HL Deb 30 January 1978 vol 388 cc646-7WA
Lord O'HAGAN

asked Her Majesty's Government:

What rates of corporation tax apply to each Member State of the EEC.

Baroness BIRK

The information requested is as follows:

Belgium(1)
Taxable profits exceeding 15m B francs 48 per cent.
3–15m B francs 1.2m B francs plus 50 per cent. of the excess over 3m B francs
1.7–3m B francs 40 per cent.
1–1.7m B francs 330,000 B francs plus 50 per cent. of the excess over 1m B francs
less than 1m B francs 33 per cent.
Denmark
37 per cent.
France
50 per cent.
Germany
(i) Federal corporation tax(2) 56 per cent. on retained profits
36 per cent. on distributed profits
(ii) Local trade tax(3) 11–20 per cent. (varies)

Ireland
Taxable profits exceeding £15,000 45 per cent.
£10,000–£l5,000 £3,500 plus 65 per cent. of excess over £5,000
Less than £10,000 35 per cent.
Italy(4)
(i) National income tax 25 per cent.
(ii) Local income tax 15 per cent.
Luxembourg
(i) National income tax(5)
Taxable profits exceeding 1,212,400 francs 40 per cent.
1m-1,312,400 francs 300,000 francs plus 72 per cent. of excess over lm francs
600,000–1m 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(6) 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
Taxable profits over£65,000 52 per cent.
£40,000–£65,000 42 per cent.‱52 per cent.
Less than £40,000 42 per cent.

NOTES—

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