52 PERCENT OF PARTICIPATING Swedish entrepreneurs state that the
employment tax is the most burdensome tax for Sweden as a country. Only 18 percent believe that income tax is the heaviest. This result denies the tax myth about income tax being the major issue.
ONLY TWO OUT OF 34 participating countries, consider employment tax (or equivalent private tax) to be more burdensome than in Sweden. In Poland, 79 percent of business managers consider employment tax the most burdensome and in France, 56 percent. Belgium’s number is the same as Sweden’s, ie 52 percent.
The table below indicates answers by Swedish entrepreneurs:
From your perspective as a business manager, which tax is the most burdensome to our country?
Employment tax 52%
Income tax 18%
Indirect tax (VAT, etc) 7%
Wealth tax 3%
Tax on corporate profits 2%
Profits tax on company sales 2%
Customs 1%
Property and real estate sales 1%
There are no heavy taxes in my country 6%
No reply 9%
– POLITICAL DISCUSSIONS used to concern the necessity of reducing profits tax and personal income tax for entrepreneurs. However, our survey shows that the most powerful government measure today, to strengthen entrepreneurship is to reduce employment tax, says Peter Bodin, Managing Director at Grant Thornton, Sweden. The results go hand in hand with previous surveys. Swedish entrepreneurs take great responsibility for their employees and show a general concern for employment.
HOWEVER, IN DENMARK the situation is different. Only 2 percent of the Danish companies consider employment tax the heaviest burden for the country. On the contrary, the personal income tax is bothering Danish business managers. 69 percent of Danish entrepreneurs mention this tax as the most burdensome. That is the highest number in the survey. No other country considers personal income tax as burdensome as in Denmark.
THE ENTREPRENEURS in Singapore are the most laidback about taxes. 40 percent of participating entrepreneurs state that there are no heavy taxes.