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Taxes are the main source of replenishment of state funds. Throughout the history of mankind, they have been called differently, but no one has yet come up with an alternative to them.
In the first known human civilization, in Mesopotamia, taxes were taken in kind, cattle and grain, then, with the development of the economy, payments began to be levied in cash. Taxes remain the backbone of the state economy, and there is no getting away from it.
However, giving away what you have earned by your own labor is not so pleasant. And people keep looking at other countries: what about them? We will talk about ten countries that have the lowest taxes in the world. The percentage is calculated from the income of the resident and includes all payments, including those made by the employer.
10 Canada, 31,4%
Canada considered a country with one of the highest standards of living in the world. The government managed to build such a system of social protection thanks to taxes, which account for more than 80% of the state budget.
All Canadian residents who receive income, as well as foreign citizens who are in Canada for more than 183 days and receive a salary, are required to pay taxes.
Income tax in Canada is called federal, and its percentage directly depends on the level of salary: the higher the income, the more taxes a citizen pays.
The tax legislation provides for benefits. So, for example, veterans, disabled people, pensioners, temporarily unemployed and other categories of people can use the simplified system.
9. Great Britain, 30,8%
В UK also use a progressive taxation system. This means that the amount of tax depends on the income received.
The difference is that this country has a lower limit, a minimum income at which payments are not collected. In 2019, it amounted to 12 thousand pounds per year. If all the income of a citizen (salary, bonuses, remuneration, rent, dividends) does not exceed this amount, then he does not pay anything, and the remaining interest, 13,8%, is paid by the employer. As the minimum amount of income is exceeded, the tax rate also increases.
The taxation system in the UK is simple and transparent, which attracts taxpayers and enriches the state treasury.
8. Australia, 28,6%
Australia – Another state with a progressive taxation system. It is not surprising, because this country adopted a lot from its former colonizers. When applying for a job, the applicant is informed of the annual salary before deductions. Taxes, on the other hand, depend on income and average 24-26%. Another 2% will have to be paid for medical insurance.
To get a job, you must have a tax number, an analogue of our TIN. If it is not, then up to 50% will be withheld from taxes. The employer is responsible for all payments. At the end of the billing year, the employee receives a document in his hands, which indicates the amount of wages received and the tax transferred.
Many receive a tax deduction at the end of the year, since a larger percentage is usually withheld during the year, which is returned after recalculation.
7. Ireland, 27,1%
Ireland known for its loyal tax policy and benefits that can be enjoyed by different segments of the population. The principle of taxation ispay what you earn».
The rate varies depending on the level of income, and for single residents of the country it has been set at around 32 euros per year. If the salary does not exceed this amount, then you need to pay only 800%. And just over 20% of the excess.
For married citizens, the minimum amount has been doubled to just over 65 euros. You will also have to pay a social tax, the percentage of which depends on the level of income and ranges from 000 to 2%.
Ireland is a tax haven for creative individuals and the so-called self-employed citizens: in this country they are exempt from paying taxes.
6. South Korea, 22,2%
Once upon a Time South Korea was among the poorest countries in the world. But now, thanks to the rapid growth of the industry, South Korea has reached a new level. She is constantly in need of qualified workers and specialists and is ready to offer a good salary, coupled with an original, but attractive business ethic.
No less attractive is the system of taxation in this country. As in many other states, the percentage of tax directly depends on the level of income. Depending on the salary, a Korean pays the state from 6 to 33% monthly, but the average is 20%, including social payments.
5. Israel, 22,1%
The Israeli taxation system is based on the British one, which has proven itself in the Foggy Albion. The Israeli government began to implement it in the middle of the 20th century, and since then the system has undergone periodic changes that improve it.
In this country, income tax is paid by individuals: employees and entrepreneurs. The percentage depends on the level of income. The government made attempts to increase taxes, which led to a sharp decrease in wages, so a 6-step taxation system was developed.
The poorest segments of the population Israel pay only 10% of the salary, the richest people – 50% of all income. The average percentage of taxes was set at 22,1%.
4. Switzerland, 21,8%
В Switzerland all persons residing in its territory regularly or for more than 183 days are required to pay taxes. Foreign citizens who somehow earn on the territory of the state (for example, by renting out housing) pay a fee.
Switzerland has a progressive taxation system, the percentage depends on the level of income. Moreover, each canton (administrative unit) has the right to set its own percentage. So, for example, the minimum rate is registered in the territories of Appenzell-Auserrhoden and Obwalden, the maximum – in Basel-Stadt. The average interest rate is 21,8%.
3. Mexico, 20,1%
The line between different types of taxes in Mexico pretty thin. They are required to be paid by all residents who receive any income: regular transfers of money to a card, salary, business income.
Thus, having an apartment in Mexico, a person is obliged to pay property tax, but if he starts renting it out, he will turn into a businessman and will pay tax on business income.
The system there is also progressive, and for the poorest segments of the population, the percentage is about 3%, taking into account all bonuses and payments. But on average, this figure was set at around 20%.
2. New Zealand, 17,9%
The tax system in new Zealand very flexible, and the percentage depends on both the level of income and the period for which payments are collected. Therefore, it is impossible to say that the entire population pays 17,9% without exception, this is an average figure.
New Zealand has four levels of tax rates, which are 10%, 17,5%, 30%, 33%. It is obvious that the last two figures refer to the smallest and wealthiest stratum of society.
There is a separate rate for those who have not received a tax number (an analogue of the Russian TIN), such people are required to deduct up to 45% of their income to the state treasury.
1. Chile, 7%
В Chile taxpayers fall into two categories. The first includes those who receive income from deposits, stocks and businesses. They pay 25-27% of their profits. The second category is citizens working for hire. They pay tax based on their income level.
The richest segments of the population can give up to 40% of their profits to the treasury, but on average, tax collections are 4-8% of wages. They are collected by the employer and include pension contributions, insurance contributions, including medical, and special contributions, such as union.