Taxation is a useful tool with which to enhance life within any country, given its revenues are effectively utilized for the betterment of its citizenry’s welfare and the achievement of goals to develop its infrastructure. But as necessary as it is for any government to impose taxes on its people, the burden of taxation is a concern nonetheless for foreign and domestic individuals and entities alike who must pay them. The Global Competitiveness Report, published by the World Economic Forum, uses a number of methods to indicate how competitive a country is on the global market. Among these key factors is a nation’s income tax rates, calculated by dividing the income taxes imposed on citizens relative to their average total incomes using data supplied by the World Bank. With this information, we have compiled a list of countries with the highest taxation rates. Many of those listed are ‘bracketed’ tax rates, wherein the wealthiest of citizens are required to pay the most on their earnings. In such cases, those making lower wages have a smaller percentage deducted.
Though major corporations such as Google and Apple are taking advantage of the relatively low 12.5% income tax rate on corporations, Irish citizens are not quite as lucky. They are met with a tax rate of 48% on incomes over $40,696.
With a median income of $31,000, this country has become world-renowned for making marked improvements in its educational infrastructure, and pays its teachers more than almost anywhere else in the world. It has a tax rate of $49.2% on income of over $87,222.
8. United Kingdom
The British tax rate is at 50% for those earning incomes in excess of $234,484. This European country favors citizens earning less than $14,000, as they are exempted from tax. Unfortunately for the rich, they are not given any pity by the state.
With its capital being home to more millionaires than any other city on the globe, Japan is another high-ranking country on our list, with a tax rate of 50% on income. The country boasts a median income of about $27,000, and the supremacy of Japanese corporations among Asian in producing a variety of sophisticated technology and automobiles means there is plenty of income for the government to tax.
A German-speaking country with a population estimated at over 8 million people, Austria ranks as one of the most taxed countries in Europe. If you are earn a salary of more than $74,442 USD in Austria, then you can expect to have your paycheck docked by 50%.
With a population of over 12 million people, this diverse country is where the European Union calls home, and has a 50% total tax rate on income.
Its small population may be a reason for the Danes' government to impose a total tax rate equivalent to 55.38% of per capita income in order to meet for the needs of its people. Many see this as a justification to its high tax rates, which also allows for increased social program accessibility for the Danish people. Maybe this is part of why the Danish are viewed as some the happiest people in the world.
Sweden has the second highest income tax rate in the world, and the highest in Europe, with a 56.6% deducted from annual income. Though Swedes may be taxed heavily, sales on residential properties are exempted from taxation there.
With its 58.95% income tax rate, Aruba, a constituent member of the Kingdom of the Netherlands, currently has the world’s highest. Additionally, its citizens earn the highest income of all places in the Caribbean.