Fiscal
Income Tax
A tax levied by governments on the income generated by businesses and individuals within their jurisdiction. In the EU, income tax rates and brackets vary by country.
Related terms
Dependent Allowance
A tax reduction or credit available to taxpayers who financially support dependents such as children or elderly relatives.
Effective Tax Rate
The actual percentage of income paid in taxes, calculated by dividing total tax paid by total taxable income. Often lower than the marginal tax rate.
Employer Contributions
Payments made by employers on top of employee salaries to fund social protection schemes. These represent a significant additional cost of employment.