Commission Regulation (EU) No 263/2011Show full title

3. In addition, for the specific purpose of this Regulation the following definitions shall apply:

3.1.

‘net social protection benefits — restricted approach’ means social benefits after the deduction of taxes and social contributions paid on cash social benefits by their recipient and after the addition of residual fiscal benefit, if any, according to the formula:

Net social benefits (restricted approach) = gross social protection benefits* (1-AITR-AISCR) + residual fiscal benefits

residual fiscal benefits should be introduced in the calculation of net social benefits only if they are not directly accounted for in AITR and/or AISCR;

3.2.

‘average itemised tax rate (AITR) for a benefit (or group of benefits)’ means the sum of taxes paid on that benefit by recipients divided by the total income from that benefit (i.e. gross benefits received);

3.3.

‘average itemised social contribution rate (AISCR) for a benefit (or group of benefits)’ means the sum of social contributions paid on that benefit by recipients, divided by the total income from that benefit (i.e. gross benefit received);

3.4.

‘residual fiscal benefit’ means the part of the total value of a fiscal benefit that relates to relief on levies applied to social benefits (as opposed to the part that relates to relief on levies applied to all other forms of income).