Tax pressure around the world? How is yours?
 

How is the tax pressure around the world?

This thread is meant to give an overview on how the tax is around the world. The fees on my new car inspired me. See below and you know why.
Please reply if you have something to add.


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Denmark:

Income tax:
Average 50%
Max 60%
Deduction DKK 30000 = $6000

VAT:
25% on all products, deductable for companies.

Company tax:
30%

New car:
Price + 25% VAT + 180% registration fee of the price
100.000 becomes 305.000

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you guys really get hosed with the new car thing

jeps det sutter at bo i Danmark

Yes, we pay for the car three times when we buy a new car.

and I thought The Netherlands were bad

How is that? Let's get some numbers.

How is it in the states?

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Slovakia:

Income tax:
Average 19%
Max 19%

VAT:
19% on all products, deductable for companies.

Company tax:
19%

New car:
Price + 19% VAT

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sweet teens :1orglaugh
:winkwink:

Thats crazy.. I'd just get a bicycle or something. I am too inately cheap to pay that much in taxes.

Is Slovakia relatively safe? Is there a lot of institutional corruption?

Well here in the US the income tax varies greatly depending on how much you make. I personally have had years where I have paid 40% and I have had years where I paid nothing.

On vehicles as far as I know there is no national tax. Most states have a normal sales tax of 5-6%, here in Indiana it was just moved up to 6% from 5% it had been for years. That sales tax applies to everything except for groceries, those are non taxable.

If I lived in an EU country I would rather shoot myself than to pay 60% on my income and then have to pay 60k on a 20k car, FUCK THAT SHIT. How in the hell does your governments expect people to be able to buy anything. Shit I thought the economy here in the states was bad right now. I guess the US really is the best place in the world to live. Geez that is just outrageous on those car taxes.

The Netherlands is not that different from Denmark.... actually pretty close to each other

France:

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Income tax:
Average 30%
Max 54%

VAT:
19.6% on all products, deductable for companies.

Company tax:
33%

New car:
Price + 19.6% VAT

Paying someone working for you = you must give an extra 90% to the state for retirement, health insurance, unemployment ect.

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I hate taxes

Belgium :thumbsup

21% VAT on new cars. But ZERO on SUVs if bought thru a business. So Brussels is full of Porsche Cayennes

Zero registration tax on SUVs, for other cars it depends on the enigne size

For income tax the rate is a maximum of 52% but thats for employed people. Self employed people hardly pay any tax with all the deductions

Zero Capital gains tax

Zero income tax on capital gains on savings upto ?150k

And if you are an expatriate you can get an even more advantageous tax rate (zero tax on income from outside Belgium).

Excellent.

How about Australia, UK or Canada?



Totem Rex:
I was pretty surprised by this.
It's nearly a double up for the company.

Wow, that is ridiculous.

Canada:

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Income Tax:

Average Income per capita: $58,782CDN (approx $45,000USD)

Raw earned income tax rate on that level of income, before deductions (2004 federal): 18.43%

Raw earned income tax rate on that level of income, before deductions (2004 provincial): Between 7.39%(ontario) and 18.36%(quebec), average is 11.56%

Total earned income tax before deductions: 30%

Highest marginal earned income tax: between 40% and 51%. These margins don't kick in until well over the $100k/year earned income point.

VAT: 7% GST on most transactions, low income earners eligible for partial or full refund. Some provinces additionally have PST.

New Car: I don't know. While there's a copious amount of information online about tax numbers for earned income, unearned income, capital gains and so on, I've found *NO* references to automobile taxes, and I don't happen to have my financing papers handy to see what it was for my last purchase. Maybe another 'nuck can chime in with those numbers.

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I should point out that these numbers leave out a lot of subtleties. For example, in addition to taxes, a salaried or wage-earning citizen must also contribute some percentage of each check to employment insurance, canada pension plan, etc. There also tends to be surtaxes on various items, such as gasoline and cigarettes. As such, while we may only pay 30% income tax on average, our effective purchasing power is somewhat reduced.

Oh, yeah

Canada (corporate):

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Base federal corporate tax rate (2004): 13.1% up to 250k, 22.1% beyond 250k.

Base provincial corporate tax rate(2004): Varies between 3%(New Brunswick and for some businesses in alberta) and 8.9%(Quebec) up to 250k, average is 5.3%. Beyond 250k, average is 13.9%.

Total effective corporate tax rate (averages): 18.4% <250k, 36% on income beyond 250k.

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Note: Of course, noone pays anywhere close to these amounts. The corporate tax system in Canada is so full of things that can be depreciated and deducted it's conceivable that with careful tax planning and expenditure control your business could pay little or nothing. Small business is particularly blessed, as shareholders are allowed up to 25k in dividends tax-free per year, and items purchased for the business can be claimed for GST refund. :thumbsup

It should be a truism in Canada that if you make over $70k/year, you absolutely must incorporate if possible. The tax benefits are massive... the 25k of tax free dividend alone covers the costs of lawyer and accountant fees easily.

Why do you think Vikings found America? :winkwink:

They didn't. They found Newfoundland. :1orglaugh

It's kinda hard to believe it.

Yes, but it's reality over here.

The EU has said the registration fee should be removed inside 10 years - the Danish government won't loose that income, lets see if they obey.

If it happens, I think the price of the fuel will tripple and so will the annual fee for using the roads.

But let's not start a political discussion - the idea was to see how the taxes was around the world.

Let's get some more numbers on the table.

How come taxes are so high up there in Scandinavia?

Hi sir, for example, what does a porsche cayenne Turbo cost you?

Also, all my money comes from OUTSIDE Belgium.
(ccbill, other US sponsors etc) does this mean when I make 100.000 Euro a year profit with those checks , I can spend 100.000EURO. And I don't have to pay ANY TAX AT ALL!?

Andre

When was the flat taxt rate of 19% introduced in your country? Did it help your country's growth?

Quote:

sweet teens :1orglaugh :winkwink:

:eek7 :eek7 :eek7

Are you sure you live in the same Belgium as I do? :eek7

60%

You have to keep other things in mind.
Minimum wage in Denmark is $15 an hour, 5-6 weeks of paid vacation, free healthcare from doctors appointments to heart transplants, free education (you even get about $650 after taxes from the goverment every month for a max of 7 years while taking your education). Unemplyment if you lose your job or get in some other serious trouble there is social security that will make it possible for you to have a decent life.
No one will ever have to go hungry to bed or live on the streets unless it their own choice.

I wouldn´t change it for anything.

:Graucho

Your last sentence is very interesting. I thought most of adult webmasters dont care about social security. Sure, not everyone here is making big $$$$, but this industry is simply very unstable, so whoever decided to earn his $$$ in it, is aware of the risk but has simply an entrepreneur - mind. :)

Dont worry man he lives well in another belgium than out fucking belgium ... too much taxes and more if you work for yourself .

I think he works in black ahahah

I got "saved" by the system about 10 years ago I hit the bottom and things were very hard and if it weren´t for all the help I got I don´t think I would have been alive today.

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Switzerland:

Income tax:
Average 12%
Min 2.5%
Max 21.8%
-> depends where in Switzerland you live and on your income

VAT:
7.6% on all standard products, deductable for companies.
2.4% on products for daily use (e.g. food)
3.5% tourism

Company tax:
25% (average)

New car:
Price + 7.6% VAT

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Hi sirrobin, hit me up on ICQ 1889711 or AIM fthylmann when you have a chance, I got a question for you...

Thats what I thought,

I am not sure about the SUV, but personal income tax sucks in Belgium, and on top of that, social security that you _HAVE_ to pay even if self employed is a killer. At least that was my experience.

Company tax IS low compared to the rest of europe though.

And the 0% tax on income from outside of belgium, I have never heard of that one either. How is "outside of belgium" defined?

yeah, Slovakia ACTUALLY has the flat tax. In the US we have to just dream about it.

this year, we will see in '05,
but for now, it looks good, new investiment are coming

Is there something in my post you dont agree with ? (Have you ever spoken to a tax lawyer ?)

Its called the "expatriate tax regime" - do a google search for it.

Outside of Belgium is defined as "NOT BELGIUM".

corruption and safety is problem like at other post-socialist countries around, average middle europe standard :1orglaugh
i don't apprehend it as a big problem for my bussiness

Yes I take money in cash for my adult websites :321GFY

I can only hope Poland is going to do the same.
A simple, low, flat tax rate is a very good idea.

It sux, very big pressure on us

you could have 3 cars if you moved. I'd move.

It doesn't make any sence to compare tax rates like that. Sure we pay a lot of taxes i Denmark, but that's because (almost) all social security is funded through taxes. Thus we do not have to pay any additional money for healt insurance, education, social assistance etc. 80% of unemployment insurance is funded through taxes, child care is partly funded through taxes, retirement pensions is partly funded through taxes and I could go on.

Australia:

Income tax rates are teired and range from 0% (<$6,000) to 47% (>$62,500). For an average wage of $49k you pay 22% tax.

Most products and services attract a 10% GST. There are some exceptions like fresh food.

Company tax rate is 30%.

New car is price + 10% GST. If the total is worth more than $57,009 then you pay a luxury tax of 25%. Registration in my state is about $520 per year.


Currently $USD100 = $AUD145

I agree, and the intention was not to compare whether or not it's fair.

The idea was to see how the raw numbers was - and see how different the world really is.

I like the welfare system we have in Denmark - and would not trade it for three cars instead of one.

Let's get more numbers on the table - are here someone from Asia or Russia?