It is a requirement every year for an individual to file their income taxes. You might say it’s ripped off but those pennies collected greatly helps the government in providing services to it’s people. On today’s Top 10 List, you would know which countries has the highest Average Tax rates across the globe.

Top 10: Israel with 15.50% average- is a Middle Eastern Country on the Mediterranean Sea with it’s capital Jerusalem. According to Israel Central Bureau, it was estimated 8,758,620 people living. Taxation in Israel include income tax, capital gains tax, value-added tax and land appreciation tax. The primary law on income taxes in Israel is codified in the Income Tax Ordinance. There are also special tax incentives for new immigrants to encourage aliyah.

Following Israel’s social justice protests in July 2011, Prime Minister Benjamin Netanyahu created the Trajtenberg Committee to hold discussions and make recommendations to the government’s socio-economic cabinet, headed by Finance Minister Yuval Steinitz. During December 2011 the Knesset reviewed these recommendations and approved a series of amendments to Israel’s tax law. Among the amendments were the raising of the corporate tax rate from 24% to 25% and possibly 26% in 2013. Additionally, a new top income bracket of 48% (instead of 45%) would be introduced for people earning more than NIS 489,480 per annum. People who earn more than NIS 1 million a year would pay a surtax of 2% on their income and taxation of capital gains would not be decreased to 20% but remain at 25% in 2012.

Top 9: New Zealand with 16.40% average- is a country in the southwestern Pacific Ocean with it’s capital Wellington. As of June 2016, the population of New Zealand is estimated at 4.69 million and is increasing at a rate of approximately 2.1% per year. Taxes in New Zealand are collected at a national level by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand. National taxes are levied on personal and business income, and on the supply of goods and services. There is no capital gains tax, although certain “gains” such as profits on the sale of patent rights are deemed to be income – income tax does apply to property transactions in certain circumstances, particularly speculation. There are currently no land taxes, but local property taxes (rates) are managed and collected by local authorities. Some goods and services carry a specific tax, referred to as an excise or a duty, such as alcohol excise or gaming duty. These are collected by a range of government agencies such as the New Zealand Customs Service. There is no social security (payroll) tax. Income tax varies dependent on income levels in any specific tax year (personal tax years run from 1 April to 31 March).

New Zealand went through a major program of tax reform in the 1980s. The top marginal rate of income tax was reduced from 66% to 33% (changed to 39% in April 2000, 38% in April 2009 and 33% on 1 October 2010) and corporate income tax rate from 48% to 33% (changed to 30% in 2008 and to 28% on 1 October 2010). Goods and services tax was introduced, initially at a rate of 10% (then 12.5% and now 15%, as of 1 October 2010). Land taxes were abolished in 1992.

Rates are for the tax year 1 April 2017 to 31 March 2018, and are based on tax code M (primary income without student loan) and excludes the ACC earners’ levy. The earners’ levy rate (including GST) for the period 1 April 2015 to 31 March 2016 is 1.45% ($1.45 per $100)

In New Zealand, the income is taxed by the amount that falls within each tax bracket. For example, persons who earn $70,000 will pay only 30% on the amount that falls between $48,001 and $70,000 rather than paying on the full $70,000. Consequently, the corresponding income tax for that specific income will accumulate to $14,020— which comes to an overall effective tax rate of 20.02% of the entire amount.

Top 8: USA with 22.70% average- USA. The United States of America (USA), commonly known as the United States (U.S.) or America is a federal republic composed of 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles (9.8 million km2) and with over 324 million people, the United States is the world’s third- or fourth-largest country by total area and the third-most populous with it’s capital is Washington, D.C

The United States of America is a federal republic with separate federal, state, and local government(s) with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees. In 2010, taxes collected by federal, state, and municipal governments amounted to 24.8% of GDP.

However, taxes fall much more heavily on labor income than on capital income. Divergent taxes and subsidies for different forms of income and spending can also constitute a form of indirect taxation of some activities over others. For example, individual spending on higher education can be said to be “taxed” at a high rate, compared to other forms of personal expenditure which are formally recognized as investments.

Taxes are imposed on net income of individuals and corporations by the federal, most state, and some local governments. Citizens and residents are taxed on worldwide income and allowed a credit for foreign taxes. Income subject to tax is determined under tax accounting rules, not financial accounting principles, and includes almost all income from whatever source. Most business expenses reduce taxable income, though limits apply to a few expenses. Individuals are permitted to reduce taxable income by personal allowances and certain non-business expenses, including home mortgage interest, state and local taxes, charitable contributions, and medical and certain other expenses incurred above certain percentages of income. State rules for determining taxable income often differ from federal rules. Federal tax rates vary from 10% to 39.6% of taxable income. State and local tax rates vary widely by jurisdiction, from 0% to 13.30% of income, and many are graduated. State taxes are generally treated as a deductible expense for federal tax computation.

Top 7: UK with 24.90% average -The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) and colloquially Great Britain (GB) or simply Britain, is a sovereign country in western Europe. Lying off the north-western coast of the European mainland, the United Kingdom includes the island of Great Britain, the north-eastern part of the island of Ireland and many smaller islands with it’s capital London. The population of the UK is around 65,648,000 as of 2016 Census.

Taxation in the United Kingdom may involve payments to a minimum of three different levels of government: the central government (Her Majesty’s Revenue and Customs), devolved national governments and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England and Wales, Council Tax and increasingly from fees and charges such as those from on-street parking. In the fiscal year 2014–15, total government revenue was forecast to be £648 billion, or 37.7 per cent of GDP, with net taxes and National Insurance contributions standing at £606 billion.

Top 6: Greece with 25.4% average- is a country in southeastern Europe, with a population of approximately 11 million as of 2016. Athens is the nation’s capital and largest city, followed by Thessaloniki. Greece is located at the crossroads of Europe, Asia, and Africa. Situated on the southern tip of the Balkan peninsula, it shares land borders with Albania to the northwest, the Republic of Macedonia and Bulgaria to the north, and Turkey to the northeast. The Aegean Sea lies to the east of the mainland, the Ionian Sea to the west, the Cretan Sea and the Mediterranean Sea to the south. Greece has the longest coastline on the Mediterranean Basin and the 11th longest coastline in the world at 13,676 km (8,498 mi) in length, featuring a large number of islands, of which 227 are inhabited. Eighty percent of Greece is mountainous, with Mount Olympus being the highest peak at 2,918 meters (9,573 ft). The country consists of nine geographic regions: Macedonia, Central Greece, the Peloponnese, Thessaly, Epirus, the Aegean Islands (including the Dodecanese and Cyclades), Thrace, Crete, and the Ionian Islands.

Income taxation in Greece is progressive. An individual in Greece is liable for tax on their income as an employee and on income as a self-employed person. In the case of an individual who is a permanent resident of Greece, their tax owed is calculated on their income earned in Greece and overseas. An individual whose income is only from a wage is not obligated to file an annual return. The employer deducts tax from the employee and transfers it to the tax authority every month.

In May 9, 2016 a new set of emergency measures were voted in the Parliament by the SYRIZA/ANEL government. These changes include new income tax rates as well as new solidarity tax rates. The tax rates applicable to income earned in 2016 are as follows:

 

Income                         Taxation

€0 – €20,000                           22%

€20,001 – €30,000                 29%

€30,001 – €40,000                 37%

> €40,001                    45%

 

Top 5: Austria with 34% average- is a federal republic and a landlocked country of over 8.7 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Hungary and Slovakia to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west. The territory of Austria covers 83,879 km2 (32,386 sq mi). The terrain is highly mountainous, lying within the Alps; only 32% of the country is below 500 m (1,640 ft), and its highest point is 3,798 m (12,461 ft). The majority of the population speaks local Bavarian dialects of German as their native language, and German in its standard form is the country’s official language. Other local official languages are Hungarian, Burgenland Croatian, and Slovene.

In Austria, the income tax for individuals in 2005 was progressively set up to 50% on a progressive schedule:

Percentage from gross salary    Salary range

0%                                    €11,000

25%                                  €11,001 – €18,000

35%                                  €18,001 – €31,000

42%                                  €31,001 – €60,000

48%                                  €60,001 – €90,000

50%                                   €90,001 – €1,000,000

55%                                   Over €1,000,000

 

Married people are taxed separately. Payroll withholding tax is in effect.

Taxes are levied on corporations (25% on distributed and undistributed profits), trade income, real estate, inheritance, dividends, gifts, and several miscellaneous services and properties.

A value-added tax was introduced January 1, 1973 at a basic rate of 16%. The standard rate of 20% is valid since 1984 whilst the reduced rate of 13% (since 1.1.2016) is applied to basic foodstuffs, agricultural products, rents, tourism, and entertainment; banking transactions are exempt and exports are untaxed.

Capital gains and dividend income are taxed at 25% and are withheld at source. There is no wealth tax. In accordance with EU guidelines, tax exemptions and reductions are included in incentive packages for investment in economically depressed and underdeveloped areas along Austria’s eastern border.

The VAT (value-added tax) is in 20% a standard rate

Top 4: Hungary with 35% average- is a unitary parliamentary republic in Central Europe. It covers an area of 93,030 square kilometres (35,920 sq mi), situated in the Carpathian Basin, and is bordered by Slovakia to the north, Romania to the east, Serbia to the south, Croatia to the southwest, Slovenia to the west, Austria to the northwest, and Ukraine to the northeast. With about 10 million inhabitants, Hungary is a medium-sized member state of the European Union. The official language is Hungarian, which is the most widely spoken Uralic language in the world. Hungary’s capital and its largest city and metropolis is Budapest, a significant economic hub, classified as a leading global city. Major urban areas include Debrecen, Szeged, Miskolc, Pécs and Győr.

Taxation in Hungary is levied by both federal and local governments. Tax revenue in Hungary stood at 39.3% of GDP. The most important revenue sources include the income tax, Social security, corporate tax and the value added tax, which are all applied on the federal level. Among the total tax income the ratio of local taxes is solely 5% while the EU average is 30%.

Income tax in Hungary is levied at a flat rate of 15%. A tax allowance is given through a family allowance which is equal to the allowance multiplied by the number of “beneficiary dependent children”. For the first children the allowance is HUF 66,670, while the second dependent children the allowance is HUF 100,000, in case of 3 or more children the allowance is HUF 220,000 per beneficiary dependent child. The amount of tax allowance can be split between spouses or life partners.

The rate of value added tax in Hungary is 27% as standard rate, the highest in Europe, since 1 of January, 2012. There is a reduced rate of 5 percent for the sale of most medicines and some food products. A reduced rate of 18 percent is applicable to internet connections, restaurants and catering, dairy and bakery products and hotel services and admission to short-term open-air events.

From January 2017, under the new Corporate income tax regime, the corporate tax in Hungary is unified at a tax rate of 9% – the lowest within the European Union.[8] Dividends received are not subject to taxation, provided that are not received from a Controlled Foreign Company (CFC), capital gains are included in corporate tax, with certain exemptions.

Employment income is subject to social security contributions, for the employer at a flat rate of 22% Further more employers pay 1.5% into a training fund. Capital gains is taxed at a flat rate of 15%

Top 3: Denmark with 38.90% average- is a Nordic country and a sovereign state. The southernmost of the Scandinavian nations, it is south-west of Sweden and south of Norway, and bordered to the south by Germany. The Kingdom of Denmark also comprises two autonomous constituent countries in the North Atlantic Ocean: the Faroe Islands and Greenland. Denmark proper consists of a peninsula, Jutland, and an archipelago of 443 named islands, with the largest being Zealand, Funen and the North Jutlandic Island. The islands are characterized by flat, arable land and sandy coasts, low elevation and a temperate climate. Denmark has an area of 42,924 km2 (16,573 sq. mi), total area including Greenland and the Faroe Islands is 2,210,579 km2 (853,509 sq. mi), and a population of 5.75 million (as of 2017).

The income tax in Denmark was introduced in 1903 and is now divided into a state income tax and a local income tax. The state income tax is a progressive tax while the local income tax is a flat tax.

All income from employment or self-employment is taxed at 8% before income tax. This tax is termed a “gross tax” (Danish: Arbejdsmarkedsbidrag). Income below DKK 43 442 (USD 7 800) (2017-level, adjusted annually) is income tax-free, but subject to the gross tax. Interest paid up to DKK 50 000 is tax deductible. Commuting exceeding 24 kilometers/day receives a DKK 2.05 per kilometer tax deduction. For commutes exceeding 100 kilometers per day, the rate is reduced to DKK 1.03 per kilometer. A number of other deductions apply. The general rule is that the taxpayer is able to deduct his/her expenses in acquiring their taxable income, although there are many exceptions to this rule. Employees have very limited possibilities for tax deduction as it is assumed that the employer covers the expenses related to the employee’s work. The employer will then be able to deduct most of these expenses from his own taxable income. Furthermore, Union Fees are tax deductible.

The state income tax has two income brackets (base and top). In 2017 income from DKK 43 442 to DKK 479 600 is taxed at 5.83% and income above DKK 479 600 is taxed an additional 15%. Other taxes include Municipal income tax, currently in the range 23% – 28%, though on average 24.09%, and a state tax, in the range of 8% – 15%. A Health contribution tax (3% (2016); 2% (2017);1% (2018); 0% (2019) apply on all income above the tax free allowance in year 2014, though from there the health contribution is getting merged with the regular income tax by one percent per year. From 1 January 2019 there will be no health tax as it will then have been phased out, by then being part of the income taxes that everyone pays. Under the Danish tax system, it is possible for a high-wage earner to pay up to 51.5% of their total income after gross tax, giving a total of 57% of total income.

Top 2: Germany with 39.90% average- is a federal parliamentary republic in central-western Europe. It includes 16 constituent states, covers an area of 357,021 square kilometres (137,847 sq mi), and has a largely temperate seasonal climate. With about 82 million inhabitants, Germany is the most populous member state of the European Union. After the United States, it is the second most popular immigration destination in the world. Germany’s capital and largest metropolis is Berlin, while its largest conurbation is the Ruhr, with its main centres of Dortmund and Essen. The country’s other major cities are Hamburg, Munich, Cologne, Frankfurt, Stuttgart, Düsseldorf, Leipzig, Bremen, Dresden, Hannover and Nuremberg.

Taxes in Germany are levied by the federal government (Bund), the states (Länder) as well as the municipalities (Städte/Gemeinden). Many direct and indirect taxes exist in Germany; income tax and VAT are the most significant. The German word for tax is die Steuer which originates from the Old High German word stiura meaning help.

The rate of income tax in Germany ranges from 0% to 45%. The German income tax is a progressive tax, which means that the average tax rate (i.e., the ratio of tax and taxable income) increases monotonically with increasing taxable income. Moreover, the German taxation system warrants that an increase in taxable income never results in a decrease of the net income after taxation. The latter property is due to the fact that the marginal tax rate (i.e., the tax paid on one euro additional taxable income) is always below 100%. Income tax rate in 2015

No income tax is charged on the basic allowance, which is €8,354 for unmarried persons and €16,708 for jointly assessed married couples. Beyond this threshold, the marginal tax rate increases linearly from 14% to 24% for a taxable income of €13,469 (€26,938 for married couples). In the subsequent interval up to a taxable income of €52,881 (€105,762 for married couples), the marginal tax rate increases linearly from 24% to 42%. The last change of rates occurs at a taxable income of €250,730 (€501,460 for married couples) when the marginal tax rate jumps from 42% to 45%.

And on our Top 1 Spot is…

Belgium with 42.80% average-is a sovereign state in Western Europe bordered by France, the Netherlands, Germany, Luxembourg, and the North Sea. It is a small, densely populated country which covers an area of 30,528 square kilometres (11,787 sq mi) and has a population of about 11 million people. Straddling the cultural boundary between Germanic and Latin Europe, Belgium is home to two main linguistic groups: the Dutch-speaking, mostly Flemish community, which constitutes about 59 percent of the population, and the French-speaking, mostly Walloon population, which comprises 40 percent of all Belgians. Additionally, there is a small 1 percent group of German-speakers who live in the East Cantons.

In Belgium, taxes are collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, social security, corporate taxes and value added tax. At the local level, property taxes as well as various fees are collected. Tax revenue stood at 48% GDP in 2012.

The effective taxation rate in Belgium is commonly cited as among the highest in the world; see list of countries by tax rates.

Income tax is calculated by applying a progressive tax rate schedule to taxable income, with rates that go from 25% to a maximum rate 50%. The rates, as of 2015, are as follows:

 

Annual income                               Tax rate

In between 0 and €10,860                        25%

In between €10,860 and €12,470            30%

In between €12,470 and €20,780            40%

In between €20,780 and €38,080            45%

In excess of €38,080                                  50%

 

Employment income is also subject to social security contributions. Employee contributions are 13.07% and are deducted by the employer. In addition, the employer contributes about 35% of employee’s wage. No ceiling for contributions apply on contributions for either employee and employer.

Value-Added Tax (VAT) applies to most sales of goods and services. The standard rate of value-added tax is 21%. A lower rate of 12% applies to social housing, meals and margarine. Another reduced rate of 6% applies to foods, drinks, hotels and medicine. Certain goods and services are exempted from VAT by law, this includes exports, and financial services. The Belgian VAT is part of the European Union value added tax system. Smaller businesses with a turnover lower than €25000 are exempt as of 01/01/2016.Corporate tax applies at a standard rate of 33.99%

That is your Top 10 Countries with Highest Tax Rates around the Globe ! Please pay your taxes to avoid TAX EVASION case!