Skip to main content

The countries with the world’s top 5 highest income rates


With the globe still struggling to recover from the worst recession since World War II and elections occurring in Europe and the USA, taxes have once again become a hot topic of conversation as many countries propose further rises. But which countries currently have the highest income tax rates?

5. Japan, Belgium, Austria, UK (tied)
The top income tax rate for Japan, Belgium, Austria and the UK is 50%. As the only Asian country in the top 5 highest income tax rates in the world, Japan’s top tier rate of 50% is more than double Asia’s average of 23%. Despite this, its tax revenue is the fifth lowest amongst OECD member countries due to a rocketing national debt crisis.
Western Europe may have the highest income tax rates of any region in the world but Belgium’s highest tax rate is still 5% higher than the average. Belgians are lumped with the highest tax and social security burden, regardless of income, of any OECD member. Austria may frequently be ranked as one of the best places to live in the world but they are certainly taxed for the privilege! When the UK raised its top income tax rate to 50% in 2010 it leapt from the 13th to the 4th highest income tax rate in the European Union and was the biggest top-rate income tax hike in the world that year.

4. The Netherlands
At 52%, well above Western Europe’s average of 45.7%, The Netherlands’ top income tax bracket is undoubtedly high but it does help to pay for a wealth of benefits. The Dutch enjoy reimbursements of up to 70% on childcare, subsidies on children’s books, money towards holidays which amounts to 8% of an individual’s salary, and free medical care.

3. Denmark
Denmark’s income tax rate for its top band of wage earners may have come down from 62.3% in an economy-boosting drive in 2008 but it is still 55.4%, making it the third highest rate in Western Europe. However, these tax cuts have also decreased the tax and social security burden on single taxpayers.

2. Sweden
At 55.6%, Sweden’s top income tax rate is higher than any other Scandinavian country and the second highest in the world. However, its taxes fund an incredibly generous social security system - Sweden spends more of its GDP on social services than any other country in the world - which allows Swedes to enjoy free education, subsidised healthcare and public transport, and a government-guaranteed pension.

1. Aruba
Not many would guess that the country with the highest income tax in the world is Aruba. The tiny Dutch territory in the Caribbean has a top tier income tax rate of 59%, far higher than the Caribbean average of 26.7% and astronomically higher than the Bahamas, Bermuda and the Cayman Islands which have no income tax at all. However, the island also boasts one of the highest standards of living in the Caribbean.

Aruba may not stay at the top spot for much longer if the newly elected French president Francois Holland has his way. To help pay off the country’s crippling debt, Holland is proposing to raise the income tax rate on the wealthiest (those who earn over €1 million) from the current 48% to a whopping 75%!

This articles is provided by My Refund, the New Zealand registered tax agent www.myrefund.co.nz

Comments

Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

QROPS pension advantages

What is QROPS pension? QROPS or Qualifying Recognized Overseas Pension Scheme is an overseas pension scheme that gives excellent retirement planning benefits. To enjoy this benefit you don’t have to have to pay any unauthorized amount. Only you have to see that it full fills requirements in order to recognize by HMRC or Her Majesty's Revenue and Customs.

Can Anybody Profit With Binary Options?

Binary options, also called digital options, are one of the simplest types of trades to understand. That is because they simply consist in deciding if a particular stock will gain or lose value in a short amount of time. That is not to say that everybody profits from every trade. But with determination, many people can learn to develop a successful trading strategy.

Get a Prepaid Debit Card

How do I get a prepaid debit card? How do you access your paycheck, social security check, or other regular payments? If you're using a check cashing service, chances are you're paying high fees that are eating into the money you need to pay your bills. Bank accounts are often no better, with more and more banks piling fees on top of fees for checking and savings accounts. Many people that cannot set up a bank account because they have had consumer debt issues in the past turn to check cashing services at retailers because they believe it is their only alternative. The problem is that these merchants typically charge a 2% to 3% service charge. Assuming you receive a weekly paycheck of $400, this fee can add up to $624 every year! It may seem like a small fee each week, but clearly that fee adds up. Someone eligible to open a checking account may think that bank accounts are a better choice for check cashing. However, recent legislature limiting banks from charging for some ser

Short Term Loan Solutions

Individuals that are in need for immediate financing have many short term loan solutions available. The type of short term loan that you need will depend on your circumstance. However, you need to research all of your options before completing an application. A short term loan is after all a line of credit. Determine Your Need Many reasons exist for requiring a short term loan. These can include a sudden emergency or other types of unexpected expenses. Emergencies that may require a short term loan include replacing your home's water heater repairs to your car. Other types of unexpected expenses include paying a higher than usual phone bill.

A few tips about how to save money on your Car Insurance

Auto insurance is often one of the top five highest expenses in a typical family’s budget. With the cost of accidents so high, States require that every automobile on the road must have at least liability coverage. In addition, since many people finance or lease their cars, banks require full coverage until the car is completely paid off. With so many requirements for insurance, it is no wonder that drivers often find themselves “insurance poor.” The good news is there are a handful of things that many drivers and families can do to reduce their insurance rates and put a little more of their hard earned money back in their pocket. Below are some of the best ways to get that premium lowered.