17th January 2016

Eurostat: Largest fall in tax-to-GDP ratio in 2014 in the Czech Republic

According to Eurostat, the overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of GDP, stood at 40.0% in the European Union (EU) in 2014, compared with 39.9% in 2013. The tax-to-GDP ratio varies significantly between Member States, with the highest share of taxes and social contributions in percentage of GDP in 2014 being recorded in Denmark (50.8%), followed by Belgium and France (both 47.9%), Finland (44.0%), Austria (43.8%), Italy and Sweden (both 43.7%). At the opposite end of the scale, Romania (27.7%), Bulgaria (27.8%), Lithuania (28.0%) and Latvia (29.2%) registered the lowest ratios.

Compared with 2013, the tax-to-GDP ratio increased in 2014 in a majority of Member States, with the largest rise being observed in Denmark (from 48.1% in 2013 to 50.8% in 2014), ahead of Cyprus (from 31.6% to 34.2%) and Malta (from 33.6% to 35.0%). In contrast, decreases were recorded in eight Member States, notably in the Czech Republic (from 34.8% in 2013 to 34.1% in 2014) and the United Kingdom (from 34.9% to 34.4%).

More details are available here.

 

Also, according to data in Eurostat's publication Taxation trends in the European Union 2015, tax revenues as percentage of GDP in the Czech Republic fell from 8.7% in 2004 to 7% in 2013 in terms of direct taxes. As for indirect taxes, tax revenues rose from 11% to 13% of GDP between 2004 and 2013. Read more details.

The Czech News Agency informed that The number of Czech companies with owners based in destinations regarded as tax havens grew by 172 (1.3 percent) to 13,419 last year, according to statistics published by consulting company Bisnode.

 

 

 

 

Members of the American Chamber of Commerce in the Czech Republic