INCOME TAXES IN EUROPE Income taxes of various kinds have been adopted by all the European States except Switzerland (where, however, several cantons levy such taxes). The following is a brief outline for 1928 of those imposed by France, Germany and Italy.
(I) Industrial and Commercial Profits Tax (Impot sur les bene fices industriels et comnzerciaux) (excluding mining profits, see [7] ) , with special treatment for insurance and financial under takings. Rates-for profits up to 5o,000 fr. lump sums are pay able, ranging from 2 2.5o fr. (profit under Boo fr.) to 6,75o fr. (profit between 45,00o fr. and 50,00o fr.) ; for profits exceeding 50,00o fr., 15 % ; insurance and financial undertakings, 2o%.
(2) Agricultural Profits Tax (Impot sur les benefices de l'ex ploitation agricole), on rental value, increased by 7 5 % and mul tiplied by 3 (or 2.5 for wheat-lands, or 5 for market-gardens, etc., and woodlands worked commercially), or on the preceding year's profit, if less. Exemption limit, and abatement, 2,50o fr., with partial abatements for the income between 2,50o fr. and 8,000 fr. Rate, 12%.
(3) Salaries, etc., Pensions and Annuities Tax (Impot sur les traitements, etc., salaires, pensions et rentes viageres). Exemp tion limit, and abatement, 7,00o fr., with allowances for wife, children and dependants and partial abatements for the income between 7,00o fr. and 40,00o fr. Rate, 12%.
(4) Non-commercial Professional Profits Tax (Impot sur les benefices des professions non-comrnerciales) . Exemption limit, abatements and rate, in general, as in (3).
(5) Immovable-property Tax (Impot foncier), comprising: (a) Buildings Tax (Contribution f onciere des proprietes betties), on rental value, less allowance for maintenance and depreciation rate, 18%; (b) Land Tax (Contribution fonciere des proprietes non betties), on rental value (less allowance for upkeep and ex haustion) increased by 7 5 %-rate, 18%.
(6) Dividend and Interest, etc., Tax (Impot sur les revenus des valeurs et capitaux mobiliers), comprising: (a) Taxe sur le revenu des valeurs mobilieres, sur les primes de remboursement et les lots, on dividends, debenture interest, premiums, etc., payable by French companies and municipalities-rate, 18%; (b) Taxe sur les valeurs etrangeres, on income from foreign shares, etc., and from foreign Government securities-rate (if the shares, etc., are introduced into France by the issuing companies, etc.), 18% (if the securities are of foreign Governments, or are introduced into France by individuals and not by the companies, etc., con cerned) , 25%; and (c) Taxe sur le revenu des creances, depots et cautionnements, in general on deposit and mortgage interest rate, 18%.
(7) Mine Levy (Redevance proportionnelle des mines), in general on all mines (except salt mines) in France, in respect of (a) their area and (b) proceeds from the winning and exploita tion of coal and minerals. Assessment in (b), for a joint-stock company, is based on the dividends distributed ; for other cases, on the net profit. Rates, 1.8 fr. per hectare (about 21 ac.) and on the dividends or profit assessed.
(8) General (or Supplementary) Income Tax (Irnpot general sur le revenu), including, besides income chargeable under (I) to (7), that from French Government securities and from abroad. ( Foreigners with habitual residence in France are assessed upon seven times its rental value, unless their income from French property, business or profession exceeds that amount.) Exemp tion limit, and abatement, 7,00o fr., with allowances for wife, children and dependants. Rates range, in a scale of 25 "steps," from 1.20% on the portion of income between 7,00o fr. and 20, 00o fr. to 30% on the portion above 5 50,00o francs. (Tax so computed is increased by 25% if the taxpayer is over 3o years old and unmarried or divorced, without a child or dependant; or by io% if over 3o years old and at least two years married, without a child or dependant.) In (1) to (5) and (8), in addition to the income allow ances for children and dependants already mentioned, further allowances under those heads are made as deductions from the tax computed.
(I) Land Tax (Imposta sui terreni, Imposta fondiaria), dis tinct from the agricultural profits tax (see [3], Class B) and as sessed on rental value. Rate, 71%.
(2) Buildings Tax (Imposta sui fabbricati), on rental value (less allowance for repairs, etc.), except of buildings used indus trially, the income from these being dealt with in (3), Class B. Rate, 71%.
(3) Movable Property Income Tax (Imposta sui redditi di ricchezza mobile), on income not charged to (I) or (2), arising in Italy or accruing abroad to an Italian resident (foreign divi dends and interest, and interest on certain loans contracted abroad since 1922 by Italian companies and public authorities, being exempt). The income year is, in general, the preceding year to June 30 or preceding business year. Investment incomes and sal aries, etc., are taxed by deduction. The tax comprises five classes: Class A, investment income-rate, 20%. Class B, business, mining and agricultural income-exemption limit (total income from all sources) : (1928) 1,000 1. ; (1929 et seq.) 2,000 1.- abatement; (1928) 400 1. (incomes up to 3,000 1.) ; (1929 et seq.) from i,000 1. (incomes between 2,000 1. and 2,100 1.) to 2001. (incomes between 2,400 1. and 2,500 1.)-rate (1928) 16%; (1929 et seq.) 14% (agricultural income is charged Half these rates). Class C, income from professions or arts-exemption limit and abatement, as in B-rate (1928) 14%; (1929 et seq.) 12%. Class C2, salaries, pensions, annuities, etc. (other than as included in D)-exemption limit, as in B-abatement; (1928) 240 1. (incomes between i,000 1. and 1,120 1.) or 16o 1. (incomes between 1,120 1. and 1,280 1.) ; (1929 et seq.) as in B-rate, 9%. Class D, salaries, pensions, etc., from the State and certain public bodies-exemption limit, as in B-abatement; (1928) ioo 1. (in comes up to 2.000 1.) ; (1929 et seq.) as in B-rate (1928) 9%; (1929 et seq.) 8%-in the case of wages of workmen employed by the State and certain public bodies the rate is 4%.
(4) General (or Supplementary) Income Tax (Imposta corn plementare globale progressiva sul reddito), on residents (includ ing foreigners living in Italy for at least one year), for all Italian income and the portion of their foreign income enjoyed (goduto) .
in Italy—and on all residents abroad, for all Italian income. The income year is in general as in (3). Five per cent (limited to 3,000 1.) is deducted for each child or dependent (excluding wife). Exemption limit, 6,000 1. (before allowing for children, etc.) or 3,000 1. (after allowing for them). Rates generally range, in a much subdivided scale, from 1 % on incomes between 3,000 1. and 3,025 1. to io% on incomes exceeding 995,000 1.
(5) Bachelors' Tax (Imposta personale progressiva sui celibi), on bachelors (except, inter alia, foreigners and Catholic clergy men) between 25 and 65 years old, is in general a lump sum (35 1., 50 1., or 25 1., where the ages are between 25 and 35, 3 5 and 50, 5o and 65 respectively) plus one-fourth of the general income tax (see [4]) due by the taxpayer.