Portugal with 8th highest tax burden

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Portugal had the eighth-highest tax burden on labour among OECD countries in 2023. The indicator, which includes income taxes and social security contributions for workers and companies, excluding benefits, was above 40% in Portugal, according to a report by ECO.

The average tax burden in the Organization for Economic Co-operation and Development (OECD) for a worker earning the average salary was 34.8% last year. Looking at the organization’s member countries, the highest level was observed in Belgium, with 53%, and the lowest in Colombia (0%, as it takes into account an average aggregate).

“The average tax burden for this type of household increased by 0.13 percentage points compared to 2022, marking an increase for the second consecutive year”, concludes the report.

In Portugal, the tax burden on a worker with an average salary (single and without children) was 42.3%, an increase of 0.14 percentage points.

The OECD indicates that this increase in labour taxation was, in most countries, “driven mainly by increases in personal income tax”. “Although real wages declined in 18 OECD countries, nominal wages increased in 37 of the 38 OECD countries, as inflation remained above historic levels,” the report notes.



This article was originally published by a www.theportugalnews.com

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