Recently, the Narendra Modi formed a task force for the complete overhaul of the over-50-year-old Income Tax Law. With this, the debate of lowering the tax rate to increase compliance has also begun given that nearly only 3% of the entire population pay taxes. In India, tax rates are progressive in nature, which means that with increasing income, the tax rate also increases. Here, an income below 2.5 lakh per annum is exempted from any tax 5%, between 5 and 10 lakh is 20% and above 10 lakh is 30%. Corporate tax in India is flat at 30% with some surcharges and cess. But you will be surprised to know how much some countries in the world tax their citizens.
Here are top 5 countries with highest tax rates:
France:
In France, a whopping tax rate of 50.2%. This is not it. Recently there has been a proposal to increase the tax rate for those earning more than 1 million EUR to 75%.
Austria:
Austria, the 12th richest country in the world has extremely high tax rates. The country taxes its citizens at 55%. Besides, high-income tax, it also has social security tax at 18%, bonus payment ay 18% and capital gains at 25%.
Germany:
The most populous country in the Europe has a tax rate of 47.5%. One of the leading economies in the world, Germany taxes all its citizens whether the income earned at home or abroad. Like India, the German Income Tax is also a progressive tax, i.e, with rising income, the tax rate also increase.
Ireland:
Ireland dodged the impact of 2008 market crash quickly because of its growth and development, but it is also one the countries which levy higher income tax on its citizens. Interestingly, it does not tax its corporates at a high rate. The country’s personal income tax is also progressive in nature.
Israel:
The tax rate in Isreal is 50%. The country is considered a hub of culture and education, but the citizens are taxed as high as 50% of their income.