ქართ | Eng

ISSN 2449-2396 (ბეჭდური) | E ISSN 2449-2612 (ონლაინ)

JEL Classifications: H2; H71


TAX BURDEN OF EMPLOYED PERSONS

Author: Joseph Archvadze | Published: 2019-07-29 | Pages: 79-86

Full Text


For Citation: Archvadze J. (2019), Tax Burden Of Employed Persons, Globalization And Business, N7, pp. 79-86.(In Georgian).

Abstract

Tax burden demonstrates very precisely the scope of fiscal pressure on business and population by the state. In Georgia physical persons are taxed as by direct taxes (income tax is 20%), as indirect taxes. In the end they have much influence on population’s purchasing power.

More than population’s cash income comes from the salaries, accordingly income tax, VAT and excise could be considered as the tax burden of salaries. According to the calculation by this principle, the salary tax burden in Georgia is 39.2 %. In the last 7 years (In comparison with the year 2012) because of the rapid growth of indirect taxes, the mentioned burden has been increased by 2.7 point.

To compare the salary tax burden with the European Union countries it is complicated, because since 2008 there is annulled social tax in Georgia, which is paid by employee and employer in Europe. There could be made the comparison if according to the European countries we compare the tax burden value with single workplace, which consists of social taxes paid by salary receivers and employers (contributions).

Accordingly, what we will compare with Georgian index-the share of direct and indirect taxes in whole salaries, or all tax shares in workplace value, Georgia with tax size will be on leader position (according to the first position) or in outsiders (according to the second position). That means, that in joint list of the EU and Georgia, with the sum of income tax and VAT in comparison with accrued salary, Georgia will be on the second place (39.2%; on the first place is Dania-40.7%) and by the real tax burden of workplace value - on 24th place (On the first place is France-56.7%, on the last place is Cypros-23.4%).


Keywords

TAX, INCOME TAX, SALARY TAX, WORK PLACE VALUE


References

  1. საქართველოს საგადასახადო კოდექსი [The Tax Code of Georgia. In Georgian].
  2. საქართველოს კანონი 2019 წლის სახელმწიფო ბიუჯეტის შესახებ [The Law of Georgia on the State Budget of 2019. In Georgian].
  3. საქართველოს ხაზინის ანგარიში საქართველოს ნაერთი ბიუჯეტის შემოსულობები 2018 წელს, ფ. N1 [The Treasury Report of Georgia Consolidated Budget Receipts in 2018, N1. In Georgian].
  4. Papava V., Silagadze A., 2019. “How the Term the “Gross Domestic Product” should be translated into Georgian.” Globalization and Business, No. 7, pp. 203-204. (In Georgian.)
  5. საქართველოს ფინანსთა სამინისტროს მონაცემები. – www.mof.ge. [Datas of the Ministry of Finance of Georgia - www.mof.ge. In Georgian].
  6. ნამჩავაძე ბ. (2017). რომელ ქვეყანაშია ყველაზე დაბალი გადასახადები. – Forbes Georgia; 27.12.2017 წ. [Nanchavadze b. (2017). Which country has the lowest taxes- Forbes Georgia; 27.12.2017. In Georgian].
  7. Eurostat. Tax Revenue statistics.
  8. James Rogers | Cécile Philippe, The Tax Burden of Typical Workers in the EU 28—2018. Institut Économique Molinari, Paris‐Bruxelles;
  9. Viktor Trasberg. Dynamics of European Tax Structures (2013). Tartu.
  10. Germany Income Taxes and Tax Laws. https://www.google.com/search?source=hp&ei=vZvnXNTKB43qrgSsz4fYDQ&q=Tax+system+in+Germany&oq=Tax+system+in+Germany&gs_l=psy-ab.12..0l3j0i22i30l6.7512.14990..17687...1.0..0.219.2825.0j20j2....2..0....1..gws-wiz.....6..35i39j0i131j0i67.y2eTQggFZb0
  11. Налоговые системы в странах Евросоюза. Минск, 2007 [Tax systems in the EU countries. Minsk, 2007. In Russian].
  12. Лыкова, Л. Н., Букина, И. С. (2015). Налоговые системы зарубежных стран. Москва, «Юрайт» [Lykova, L.N., Bukina, I.S. (2015) Tax systems of foreign countries. Moscow, «Yurayt». In Russion].
  13. www.geostat.ge
  14. www.imf.org

Globalization & Business European University European University European University mes.gov.ge erih plus mes.gov.ge EBSCO index copernicus Google Scholar Open Academic Journals Index Scientific Indexing Services International Scientific Indexing Daugavpils University