§ Mr. SteenTo ask the Chancellor of the Exchequer what information he has as to the standard rate of income tax in each of the 12 European Community countries and as to the corporation tax rate in each of the 12 European Community countries.
§ Mr. Norman Lamont[holding answer 18 January 1988]: A standard or basic rate of income tax is found only in the Republic of Ireland and the United Kingdom, where the rates are 35 per cent. and 27 per cent respectively. In the other European Community countries the scales of income tax rates do not include a standard or basic rate. The current ranges of nominal income tax rates are set out in Table 1:
Table 1 Range of nominal income tax rates percentage Belgium 24.71 Denmark 22.40 France 5.57 Germany 22.56 Greece 10.63 Italy 12.62 Luxembourg 10.56 Netherlands 14.72 Portugal 6.58 Spain 25.56 Notes:
1 These rates are from the central government income tax scales on employment income.
2 There are also local income taxes on individuals in Belgium and Denmark.
3 The rates shown are the latest enacted rates.
Table 2 sets out the corporation tax rates in each of the 12 European Community countries.
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Table 2 Corporation tax rate Percentage Belgium 43 Denmark 50 France 42 Germany 56 Greece 49 Ireland 50 Italy 36 Luxembourg 36 Netherlands 42 Portugal 35 Spain 35 United Kingdom 35 Notes:
1. Some countries, such as the United Kingdom, have lower rates or special reliefs for smaller companies.
2. There are also local income taxes on companies in Germany, Italy and Luxembourg.
3. The following countries have different rates for distributed profits: Germany (36 per cent.); Greece (Nil); Portugal (35 per cent.).
4. Ireland has a 10 per cent. rate for manufacturing companies.
5. Greece has a 44 per cent. rate for industrial companies.
6. The rates shown are the latest enacted rates.