| As demonstrated in Chapter 3, the effects of schedular and imputation systems are equivalent in this respect. |
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| In practice, therefore, a pragmatic solution is for schedular systems to apply the same rate to domestic dividends as to inbound dividends. |
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| Two acceding States apply the exemption system, and a majority of seven apply some form of schedular system. |
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| In practice, for countries with multiple marginal income tax rates the system could be simplified by applying only two schedular tax rates. |
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| These schedular income taxes are today found in some South American and African countries. |
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| Now the schedular system has been harmonized across different categories of income. |
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| A transfer of assessing powers would bring railway companies within their more accommodating policies without disturbing the general schedular framework. |
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| Under this system a Member State has a separate schedular tax rate for each marginal income tax rate. |
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| This kind of individual income tax is not usually regarded as a schedular tax. |
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| In practice the schedular tax rate is often chosen in such a way that the combined pressure of corporation tax and schedular tax corresponds to the top marginal income tax rate. |
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| The separate schedular rates can be chosen in such a way that for each income tax bracket the combined tax burden of corporation tax and income tax equals the marginal income tax rate, as under the imputation system. |
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| Nothing would prevent the other States with a schedular system doing the same, apart from budgetary reasons and possibly the wish to stimulate investors to invest domestically. |
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| The United States has adopted antishelter provisions that have the effect of converting a nominally global income tax into one having schedular features. |
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| The United Kingdom operates an imputation system in combination with a schedular system with two different rates, which for low-income taxpayers amounts to exemption. |
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| A majority of eleven Member States apply some form of schedular system to domestic dividends, again including Italy, Finland and the United Kingdom. |
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| In turn, single schedular rate or half income systems do not fully relieve double taxation of dividend income for lower income taxpayers, whereas the imputation system always achieves that. |
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