The Role and Design of Net Wealth Taxes in the OECD

Annex A. OECD questionnaire on current and historical net wealth taxes

Box A A.1. Questionnaire instructions

This questionnaire aims to collect information on the design of net wealth taxes as well as on their rationale and effects. Replies to the questionnaire will be used as input to the OECD Secretariat’s report on Net Wealth Taxes in OECD Countries.

Please note that recurrent taxes on net wealth refer in this questionnaire to national and subnational recurrent taxes on individual net wealth, i.e. taxes on a wide range of movable and immovable property, net of debt. Individual net wealth taxes are reported either under category 4200 (aggregated) or category 4210 (individual) in Revenue Statistics.

All delegates are requested to reply to questions 1 and 2. The rest of the questionnaire is only intended for countries that currently have or previously had net wealth taxes. Countries that currently have a net wealth tax are asked to provide information on their current net wealth tax. Countries that had a net wealth tax in the past are also requested to provide information on the design of their wealth tax prior to its repeal.

Screening questions:

All delegates are requested to reply to questions 1 and 2.

1. Does your country currently have a recurrent tax on individual net wealth?

□ Yes

□ No

2. Did your country have a recurrent tax on individual net wealth between 1965 and 2016?

□ Yes

□ No

If you responded yes to either question 1 or 2, please proceed to the following questions.

PART 1. GENERAL INFORMATION AND RATIONALE

General information

3. Name of the tax (in national language and English): ____

4. Year of introduction: ____

5. Year of abolition if the tax was repealed: ____

6. Was the net wealth tax initially introduced as a temporary measure?

□ Yes

□ No

7. National tax or local/municipal tax:

□ National level tax

□ Local/municipal level tax

□ National and local/municipal tax

Rationale

8. Main rationale for introducing the net wealth tax: ____

9. If the net wealth tax is still in force, main rationale for maintaining it: ____

10. If the net wealth tax was repealed, main rationale for repealing it: ____

PART 2. NET WEALTH TAX DESIGN

Tax base

11. The tax applies on:

□ An individual basis

□ A family basis

12. Tax base for residents, please specify if other than worldwide net assets: ___

13. Tax base for non-residents, please specify if other than assets that are physically located within the jurisdiction: ___

14. Taxed assets, please list (e.g. residential property; land; movable property; listed and unlisted shares; corporate and government bonds; cash, etc.):

• __

• __

• etc.

15. Untaxed assets, please specify (e.g. business assets; pension savings; assets held in collective investment vehicles, trusts and foundations; jewellery; artwork; vehicles; intellectual property rights; etc.): ___

16. For business assets, please specify those which are exempt:

□ Assets directly used in the professional activity of the taxpayer, please specify rules: ___

□ Shares in a company owned by the taxpayer (and possibly relatives), please specify rules: ___

□ Other, please specify: ___

17. Valuation rules, please specify valuation rules for all taxable assets:

• __

• __

• etc.

18. Is there an exemption threshold?

□ No

□ Yes, based on the value of total net taxable assets, please specify (in national currency): __

□ Yes, based on taxpayer income, please specify (in national currency): __

19. Tax allowances, please specify:

• __

• __

• etc.

20. Tax credits, please specify:

• __

• __

• etc.

21. Deductibility of debts, please specify deductible and non-deductible debts:

• Deductible debts: ___

• Non-deductible debts: ___

22. Tax cap or other limitations on total tax liability, if yes please specify rules: ___

23. Temporary exemption (net wealth tax holiday) for individuals/households who change their tax residency:

□ Yes, please specify rules: ____

□ No

24. Were the above rules previously different? If so, please specify the main net wealth tax base changes that were introduced and why ___

Tax rates

25. Please specify applicable tax rates (for local or municipal level taxes, please provide as much information as possible):

 

Value of table assets (in nat. currency)	Tax rates (%)

26. Were the above tax rates previously different? If so, please specify the main net wealth tax rate changes that were introduced and why___

Tax filing and administration

27. Self-assessment:

□ Yes

□ No

28. Tax return:

□ Separate wealth tax return

□ Tax return consolidated with income tax return

29. Please specify penalties for late filing, late payment, incorrect statements and non-declarations: ___

30. What are the main challenges faced by the government in administering the net wealth tax? ___

31. Given that the tax administration collects taxpayer information on wealth, is that information used in other tax areas (e.g. asset-testing for income tax purposes)?

□ Yes, please specify ___

□ No

PART 3. EFFECTS OF THE NET WEALTH TAX

Tax revenues

32. Revenues from the net wealth tax in 2016 (or last available year if the tax was repealed or if 2016 data is not yet available) in national currency [For reference, please see the tax revenues reported by your country in 2015 in Annex A]: ___

33. Estimated revenue loss from net wealth tax expenditures (if available) in national currency: ___

Number of taxpayers

34. Number of individuals/households liable to the net wealth tax in 2016 (or last available year if the tax was repealed): ___

Tax avoidance/evasion and fiscal expatriation

35. Please describe the most common used avoidance and evasion schemes in your country (e.g. avoidance through trusts, holding assets in corporations, avoidance through gifts, avoidance through charitable donations, etc.): ___

36. What are the main rules in place to prevent those schemes and other forms of avoidance/evasion? ___

37. Has the government undertaken an evaluation of the avoidance and evasion effects of the net wealth tax?

□ Yes

□ No

38. Has the government undertaken an evaluation of the effects of the net wealth tax on the tax residence decisions of taxpayers (i.e. fiscal expatriation)?

□ Yes

□ No

39. Estimations of net wealth tax fraud and fiscal expatriation:

 

	Estimation	Year(s)
Revenue loss from wealth tax fraud	____ (in nat. currency)
Revenue loss from fiscal expatriation	____ (in nat. currency)
Number of “fiscal expatriates”	____ (in nat. currency)

40. Please provide us with any available internal assessments and external studies on wealth tax avoidance/evasion and fiscal expatriation in your country.

Growth/efficiency and redistribution

41. Has the government undertaken an evaluation of the effects of the net wealth tax on growth?

□ Yes

□ No

42. Has the government undertaken an evaluation of the effects of the net wealth tax on the total amount and composition of savings?

□ Yes

□ No

43. Has the government undertaken an evaluation of the redistributive effects of the net wealth tax?

□ Yes

□ No

44. Please provide us with any available internal assessments and external studies on the efficiency/growth and redistributive effects of the wealth tax.