Revenue forecasting The Belgian Experience. Christian VALENDUC Studies Department, Federal Ministry of Finance, University of Louvain

Size: px
Start display at page:

Download "Revenue forecasting The Belgian Experience. Christian VALENDUC Studies Department, Federal Ministry of Finance, University of Louvain"

Transcription

1 The Belgian Experience Christian VALENDUC Studies Department, Federal Ministry of Finance, University of Louvain

2 The budget process Facts Evaluation The macro method for Revenue forecasting under unchanged fiscal policy PIT CIT VAT Excise duties Registration duties

3 The budget process - Facts Economic forecasting Responsibility of the National Accounts Institute (Federal planning office, Central banks and others) N.A.I issues short term macroeconomic forecasting on request of the federal government This forecasting serves as the basis for revenue forecasting Federal planning office responsible for medium term economic forecasting Revenue forecasting Responsibility of the Ministry of Finance Studies Department Expenditure side Responsibility of the Budget Office

4 The budget process - Facts Timing Budget for year «t» prepared in October «t-1» Provisional estimate of tax revenue for year «t-1» Macroeconomic forecasting for year «t» An adjustement HAS to be made in Feb-March, Year t Final figures tax revenue, «t-1» Macroeconomic forecasting for year «t» Plans to have a more closed monitoring

5 The budget process - Evaluation Paper from BUETTNER and KAUDER, Revenue forecasting: differences across countries and consequences for forecasting performance, IFS, Fiscal Studies, 21, 3 Institutional conditions: what about the independence of revenue forecasting? Q1: is it the responsability of the government () or of a research institute (+1) Q2: if, are external experts consulted (+1) or is it just governmental experts (-1)? Q3: independence of economic forecasting (1) or not ()?

6 The budget process - Evaluation Institutional characteristics and independence of revenue forecasting from BUETTNER e.a (21) US CBO US OMB UK F G It Jap B NL Ö NZ Q Q Q3 1 1 Add

7 Macroeconomic method Personal income tax Corporate income tax VAT Excise duties Registration duties

8 Macroeconomic method - PIT Main features Tax on global income, but separate taxation of financial income (quasi dual income tax) Progressive tax schedule (rates range from 25% to 5%) Zero-rate band Yearly automatic indexation (one year lag) Significant and growing number of tax expenditures Withheld at source, tax expenditures not included in the withholding tax WT > PIT liability in many cases, so that the PIT«on assessment» is a negative amount for the federal budget

9 Macroeconomic method - PIT Macroeconomic modelling GI = Income from wages, self-employment, and social transfers subject to tax; net of social security contributions Complementary cash incidence of discretionary tax measures (DTM) Dependent variable: cash revenue from PIT in year «t»

10 Macroeconomic method - PIT Macroeconomic modelling GR PIT = a + b GR GI + DTM Estimated elasticity: Inflation adjustment included in DTM GR PIT,t = a + b 1 (GR GIT -GR cp,t-1 ) + b 2 c cp,t + DTM b 1 = 1,67, b 2 = 1 Does the structure of GI growth have an effect on the growth of PIT revenue? Unconclusive What about tax expenditures? Growth rate = Growth rate of GI during the estimation period ( ) Does not hold for the period May be included in DTM Work in progress to include forecasting of the revenue forgone

11 Macroeconomic method - PIT Ex post evaluation of the forecasting method - PIT Where does the forecasting error come from? Forecasting error 4% 2% % -2% -4% 26 -Ini 26 - Adj 27 - Ini 27 - Adj 28 - Ini Tax revenue t-1 DTM Macroeconomic forecasting Forecasting method

12 Macroeconomic method - CIT Main features of the Begian CIT system Gross tax base : distributed and retained profits But Exemption of capital gains on shares Dividends from subsidiaries subject to CIT: exemption method Losses carried forward Reduced rates for SME s Coordination centre Regime, up to 25 Allowance for Corporate equity introduced in 26 Any macroeconomic variable will be a proxy

13 Macroeconomic method - CIT The main problems NOS = net of profits and losses, but losses are carried forward: CIT may be counter-cyclical Lack of macroeconomic variables that might be used for the modelling of tax deductions CIT paid by advanced payments and on assessment Modelling 1st approach: CIT = f(nos, Ltir Ltir : Long term interest rates, past 5 years average 2d approach: Idem + allowances carried forward 3rd approach: primary income of the corporate sector and profitability.

14 Macroeconomic method - CIT 1st approach CIT = a +b 1 (NOS t +NOS t-1 ) + b2 µ 5 Ltir Performed roughy well up to 26 The introduction of the ACE in 26 is a structural change Level effect on tax revenue (Highly disputed) Changes in the rate of the ACE CIT revenue is more sensible to the business cycle All these effects have to be included in DTM

15 Macroeconomic method - CIT Ex post evaluation of the forecasting method - CIT Where does the forecasting error come from? Forecasting error 15% 1% 5% % -5% -1% -15% 26 -Ini 26 - Adj 27 - Ini 27 - Adj 28 - Ini Tax revenue t-1 DTM Macroeconomic forecasting Forecasting method

16 Macroeconomic method - CIT Year Return on equity 1% 6% 8% Interest rate 4% 4% 4% CIT revenue, without the ACE -4% +33% CIT Revenue -66,7% +1% with the ACE

17 Macroeconomic method - CIT 2d approach : NOS, Ltir, carry-over of allowances In , it became clear that the carry-over of allowances had a strong negative effect on the growth rate of the CIT revenue Carry over of the ACE: 3,6 billions for 27, 38,7 billions for 28, 23 billions for 29

18 Macroeconomic method - CIT (a) (b) (c) Level Level Growth rate NOS «t»+«t-1».77***.82***.371* Ltir ** ** ** Carry over tax allow -.24** -.279** R² DW

19 Macroeconomic method - CIT 3rd approach: NOS, profitability CIT = a+b 1 PI CS + b2(pi CS /NVA CS ) + b 3 DTM The primary income of the corporate sector includes the net net financial income No need to include long term interest rates The «profitability» variable captures the countercyclical effect May improve the adjustement CIT = PI CS (PI CS /NVA CS ) +.82 DTM R² =.956

20 Macroeconomic method - CIT Forecasting error - ex post assessment 15% 1% 5% % -5% -1% -15% -2% d approach 3rd approach

21 Macroeconomic method - VAT Main features macroeconomic base = Final consumption of households Investment by households Part of public consumption Exports are not subject to VAT but VAT refunds are not immediate for exporters, so that their intermediate consumption generates VAT revenue on a transitory basis Progressive rate structure, but no effective progressivity

22 Macroeconomic method - VAT Modelling VAT = b 1 VATbase + b 2 X 1 + b 3 X 2 X1 = X q1,t + X q2,t + X q3,t + X q4,t + X q1,t+1 X2 = X q4,t-1 + X q2,t + X q3,t + X q4,t b 1 = 1 b 2 = +.51 b 3 = -.41

23 Macroeconomic method - VAT Ex post evaluation of the forecasting method - VAT Where does the forecasting error come from? Forecasting error 6% 4% 2% % -2% -4% 26 -Ini 26 - Adj 27 - Ini 27 - Adj 28 - Ini Tax revenue t-1 DTM Macroeconomic forecasting Forecasting method

24 Macroeconomic method Excise duties Main features Fixed rates per quantity macroeconomic modelling Real growth rate of final consumption Price effects and elasticy of demand Disaggregated approach (by product) unconclusive Cross-border consumption may affect the revenu of specific excise duties, but no strong effect on the growth rate of excise duties as a whole Elasticities Real growth rate, C: Price of Diesel: -.147

25 Macroeconomic method Excise duties Ex post evaluation of the forecasting method - Excise duties Where does the forecasting error come from? Forecastineg error 1% 5% % -5% 26 -Ini 26 - Adj 27 - Ini 27 - Adj 28 - Ini Tax revenue t-1 DTM Macroeconomic forecasting Forecasting method

26 Macroeconomic method Registration duties Most of the the revenue comes from the real estate market Inelasticity of supply Explanatory variables on the demand side GDP, NPV of tax incetives, Employment rate (t-1) and mortgage interest rate (t-1)

27 Macroeconomic method Registration duties (1) Bi log (2) Bi log (3) Bi log (4) Bi log (5) Bi log Constant ** ** ** -26.6** -2.67** GDP 2.185** 1.871** 2.5** 1.833** 1.36** Mortgage -.361** -.34** -.469** NPVTI.2152**.1387**.2387** ER 3.894** N R²

28 Macroeconomic method Registration duties Forecasting error - ex post assessment 6% 4% 2% % -2% -4% -6% -8% (4), Absµ = 3.1% (5), Absµ = 1.6%

29 Conclusions Paper from BUETTNER and KAUDER, Revenue forecasting: differences across countries and consequences for forecasting performance, IFS, Fiscal Studies, 21, 3 Differences in the performance of revenue forecasting are related to uncertainty about macroeconomic developments (GDP growth) It may explain up to 8% of the difference in forecasting precision are related to differences in the timing of forecasts Forecasting precision is lower for income and corporate income tax Most of these conclusions fit with our experience

30 Final comments Economic forecasting made by an independent body macroeconomic forecasting of tax revenue Quite robust Apart for CIT (A nightmare for econometricians) Does not leave much room for manipulation: transparency of the method in the budget memorandum

Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014

Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014 Ministry of Finance Chief Economist - Research, State Revenue and International Affairs June 2013 Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014

More information

6 Quality of Public Finances Revenues and Expenditures

6 Quality of Public Finances Revenues and Expenditures 6 Quality of Public Finances Revenues and Expenditures 6.1 The Government s Strategy In 2003, the Czech government launched a public finance reform focusing on fiscal consolidation and elimination of the

More information

UK (Mirrlees Review) TURKEY

UK (Mirrlees Review) TURKEY UK (Mirrlees Review) TURKEY COMPARISON Ali Şanver, Taşman & Şanver (TUSIAD Working Group on Tax) Taxes on earnings A progressive income tax with a transparent and coherent tax structure An opaque jumble

More information

Country Tax Guide.

Country Tax Guide. Country Tax Guide www.bakertillyinternational.com Country Tax Guide Germany Corporate Income Taxes Resident companies, defined as companies which are legally constituted in Germany, or which are legally

More information

THE GRADUATED PERSONAL INCOME TAX ASSESSMENT: FREQUENTLY ASKED QUESTIONS

THE GRADUATED PERSONAL INCOME TAX ASSESSMENT: FREQUENTLY ASKED QUESTIONS LEGISLATIVE REVENUE OFFICE State Capitol Building 900 Court St. NE, Room H-197 Salem, Oregon 97301 Research Brief (503) 986-1266 FAX (503) 986-1770 http://www.leg.state.or.us/comm/lro/home.htm Number 3-03

More information

Taxation of Housing in Belgium Facts and reforms. Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department

Taxation of Housing in Belgium Facts and reforms. Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department Taxation of Housing in Belgium Facts and reforms Christian VALENDUC Geert VAN REYBROUCK Federal Ministry of Finance, Studies department Taxation of housing in Belgium Facts: how do we tax property in Belgium?

More information

Details and Analysis of Dr. Ben Carson s Tax Plan

Details and Analysis of Dr. Ben Carson s Tax Plan FISCAL FACT Jan. 2016 No. 493 Details and Analysis of Dr. Ben Carson s Tax Plan By Kyle Pomerleau Director of Federal Projects Key Findings Dr. Ben Carson s tax plan would replace the federal income tax

More information

2 FiScAl outlook FoR FiNANciAl YEAR 2013

2 FiScAl outlook FoR FiNANciAl YEAR 2013 106 FISCAL OUTLOOK FOR FINANCIAL YEAR 2013 2 FiScAl outlook FoR FiNANciAl YEAR 2013 2.1 Budget for FY2013 A basic surplus of $0.3 billion (or 0.1% of GDP) is expected for FY2013. After factoring in Topups

More information

CBO STAFF DISTRIBUTIONAL EFFECTS OF SUBSTITUTING A FLAT-RATE INCOME TAX AND AVALUE-ADDEDTAXFORCURRENT FEDERAL INCOME, PAYROLL, AND EXCISE TAXES

CBO STAFF DISTRIBUTIONAL EFFECTS OF SUBSTITUTING A FLAT-RATE INCOME TAX AND AVALUE-ADDEDTAXFORCURRENT FEDERAL INCOME, PAYROLL, AND EXCISE TAXES CBO STAFF MEMORANDUM DISTRIBUTIONAL EFFECTS OF SUBSTITUTING A FLAT-RATE INCOME TAX AND AVALUE-ADDEDTAXFORCURRENT FEDERAL INCOME, PAYROLL, AND EXCISE TAXES April 1992 CONGRESSIONAL BUDGET OFFICE SECOND

More information

Analysis 2: Reformpakke

Analysis 2: Reformpakke Analysis 2: Reformpakke 1 st July 2011 Introduction This report shows the marginal effects of a set of different shocks on the DREAM model. These shocks are listed in Table 1, where also the effect on

More information

FISCAL POLICY AGENCY MINISTRY OF FINANCE MACROECONOMIC MODELLING IN FISCAL POLICY AGENCY

FISCAL POLICY AGENCY MINISTRY OF FINANCE MACROECONOMIC MODELLING IN FISCAL POLICY AGENCY FISCAL POLICY AGENCY MINISTRY OF FINANCE MACROECONOMIC MODELLING IN FISCAL POLICY AGENCY Ardi Sugiyarto Ginanjar Wibowo ESCAP, 8-11 Desember 2015 FISCAL POLICY FORMULATION IN INDONESIA Fiscal Policy and

More information

Taken from Guide to Ohio s School District Income Tax 2009 Ohio Dept. of Taxation

Taken from Guide to Ohio s School District Income Tax 2009 Ohio Dept. of Taxation Taken from Guide to Ohio s School District Income Tax 2009 Ohio Dept. of Taxation 1. WHAT IS A SCHOOL DISTRICT INCOME TAX? The school district income tax is an income tax separate from federal, state,

More information

STATE OF ARKANSAS Department of Finance and Administration

STATE OF ARKANSAS Department of Finance and Administration STATE OF ARKANSAS Department of Finance and Administration OFFICE OF THE DIRECTOR 1509 West Seventh Street, Suite 401 Post Office Box 3278 Little Rock, Arkansas 72203-3278 Phone: (501) 682-2242 Fax: (501)

More information

The impact on the UK economy of a reduction in fuel duty

The impact on the UK economy of a reduction in fuel duty The impact on the UK economy of a reduction in fuel duty Report for Fair Fuel UK March 2012 Centre for Economics and Business Research Ltd. Unit 1, 4 Bath Street, London EC1V 9DX t: 020 7324 2850 f: 020

More information

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY EUROPEAN COMMISSION Brussels, XXX [ ](2013) XXX draft COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY EN EN COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY GENERAL CONSIDERATIONS

More information

An Evaluation of the Possible

An Evaluation of the Possible An Evaluation of the Possible Macroeconomic Impact of the Income Tax Reduction in Malta Article published in the Quarterly Review 2015:2, pp. 41-47 BOX 4: AN EVALUATION OF THE POSSIBLE MACROECONOMIC IMPACT

More information

Personal Saving Rate Has Declined

Personal Saving Rate Has Declined Personal Saving Rate Has Declined Percentage of disposable personal income 12. 1. 8. 6. 4. 2.. 196 1965 197 1975 198 1985 199 1995 4 Source: Bureau of Economic Analysis, Department of Commerce. 1 Estimated

More information

Individual income tax

Individual income tax International Tax Puerto Rico Tax Alert 12 June 2015 Tax reform enacted Contacts Francisco A. Castillo fcastillo@deloitte.com Ricardo Villate rvillate@deloitte.com Michelle Corretjer mcorretjer@deloitte.com

More information

Total Tax Contribution of the UK banking sector

Total Tax Contribution of the UK banking sector www.pwc.co.uk Total Tax Contribution of the UK banking sector A publication prepared by PwC for the British Bankers Association September 2015 Table of Contents Foreword... 4 Executive summary... 5 Purpose

More information

DIPLOMA COURSES GENERAL RULES AND REGULATIONS GOVERNING DIPLOMA IN TAXATION LAWS, LABOUR LAWS, INTELLECTUAL PROPERTY LAWS

DIPLOMA COURSES GENERAL RULES AND REGULATIONS GOVERNING DIPLOMA IN TAXATION LAWS, LABOUR LAWS, INTELLECTUAL PROPERTY LAWS DIPLOMA COURSES GENERAL RULES AND REGULATIONS GOVERNING DIPLOMA IN TAXATION LAWS, LABOUR LAWS, INTELLECTUAL PROPERTY LAWS Duration : Medium of course : Eligibility : The duration of the course will be

More information

PREVIEW. California Tax Facts. An Overview of the Golden State s Tax Structure

PREVIEW. California Tax Facts. An Overview of the Golden State s Tax Structure PREVIEW California Tax Facts An Overview of the Golden State s Tax Structure 1 PREVIEW California Tax Facts An Overview of the Golden State s Tax Structure 3 ABOUT THE CALIFORNIA TAX FOUNDATION The California

More information

Q&A on tax relief for individuals & families

Q&A on tax relief for individuals & families Q&A on tax relief for individuals & families A. Tax cuts individuals What are the new tax rates? The table below shows the new tax rates being rolled out from 1 October 2008, 1 April 2010 and 1 April 2011,

More information

State of Rhode Island Division of Taxation

State of Rhode Island Division of Taxation Frequently Asked Questions Regarding 2011 Rhode Island Personal Income Tax Withholding and Revised Personal Income Tax Rates www.tax.ri.gov As of January 1, 2011 withholding rates, brackets and withholding

More information

Tax Revenue Forecasting in Austria. Anton Rainer Ministry of Finance

Tax Revenue Forecasting in Austria. Anton Rainer Ministry of Finance Tax Revenue Forecasting in Austria Anton Rainer Ministry of Finance AUSTRIA 83.879 km² 8,4 million inhabitants Federal Republic with 9 Länder (states) with 2.357 Communities GDP 2011: 302 G 36.000 per

More information

The Netherlands as the European business hub for Indonesian companies

The Netherlands as the European business hub for Indonesian companies The Netherlands as the European business hub for Indonesian companies a tax perspective 2012 edition By Vinod Kalloe, KPMG Meijburg & Co Netherlands Amsterdam 19 September 2012, Jakarta, Indonesia Content

More information

Hungary. 1. Economic situation

Hungary. 1. Economic situation 2. COUNTRY NOTES: HUNGARY 125 1. Economic situation has faced considerable challenges to regain fiscal credibility. After almost a decade of persistent, high fiscal deficits and the building up of external

More information

Macroeconomics Instructor Miller Fiscal Policy Practice Problems

Macroeconomics Instructor Miller Fiscal Policy Practice Problems Macroeconomics Instructor Miller Fiscal Policy Practice Problems 1. Fiscal policy refers to changes in A) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives.

More information

5 Comparison with the Previous Convergence Programme and Sensitivity Analysis

5 Comparison with the Previous Convergence Programme and Sensitivity Analysis 5 Comparison with the Previous Convergence Programme and Sensitivity Analysis 5.1 Comparison with the Previous Macroeconomic Scenario The differences between the macroeconomic scenarios of the current

More information

Financial Planning. Introduction. Learning Objectives

Financial Planning. Introduction. Learning Objectives Financial Planning Introduction Financial Planning Learning Objectives Lesson 1 Budgeting: How to Live on Your Own and Not Move Home in a Week Prepare a budget and determine disposable income. Identify

More information

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 7D[3ROLF\5HIRUPVLQ,WDO\ &(175()257$;32/,&

More information

Chapter 6: Value Added Tax A Major Replacement Alternative

Chapter 6: Value Added Tax A Major Replacement Alternative Chapter 6: Value Added Tax A Major Replacement Alternative Introduction In its authorizing legislation, the Legislature required the Committee to be guided by the principle of neutrality in developing

More information

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on EUROPEAN COMMISSION Brussels, 28.10.2014 COM(2014) 675 final COMMUNICATION FROM THE COMMISSION replacing the Communication from the Commission on Harmonized framework for draft budgetary plans and debt

More information

a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis

a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis Determinants of AD: Aggregate demand is the total demand in the economy. It measures spending on goods and services by consumers, firms, the

More information

2.5 Monetary policy: Interest rates

2.5 Monetary policy: Interest rates 2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible

More information

S Corporation C Corporation Partnership. Company (LLC)

S Corporation C Corporation Partnership. Company (LLC) Description An LLC can only be formed by making appropriate filing with the state (see below). Owners are called members and the LLC may be managed by the members, similar to a partnership, or by managers

More information

TAX REVENUE MONTHLY REPORT

TAX REVENUE MONTHLY REPORT TAX REVENUE MONTHLY REPORT NOVEMBER 2015 TAX REVENUE PERFORMANCE Total tax revenue went up to 12.1 billion in November and expanded by 1.5% in a year-to-year comparison (0.18 billion more) as a result

More information

DOING BUSINESS IN GERMANY Overview on Taxation

DOING BUSINESS IN GERMANY Overview on Taxation DOING BUSINESS IN GERMANY Overview on Taxation March 2015 1. Introduction 1.1. Generally, taxes are administered and enforced by the competent local tax office. These local tax offices administer in particular

More information

ANALYSIS S OF F REVENUE AND D EXPENDITURE

ANALYSIS S OF F REVENUE AND D EXPENDITURE ANALYSIS OF REVENUE AND EXPENDITURE Financial Year 204 Distributed on Budget Day: 2 February 204 EXPLANATORY NOTES This document summarises and provides relevant highlights of the FY204 Revenue and Expenditure

More information

Netherlands. Croatia. Malta. Slovenia. Greece. Czech Republic. Portugal. Compulsory. households actual. social contributions.

Netherlands. Croatia. Malta. Slovenia. Greece. Czech Republic. Portugal. Compulsory. households actual. social contributions. Structure and development of tax revenues Table EL.: Revenue (% of GDP) 2004 2005 2006 2007 2008 2009 200 20 202 203 I. Indirect taxes : : 2.3 2.7 2.7.8 2.6 3.5 3. 3.4 VAT : : 6.8 7. 7.0 6.3 7. 7.2 7.

More information

German Tax Facts. The Expatriate Financial Guide to Germany

German Tax Facts. The Expatriate Financial Guide to Germany The Expatriate Financial Guide to Germany German Tax Facts Introduction Tax Year Assessment Basis Income Tax Taxation in Germany occurs at a national and municipal level. The Ministry of Finance controls

More information

Value added tax on financial services 1

Value added tax on financial services 1 Value added tax on financial services 1 1. Background Financial services are exempted from value added tax. Proposition No. 1 (2012 2013) to the Storting; Bill and Draft Resolution on Taxes, discussed

More information

I. Basic concepts: Buoyancy and Elasticity II. Estimating Tax Elasticity III. From Mechanical Projection to Forecast

I. Basic concepts: Buoyancy and Elasticity II. Estimating Tax Elasticity III. From Mechanical Projection to Forecast Elements of Revenue Forecasting II: the Elasticity Approach and Projections of Revenue Components Fiscal Analysis and Forecasting Workshop Bangkok, Thailand June 16 27, 2014 Joshua Greene Consultant IMF-TAOLAM

More information

ECON4620 Public Economics I Second lecture by DL

ECON4620 Public Economics I Second lecture by DL ECON4620 Public Economics I Second lecture by DL Diderik Lund Department of Economics University of Oslo 9 April 2015 Diderik Lund, Dept. of Econ., UiO ECON4620 Lecture DL2 9 April 2015 1 / 13 Outline

More information

TAX GUIDE BELGIUM. Professional advice should be obtained before acting on any information contained herein.

TAX GUIDE BELGIUM. Professional advice should be obtained before acting on any information contained herein. TAX GUIDE BELGIUM DISCLAIMER This document is for guidance only. Professional advice should be obtained before acting on any information contained herein. Last up date : December 2010 1 1. INDIVIDUAL INCOME

More information

Budget 2014 26 February 2014

Budget 2014 26 February 2014 1 Budget 2014 Budget 2014 26 February 2014 The Minister of Finance, Mr Pravin Gordhan, today announced a revised consolidated net tax revenue estimate for 2014/2015 of R997,7 billion and a slightly reduced

More information

Fundamentals Level Skills Module, Paper F6 (HUN)

Fundamentals Level Skills Module, Paper F6 (HUN) Answers Fundamentals Level Skills Module, Paper F6 (HUN) Taxation (Hungary) 1 Mr Darabos June 2011 Answers and Marking Scheme Marks (a) (i) Taxation of the holiday coupons Holiday coupons provided by an

More information

Ready Reckoner - Post Budget 2016

Ready Reckoner - Post Budget 2016 - Post Budget 2016 Prepared by Statistics & Economic Research Branch, Revenue Commissioners October 2015 Ready Reckoners are provided for the following taxes: Income Tax & Universal Social Charge Pages

More information

NATIONAL BUDGET 2012/13

NATIONAL BUDGET 2012/13 NATIONAL BUDGET 2012/13 On 22 February 2012 the Finance Minister, Pravin Gordhan delivered his National Budget Speech and announced the tax proposals for the forthcoming year as well as proposals which

More information

Social Security and Taxes

Social Security and Taxes Social Security and Taxes Social Security is a safety net for the middle class and a lifeline for millions more. For more than 60 percent of Americans age 65 and over, it provides over 50 percent of their

More information

The CAO s Experience in Auditing Public Debt

The CAO s Experience in Auditing Public Debt The CAO s Experience in Auditing Public Debt Introduction :- The state general budget comprises of : administrative body budget, public service entity budget and local administration units budget. This

More information

REPORT OF THE MAINE STATE REVENUE FORECASTING COMMITTEE

REPORT OF THE MAINE STATE REVENUE FORECASTING COMMITTEE REPORT OF THE MAINE STATE REVENUE FORECASTING COMMITTEE December 2013 Michael Allen, Chair Associate Commissioner for Tax Policy James Breece University of Maine System Melissa Gott State Budget Officer

More information

How do the 2016 Presidential Tax Plans Compare So Far?

How do the 2016 Presidential Tax Plans Compare So Far? How do the 2016 Presidential Tax Plans Compare So Far? 10-Year GDP Growth 10.0% 16.0% -1.0% 13.9% 15.0% -9.5% 11.5% 10-Year Capital Investment Growth 28.8% 46.6% -2.8% 43.9% 48.9% -18.6% 29% 10-Year Wage

More information

Forecasting Chinese Economy for the Years 2013-2014

Forecasting Chinese Economy for the Years 2013-2014 Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn

More information

Small Business Tax Planning

Small Business Tax Planning Small Business Tax Planning Ellis Orlan, CPA (IL), CGMA Andy Yap, CPA, CA Introduction by Ellis Orlan Topics for Discussion Andy Yap 1. Why incorporate? 2. Tax planning with an incorporated business 3.

More information

Setting up your Business in the UK Issues to consider

Setting up your Business in the UK Issues to consider The United Kingdom (UK) continues to be one of the world s leading locations for global investment, being rated again as the most attractive place in Europe for foreign investment. i Also, the World Bank

More information

Reducing the Deficit by Increasing Individual Income Tax Rates

Reducing the Deficit by Increasing Individual Income Tax Rates Reducing the Deficit by Increasing Individual Income Tax Rates Eric Toder, Jim Nunns, and Joseph Rosenberg March 2012 The authors are all affiliated with the Urban-Brookings Tax Policy Center. Toder is

More information

U.S. Corporation Income Tax Return For calendar year 2015 or tax year beginning, 2015, ending, 20

U.S. Corporation Income Tax Return For calendar year 2015 or tax year beginning, 2015, ending, 20 Form 1120 Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851). b Life/nonlife consolidated return... 2 Personal holding co. (attach Sch. PH).. 3 Personal

More information

Massachusetts Department of Revenue. Briefing Book FY2015 Consensus Revenue Estimate Hearing. December 11, 2013. Presented by: Amy Pitter COMMISSIONER

Massachusetts Department of Revenue. Briefing Book FY2015 Consensus Revenue Estimate Hearing. December 11, 2013. Presented by: Amy Pitter COMMISSIONER Massachusetts Department of Revenue Briefing Book FY2015 Consensus Revenue Estimate Hearing December 11, 2013 Presented by: Amy Pitter COMMISSIONER Kazim P. Ozyurt DIRECTOR OFFICE OF TAX POLICY ANALYSIS

More information

ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2. DUE DATE : 3:00 p.m.

ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2. DUE DATE : 3:00 p.m. Page 1 of 13 ASSIGNMENT 1 ST SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1 AND 2 DUE DATE : 3:00 p.m. 19 MARCH 2013 TOTAL MARKS : 100 INSTRUCTIONS TO CANDIDATES

More information

Agencia Tributaria TAX REVENUE MONTHLY REPORT

Agencia Tributaria TAX REVENUE MONTHLY REPORT Agencia Tributaria TAX REVENUE MONTHLY REPORT FEBRUARY 2014 TAX REVENUE PERFORMANCE Total tax revenue rose by 7.5% until February and this is the highest accumulated rate since 2007. Tax revenue mounted

More information

ANALYSIS OF REVENUE AND EXPENDITURE Financial Year 2015

ANALYSIS OF REVENUE AND EXPENDITURE Financial Year 2015 ANALYSIS OF REVENUE AND EXPENDITURE Financial Year 2015 Distributed on Budget Day: 23 February 2015 EXPLANATORY NOTES This document summarises and provides relevant highlights of the FY2015 Revenue and

More information

Stability Programme of the Netherlands. December 2008 Addendum

Stability Programme of the Netherlands. December 2008 Addendum Stability Programme of the Netherlands December 2008 Addendum 1. Introduction The European Council of 11 and 12 December agreed on a European Economic Recovery Plan. This European Economic Recovery plan

More information

Appendix 3. The metric

Appendix 3. The metric Appendix 3 A consistent and useful effective tax rate methodology to assess the global tax performance of multinationals in relation to Australian-linked business operations 1 The purpose of this paper

More information

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE. Tax Relief Extension Act of 2015

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE. Tax Relief Extension Act of 2015 CONGRESSIONAL BUDGET OFFICE COST ESTIMATE August 4, 2015 Tax Relief Extension Act of 2015 As ordered reported by the Senate Committee on Finance on July 21, 2015 SUMMARY The Tax Relief Extension Act of

More information

Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy

Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Machine-graded assessment question pools are provided for your reference and are organized by learning outcome. It is your responsibility

More information

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%.

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited

More information

// BRIEF STATISTICS 2014

// BRIEF STATISTICS 2014 // BRIEF STATISTICS 2014 // TAXATION IN FINLAND Finland s taxation is subject to decisions by the Finnish Parliament, the European Union and the municipalities of Finland. It is governed by tax legislation,

More information

Three Ways to Consolidate the Fiscal

Three Ways to Consolidate the Fiscal Three Ways to Consolidate the Fiscal Situation Jun Saito, Senior Research Fellow Japan Center for Economic Research February 2, 2015 Medium-term fiscal consolidation measures to be announced In exchange

More information

INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015

INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015 INDEPENDENT FISCAL OFFICE Matthew Knittel, Director Testimony Before the Senate Finance Committee June 10, 2015 Chairmen Eichelberger and Blake, members of the committee, thank you for the opportunity

More information

Indirect tax: VAT special schemes

Indirect tax: VAT special schemes Indirect tax: VAT special schemes The details of special VAT schemes are often tested in the indirect tax computer based assessment (CBA). Calculations are not usually required; the questions will be to

More information

finance act 2010 A starting rate of 10% applies to savings income where it falls within the first 2,440 of taxable income.

finance act 2010 A starting rate of 10% applies to savings income where it falls within the first 2,440 of taxable income. 01 technical finance act 2010 RELEVANT TO PAPERS F6 (UK), CAT 9 (UK) and P6 (UK) This article looks at the changes made by the Finance Act (No 1) 2010 and the Finance Act (No 2) 2010, and should be read

More information

Meeting with Analysts

Meeting with Analysts CNB s New Forecast (Inflation Report II/2015) Meeting with Analysts Petr Král Prague, 11 May, 2015 1 Outline Assumptions of the forecast The new macroeconomic forecast Comparison with the previous forecast

More information

FISCAL ASPECTS REGARDING TRADING COMPANIES IN ROMANIA

FISCAL ASPECTS REGARDING TRADING COMPANIES IN ROMANIA FISCAL ASPECTS REGARDING TRADING COMPANIES IN ROMANIA Author: Dragomir & Asociatii Law Office Law Firm: Dragomir & Asociatii Law Office Published on: August 2011 Updated on: August 2011 1. Premises In

More information

Sberbank Group s IFRS Results for 6 Months 2013. August 2013

Sberbank Group s IFRS Results for 6 Months 2013. August 2013 Sberbank Group s IFRS Results for 6 Months 2013 August 2013 Summary of 6 Months 2013 performance: Income Statement Net profit reached RUB 174.5 bn (or RUB 7.95 per ordinary share), a 0.5% decrease on RUB

More information

Federal Income Tax Information January 29, 2016 Page 2. 2016 Federal Income Tax Withholding Information - PERCENTAGE METHOD

Federal Income Tax Information January 29, 2016 Page 2. 2016 Federal Income Tax Withholding Information - PERCENTAGE METHOD Federal Income Tax Information January 29, 2016 Page 2 - PERCENTAGE METHOD ALLOWANCE TABLE Dollar Amount of Withholding Allowances Number of Biweekly Monthly Withholding Pay Period Pay Period Allowances

More information

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure

ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure Chapter 7. Methods of Financial Forecasting: Integrated Financial Modeling Questions and Problems 1. The cash cycle is the time between when

More information

SPEECH BY MINISTER OF FINANCE MR NHLANHLA NENE. South Africa s tax system and the tax reform agenda for 2015 and beyond BER Conference

SPEECH BY MINISTER OF FINANCE MR NHLANHLA NENE. South Africa s tax system and the tax reform agenda for 2015 and beyond BER Conference SPEECH BY MINISTER OF FINANCE MR NHLANHLA NENE South Africa s tax system and the tax reform agenda for 2015 and beyond BER Conference VENUE: Balalaika Hotel, Sandton DATE: 12 June 2015 Good morning and

More information

About Komplett Bank ASA. Outlook. Developments to date

About Komplett Bank ASA. Outlook. Developments to date Interim report 3 rd quarter 2015 About Komplett Bank ASA Komplett Bank ASA started banking operations on 21 March 2014 when the company received its banking licence from the Norwegian authorities. Komplett

More information

Under current tax law, health insurance premiums are largely taxexempt

Under current tax law, health insurance premiums are largely taxexempt The Cost Of Tax-Exempt Health Benefits In 2004 Tax policies for health insurance will cost the federal government $188.5 billion in lost revenue in 2004, and most of the benefit goes to those with the

More information

INCOME TAX REFORM. What Does It Mean for Taxpayers?

INCOME TAX REFORM. What Does It Mean for Taxpayers? BRIEFING PAPER INCOME TAX REFORM What Does It Mean for Taxpayers? Office of Legislative Research and General Counsel DECEMBER 2006 UTAH LEGISLATURE HIGHLIGHTS SB 4001, passed in the 2006 4th Special Session,

More information

SUPPLEMENTARY GREEN BOOK GUIDANCE

SUPPLEMENTARY GREEN BOOK GUIDANCE SUPPLEMENTARY GREEN BOOK GUIDANCE ADJUSTING FOR TAXATION IN PFI vs PSC COMPARISONS 1 INTRODUCTION 1.1 This guidance looks at the differential tax receipts that arise from the use of the Private Finance

More information

1. From the following data calculate GNP at factor cost by Income Method & Expenditure Method. Rs. in Crores

1. From the following data calculate GNP at factor cost by Income Method & Expenditure Method. Rs. in Crores National Income Accounting 1. From the following data calculate GNP at factor cost by Income Method & Expenditure Method Items Rs. in Crores Net Domestic capital formation 500 Compensation of employees

More information

The Elasticity of Taxable Income: A Non-Technical Summary

The Elasticity of Taxable Income: A Non-Technical Summary The Elasticity of Taxable Income: A Non-Technical Summary John Creedy The University of Melbourne Abstract This paper provides a non-technical summary of the concept of the elasticity of taxable income,

More information

TAXATION. 1. More Growth-Friendly Tax Structures: tax shifts 1.1. The evolution of total tax burden in the European Union

TAXATION. 1. More Growth-Friendly Tax Structures: tax shifts 1.1. The evolution of total tax burden in the European Union TAXATION The Annual Growth Survey identifies several categories of tax policy challenges currently faced by EU Member States. These tax policy challenges concern the potential of Member States for making

More information

Thinking Beyond Borders

Thinking Beyond Borders INTERNATIONAL EXECUTIVE SERVICES Thinking Beyond Borders Tanzania kpmg.com Tanzania Introduction Taxation of individuals under the Income Tax Act 2004 (ITA) is on the basis of both residence and source.

More information

New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry

New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry New VAT Regime: Circular 37 Impact on Foreign Logistics and Shipping Industry 1. Background and Impact On 24 th May 2013, the Ministry of Finance and the State Administration of Taxation issued a new VAT

More information

UK outsourcing across the private and public sectors. An updated national, regional and constituency picture

UK outsourcing across the private and public sectors. An updated national, regional and constituency picture UK outsourcing across the private and public sectors An updated national, regional and constituency picture Report prepared by Oxford Economics for the Business Services Association November 2012 Contents

More information

UNIFORM FINANCIAL INFORMATION SOUTH AUSTRALIA 2000-2001

UNIFORM FINANCIAL INFORMATION SOUTH AUSTRALIA 2000-2001 UNIFORM FINANCIAL INFORMATION SOUTH AUSTRALIA 2000-2001 Presented by the Honourable Rob Lucas MLC Treasurer of South Australia on the Occasion of the Budget for 2000-2001 UNIFORM STATISTICAL PRESENTATION

More information

Setting up your Business in Bulgaria Issues to consider

Setting up your Business in Bulgaria Issues to consider Bulgaria is a parliamentary republic situated in the heart of the Balkan Peninsula at the south - east part of Europe. It is a member of NATO since 2004 and of the European Union since 2007. The territory

More information

There are 10 Internal Credits AS 91401 V1 (3.3) 5 credits: Elasticity & micro-economic concepts Literacy

There are 10 Internal Credits AS 91401 V1 (3.3) 5 credits: Elasticity & micro-economic concepts Literacy Year 13 Economics Course Outline This course will cover the micro-economic issues of Market efficiency, Elasticity, Government intervention, Market failure and macroeconomic Influences on NZ economy. There

More information

Oklahoma Income Tax Withholding Tables

Oklahoma Income Tax Withholding Tables Oklahoma Income Tax Withholding Tables 2015 Effective Date: January 1, 2015 Oklahoma Tax Commission 2501 North Lincoln Boulevard Oklahoma City, Oklahoma 73194 Packet OW-2 January 2015 Table of Contents

More information

Macroeconomic drivers of private health insurance coverage. nib Health Insurance

Macroeconomic drivers of private health insurance coverage. nib Health Insurance Macroeconomic drivers of private health insurance coverage nib Health Insurance 1 September 2011 Contents Executive Summary...i 1 Methodology and modelling results... 2 2 Forecasts... 6 References... 8

More information

ATTENTION: NEW NC-4 WITHHOLDING FORMS ENCLOSED

ATTENTION: NEW NC-4 WITHHOLDING FORMS ENCLOSED North Carolina Department of Revenue ATTENTION: NEW NC-4 WITHHOLDING FORMS ENCLOSED IMMEDIATE ACTION REQUIRED North Carolina Department of Revenue TO: IMPORTANT NOTICE: NEW NC-4 REQUIRED FOR PAYMENTS BEGINNING

More information

How to Buy U.S. Real Estate as a Non-U.S. Person

How to Buy U.S. Real Estate as a Non-U.S. Person By Pieter A. Weyts1 October 15, 2014 How to Buy U.S. Real Estate as a Non-U.S. Person Navigating the tax considerations of buying U.S. real estate It happens every day in Miami and throughout the United

More information

Chapter 1 Legislative Background and Tax Reform

Chapter 1 Legislative Background and Tax Reform Chapter 1 Legislative Background and Tax Reform The Chinese tax system has recently developed closely to the economic growth of the country. The entry of China into the World Trade Organization (WTO) and

More information

OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2012

OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2012 OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2012 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION February 24, 2012 JCX-18-12 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL

More information

MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF

MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 1, 2005 JCX-4-05 CONTENTS INTRODUCTION... 1 EXECUTIVE SUMMARY...

More information

CHAPTER 20 GROSS DOMESTIC PRODUCT ACCOUNTING

CHAPTER 20 GROSS DOMESTIC PRODUCT ACCOUNTING CHAPTER 20 GROSS DOMESTIC PRODUCT ACCOUNTING Chapter in a Nutshell Gross domestic product was introduced in the previous chapter as a basic measure of macroeconomic performance. This chapter identifies

More information

Brazil. International comparison of insurance taxation. General insurance overview. Definition Accounting Taxation

Brazil. International comparison of insurance taxation. General insurance overview. Definition Accounting Taxation International comparison of insurance taxation Brazil General insurance overview Definition Definition of property and casualty insurance company Commercial accounts/ tax and regulatory returns Basis for

More information

Small Business Taxation: U.K. issues A Case Study on Tax and Organizational Form

Small Business Taxation: U.K. issues A Case Study on Tax and Organizational Form OXFORD LAW Small Business Taxation: U.K. issues A Case Study on Tax and Organizational Form IMF-Japan High-Level Conference Tokyo, April 2013 Professor Judith Freedman, University of Oxford Law Faculty

More information