Taxations trends in Europe.

16.06.2014

On the 16^th of June, 2014 European Commission published the report “Taxation trends in the European Union”. This report introduced information on main ways of development and changes in taxation in EU Member States, Norway and Iceland.

There are different positions in the report. It is stated, for example, that the sum from collected to states’ budgets taxes is slowly increasing from year to year. In EU there was shown the decrease of the average rate for corporate tax: it was 35% in 1995, and in 2014 it is 23.1%. Three Member States lowered their corporate tax rate in 2014: UK(from 23% to 21%), Slovakia (from 23% to 22%) and Denmark (from 25% to 24.5%). There were no changes in environmental tax rates since 2009.

Report gives a deep description not only for taxation trends in EU as a whole, but analyses taxation systems of each of Member States and changes it went through.

Source: http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_structures/2014/report.pdf

Expert’s opinion

European Commission analyzed huge massive of information. Just incredible amount! Take in mind, that each government of countries from the list is working without sleep and changing the tax law almost every day, than we could only imagine what kind of mathematic aggregate was used for the analysis of all these changes, movements, trends and tendencies, that should look like a neat tables and diagrams in the report.

Great Britain, which Parliament adopts no less than a hundred changes into VAT legislation each year, cheered us up wit the decrease of corporate tax rate.

Despite of the “tightening of the belts” UK was and still is one of the most convenient and respected jurisdiction in the sphere of taxation planning and securing of actives.

Yaroslav Lomakin ( Managing Partner, Honest&Bright)