Our tax consultation team has helped to put together a simple comparison table of the primary corporate and personal taxes in
Estonia, Finland, Sweden, the UK, Latvia and Lithuania.
|VAT||Standard 20%, threshold 40 000 €||Standard 24%, threshold|
15 000 €
|Standard 25%, threshold 30 000 €||Standard 20%, threshold|
|Standard 21%, threshold 40 000 €||Standard 21%, threshold 45 000€|
|VAT reduced rate||9% for books, newspapers and periodicals, accommodation, medicine||14% for groceries|
10% for public transportation and cultural events
|12% for grocery, restaurants, accommodation|
6% for public transportation, books, cultural and sport events tickets
|5% for electricity, gas and heating oil for non-business use, energy-saving materials, some hygienic products, some construction works||12%, food for infants, pharmaceuticals, medical products for disabled persons, domestic passenger transportation, books (excluding e-books), newspaper and periodicals, accommodation, district heating|
5%, range of locally grown vegetables and fruit
|9% for books, newspapers and periodicals, heating, accommodation, some public transportation|
5% for medicine and some medical equipment
|VAT zero rate and exempt from VAT||0% for postal, insurance, healthcare and social services||0% for postal, insurance and healthcare services||0% for healthcare, dental care, social, educational, banking and insurance services||0% public transportation, groceries, periodicals, children’s clothing, some construction work for housing, insurance, financial services, direct mail services, books, publications||0% for intra-community and international transport||0% for intra-community and international transport|
|Corporate income tax||20% (only dividends are taxed, earnings are not taxed as long as they are reinvested in the company)||20%||20,6%||19%||20% (only dividends are taxed, earnings are not taxed as long as they are reinvested in the company)||15%, companies with up to 10 employees and up to 300,000€ income per year may get reduced rate of 5%|
|Dividend tax||20%||Progressive 7,5%, 27%||Swedish tax residents are taxed with the 3.12 rule. Lower limits are taxed with a 20% income tax.|
The part between the lower and upper limit is taxed as a private person’s income tax.
The part that is exceeding the upper limit is taxed with 30% income tax. Non-tax residents are taxed based on the tax treaty or with 30% income tax.
|2020/21 dividend tax free allowance of £2,000 after which tax is applied depending on tax band.|
Basic rate 7.5%; Higher rate 32.5%; Additional rate 38.1%
|20%||Gross rate 15%|
|Fringe benefit tax||20% (representative expenses); 20% income tax, 33% social tax (benefits for employees)||N/A||Taxed as employment income (progressive or 30% income tax and 31,42% social tax)||Taxed as employment income (personal income tax and national employer’s insurance)||N/A||Most employee benefits are treated as employment income, subject to personal income tax and social security contributions.|
|The contribution to the mandatory funded pension||N/A||24,8% (with employee’s contribution); 17,65% (employer’s contribution)||Included in the social tax||Must register employees into the pension scheme if their earnings are above £10 000. Optional below £10 000.|
2020/21 Employer contributes minimum 5% and employee contributes 3%
|Social security contributions||33%, 0,8% unemployment tax||1,53%;|
Unemployment insurance 0,5% up to 2169000 €;
1,9% over 2169000 €
|31.42%; young and elderly 10,21%||Progressing 0%, 13,8%; regressing 0%, 12%, 2%|
Employers are obligated to pay NICs based on a percentage of each employee’s earnings. For the year ending 5 April 2021, the rate is 13.8% on all earnings above GBP 169 per week. Businesses are exempt from the first GBP 4,000 per annum (maximum) of this liability.
|Personal income tax||20%||Progressive||Progressive||Dividends: 0%, 7.5%, 32.5%, 38.1%|
Other income: 0%, 20%, 40%, 45%
|Progressive 20%, 23%, 31%||20%|
|Capital gains tax||20%||30% up to 30 000 €|
34% if the realized capital income is over 30 000 €
|30%||Sale of residential property: 0%, 18%, 28%|
Other capital gains: 0%, 10%, 20%
|Mandatory pension insurance||2%||7,5% (17-52 years)|
8,65% (53-62 years)
7,15% (63-67 years)
|Included in the social tax||Employee contributes minimum 3% if enrolled||N/A||0, 2,4%, 3%|
|Unemployment tax (employee)||1,6%||1,40%||N/A||N/A||N/A||N/A|
|Social tax||N/A||N/A||N/A||As an employee: you pay National Insurance contributions if you earn more than £183 a week for 2020-21. You pay 12% of your earnings above this limit and up to £962 a week for 2020-21. The rate drops to 2% of your earnings are over £962 a week.||10,5%||19,5%|
These tables are to be considered informative and general. Please notice that tax rates can change.
In case of further question, feel free to contact us via e-mail firstname.lastname@example.org.