Every country levies tax on its residents in order to raise funds for public projects and to meet governmental expenses. Tax rates vary from jurisdiction to jurisdiction as per requirements of government expenses and funding needs. Income taxes have to be paid on annual basis through a direct taxation method. The tax rates are different in different countries of the world according to the economic condition of each country. The Saudi Nation is blessed as they don’t have to pay even a single penny of tax in the name of social security, capital gains, payroll taxes or stamp duties. The natives of Saudi Arabia enjoy a tax less life which is the biggest relief for a citizen. Few countries of the world pay very high tax rates to their states due to bad economic practices or some other reasons. The list of top 10 highest tax paying countries as per statistics of 2016 is as follows;
Aruba (an island in Southern Caribbean Sea): The tax rate applicable to the income of residents is 58.95%. The salaried persons of the island are exempt from income taxes and employers have to pay social security taxes on the behalf of their employees. Standard VAT rate applicable in Aruba is 15%
Sweden: 56.6% is the applicable tax rate in Sweden as public projects are widely started all over the country by state. People get free of cost education and subsidy on healthcare and transport services. The contribution of 31.42% in social security tax of employee has to be made by their employers and 30% flat tax rate is applicable on capital gains.
Denmark: The current tax rate is 55.56% which has to lessen down from 62.3% back in 2008. The country’s tax laws do not support social security tax or transfer tax. Besides this, inheritance transferred from a spouse is also not taxable. All other inheritances have to be taxed at the rate of 36.25%.
Netherlands: Like Aruba, Netherlands also don’t levy any kind of taxes on payroll. There is no capital tax and stamp duty as well. The applicable tax rate is 52 %. Transfer tax has to be paid at the rate of 6% of total price of the property.
Belgium: Tax rate is applicable at the rate of 50 % and employers have to make contributions in social security payment of employees.
Japan: Tax rate is 50% which is applicable at a specific grid i.e. minimum income should be $228,880 annually. The tax scheme is divided into two parts i.e. 10% property tax and 40% marginal rate.
Austria: Tax rate is 50% which includes 17-18% of social security whereas holiday bonuses are taxed at 6%.
United Kingdom: Tax rate is 50 % for those with the minimum income level of $234,484. The social security tax rates are also high i.e. 14%.
Finland: Tax rate applicable in Finland is 49.2%, whereas the minimum level of income which is chargeable to tax is $91,000. The capital gain tax is applicable at the rate of 28%. Municipal tax is 21% whereas 1-2 % tax is also levied on churches.
Ireland: The tax rate is 48 % for minimum income holder of $40,696. Different forms of taxes applicable to the public are a tax on gifts which vary from 25-30 %, social security tax which is applicable @ 4% and capital gain tax.