Have you ever wondered how income is taxed throughout the world? If so, today you are in luck because that is our hot topic for today. Continue reading and be amazed.
In Russia, citizens have a flat income tax and no social security tax, unless they are self-employed. Employers are responsible for 30% of the total payroll for taxes. Dividend income is taxed at a 9% tax rate and interest income that is higher than 5% ROI has a 35% tax rate. Overall, the flat tax rate that individuals are able to take advantage of is very beneficial for those who have a high income.
Hong Kong does not put a tax on imports, good and services, sales, income earned abroad, exports, interest, or capital gains. Their highest marginal rate is 17%, but personal income taxes have a cap of 15%.
Many Japanese citizens do not have to file a tax return. Employers withhold all income taxes; therefore, unless they make a large amount of money from freelancing they don’t have to do taxes. Income is subject to a 4% prefectural tax and a 6% municipal tax though. However, they get to take deductions for large expenses and social security tax ranges from 5-7% of their income.
From these three places, we can see that different countries have different rules for taxes. However, everyone, regardless of their country of residence, has to deal with taxes in some form or another. Paying taxes is universal, it’s only the tax rates and laws that differ.
Image credit: Larry Koester