Sorry, you need to enable JavaScript to visit this website.

Taxes Around the World

Published on: 17:55PM Jul 26, 2011

Evaluation of taxes is a tricky business. The maximum rate doesn't tell the whole story. In the US some states have income taxes of their own that add to the Federal maximum rate of 35%, and many have sales taxes. When you look at the table below, you will see Individual taxes, Corporate taxes and VAT, Value Added Tax. When you look at the corporate tax rate for, say, France, you will read "33.33%". Is that the effective tax rate when compared with the US corporate rate of 15% to 35%? It is not. As it happens, the US allows many more deductions to income than most countries, the US maximum rate doesn't begin until a corporation has made more than $18 million after all deductions which include the god-awful multi-million dollar salaries paid. It also does not include the French VAT of 19.6%. To make life more complicated, if a French firms sells products in France, the effective corporate tax rate could be as high as 54% BUT if the same firm sell outside of Europe, the tax rate is the face rate of 33.33%. In any event, when you read the table, add the VAT to the corporate rate to get the maximum, in-country rate. But wait! You can't compare that to the US rate of 35% -- you must adjust the US rate UP for the sales tax rate in the state you choose to consider.

 

Remember, my summary is greatly over-simplified. There are all sorts of rules, exceptions, avoidance devices and so on for US law. And there are lots of strange laws in other countries, too, you can bet on it. Tomorrow I'll present an example of a product made in England with the changes in prices caused by tax policy in each country. Brazil, for instance, taxes everything that is imported. Everything.  Now for the table.

 

 

 

 

                       Corp           Individual       VAT

Argentina

35%

9-35%

21%

Australia

30%

17-45%

10%GST

Austria

25%

21%-50%

20%

Belarus

26.28%

12%

20%

Belgium

33.99%

25-50%

21%

Brazil

34%

7.5-27.5%

17-25%

Bulgaria

10%

10%

20%

Canada

16.5%(federal)

15-29%(Federal)

5%(gst)

China

25%

5-45%

17%

Czech Rep.

19%

15%

20%

Denmark

25%

38-59%

25%

Egypt

20%

10-20%

10%gst

Finland

26%

6.5-30%

23%

France

33.33%

5.5-40%

19.6%

Germany

30-33%(effective)

14-45%

19%

Greece

24%

0-45%

23%

Hungary

10/19%

17% and 32%

25%

India

30-40%

10-30%

12.5%

Indonesia

28%

5-30%

10%

Ireland

12.5%

20-41%

21%

Israel

24%

10-45%

16%

Italy

31.4%

23%-43%

20%

Japan

30%

5-50%

5%(consump)

Mexico

30%

0-28%

16%

Netherlands

20-25.5%

0-52%

19%

New Zealand

30%

0-39%

15%gst

Norway

28%

28-49%

25%

Pakistan

35%

0-25%

15%

Panama

27.5%

15-25%

7%

Philippines

30%

5-32%

12%

Poland

19%

18%/32%

23%

Portugal

12.5/25%

0-42%

23%

Romania

16%

16%

24%

Russia

20%

13%

18%

Saudi Arabia

20%

20%

----

Singapore

17%

3.5%-20%

7% (gst)

South Africa

28%

0-40%

14%

Spain

30%

24-45%

18%

Sweden

26.3%

0-57%

25%

Switzerland

12.5-24%

0-11.5% (federal)

8%

Turkey

20%

15-35%

18%

U.K.

28%

0-50%

20%

Ukraine

23%

15/17%

20%

U.S.A.

15-35%

15-35%

---