Dáil Éireann - Volume 365 - 17 April, 1986
Written Answers. - EC Top Rates of Income Tax.
Mr. O'Kennedy Mr. O'Kennedy
35. Mr. O'Kennedy asked the Minister for Finance if he will indicate the top rate of income tax in each member state of the EC and the equivalent Irish income level at which such rate is levied.
Minister for Finance (Mr. Bruton) John Bruton
 Minister for Finance (Mr. Bruton): As the reply contains statistical data, I propose to circulate it in the Official Report.
Following is the reply:
While more up-to-date data of a directly comparable nature are not available, after the changes enacted in the budget, the 58 per cent top rate now applying in Ireland is one of the lowest top rates of income tax in the EC.
Top rates of income tax in member states of EC in 1983 and amounts of taxable income at which such rates commence to be levied
(1) The information in the above table is based on material extracted from an OECD publication entitled “Personal Income Tax systems under changing economic conditions” which was published this year. In general, the book covers certain years up to 1983 for most EC countries and sets out the top rates of income tax in those countries and the amounts of taxable income at which those rates commence to be levied.
(2) Conversion of amounts of taxable income in local currencies into the equivalent amounts in Irish currency has been effected on the basis of average exchange rates supplied by the Central Bank for the year commencing on 1 January 1983 (1 January 1982 in the case of Belgium).
(3) As regards Ireland and the United Kingdom, taxable income is that part of total income on which tax is actually calculated. It is thus the total income of taxpayers as estimated in accordance with the provisions of the Income Tax Acts less the main personal reliefs and other similar deductions. In the case of certain other countries listed, different definitions of taxable income apply.
(4) In the case of France, Ireland and Portugal which have separate rate-band structures in respect of married couples, the levels of taxable income at which the top tax rates commence have been shown at the levels applicable to such couples.
(5) In Belgium, Denmark and Italy, local Government personal income taxes are chargeable in addition to the taxes chargeable at national level. Local income taxes are not taken into account in the above table.
Dáil Éireann 365 Written Answers. EC Top Rates of Income Tax.