Archive:Tax revenue statistics - government revenue from taxes and social contributions

In 2012 tax revenues increased to 40.7% of GDP in the EU-28 and to 41.7% of GDP in the EA-17

Data from December 2013. Most recent data: Further Eurostat information, Main tables and Database.

For recently updated ESA table 9, please see section 'Further Eurostat information, Main tables and Database'; current cut-off date for National tax list data is 17 July 2013.

This article presents recent data on tax revenue and its relationship to gross domestic product (GDP) in the European Union (EU) and the euro area (EA-17). The latest year for which detailed tax revenue statistics are available for all Member States is 2012.

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Source: Eurostat (gov_a_tax_ag)

Main statistical findings

Data sources and availability

Reporting of data to Eurostat

Data are collected by Eurostat on the basis of the European system of national and regional accounts (ESA 95) transmission programme, table 0900, 'Detailed tax and social contributions receipts by type and receiving sub-sector'. The legal requirement for transmission of data by EU Member States is at year t+9 months. The data in this article mainly corresponds to the end-September 2012 transmission, with DK having updated its data since.

In all cases, the data is consistent with the ESA table 0200 'main aggregates of general government' data released on 22 October 2012 (and which was updated by DK), except for some differences for PL for years before 2007.

Provisional data

Data for Greece is labelled provisional for 2003-2010.

Definition of government

The data relate to the general government sector of the economy, as defined in ESA95, comprising the sub-sectors central government, state government (where applicable), local government, and social security funds (where applicable).

For the purpose of this article the term 'general government' also includes taxes collected on behalf of the EU institutions. Thus it presents all tax revenues collected at the EU level.

Definition of tax revenue

The definition used in this article is ‘Total taxes and social contributions payable to general government, including those for government as an employer’. This corresponds to ‘Indicator 4’, the broadest of four indicators defined by the Eurostat National Accounts Working Group in June 2001. This indicator covers fully the series reported under table 0900 of the ESA 95 transmission programme. In particular it encompasses the wide diversity of social security systems in the EU.

The four indicators are defined as follows (the codes in brackets refer to ESA95 codes):

taxes on production and imports (D.2)
+ current taxes on income, wealth, etc. (D.5)
+ capital taxes (D.91)
- capital transfers from general government to relevant sectors representing taxes and social contributions assessed but unlikely to be collected (D.995)
+ compulsory actual social contributions (D.611) payable to the social security funds (S.1314)

= Indicator 1 (total taxes and compulsory social security contributions);

+ compulsory actual social contributions (D.611) payable to central government (S.1311), state government (S.1312), and local government (S.1313) subsectors as employers

= Indicator 2 (total taxes and compulsory actual social contributions payable to general government, including those for government as an employer);

+ imputed social contributions (D.612) payable to general government as an employer

= Indicator 3 (total taxes and compulsory social contributions payable to general government, including those for government as an employer);

+ voluntary actual social contributions payable to the general government sector

= Indicator 4 (total taxes and social contributions payable to general government, including those for government as an employer).

Comparing the four indicators, the trend in tax revenue remains very similar. In terms of level of tax revenue, Indicator 4 is roughly one percentage point of GDP higher than the Indicator 2 measure.

For a full analysis of tax structures, see the Eurostat / DG Taxud joint publication Taxation trends in the European Union, 2012 edition.

Time of recording

According to ESA 95, taxes and social contributions should be recorded on an accrual basis. Council Regulation 2516/2000 details the rules to be followed on the time of recording and the amounts to be recorded. Two methods can be used:

'time-adjusted' cash − the cash is attributed when the activity took place to generate the tax liability or when the amount of taxes was determined in the case of some income taxes. This adjustment may be based on the average time difference between the activity and cash receipt;
a method based on declarations and assessments. In this case, an adjustment needs to be made for amounts assessed or declared but unlikely to be collected. These amounts have to be eliminated from government revenue, either by using a tax-specific coefficient based on past experience and future expectations or by recording a capital transfer for the same adjustment (ESA 95 code D.995) to the relevant sectors.

ESA 95 classifications and codes

D.2: TAXES ON PRODUCTION AND IMPORTS
D.21: Taxes on products
D.211: Value added type taxes (VAT)
D.212: Taxes and duties on imports excluding VAT
D.214: Taxes on products, except VAT and import taxes
D.29: Other taxes on production
D.5: CURRENT TAXES ON INCOME, WEALTH, ETC.
D.51: Taxes on income
D.59: Other current taxes
D.91: Capital Taxes
D.2_D.5_D.91: TOTAL TAX RECEIPTS
D.611: Actual social contributions
D.6111: Employers' actual social contributions
D.6112: Employees' social contributions
D.6113: Social contributions by self- and non-employed persons
D.612: Imputed social contributions
D.995: Capital transfers from general government to relevant sectors representing taxes and social contributions assessed but unlikely to be collected;

TOTAL (D.2_D.5_D.91_D.611_D.612_M_D.995): total receipts from taxes and social contributions (including imputed social contributions) after deduction of amounts assessed but unlikely to be collected;

Total general government revenue (TR) includes total taxes and social contributions as well as market output (P.11), output for final use (P.12), payments for other non-market output (P.131), other subsidies on production, receivable (D.39rec), property income, receivable (D.4rec), other current transfers, receivable (D.7rec) and capital transfers, receivable (D.9rec);

GDP at current prices (nominal GDP) is used throughout.

Symbols:

"-" ‘not applicable’, ‘real zero’ or ‘zero by default

":" not available

"pp" percentage points

Context

As a ratio of GDP, tax revenues (including social contributions) accounted for 40.0 % of GDP in the European Union (EU-27) and 40.8 % of GDP in the euro area (EA-17). This represents an increase of 0.4 pp. of GDP in the EU-27 and 0.5 in the EA-17. In absolute terms, tax revenues in 2011 surpassed pre-crisis levels both in the EU-27 and the euro area.

In 2011 tax revenues made up just under than 90 % of total general government revenue in the European Union.

Taxes on production and imports accounted for 13.4 %of GDP and current taxes on income, wealth, etc. 12.6 % of GDP. The share of current taxes on income, wealth, etc. has decreased from 2007 to 2010, but a slight increase is noted in 2011. The share of social contributions increased noticeably from 2008 to 2009, went on to decrease further in 2010, but stayed relatively stable between 2010 and 2011, to stand at 13.9 % of GDP.

Further Eurostat information

Publications

National Tax Lists - Excel publications

National Tax Lists - individual taxes

Statistical book and Statistics in Focus series

In the first quarter of 2013, euro area and EU-27 seasonally adjusted government deficits decrease - Statistics in focus 21/2013
Taxation trends in the European Union – data for the EU Member States, Iceland and Norway - 2013 edition
The level of government expenditure on education varies between Member States - Statistics in focus 12/2013
In the fourth quarter of 2012, euro area and EU-27 seasonally adjusted government deficits remain stable - Statistics in focus 11/2013
Support for financial institutions increases government deficits in 2012 - Statistics in focus 10/2013
General government expenditure in 2011 – Focus on the functions ‘social protection’ and ‘health’ - Statistics in focus 9/2013
In the third quarter of 2012, euro area seasonally adjusted deficit remains stable, while EU-27 deficit increases - Statistics in focus 3/2013
Government finance statistics – summary tables

Main tables

Government statistics, see:

Total general government revenue (tec00021)

Total general government expenditure (tec00023)

Taxes on production and imports (tec00020)

Current taxes on income, wealth, etc. (tec00018)

Social contributions (tec00019)

Database

Government finance statistics, see:

Annual government finance statistics (gov_a)

Government revenue, expenditure and main aggregates (gov_a_main)

General government expenditure by function (COFOG) (gov_a_exp)

Main national accounts tax aggregates (gov_a_tax_ag)

Dedicated section

Government finance statistics

Methodology / Metadata

Government revenue, expenditure and main aggregates (ESMS metadata file - gov_a_main_esms)
Main national accounts tax aggregates (ESMS metadata file - gov_a_tax_ag_esms)

Other information

European Commission - DG Taxation and Customs Union:

Website dedicated to the Taxation trends report, including the full methodological annex to the Taxation trends report and the National Tax Lists for the 2013 edition of the Taxation trends report.
Database of main taxes in Europe