Ireland's Global Position on Income Tax - Irish Tax Institute

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Ireland's Global Position on Income Tax. Effective income tax rate comparison with selected competitor countries. (Sourc
Ireland’s Global Position on Income Tax Effective income tax rate comparison with selected competitor countries (Source: KPMG Ireland) At the Irish minimum wage (€18,000), Ireland has the lowest effective tax rates of selected competitor countries.

1 2 3 4 5 6 7 8

Country Germany Netherlands Spain Sweden United States United Kingdom Switzerland Ireland

Employee at €18,000 salary Effective tax rate at €18,000 27.03% 20.3% 18.8% 17.24% 14.7% 12.33% 6.45% 4.88%

At Ireland’s average wage (€35,783), the effective tax rate in Ireland remains very low by comparison to these competitor countries.

Country 1 2 3 4 5 6 7 8

Germany Netherlands Spain Sweden United Kingdom Ireland United States Switzerland

Employee at €35,783 salary Effective tax rate average wage (employee) 36.43% 31.72% 26.06% 22.74% 22.10% 21.62% 19.12% 18.9%

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As wages rise, the effective tax rate in Ireland increases faster than the rate in other countries Employee at €75,000 salary Country Effective tax rate at €75,000 1 Germany 43.81% 2 Netherlands 40.11% 3 Sweden 38.63% 4 Ireland 37.51% 5 Spain 34.86% 6 United Kingdom 30.52% 7 Switzerland 29.17% 8 United States 26.31%

Country 1 2 3 4 5 6 7 8

Sweden Netherlands Ireland Germany Spain United Kingdom Switzerland United States

Employee at €150,000 salary Effective tax rate at €150,000 47.75% 47.21% 44.75% 44.06% 41.26% 39.45% 34.55% 28.57%

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