Lowest income tax in Europe. Which countries pay the highest taxes in the world? Lowest average tax level

What do we know about taxes? That no one wants to pay them. Tax, as the medieval philosopher Thomas Aquinas said, is “a legalized form of robbery.” On the other hand, taxes are the basis of the state. If you want to live under the protection of a strong army, receive free treatment and grow old comfortably, pay taxes while you are young.

Let's imagine that we need to write a novel about taxes in different countries. Let's take the average Depardieu as our hero: a single man in the prime of his life and strength, with his own apartment and an average income. He does not have additional sources of income, such as an apartment in a green area of ​​Moscow, which he rents at exorbitant prices to a migrant family, or a profitable individual entrepreneur reselling donut holes. In short, he lives on one salary. Let us assume that he does not have elderly parents to support him. An elderly mother lives somewhere in Krasnodar, receives a pretty good pension and spends her free time digging in the garden. Our hero is moderately law-abiding and therefore carefully pays taxes. Let's see how the life of our Depardieu will develop in the USA, Europe and Russia.

Taxes in the USA: only taxes and death are inevitable

Roughly speaking, American taxes are divided into 3 groups: federal taxes, state taxes and municipalities. Federal taxes are the same for everyone, but “state” taxes in Alaska and Texas can be very different. Taxes are generally assessed on annual income. However, there is a subtlety - general tax breaks or deductions that apply to all American citizens. They are also federal and state. This is a standard (deductible regardless of the American's income, status and marital status) and personal tax deduction. Income taxes in the United States - both federal and state - are progressive, i.e. grow with wages. The more Depardieu earns, the more the state will take from him. Federal personal income tax, for example, is calculated at the following rates:

— first $8,700 — 100% tax rate;

— income from $8,700 to 35,350% — 15% tax rate;

— income from $35,350 to $85,650 — 25% tax rate.

With an annual taxable income of 70 thousand dollars, the amount of income tax (federal + state) is approximately 20 thousand dollars. Our Depardieu will give almost 30% of his income only to pay personal income tax.

But in addition to income tax, the United States collects from its citizens various tributes! Here's a very short list:

— social insurance;

— real estate and property tax. Each state and city has its own tax rates. On average, this is about 1% of the assessed value of the property. It is evaluative, remember, this is important;

— sales taxes. Each state has its own, on average from 3% to 10% of the cost of the product. The price of goods in American stores is indicated without tax. Our Depardieu must be very careful: at the checkout you will have to pay more! There are a number of goods that are sold tax-free, for example, prescription drugs;

— inheritance and gift tax, etc.

Here is a summary table of US taxes:

The greedy American government is trying to lay its paw on the money that our Depardieu earns outside the United States. Only one other country in the world allows itself to do this - little-known Eritrea. Suppose Depardieu, a Californian, starred in a film by Frenchman Luc Besson and received a fee that had absolutely nothing to do with the United States. However, poor Depardieu will still have to pay the American state a certain amount of euros. American tax authorities will also inquire about the contents of Depardieu’s cash accounts in a French bank. If more than 50 thousand are found on the Parisian account of Depardieu the Californian. dollars, he is obliged to report this to the American tax authorities. In case of refusal, please pay 30% traffic tax cash. An American is obliged to account to his government for literally every dollar he earns (no matter where or how).

In general, taxes are a painful topic for any mature, productive American. The US Internal Revenue Service (IRS) is a truly all-powerful organization with its own secret police and its own dungeons. Her seal shows a key. This, I think, is a strong hint that the tax authorities will pick up the key to any safe or hiding place where you hide your money, and will put their raking hands in there. Non-payment of taxes is a crime against the nation. Of course! After all 50% of proceeds to federal budget The USA means taxes. Therefore, an attempt to hide your income from the state and evade paying taxes is considered a serious crime.. Here's what the US Code of Laws says so sternly:

“Whoever willfully attempts by any means to evade or evade the payment of tax under this Code, as well as the corresponding payment, is guilty of a felony and shall be punished by a fine not exceeding $100,000 or imprisonment for a term of up to five years, or both punishments together, with payment of legal costs incurred by the prosecution.”

(Felony is a serious crime). For corporations, the fine increases to $500 thousand. If our Depardieu does not file a tax return on time, he faces a year in prison or a fine of 25 thousand dollars.

The IRS is merciless. Neither status, nor age, nor the size of your income can save you. Multimillionaire, pop star or glass cleaner - the IRS will get anyone. In 2008, Wesley Snipes, a vampire from the Blade saga, was sentenced to three years in prison for tax evasion. The American government estimates that Snipes underpaid him by more than $15 million. The actor pleaded guilty and gave 3 checks of 5 million each in exchange for leniency. Not so! The harsh tax authorities did not relent, and Snipes received the maximum punishment. If there is any real equality in America, it is undoubtedly equality before the IRS. Remember who is the author of the phrase “Only taxes and death are inevitable”? That's right, Benjamin Franklin, American citizen. He knew what he was talking about.

Depardieu should keep in mind that the statute of limitations for non-payment of taxes in the United States does not matter. The American state is vindictive. Do not hope that you will be forgiven for a debt you failed to pay in your youth. You can go to prison for debts that are ten or thirty years old. The tax office can freeze your accounts, confiscate your beloved car and the apartment you bought with such difficulty. Your credit history will be hopelessly damaged. No bank will lend you money. No self-respecting company will hire a debtor with a criminal record. Seems, Freedom in the freest country in the world, America, is the freedom to become a homeless beggar for not paying taxes.

Let's sum it up, dear Depardieu. Taxes take up between 33 and 55% of an American's total income. In America, taxes are the largest expense item.. At the same time, they are constantly growing. National debt The US exceeded the $16 trillion mark in 2012, which is an absolute world record. Obama is trying to get out of the crisis by raising taxes. In 2013, he managed to push through a budget that included massive tax increases of nearly a trillion dollars. The budget will hit hard first of all on wealthy (the most hardworking and enterprising) citizens. High taxes and excessive tax curiosity are the most common reasons for renouncing American citizenship.. According to rumors, even Tina Turner is going to become a Swiss citizen. Our Depardieu changed his mind about becoming an American and moved to Europe.

Taxes in Europe: taxes on every fart, sins and parasites

In Germany, income tax depends on the number of jobs, marital status and, of course, the amount of annual income, because this tax, like in the States, is progressive. Initial tax-free amount(Grundfreibetrag) until 2012 was 8,004 euros, and from January 1, 2014 it was increased to 8,354 euros. This amount is deducted from Depardieu's annual income, and taxes are charged on the remainder. In addition, for West Germans there is a so-called solidarity tax surcharge— Solidaritätszuschlag. This is the amount that our Depardieu gives to the development of East Germany (former GDR). The solidarity tribute is added to the amount of income tax if it exceeds 972 euros. The rate is 5.5% of the income tax amount, but not more than the difference between the income tax and the minimum of 972 euros. The formula for calculating German taxes is very complex, I will not describe it in detail. I will give a comparative table of income tax for 2010-2012. The year in this case is not so important, since I was primarily interested in the principle of taxation:

The initial tax rate is -14%. Annual income over 52.88 euros is taxed at 42%. Germans with an income of over 250.7 thousand euros per year give 45% of their earnings to the state. And that's just income tax. The situation is approximately the same as in the USA: The more Depardieu earns, the more the tax office will take from him. In general, as practice shows, our Depardieu - single, without children or dependents - finds himself in the most disadvantageous position. Married people with a bunch of children and a wife who is a housewife pay the least taxes.
Let's not forget about other taxes:

Social insurance. The German Depardieu has 5 mandatory insurances, which eat up approximately 40% wages. Half of this is paid by the employer;

— tax on various real estate transactions. If Depardieu decides to buy an apartment, he will have to pay from 3.5% to 5% of the cost of the apartment;

- real estate tax. On average 1% of the cost of the apartment;

- church tax - 8-9% of the annual income tax. This is if Depardieu decides to join any religious community. Believing in God in Germany is expensive, very expensive!;

- car tax. Depends on engine power, type of fuel (diesel is more expensive than gasoline), volume of exhaust gases, age vehicle etc. A Porsche Cayenne with an engine capacity of 4.8 liters will cost our Depardieu 330 euros per year. Gasoline for cars is subject to a separate excise tax. The excise tax ranges from 0.5 euros to 0.57 euros per liter depending on the lead content;

— tax on invested capital. Suppose Depardieu deposits a certain amount into a bank account or buys a stake in some Deutsche Electronics. Depardieu's income from shares, deposits and securities will be taxed. The tax rate on invested capital is 26.375% including solidarity tax;

- various excise taxes. Smoking Depardieu will give 9.3 cents from each cigarette. His morning coffee will cost him 3.1 cents per kilogram. Champagne for a birthday costs 1.4 euros per 0.75 liters. A glass of whiskey after work costs 160 euros per 100 liters.

Summary table of taxes in Germany:

If our Depardieu decides to move to another European country, the following infographics will help him:

Total: The average European gives almost half of his income to the state. Let's say Depardieu founded a company in France that produces donut holes. The business turned out to be so profitable that the total salary that Depardieu pays to his employees exceeded 1 million euros. Thanks to the newly introduced progressive tax, Depardieu will give away 75% of his income. Think about it - 75%. After the adoption of this amendment, hundreds of wealthy businessmen moved to Belgium and the less greedy UK.

Due to the crisis Europe is raising taxes and cutting wages. Last year, the issue of increasing the maximum tax rate to 49% and introducing a property tax was actively discussed in Germany. The Green Party proposed increasing the rate for Depardieu with an income of over 60 thousand euros to 45%, with an income of over 80 thousand euros - to 49%, and introducing a tax of 1.5% for a fortune over 1 million euros.

The thinning wallets of European states are replenished due to inventing new, very extravagant taxes. For example, American physiologists are pushing for a tax on sugar. They say that sugar is as addictive as alcohol or tobacco. A higher tax will supposedly help keep the use of this “dangerous drug” at an acceptable level. The traditional American way is to shake money out of citizens under the guise of good intentions. France is up in arms over “terribly unhealthy” soft drinks. In Hungary and Denmark, they collect tribute from fat people: foods with a high fat content are subject to a special tax. If you like fatty sausage, pay before you eat! The British tax authorities are haunted by glamorous beauties. On the islands of Foggy Albion there is a tax on silicone breasts. In Venice they pay a shadow tax. Owners of cafes, shops, etc. they pay for the shadow of their establishments to fall on municipal land. The fact that there are many more cloudy days in Venice than sunny days does not bother zealous legislators at all.

It seems that In Europe, soon you won’t be able to fart, sorry, without first paying a tax for the spoiled air. I'm not exaggerating. A similar curious fart tax has already existed in Estonia since 2008. There are no large industrial enterprises in the country. Therefore, environmentalists, without hesitation, imposed an environmental tax on cow owners. They say that the methane released by cows in the process of life harms the atmosphere of the planet. If an environmental disaster befalls the Earth, know that Estonian cows are to blame. J In 2003, they tried to introduce a similar tax in New Zealand. The initiative failed due to persistent resistance from New Zealand farmers. But the Estonians did not defend their cows.

As I already said, in America, non-payment of taxes is equated to a crime against the nation. In Europe the approach is more subtle. In Europe, they squeeze money out of citizens, threatening them not with prison, but with anathema. Vatican Cardinal Angelo Bagnasco called tax evasion a sin and called on all believers to fight tax evaders. It is remarkable that the cardinal himself does not pay taxes. Since 1982, the church in Italy has been exempt from taxes.

Thus, There are three trends in Europe:

- a tendency to increase existing taxes;

— a tendency to introduce new taxes;

— the emergence of new forms of control, in particular church control.

No really. Our Depardieu packs his suitcase again and goes to Russia.

Taxes in Russia: almost like in Saudi Arabia

Income tax in Russia, as is known, is flat, i.e. the same for everyone - 13%. And period. Please note that our tax rate is less than the minimum tax rate in Germany (14%). Regardless of who our Depardieu works as a cleaner in an advertising agency or a commercial director in the same agency, he will give the same 13% to the state. For a cleaner with a salary of 15 thousand, the tax will be 1,950 rubles. For commercial director with earnings of 50 thousand - 6500 rubles.
It would seem that everything is as simple as cabbage. However, we forgot about the hidden tax that the employer pays for Depardieu. When our Depardieu was hired, his salary was announced taking into account this hidden tax. Until 2010, it was called the Unified Social Tax (UST). Now it's insurance premiums or contributions to compulsory social insurance. Contributions include:

— insurance in case of temporary disability or maternity (sick leave and maternity leave);

— insurance against accidents at work and occupational diseases;

- medical insurance ( compulsory medical insurance policy, according to which our Depardieu goes to the clinic and allegedly treats his teeth for free);

— pension insurance;

— insurance in connection with maternity (paternity for some reason is not an insured event);

— insurance in case of death of the insured person or a minor family member.

All these parts are required. Funds from Depardieu's salary go to 3 funds:

— Social Insurance Fund;

— Compulsory Health Insurance Fund;

— Pension Fund RF.

There are cases where insurance premiums are not paid or are paid at reduced rates. Benefits are provided to disabled people, individual entrepreneurs, etc. I will not consider them in detail, since they do not concern our Depardieu. Standard rates insurance premiums for 2013 are as follows:

Generally, about 30% of Depardieu's salary goes to insurance premiums. In fact, the real earnings of the average Russian Depardieu with a salary of 37 thousand rubles is approximately 53 thousand. Our Depardieu simply does not suspect this, since the employer makes the contributions. In 2014, the rate may increase to 34%. However, there is no need to grab the cobblestones and storm the Duma. Social contributions are paid not from the employees' money, but from the employer's money.

Having received his salary with personal income tax deducted, the Russian Depardieu will pay the following taxes:

— taxes on dividends, securities and bank deposits. In Russia the rate is 9%;

— real estate tax — from 0.1% to 2% of the inventory value of real estate. This is important. In the USA and Europe, the tax rate is set depending on the estimated (market) value of the hut. Due to the significant difference in the inventory and real cost of housing Russian property taxes are significantly lower than European or American taxes. Officials are aware of this annoying (for the state) shortcoming of the tax system and are planning a total revaluation of real estate. Revaluation is constantly postponed because it is expensive and tedious. In 2013, revaluation was expected at the end of 2014-beginning of 2015;

— transport tax. Depends on engine power. Last year, Depardieu paid 75 rubles for a car with a 200 horsepower engine. for every horsepower;

— unlike the USA and Europe, there is no inheritance tax in Russia. Paid the fees and is free;

- excise taxes. In 2014, a glass of whiskey will cost our Depardieu 500 rubles. for every liter of alcohol. A glass of cider in the company of friends costs 8 rubles. per liter Alcohol excise taxes will be indexed. So, in 2016, the same glass of cider will cost 10 rubles. per liter Depardieu will pay 800 rubles for cigarettes this year. per thousand pieces plus 8.5% estimated cost(at least 1.04 thousand rubles per thousand pieces). Cigarette excise taxes will also increase, so the Russian Depardieu should give up bad habits and start preparing to pass the GTO standards J
Summary table of taxes in the Russian Federation:

The Russian tax system is based on the classical liberal theory of taxation. According to this theory, a decrease in tax rates leads to an increase in tax revenue. Which is exactly what happened. In 1997, Russia had a three-tier tax system, which included about 40 different fees and taxes. Personal income tax was progressive, like that of today's Americans and Europeans. Here are the rates for November 1999:

The system was cumbersome and opaque. The rates were constantly changing. Running a normal business in post-Soviet Russia was difficult. The constant threat of another change in tax rates precluded even short-term planning. The growth of extortions forced businessmen (and ordinary citizens) to come up with new and new ways to evade taxes. A formidable and all-powerful tax collection department like the powerful IRS did not exist in Russia. The result of this tax policy is very sad: the shadow economy grew, and businessmen en masse withdrew the money they earned abroad.

In the 2000s, Putin decided to large-scale and radical tax reform. The goal was not to take away more money, but to make the system simpler, more transparent and fair for taxpayers. This was completely successful. The number of taxes was reduced threefold - from 54 to 15. Sales tax and turnover taxes were abolished. A clear and understandable set of tax deductions has been introduced: standard, social, property and professional. Installed new order providing tax returns. And most importantly, the progressive income tax was replaced by a single flat rate of 13%. Income tax was reduced to a record rate of 24%. The results were not long in coming. Already in 2002, businessmen began to emerge from the shadows, and tax revenues to the budget increased.

As a result of Putin's reform, Russia has one of the most liberal and fair tax systems.

Firstly, small number of taxes.

Secondly, one of the lowest income and profit tax rates in the world. In 2013, PricewaterhouseCoopers (PwC) (one of the largest and oldest auditing companies in the world, one of the Big Four auditing companies) compiled its own rating of the tax burden for wealthy G20 citizens. A citizen with an income of 400 thousand dollars a year, a mortgage of 1.2 million dollars, a wife and two children was chosen as Depardieu. Italy came in first place. There, the rich taxpayer receives a little more than half of what he earns - 50.59%. Indians got honorable bronze with 54.90%. Great Britain - 57.27%. USA - 60.45%. Russia was in penultimate place, ahead only of Saudi Arabia, known for its record low income tax rates of 3.14% on average.

Making good money in Russia is profitable. But being rich in France or the USA is expensive. Here is a comparison table of income taxes for the US, France and Russia:

But that's not even the point. The main thing is that Russia has built something that neither the United States nor Europe has yet achieved - a simple, fair and profitable tax system.

What do you think about taxes in Russia?

Over the past year, the topic of introducing a progressive income tax has been hotly debated in Russia. Let us remind you that today there is a flat scale - everyone pays a single rate of 13%, regardless of the amount of income received. The progressive scale allows you to increase the rate for those who receive excess profits. This issue is quite controversial - the majority of pro-government officials are against such “discrimination” against the rich, while the public has already “mature” and demands an increase in the tax burden for the minority that has huge capital.

In any case, this acute social issue remains only at the stage of discussion. And while the government and parliament continue to argue on this topic, Careerist.ru decided to find out how this tax is paid by citizens of other countries of the world. And we were quite surprised, because there are many models in the world that the Russian tax system could successfully borrow. Moreover, we will find something to surprise you too: there are many frankly happy countries , whose citizens do not pay taxes at all! Perhaps we’ll start with them.

Tax haven

Among the happiest countries that have exempted their citizens from income taxation are, first of all, resource-rich countries such as the United Arab Emirates, Qatar, Bahrain, Oman and Kuwait. It is often thought that residents of Saudi Arabia are also exempt from them, which is a misconception. The tax may be small - only 2.5% on any profit received - but it still exists. In addition to them, the principalities of Monaco, the Bahamas and Bermuda claim the status of a real “tax paradise”. There are certainly some tax exclusions there. For example, in the Bahamas and Bermuda, citizens have to pay their own insurance premiums, while in Monaco, French citizens are subject to taxes. However, in In general, the vast majority of citizens are actually exempt from taxes. But none of them were lucky.

In many countries where there is a progressive tax scale, citizens with low incomes also do not pay income tax. True, in this case it would be a stretch to classify them as “lucky” people. These, in particular, are considered to be Australians whose income is below $4.6 thousand per year, Austrians with an annual income below $12.5 thousand, Brazilians earning less than $5.3 thousand per year, Germans with an income of less than 9 thousand $ and many others. For example, Swedes who earned less than $2.2 thousand in a year. The amount, frankly speaking, is insignificant for Sweden, but whoever earned less does not pay taxes. Similar tax-free limits have been defined in the wonderland of Singapore. It uses a territorial tax system, but in general, anyone who earned less than $16,000 per year or earned income outside of Singapore is exempt from taxes.

A similar scheme operates in the UK - The British also have a minimum that is not subject to tax - this is 11 thousand £. It is noteworthy that this amount is not taxed, even if the citizen earns significantly more: with income up to £100 thousand, the tax-free amount is deducted from tax base. Income tax is paid only on the remaining amount. For example, having earned £15 thousand in a year, taxes will be paid on only £4 thousand. At the same time, the rates of progressive personal income tax are very significant and amount to 20% for income up to 35 thousand, 40% for income up to 150 thousand, 45% for all income that is above the specified qualification.

Progressive leaders

It should be noted that progressive income tax rates have been established in many developed countries, both in Europe and the West in general. For example, the USA, where tax rates fluctuate between 10 and 39.6%, of course, depending on the income received. The lower tax rate is paid by all those whose annual income does not exceed $9.2 thousand. The upper limits are for the outright rich, whose income exceeds 418 thousand per year. These, by the way, are the limits for single citizens; married couples pay completely different rates and limits. In addition, there are many reasons for tax deductions in the United States. This includes, in particular, having dependents, paying for education (your own or your child’s), having mortgage loans, or paying property taxes. The trick is that citizens are required to simultaneously pay taxes to both the federal and state budgets. Moreover, the US tax system is so complex that it would take an entire article to describe it, so we will only describe it in general terms.

The French tax system is no less strict. The citizens themselves constantly complain about huge tax levies, from which many even managed to flee the country (like, for example, Gerard Depardieu, who received Russian citizenship). Traditional tax return submitted by almost all citizens in February, and it usually indicates absolutely all income receipts. Hiding income, such as income from renting out property or selling a car, is usually detected by tax authorities, after which citizens have to pay serious fines.

As in America, income tax in France has some specific features, which in many ways are very logical. So, income taxes are levied not on a specific citizen, but on a household. That is, the tax is paid on the total family income. Moreover, separate coefficients are applied depending on the number of family members. So, for singles, a coefficient of 1 is applied, for married couples, respectively, 2, if they have a child, the coefficient will be 2.5, etc. This coefficient is used to divide the household tax base by it, after which the tax is calculated. It turns out that the more family members without income, for example, children, the smaller the tax base will be, and therefore the taxes paid. In addition, tax deductions are provided for philanthropists and investors, those who pay for education, have dependents, participate in energy saving systems, etc.

As for progressive rates: with an annual income of 9.7 thousand €, no tax is paid; with income up to 26 thousand € - 14%, up to 71 thousand € - 30%, up to 153 thousand € and above - 41%. Interestingly, for those who have a high income of 250, 500 and above thousand €, there is also an additional tax of 3-4%. Previously, there was also a special tax for millionaires, but they decided to abandon it.

What do we have?

An analysis of Western tax systems allows us to draw an obvious conclusion - there is nothing wrong with a progressive income tax - most developed countries use just such a scheme. What do we have? For post-Soviet countries, a flat tax scale is more typical. In Russia, for example, everyone pays 13% of their salary. Belarusians pay the same amount. In Lithuania, for example, they already pay 15%, in Ukraine 18%, in Estonia 21%, and in Latvia it’s still 23%. In some countries, in particular in Russia, they have already tried to introduce a progressive income tax - it was in effect until 2001. But society, as officials explain, was not ready. Large capital, not wanting to pay more than the already poor population, simply began to go into the shadows en masse. What were the controllers doing at that time? tax authorities, no one explains.

In any case, the tax was abolished, everyone began to pay the same rate, and capital gradually began to emerge from the shadows. However, in recent years, against the backdrop of a huge gap in income between the main part of the population and the “top”, associated class inequality, a sudden economic crisis and budget deficit in the country, the issue of progressive taxation has again become relevant. Not only social activists, but also deputies and even individual government officials started talking about this again. In the government, for example, everyone is sure that this is complete nonsense. They say that we have 15 million people who do not pay taxes on their salaries, and it is better to deal with them than... to get the missing funds from large capitals. However, the logic of the officials is clear - they and their entourage will have to pay more...

Parliamentarians, on the contrary, insist on such innovations. For example, recently representatives of the Communist Party of the Russian Federation. According to their proposals, citizens, depending on the size of their income, should be divided into 4 categories. The poorest are asked to pay only 5%, while citizens who receive excess income are asked to pay 1.6 million + 25% of income, over 10 million rubles. In comparison with some tax rates in Western countries, the approach, by the way, is very liberal. Such measures, according to the authors, would allow, due to a limited number of people - only about 35 thousand Russians, increase personal income tax collection by 1.25 trillion rubles! This is despite the fact that today the total collection rate is only 3 trillion rubles. But officials, as we see, are against it. What can I say, society is not ready again, right?!

The modern tax system offers various mechanisms for collecting part of the population's income. All of them have come a long way from exotic (bridge toll) to difficult to calculate progressive.

The article will present a table of various taxes in countries around the world, which taxes in countries around the world are the most noticeable and influential. In conclusion - brief conclusions.

What are the taxes?

VAT. A tax that is added every time the price of an item increases.

Income tax. It may or may not be progressive (more on this below), not taken at all when income is low, or, on the contrary, not taken at all in exchange for some conditions (offshore territories). Paid on any income of a citizen, subject to some exceptions.

Corporate. In different countries, some industries have increased rates. As a rule, these are enterprises that have an adverse impact on the environment. Also extracting minerals: oil, gas, coal, etc.

Income tax in different countries

Below we have compiled two tables: with the lowest and highest income taxes in the countries of the world for 2019.

Lowest rates

All of these countries have a non-progressive scale. Any amount earned is subject to an agreed fee.

Highest rates

Countries with progressive taxes

1. Australia. Income up to $4,600 is not taxed (0%). Incomes above this amount but less than $29,000 - 9 percent. If a citizen earned more than 140 thousand dollars, then it ranges from 30 to 44 percent.
2. Singapore. Those who receive a total monthly income of less than $16,000 are not taxed. Above that you pay 20%.
3. Spain. 24 percent of the amount is paid by those earning less than $20,000. If you earned more than 20,000, it will be 51%.
4. Italy. Less than $80,000 per month - 23%. More than 45 percent.
5. United Kingdom. For incomes less than 15,500 no. More than 45%. There are additional corporate fees for oil production companies.
6. Germany. Annual income less than $9,000 - 0%. More than $80,000 - 45%. The amount taxed in between increases individually.
7. USA. The progression of collecting money in favor of the state goes from 10% to 39.6%. The zero rate applies to income under $8,950. There are various deductions for annual profits, which allows many to avoid paying money to the state. For example, payments for a mortgage, health insurance, etc. are deducted. Marital status is taken into account, there are discounts for large families.

Income tax amount depending on family type

US Features

However, in the USA, an additional fee is charged from each state. As a result, the deduction can be up to 50% of a citizen’s earnings. For example, a single person with an income of $50,000 would give $25,000 to the government. And for a family man with a non-working wife and three children, only 10 thousand.

According to local laws, income can be considered a lottery or casino win, inheritance, or bonus. However, they are not usually taxed social benefits, allowances for military personnel, payments to donors, etc.

The government establishes the ratio of contributions by the employee, the employer, as well as the ratio of the division of money from them for medical insurance, pensions, benefits for possible disability or unemployment and other possible expenses.

Europe and offshores

The most money is spent on employee needs in France, Italy, Austria, Estonia, the Czech Republic, Sweden, and Greece. The employee’s share is several times smaller.

The situation is opposite in Australia, Great Britain, Denmark, Luxembourg, Norway, and Iceland. There, first of all, the employee pays from his income tax for future insurance of a prosperous life. And the fees from businessmen go to the treasury and are disposed of by the state at its own discretion.

In other European countries the ratio is approximately equal.

As a contrasting example, we can give a list of territories where there are no income taxes. In addition to the obvious offshore entities, this group includes:

• Kuwait;
• UAE;
• Saudi Arabia;
• Andorra;
• Bahamas and some other states.

Conclusion

A table with income taxes in different countries shows that most developed economies have introduced a progressive fiscal scale. The rich pay more. The absence of such a practice is rather an exception, for example, among oil exporters or tourist centers.

Developing ones: in Eastern Europe, the former USSR, they have relatively low income taxes. At the same time, it is not a progressive type. This may be due to the small population and the absence of large industrial enterprises.

In my work as a manager, I constantly use various performance indicators (KPIs). I was interested in a kind of KPI at the macroeconomic level. I talked about the level of corruption in Russia and countries around the world according to the Center for Anti-Corruption Research and Initiatives of Transparency International. I looked at the dynamics of another macroeconomic indicator - the ranking of economic freedom, compiled by the American research center The Heritage Foundation and The Wall Street Journal.

Today – a few words and pictures about the tax burden in countries around the world. This rating has been published by Forbes magazine since the mid-2000s. The latest analysis I found dates back to 2009 (Fig. 1). I did not come across any information why Forbes stopped publishing such a rating.

Rice. 1. Rating of tax burden according to Forbes magazine, 2009. Corporate Income - income tax, Personal Income - personal income tax, Wealth Tax - wealth tax, Employer Social Security - social security tax levied on the employer, Employee Social Security - tax on social security collected from the employee, VAT/Sales – VAT/sales tax. All numbers are percentages. The first column is the change in the total rate for the year; second column – total tax burden; further – the contribution of various taxes.

Download the note in the format, graphics in the format

It is clear that in Russian Federation the tax burden is one of the lowest in the world. Interestingly, some countries have multiple tax regimes. For example, in the USA, Canada, Germany, Switzerland.

New York State has the highest income tax, 46.2%; There is no income tax in the United Arab Emirates (Figure 2). For income tax individuals socialist Sweden is in the lead - 61%. And in general, Western European countries are at the top of this ranking.

While Russia is among the “leaders” in terms of income tax and personal income tax, we are in the middle of the rankings in terms of social taxes and VAT (Fig. 3).

Wealth tax is used in only six regions: Argentina, India, Italy, Norway, France, Zurich (Switzerland).

And one more interesting detail, I wrote that the indices of perception of corruption and economic freedom are very strongly correlated (correlation coefficient - 76%). At the same time, there is a rather weak negative correlation between the tax burden and the index of economic freedom, that is, the higher the economic freedom, the lower the tax burden (Fig. 4).

Rice. 4. Correlation of the tax burden (expressed as a percentage) and the index of economic freedom ( conventional units, 0 – little freedom, 100 – absolute freedom)

Later I will check whether there is a correlation between the tax burden and GDP per capita.

) is the main type of direct tax levied on an employee's salary. In Russia this tax is 13%. This fee is called the main source of revenue to the federal budget. Share of income tax in income Russian budget is slightly less than 40%.

Income tax in different countries of the world.

Income tax in the USA.

US Income Taxes began collecting from the population in 1913. At first glance, American tax legislation is very difficult to understand. The Internal Revenue Code, which was adopted in 1954, formed its basis.

US Income Tax is paid by every resident of the country, regardless of where he lives and from which country he receives income. In the process, tax base calculations can be increased various types tax deductions.

In America, income tax is paid to 3 addresses (after filing a tax return):

• to the federal level;
• directly to the state where the declarant resides;
• city ​​or county (local taxes).

Interestingly, tax rates at all levels may differ or may not exist at all.

Federal taxes in the United States are calculated on a progressive tax scale from 10 to 39.6%. The tax will vary greatly depending on who files the declaration (single person/spouses), the non-taxable base is $9,075-18,150. With income over $406,751, the tax is 39.6%.

The tax is also different in different states - it varies from 1 to 11%, and in 5 states there is no tax at all.

Income tax in France.

In France, income tax is calculated by the tax office. For the population, all their income is divided into 8 categories, each of which has its own calculation method, taking into account benefits and tax deductions. The tax has a progressive scale (from 5.5 to 75%), which is updated annually. Unlike most other countries, income tax in France is calculated per family.

The non-taxable minimum is € 6,011 per year. The maximum rate of 75% applies if the family income is €1,000,000.

Income tax in Sweden.

In Sweden, income tax is administered by the government and municipalities. Each taxpayer has an assigned registration number and an account for transferring taxes. Every resident of Sweden must pay tax on each source of their income: from entrepreneurial activity, capital, wages. The income received is reduced with the help of deductions that are allowed by law.

The tax is calculated on a progressive scale, the total maximum tax rate is 56.9%. Tax is levied on income over SEK 476,700.

Income tax in Norway.

In Norway, information about taxpayers and taxes is officially published. Every resident of Norway must pay national and local taxes on every type of income they receive within or outside the country. Married couples pay income taxes separately from each other. 9.5% is deducted from the annual salary for incomes of NOK 220,501 - 248,500. If income is above this interval, then the rate increases to 13.7%.

Income tax in Canada.

In Canada, income tax is paid by individuals and organizations. For individuals, federal rates vary from 15 to 29%, regional - 5-21%. Max tax rate = 50%, applicable on income above C$136,270.

Income tax in Spain.

The income declaration of a Spanish resident includes information about all types of income that he received from any country in the world. Its status is determined for the entire tax period, regardless of place of residence. The tax rate varies from 24 to 52%. If income exceeds €300,000, the tax rate increases to 52%.

Income tax in the UK.

Income tax in the UK until 1973 was calculated according to the regular tax system, which provides for taxation on all sources of income, while the global tax system applies to the total amount of income.

Having joined the EU, the UK had to change the taxation system to a global one, but the rules remained when calculating tax, taking into account discounts and tax deductions.

The tax period in the UK starts on April 6th and ends on April 5th of the following year. The annual tax-free minimum is £2,790. Tax rates are different - 20, 40 and 45%. Taxation at a rate of 45% corresponds to income over £150,000 per year.

Income tax in England.

The majority of the UK is occupied by England, which is why income tax rates apply the same. Tax payment occurs 4 times during the tax year. After April 6, the total amount of income tax is calculated. To arrive at the amount of tax payable, tax benefits must be subtracted from income. All residents of the country have their own tax-free minimums, which change throughout his life.

Income tax in European countries.

The highest income tax rates in the following countries:

• Sweden 56.9%;
• Portugal 56.5%;
• Denmark 55.6%;
• Belgium 53.7%;
• Spain 52%.

Minimum income tax in Europe.

The lowest income taxes in the following European countries:

• Kazakhstan and Bulgaria (10%);
• Belarus - 12%;
• Russia - 13%;
• Lithuania - 15%;
• Romania and Hungary - 16%.

Income tax in South America.

Let's look at the characteristics of South American income tax using the example of Brazil and Chile.

Brazil also applies a progressive income tax rate. If the taxpayer's income does not exceed BRL 15,084, then he is not required to pay tax. If the income is 15,084 - 30,144 Brazilian reals, then the tax rate is 15%, even higher income is taxed at a rate of 27.5%.

In Chile, income tax rates range from 5 to 40%. Any income of state residents is taxed, regardless of where it is received. To calculate the tax, the amount of non-taxable income and the gradation of amounts from which one or another rate will be applied are determined monthly.

Corporate income tax in Kazakhstan.

Corporate income tax (CIT) in Kazakhstan must be paid by legal entities on income from the sale of products, rental of property, and other types of income. Income is adjusted to the amounts of expenses confirmed by documents. Tax rates - from 10 to 20% depending on the profile of work legal entity and NK requirements.

Individual income tax (IIT) is paid by individuals. IIT rates range from 5 to 10%. Income from work is taxed at a rate of 10%, dividends - 5%. Before applying the tax, income is reduced by the amount of tax deductions.

Income tax in other countries of the world.

Income tax in some other countries around the world:

• Argentina - 9-35%,
• Egypt - 10-20%,
• Israel - 10-47%,
• India - 10-30%,
• China - 5-45%.

Some countries in the world have no income tax at all: Andorra, Bahamas, Bahrain, Kuwait, Monaco, Oman, Qatar, Somalia, UAE, Uruguay.