TAX. This three letter word, is one of the most talked about topic around the world. The Highest Tax Paying Countries in the world enjoy a lot of benefits as they attract huge foreign Indirect Investments. Taxes are capable of both ‘Booming’ a country’s Economic growth or collapsing it all together. While some countries like Bahamas, Switzerland, Hong Kong have the reputation of being tax haven, majority of the countries have huge tax cuts. Many Hollywood movies have been alleged to promote these tax havens by making them appear cool to their audience.
What is a Tax exactly ?
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law. Wikipedia
What is a Tax Haven ?
A tax haven is a jurisdiction that offers favorable tax or other conditions to its taxpayers as relative to other jurisdictions. Wikipedia
What are the benefits of Tax Havens ?
Well, the natives of the tax havens and the companies in these Havens enjoy, quiet a lot of benefits, favouring them to pour more and more money in these countries. Some of the benefits of Tax Havens are No sales taxes, no value-added taxes, no council taxes no capital gains, a wealth of personal tax deductions and no payroll taxes.
Top 5 highest tax paying countries
Taxes rate change annually and are beneficial for the people of country. Here is a list of top 5 highest tax paying countries.
Belgium – 42.0%
Belgium is one of the highest tax paying countries in world. It has a population of 12 million people.Belgium’s progressive rate is 50%. The social security tax rate in Blgium is 13 % here.
Germany – 39.0%
In Germany income up-to EUR 8652 is not taxed. In Germany, even Churches pay tax of 8-9%
Denmark – 36.1%
Denmark has a progressive income of about 55%. They have different taxes i.e, state and local. The people
Austria – 34.9%
Austria has a population 8 million people. It is one of the highest tax paying country in Euorpe.
Hungary – 34.5%
Hungary has flat personnel income tax rather than progressive one. Social insurance contributions are 18.5%.