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Deloitte: Tax Freedom Day on 22 June this Year

Prague, 16 February 2015 – This year, tax payers in the Czech Republic will cease working only for the purposes of paying taxes to the government three days earlier than in 2014. According to Deloitte, the ‘Tax Freedom Day’ will occur on 22 June 2015. Tax payers in Slovenia, Germany, the Netherlands and Portugal will have their Tax Freedom Day approximately at the same time as tax payers in the Czech Republic. The smallest number of days that tax payers need to work in order to pay their taxes is reported by Lithuania and Switzerland. On the other hand, tax payers in Belgium and Luxembourg will have to work the most days to pay their taxes.

Media contact:
Lukáš Kropík
PR Manager
Deloitte CZ
+420 775 013 139
lkropik@deloittece.com

“The tax system has experienced several major changes this year. For instance, the tax relief for two or more children has increased. There is a higher limit for tax relief in the amount of documented contributions to a pre-school facility and tax payer’s tax relief is returned to working pensioners. Limits for lump-sum expenses of 60% and 80% have newly been established for the purposes of calculating income taxes of self-employed individuals. In terms of indirect taxes, the major change relates to introducing the second reduced VAT rate of 10% applicable to drugs, books, music and infant food. Tax-related changes should decrease the composite tax quota to 33.6% of GDP this year, from 34% achieved last year. The Tax Freedom Day will be celebrated three days earlier than last year, namely on 22 June,” said David Marek, Deloitte’s Chief Economist.  

“The structure of the tax system in the Czech Republic is similar to other tax systems in the EU. However, the results of our recent survey demonstrate that a high degree of tax uncertainty is perceived in the Czech Republic; tax certainty refers to the ability to determine the amount of taxes payable and the short-term and long-term structure of obligatory tax payments attributable to the business activities of tax payers. Frequent legislative changes, ambiguity and sudden twists in the opinions of the tax authorities are among the most burning issues for tax payers,” added Radka Mašková, Director in Deloitte’s Tax function.

The Tax Freedom Day is a simple and easily comprehensible demonstration of tax burden in the economy. The method used for calculating the Tax Freedom Day divides the year into two parts, in a ratio corresponding to the proportion of total taxable income to net national income.

The number of days for which tax payers in the selected countries of the EU need to work in order to pay taxes to the government and the date of the Tax Freedom Day

Country

Number of days

Tax Freedom Day

Lithuania

118

29 April 2015

Switzerland

121

1 May 2015

Bulgaria

122

3 May 2015

Latvia

128

8 May 2015

Poland

143

23 May 2015

Slovakia

144

25 May 2015

Cyprus

148

29 May 2015

Spain

152

2 June 2015

United Kingdom

156

5 June 2015

Ireland

158

6 June 2015

Malta

161

11 June 2015

Croatia

164

16 June 2015

Slovenia

168

17 June 2015

Germany

168

18 June 2015

Netherlands

172

21 June 2015

Czech Republic

173

22 June 2015

Portugal

176

26 June 2015

Greece

181

1 July 2015

Hungary

184

2 July 2015

Sweden

189

8 July 2015

Austria

196

16 July 2015

Finland

199

19 July 2015

Italy

201

21 July 2015

France

204

24 July 2015

Denmark

208

26 July 2015

Belgium

218

7 August 2015

Luxembourg

265

22 September 2015

 

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