102 Government Finance Statistics Manual 2014
stamps assignable to a single category, such as liquor
and cigarettes, would be shown as taxes on those prod-
ucts, either excises (1142) or taxes on specifi c services
(1144). Similarly, stamp duties on fi nancial transac-
tions would be shown as taxes on fi nancial and capital
transactions (11414). Also included in other taxes (116)
would be an expenditure tax that is levied on purchases
but is personalized by the application of personal de-
ductions and exemptions. Revenue from taxes levied
on a combination of several tax bases, or on multiple
tax bases, where the revenue cannot be readily allo-
cated to each tax base or to one predominant tax base
is also reported in this category of taxes.Social Contributions [GFS] (12).
5.94 Social contributions [GFS] (12) are actual
or imputed revenue receivable by social insurance
schemes to make provision for social insurance ben-
efi ts payable. Social contributions [GFS] (12) exclude
contributions receivable under employment-related
pension and other retirement schemes that create a
liability for future benefi ts payable. Social contribu-
tions are further classifi ed according to the nature of
the payee and the nature of the scheme that received
these contributions (see Table 5.6). Th ese receipts are
from employers on behalf of their employees, from
employees, or from self-employed or unemployed
persons on their own behalf to secure entitlement
to social benefi ts, payable in cash and in kind, to the
contributors, their dependents, or their survivors.^26
Th e contributions are usually compulsory, but may
also be voluntary. Voluntary contributions are usually
made in arrangements where a means test determines
whether contributors are exempted from compulsory
contributions, but are eligible to participate by choice.
If any contributions are voluntary, a memorandum
item of their total amount would be useful for com-
puting the fi scal burden and other analytical uses.
Social contributions are classifi ed as social security
contributions (121) or other social contributions (122)
depending on the type of scheme receiving them.
5.95 Th e coverage of social contributions in GFS is
more restricted than in the 2008 SNA. In GFS, only
amounts that constitute revenue are included in social
contributions [GFS] (12)—that is, those transactions(^26) Th e institutional units involved, classifi cation, and record-
ing of fl ows and stock positions related to social protection are
described in Appendix 2.
that create a recognized liability are not part of rev-
enue. In GFS, social contributions exclude contribu-
tions to autonomous and nonautonomous pension
funds and to unfunded employment-related schemes
that provide pension and other retirement benefi ts.
Th ese transactions should be recorded in GFS as in-
currence of liabilities for future pension and other
retirement benefi ts payable. Th e 2008 SNA records
them both as social contributions and incurrence of
liabilities, with the double recording being neutral-
ized by recording an adjustment in the use of income
account for the change in pension entitlements.^27
Th e boundary between social contributions and other categories of taxes
5.96 Compulsory transfers can be classifi ed as ei-
ther a tax or a social contribution. Social contribu-
tions include payments made by insured persons,
or their employers, to secure entitlement to social
benefi ts. Th e contributions are levied as a function of
earnings, payroll, or the number of employees. When
income is used as a proxy for gross wages, as for the
self-employed, the receipts are included as social
contributions. Compulsory payments levied as a tax(^27) Th e 2008 SNA allows some fl exibility regarding the recording
of pension entitlements of unfunded pension schemes sponsored
by government for all employees. Given the diff erent institutional
arrangements in countries, and using this fl exibility, only some of
these pension entitlements may be recorded in the main sequence
of accounts (core accounts). However, in such instances, a supple-
mentary table is to be presented that discloses the proportion
of pension provision covered in the core accounts with some
approximate estimates of the liability arising from the remaining
schemes (see the 2008 SNA, paragraph 17.193).
Table 5.6 Detailed Classifi cation of Social
Contributions [GFS] (12)
12 Social contributions [GFS]^1
121 Social security contributions [GFS]
1211 Employee contributions [GFS]
1212 Employer contributions [GFS]
1213 Self-employed or unemployed
contributions [GFS]
1214 Unallocable contributions [GFS]
122 Other social contributions [GFS]
1221 Employee contributions [GFS]
1222 Employer contributions [GFS]
1223 Imputed contributions [GFS]
(^1) Further breakdown/“of which” lines could allow for the iden-
tifi cation of the contributions in cash and in kind, and make a
distinction between compulsory and voluntary contributions.