The Organization for Economic Cooperation and Development (OECD) revealed that Portugal is in the top 10 of countries with the highest tax burden.
A new report from Organization for Economic Cooperation and Development (OECD) revealed that Portugal is among the ten countries (8th) with the highest tax burden on labor. According to the report ‘Tax Wages‘which annually analyzes the taxation of labor income in 38 nations, Portugal saw its tax burden on labor rise for the fifth consecutive year, reaching 42.3%.
With this in mind, it should be noted that in Portugal a single worker without children who has received €23,714 (average salary) in 2023, he took home only 57.7% of the gross value of your remuneration.
Leading the respective table are countries such as Belgium (52.7%), Germany (47.9%), France (46.8%) and Italy (45.1%), with tax burdens that exceed the 45%. In contrast, nations like Colombia (0.0%), Chile (7.1%) and Mexico (20.0%) have the lowest tax burdens.
A Organization for Economic Cooperation and Development further highlights that, despite the nominal increase in average wages in 37 countries, in real terms there was a fall in 18 of them. Portugal is one of the countries that is part of the group in which the effective salary increased, albeit modestly, in 1.8%.
The respective report states that the impact of taxation is not limited to single individuals without children, as couples with two childrenwhere one of the spouses earns 100% of the average salary and the other 67%, also faced a generalized increase in the tax burden in 21 member states of the Organization for Economic Cooperation and Development.
Among the different types of households analyzed, couples without children with two salaries 167% of average income recorded the largest increase in the tax burden. On the other hand, single parents who received 37% of average salary saw a decrease in their tax burden.
These data reflect not only the economic reality of Portugal, but also highlight the global trend of increasing tax taxation on laborwhich can have important implications for the economic well-being of families and the long-term growth of the economy.
