HC Deb 11 July 1978 vol 953 cc511-3W
Mr. Ian Stewart

asked the Chancellor of the Exchequer if he will set out a table showing the standard rate of corporation tax in the United Kingdom and the other countries of the EEC.

Mr. Denzil Davies

The information requested is as follows. The hon. Member will understand that these rates are not necessarily comparable with each other because of differences in the relevant tax structures.

Belgium (1)

Taxable profits:

  • exceeding 15 million B francs—48 per cent.
  • 3–15 million B francs—1.2 million B francs plus 50 per cent. of the excess over 3 million B francs.
  • 1.7–3 million B francs—40 per cent.
  • 1–1.7 million B francs—330,000 B francs plus 50 per cent., of the excess over 1 million B francs.
  • less than 1 million B francs—33 per cent.

Denmark— [...]7 per cent.

France—50 per cent.

Germany

  1. (i) Federal corporation tax (2)—56 per cent. on retained profits. 36 per cent. on distributed profits.
  2. (ii) Local trade tax (3)—11–20 per cent. (varies).

Ireland (8)

Taxable profits:

  • exceeding £35,000–45 per cent.
  • £25,000–35,000—£8,750+70 per cent. of excess over £25,000.
  • under £25,000–35 per cent.

Italy (4) (5)

  1. (i) National income tax—25 per cent.
  2. (ii) Local income tax—15 per cent.

Luxembourg

(i) National income tax (6)

Taxable profits:

  • exceeding: 1,212,400 francs—40 per cent.
  • 1 million-1,212,400 francs—300,000 francs plus 72 per cent. of excess over 1 million francs.
  • 600,000–1 million francs—30 per cent.
  • 400,000–600,000 francs—80,000 francs plus 50 per cent. of excess over 400,000 francs.
  • Less than 400,000 francs—20 per cent.

(ii) Local trade tax (7)—5.6–12 per cent. (varies).

Netherlands

Taxable profits:

  • exceeding 50,000 florins—48 per cent.
  • 40,000–50,000 florins—18,000 florins plus 60 per cent. of excess over 40,000 florins.
  • Less than 40,000 florins—45 per cent.

United Kingdom (8)

Taxable profits:

  • over £85,000–52 per cent.
  • £50,000-£85,000–52 per cent., with a deduction from the tax due of 1/7 of the difference between £85,000 and the taxable profits.
  • Less than £50,000–42 per cent.

Notes

  1. (1) Belgium also imposes an excess profits tax.
  2. (2) For German companies whose taxable profits are less than 10,000 DM, the first 5,000 DM are exempt. Between 10,000 DM and 20,000 DM there is a marginal exemption.
  3. (3) German local trade tax is deductible for federal corporation tax purposes.
  4. (4) The Italian corporation tax has recently been changed: the figures relate to the earlier system.
  5. (5) In Italy local income tax is now deductible in arriving at taxable income for national income tax.
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  6. (6) Luxembourg imposes a 1 per cent. surcharge on national income tax for the Unemployment Fund.
  7. (7) Luxembourg local trade tax is deductible for national income tax purposes.
  8. (8) Under 1978 Finance Bill proposals in United Kingdom, Ireland.

Where relevant exchange rates have been taken as at 23rd June 1978.