Oecd Tax Policy Studies Taxation Of Household Savings

This report provides a detailed review of the taxation of household savings in 40 OECD and partner countries. It examines the different approaches that countries take to taxing household savings, and calculates marginal effective tax rates on a wide range of savings vehicles (including bank accounts, bonds, shares, private pensions and housing) to assess the impact of these approaches on savings behaviour. It examines asset holdings across income and wealth distributions to help assess the distributional impact of savings taxation, and discusses recent changes in the exchange of information for tax purposes between tax administrations. It also draws out a range of implications from this analysis for savings tax policy as part of an inclusive growth tax agenda Intro Foreword Acknowledgements Table of contents Executive summary Chapter 1 Introduction 1.1. Background Inequality is increasing Figure 1.1. Disposable income Gini coefficients, mid-1980s and 2015 (or latest available year) in 22 OECD countries Figure 1.2. Distributions of household disposable income and net wealth across deciles Populations are ageing Figure 1.3. Old-age dependency ratios, 2015 Figure 1.4. Old-age dependency ratio over time, OECD average 1.2. The effects of taxation on savings The effect of taxation on portfolio composition The effect of taxation on the level of savings1.3. Outline of the report Notes References Chapter 2 How countries tax savings 2.1. Introduction 2.2. Approaches taken to taxing household savings 2.3. Overall trends in countries' approaches to taxing savings Table 2.1. Broad approaches to taxation of savings 2.4. Results across asset types Bank accounts Bonds Equities (purchase of corporate shares) Investment funds Pension funds Tax-favoured savings accounts Owner-occupied residential property Rented residential property Table 2.2. Tax treatment of different forms of saving: bank accountsTable 2.3. Tax treatment of different forms of saving: bonds Table 2.4. Tax treatment of different forms of saving: shares Table 2.5. Tax treatment of different forms of saving: investment funds Table 2.6. Tax treatment of different forms of saving: private pensions Table 2.7. Tax treatment of different forms of saving: tax-favoured savings accounts Table 2.8. Tax treatment of different forms of saving: owner-occupied residential property Table 2.9. Tax treatment of different forms of saving: rented residential property NotesChapter 3 Marginal effective tax rates on household savings 3.1. Introduction 3.2. Methodology Marginal Investment Types of savings vehicles modelled Fixed pre-tax rate of return approach Inflation rate Tax rates Holding period Type of returns generated Investment funds and pension funds Social security contributions Recurrent property taxes Limitations of the methodology Table 3.1. Approaches to integration of corporate and personal level taxation 3.3. Results Box 3.1. Comparing effective and statutory marginal tax rates Figure 3.1. Distribution of marginal effective tax rates across countries for each asset type, 2016Table 3.2. Marginal effective tax rates by asset, 2016 -- Personal tax rate: 67% of average wage case Table 3.3. Marginal effective tax rates by asset, 2016 -- Personal tax rate: 100% of average wage case Table 3.4. Marginal effective tax rates by asset, 2016 -- Personal tax rate: 500% of average wage case Table 3.5. Marginal effective tax rates by asset, 2016 -- Personal tax rate: 67% of average wage case Table 3.6. Marginal effective tax rates by asset, 2016 -- Personal tax rate: 100% of average wage case