2019 VAT PIT SSC
  Value added tax rates Personal income tax rate(s) Social security contribution payable by the employer
Albania exempted; 0% / 20% / 6% progessive; 0% / 13% / 23% 16,70%
Austria 20% / 10% /13% 0% - 55% 20,38%
Bosnia and Herzegovina 17% 10% 10,50%* / No**
Bulgaria 20% / 9% 10% 19%
Croatia 25% / 13% / 5% 24% / 36% 16,50*
Czech Republic 21% / 15% / 10% 15% + 7% solidarity surcharge* 34% / 9%**
Estonia 20% / 9% 20% 33,80%
Germany 19% / 7% 14% - 45% 19,42%
Greece 24% / 13% / 6% 22%/ 29%/ 37% / 45% & 2,2-10,0 Additional solidarity tax 25,06%
Hungary 27% / 18% / 5% 15% 21,0%
Kosovo 18% / 8% progressive; 0% / 4% / 8% / 10% 5%
Latvia 21% / 12% or 5% 20% / 23% / 31,4%** 24,09%
Lithuania 21% / 9% / 5% 15% / 20% / 27% 1,77%
Montenegro 21% / 7% 9% / 11% 10,70%
North Macedonia 18% / 5% 10% / 18%* NO
Poland 23% / 8% / 5% / 0% 18% / 32% 21%*
Romania 19% / 9% / 5% 10% 2,25%
Russia 20% / 10% / 0% 9% / 13% / 15% / 30% / 35% 21%*
Serbia 20% / 10% 10% 17,15%
Slovakia 20% / 10% 19% / 25% 35,20%
Slovenia 22% / 9.50% progressive 16% - 50% 16,10%
Ukraine 20% / 7% / 0% 18%* 22%**

BOSNIA AND HERZEGOVINA *In Federation of BIH; ** In Republika Srpska; *** 0% - *** small taxpayers in Republika Srpska.
BULGARIA *TP doc liability upon request by the tax authorities.
CROATIA *for the person under 30 on undetermined period, there is no contributions on salary (17,2) for the period of 5 years.
CZECH REPUBLIC *Only on part of the gross income from an employment/tax base from self-employment exceeding CZK 1,569,552 (approx. EUR 61,013) in 2019; **Applicable on income exceeding CZK 1,569,552 (approx. EUR 61,013) in 2019.
ESTONIA *No classical income taxation. 20% is calculated 20/80 from net amount and applicable only for distributed profit and certain costs.
GERMANY *In addition, a trade tax is levied, the amount depends on the respective municipality; as a rule, the amount of tax is approx. 31% (CIT + TT).
LATVIA *20% on income up to EUR 20 004 per year, 23% on income over EUR 20 004 up to EUR 62 800 per year, 31.4% on income over EUR 62 800 per year .
POLAND *Appoximately
RUSSIA *Regressive rate depends on annual amount of remuneration
UKRAINE *Additionally 1.5% temporary military tax should be withheld; **Maximum monthly SSC is UAH 13 771 (app. EUR 434)

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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