Personal Income Tax and Social Security Contributions Tax Gaps

Personal Income Tax (PIT) and social security contributions (SSC) are an important source of government revenue in all EU member countries. To meet the fiscal objectives of PIT and achieve fairness of the PIT and SSC system, it is important to minimise the impact of non-compliance or, in other words, seal the tax and contributions gap. The project aims to provide the best-suited methodological and operational framework that could be employed for recurrent yearly estimation the gap for the EU and EU member countries, and has implemented the proposed methodology and estimated the gap for two member countries (Austria and Poland) for a number of years.