2017 VAT CIT TP doc PIT SSC
Value added tax rates Corporate income tax rate(s) Transfer pricing documentation liability Personal income tax rate(s) Social security contribution payable by the employer
Albania 0%/20% 15% yes 0%/13%/23% 16,70%
Austria 20% / 10% /13% 25% yes 0% - 55% 20,63%
Bosnia and Herzegovina 17% 10%/0%*** yes 10% 10.5%* / No**
Croatia 25% / 13% / 5% 20%* yes 12% /25% / 40% 17.2%
Czech Republic 21% / 15% / 10% 19% yes 15% + 7% solidarity surcharge* 34% / 9%**
Estonia 20%/9% 20%* yes 20% 33,80%
FYR Macedonia 18% / 5% 10%/0%*/1%** No 10% No
Greece 24% / 13% / 6% 29% yes 22%/ 29%/ 37% / 45% & 2,2-10,0 Additional tax 25,06%
Hungary 27% / 18% / 5% 9% yes 15% 23,50%
Latvia 21%/12% 15% yes 23% 23,59%
Lithuania 21%/9%/5% 15%/5% yes 15% 30,98%
Montenegro 19% / 7% 9% No 9%/15%* 10.2%
Poland 23% / 8% / 5% / 0% 15% / 19% yes 18% / 32% 21%*
Romania 19%/9%/5% 16% yes 16% 22,75%
Russia 18%/15,25%/10%/0% 20% yes 9%/13%/15%/30%/35% 30%/10%*
Serbia 20% / 10% 15% yes 10% 17.9%
Slovakia 20%/10% 21% yes 19%/25% 35.2%
Slovenia 22% / 9.5% 17% yes progressive 16% - 50% 16.1%
Ukraine 20% / 7% / 0% 18% yes 18%* 22%

BOSNIA AND HERZEGOVINA *In Federation of BIH; ** In Republika Srpska.
CROATIA *Together with tax return for 2016, taxpayers have to deliver Report on business transactions with related parties ( PD-IPO form); ** Applicable on income exceeding CZK 1,355,136 (approx. EUR 50,190) in 2017.
CZECH REPUBLIC *Only on part of the gross income from an employment/tax base from self-employment exceeding CZK 1,355,136 (approx. EUR 50,190) in 2017.
ESTONIA *No classical income taxation. 20% is calculated 20/80 from net amount and applicable only for distributed profit and certain costs.
FYR MACEDONIA *Companies with a total revenue up to 3 million denars (MKD)
MONTENEGRO *In case of monthly salary exceeding a gross amount of EUR 720
POLAND *Appoximately
RUSSIA * Regressive rate depends on annual amount of remuneration
UKRAINE *Additionally 1.5% temporary military tax should be withheld

Labour-related tax burdens in the CEE region

The charts below show the wage-related tax and contribution burdens in each country, for two different monthly gross income levels: EUR 500 and EUR 2,000 and for two different options for each income category: for an individual having no family ties and for someone who has three children. The ratio of the total related costs of the employer and the employee’s net income (on the chart “wage cost for the employer / net income”) is particularly suitable for comparison, as it shows how much does it cost for the employer to provide the same level of net income to the employee in the different tax jurisdiction.

We can find some interesting results if we compare the order of the countries for two options within each income category, i.e. in case of employees with and without families, as we can immediately see which countries provide a family tax credit and in what extent.

The comparison of the various levels of income categories is also telling, since the different countries may provide tax benefits and tax credits, typically in the lower income category, or may have a progressive taxation system, as a result of which the proportion of the net income relative to the gross income, or even in comparison with the employer’s total cost, may show significant differences in case of the various income levels.

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