Note: SSCs are social security contributions. VAT is value added tax. GST is goods and services tax. Scandinavia is the average of Denmark, Finland, Iceland, Norway and Sweden. OECD, EU14 and Scandinavian averages are unweighted. Data series for Lithuania, Israel, Latvia, Estonia, the Slovak Republic and Slovenia start in 1995. Data for Hungary and Poland start in 1991. Data for Mexico start in 1980, while data for Colombia and Chile begin in 1990. Prior to these years, these countries are therefore excluded from the OECD average. For Australia and Japan, 2019 data are unavailable; 2018 figures are therefore used in their place.
Source: OECD Global Revenue Statistics Database. The tax categories have the following OECD identifying numbers: VAT and general sales tax (5111 and 5112), income taxes (1100) and SSCs + payroll taxes (2000 and 3000).
Lower headline tax rates on self-employment than on employment aren’t justified by differences in benefits or employment rights, and are poorly targeted at improving investment incentives.