There are very few people in the world who pay their taxes gladly. Tax is a bugbear for millions worldwide. Tax rates vary between nations and depend on factors like earnings, marital status, etc. While some countries like the UAE does not impose taxes on the wealth of companies and individuals, some countries charge exorbitant taxes.
Here are the Top 10 Countries with Highest Tax Rates pay the highest slice of their earnings to the taxman.
10.Ireland (48% on income more than $40,696)
Ireland has successfully attracted reputed companies like Pepsi, SAP, etc with its low corporate tax rate; but it is making up for the loss in revenue by imposing high taxes on its citizens. The tax rate is 48 percent for income more than $40,696. While some experts are of the opinion that high income tax rate may drive young people out of the country, some say that they help in bridging the divide between the rich and the poor.
9.Finland (49.2% on income more than $87,222)
This northern European country has made significant strides in improving the quality of its education system. Schools do not charge tuition fees. They also serve subsidized meals to fulltime students. But all this has come at a cost. The tax rate is 49.2 percent on income over $87,222. The personal income tax rate averaged 53.10 percent from 1995 to 2014. Tax is imposed on various sources of income like pensions, labor, dividends and interest.
8.United Kingdom (50% on income more than $234,484)
Income tax is the single largest source of revenue for the United Kingdom Central Government; about 30 percent of the total revenue comes from income tax. People with income less than around $14,000 need not pay income tax. On the other hand people earning over $234,484 have to pay half their income as taxes. This is definitely not a palatable fact for many.
7.Japan (50% on income more than $228,880)
In Japan, the cutoff is slightly lower than that in the UK. The personal income tax in this Asian country averaged 50.15 percent from 2004 to 2014. The rate is reported by the National Tax Agency Japan. Since the median income is about $27,000, many people need not pay huge taxes, but super rich have to shell out huge amounts.
6.Austria (50% on income more than $74,442)
In Austria, if you are a worker earning $75,000, you can expect a tax bill of around $50,000. In addition to the above-mentioned 50 percent, paycheck earners have to deal with 18 percent payroll taxes.
5.Belgium (50% on income more than $45,037)
Belgium is famous for taxing its citizens. If you are in Belgium, after paying income, payroll, local and a host of other taxes, you are fortunate if something remains in your bank account.
4.Netherlands (52% on income more than $70,090)
The rich in Netherlands pay more than half their income as taxes. As one would expect, there is demand for the services of skilled accountants and high-end accounting software in this northwestern European country.
3.Denmark (55.38% on income more than $70,633)
Around 5.6 million people live in Denmark. Taxes these people pay help in funding a top-notch education system, a universal healthcare system and generous unemployment benefits. The median wage is $40,000. Danes enjoy a high standard of living. Also they don’t seem to mind he high tax rate, because this northern European nation is frequently ranked as one of the happiest countries in the world.
2.Sweden (56.6% on income more than $85,841)
Sweden has more billionaires per capita than the US, and they all shell out more than half their income in taxes. Sweden has the highest tax rate in Europe. This socialist state invented the Nordic model, which characterizes nations like Finland, Norway, Iceland and Denmark. Revenue generated from high taxes is used to fund a guaranteed personal pension, free education and subsidized healthcare.
1.Aruba (58.95% on income more than $171,149)
