Tax policies on both Sweden and Ireland adhere to one of the most prominent taxation systems in the EU, which is progressive taxation. In other words, both nations tax the top wealthiest and high-income individuals heavily. However, the key difference between Ireland and Sweden is the fact that the former country creates favorable conditions for corporations. The corporate tax rate in Ireland is 12,5%, whereas the same policy in Sweden is equal to 22% (Alstadsæter and Jacob 627). EU fiscal legislation regarding corporate tax rates does not differ in uniformity and consistency, which is largely explained by the features of post-crisis recovery, the size of the economy, and the structure of the economy.
However, for at least the last ten years in the European Union, there have been tax gaps in the monolithic construct of European fiscal legislation. Based on the structural features of the economies of Cyprus, Bulgaria, and Ireland, only the latter has the necessary industrial potential, which, with investment incentives, can give a significant economic effect in the high-tech field (Negra and McIntyre 5). In Sweden, property transferred by donation and inheritance is not taxed. In other words, donation and inheritance taxes are not established in Sweden. However, there is also no wealth tax. This tax in various countries is called either a wealth tax or a personal property tax. In this regard, it can be expressed differently, noting that in Sweden, there is no tax on the property of individuals in its classical sense. Furthermore, in Sweden, a fixed amount of local tax is levied on certain types of residential real estate. It was introduced in 2009 instead of the previously existing property tax (Alstadsæter and Jacob 621). Local fixed taxation covers private houses and apartments in multi-unit buildings.
Works Cited
Alstadsæter, Annette, and Martin Jacob. “Tax Incentives and Noncompliance: Evidence from Swedish Micro Data.” Public Finance Review, vol. 46, no. 4, 2018, pp. 609-634.
Negra, Diane, and Anthony P. McIntyre. “Ireland Inc.: The Corporatization of Affective Life in Post-Celtic Tiger Ireland.” International Journal of Cultural Studies, vol. 3, no. 2, 2019, pp. 2-9.