Portugal is one of seven countries where tax burden on wages increased in 2020
Portugal is one of seven countries (Portugal, Sweden, Turkey, Norway, Korea, New Zealand and Australia) where the tax burden on labour has increased last year.
The tax burden on labour income rose in 2020 compared to 2019 in Portugal, bucking the trend in most countries of the Organisation for Economic Cooperation and Development (OECD), according to a report released on Thursday.
According to the “Taxing Wages” report published today by the OECD, last year, the weight of personal income tax and social security contributions on wages averaged 41.3%, up 0.06 percentage points from a year earlier.
Portugal is thus one of seven countries (Portugal, Sweden, Turkey, Norway, Korea, New Zealand and Australia) where the tax burden on labour has increased, contrary to the trend in the vast majority of the other 29 countries where it has fallen.
In Colombia, the tax wedge on wages remained the same.
In the OECD as a whole, taxation on wages averaged 34.6% in 2020, 0.39 percentage points less than in 2019, a decrease that, according to the organisation, reflects the impact of measures adopted by countries during the context of the Covid-19 crisis.
