5 43.5 43.5 46.12 46.12
Japan 53 52 48 45 45 45 45 45 45 51
Denmark6 - - - - 34 34 34 34 34 34
Ireland - 46 47 43 40 40 40 38 38 38


Sources:
Earnst & Young, 1998.



Notes to the table:

1. Including central-government corporate tax and local-authority taxes that apply to all income and are not recognized for tax purposes. Since the tax rates in the table relate to undistributed profits, they should be treated cautiously. This is because various methods, varying from country to country and year to year, are used to determine income at the time taxable profits are reckoned. Therefore, this comparison of tax rates is important but should not be used to draw conclusions about the effective tax rate unless one examines the other factors used in determining taxable profits (deductible expenses, rates of depreciation, tax benefits in various industries, etc.).
2. Federal tax only. Additionally, each province applies a tax in the range of 0-17 percent.

3. In some states, a supplementary local tax is imposed.
4. Distributed and undistributed profits: undistributed profits-32.25 percent. Additionally, a 16 percent tax imposed on local authorities under certain conditions is recognized as an expense for income-tax purposes.
5. Not including local authorities and distribution of profits beyond 64 percent. In this case, the corporate-tax rate is 56.25 percent. Local-authority taxes range from 4.5 percent to 5.5 percent.
6. Since 1992, there has been an arrangement in which the tax rate was lowered to 34 percent but an 11.75 percent surtax as an accounting balance is applied as a supplement to the reduced tax.


Table XVI-7
Miscellaneous Personal Taxes1 Other Than Tax on Labor Income


(Percent, 1996)



Capital gains tax Stock exchange gains tax Net capital tax
Israel 3-50 0 0
United States 28-39.6 28-39.6 0
United Kingdom 40 40 0
France 19.4 19.4 0-1.5
Sweden 30 12.5-25 0-1.5
Netherlands 20 0 0.8
Italy 25 25 0
Germany2 53 53 0.5-1.0
Japan3 65 26 0


Sources:
Price Waterhouse, Individual Taxation, 1998



Notes to the table:

1. The tax rates shown in this table should be treated cautiously for the following reasons:
a. Some of the taxes have a "tax floor" that varies from country to country and among different types of assets.
b. In some countries and in some cases, losses may be offset against past or future years' income.
c. When an offset may be made, it is sometimes against income of the same type and in other cases against different types of income.
2. On securities held for less than six months or land and buildings held for less than two years. Other sales are exempt from capital-gains tax.
3. An optional 1 percent turnover tax exists.


Table XVI-8
Disposable Income as Percent of Gross Income and Tax Burden as Percent of GDP,
Selected Countries,1 1994


(Percent)


Country Production worker's disposal income
as percent of gross income2
Total tax
as percent of GDP3

Married + 2 Individual
Australia 84.6 76.5 29.9
Austria 93.1 74.5 42.8
Belgium 87.3 62.7 46.6
Canada 83.8 73.1 36.1
Czech Republic 100 77.4 47.3
Denmark 69.7 54.8 51.6
Finland 75.5 62.8 47.3
France 86.3 72.6 44.1
Germany 76.8 61.8 39.3
Greece - - 42.5
Hungary 93.7 72.1 41.0
Iceland 112.9 79.3 30.9
Ireland 80.3 69.1 37.5
Italy 82.4 73.3 41.7
Japan 90 84.3 27.8
Luxembourg 100.4 74.6 45.0
Mexico 87.8 87.8 18.8
Netherlands 69.2 58.7 45.9
New Zealand 75.7 75.7 37.0
Norway 86.7 71.2 41.2
Poland 92.6 82.8 43.2
Portugal 90.2 81.8 33.0
Spain 87.3 80.5 35.8
Sweden 79.0 69.2 51.0
Switzerland 91.3 78.6 33.9
Turkey 68.8 68.8 22.2
United Kingdom 82.5 73.5 34.1
United States 81.0 74.1 27.6
Israel 84.5 76.0 39.9
Average, Common Market countries 82.9 69.3 42.5
Average, OECD countries 85.5 73.0 38.4



Sources:
OECD.


Notes to the table:

1. Disposable income includes social insurance benefits.
2. In all countries other than Israel, the criterion is "production worker" (that is, non-managerial). The figure for Israel pertains to industrial workers.
3. In Israel, the tax burden was computed in view of U.N. definitions; in other countries, by OECD definitions.




Table XVI-9
VAT Rates, European Common Market Countries

(April 1990-March 1997)


Country Standard rate Reduced rate High rate

April
1990
March 1997 April
1990
March 1997 April
1990
March 1997
Ireland 23 21 10 2.8, 12.5 - -
United Kingdom 16 17.5 - 8 - -
Denmark 22 25 - - - -
Netherlands 18.5 17.5 6 6 - -
Belgium 19 21 1, 6 6, 12

Luxembourg 12 15 3, 6 3, 6 - -
Germany 14 15 7 7 - -
France 18.6 20.6

2.1, 5.5, 13

2.1, 5.5 25 -
Spain 12 16 6 5, 7 33 -
Portugal 17 17 8 5 30 30
Italy 18 19 4, 9 4, 10, 16 38 -
Greece 18 18 3, 6 4, 8 36 -
Sweden
25
6, 12 - -
Finland1
22
6, 12, 17 - -
Austria1
20
10, 12 - -



Sources:
Common Market publication.



Note to the table:

1. Countries that joined the European Common Market in 1995.



Table XVI-10
Taxation of Gasoline,1 Selected European Countries

(As of November 1997)


Country Consumer price ($ per liter) Tax rate2 (percent)
Belgium 1.03 73.0
Germany 0.97 71.6
France 1.08 78.0
Italy 1.08 72.5
Netherlands 1.13 73.0
United Kingdom 1.08 77.7



Europe (average) 1.06 74.3



Israel 0.96 69.3



Sources:Ministry of Energy and Infrastructure, Planning and Economics Administration


Notes to the table:

1. 95-octane unleaded gasoline.
2. Percent of consumer price. Gasoline taxation in Europe is composed of a flat-rate excise and VAT.


Table XVI-11
Taxation of Cigarettes, Selected European Common Market Countries

(As of October 1997)


Country Price per pack1 (US$) Tax rate, percent2
Ireland 4.35 76
United Kingdom 5.12 78
Denmark 4.45 82
Netherlands 3.73 69
Belgium 3.15 74
Luxembourg 2.33 68
Germany 3.97 69
France 3.25 76
Spain 2.34 71
Portugal 1.99 79
Italy 3.00 73
Greece 2.15 72
Austria 3.21 71
finance 4.06 76
Sweden 5.94 76
Israel 3.10 70



Sources:
Philip Morris representative in Israel.



Notes to the table:

1. Price of a pack of Marlboro cigarettes.

2. Percent of price per pack (including purchase tax and VAT).




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