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Taxation of Household Savings

image of 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.

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Methodology for calculating marginal effective tax rates on household savings

This annex outlines in detail the underlying methodology for calculating the marginal effective tax rates (METRs) presented in . The methodology follows broadly the approach of the OECD (1994) Taxation and Household Savings study, which itself drew on the methods used by King and Fullerton (1984).

English

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