A form of response to the Public Policy Institute study published last spring that highlighted the degradation of taxation for the richest by focusing on the few dozen ultra-rich French people, who pay low taxes. The specialized site Fipeco has just published a note that compares the tax levels of some 40 OECD countries for the highest incomes. At a methodological level, Fipeco sets the high income threshold for any person who earns 20 times the average income in their country, either in the form of a salary or in the form of dividends, which broadens the spectrum of high incomes analyzed.
In fact, the note is based on a study by the Organization for Economic Cooperation and Development and includes in its analysis, on the wages side, income tax and employee contributions, as well as contributions from employers. Regarding dividends, the taxes on this remuneration are recorded but also the tax paid by the company on these profits before their distribution.
Significant differences in the Baltic countries, Greece and Belgium
In France, a single person who earns more than 3,200 euros gross per month is taxed at 64.2% when this remuneration is received in the form of a salary. In detail, 52.7% corresponds to what the employee pays in income tax and salary charges while the remaining 11.5% corresponds to the employer charges paid by the company. Within the OECD, only Belgium shows a higher level of taxation on salaries, almost 67%.
When these monthly incomes exceeding 3,200 euros gross are received in the form of dividends, the latter are taxed at 51.2%, with 32.4% borne by the shareholder through the flat rate tax or contribution to high incomes and the Remaining 18.8% in charge of the company. for income tax. In this particular segment, only Canada (52.8%), Denmark (54.7%) and Spain (57%) show a higher level of dividend taxation.
Like almost two out of three OECD countries, France offers more advantageous taxes on capital income, which may encourage people to receive dividends instead of a salary at this level of remuneration. If the French difference between the percentage of salary deductions and that of dividends is 13 points, in the case of the Baltic countries, Greece and even Belgium, it is close to 23 points. On the other hand, the United States, Germany and Spain are among the countries that tax dividends more than salaries.
Source: BFM TV
