In order to enhance the living of people of its country government takes tax from the citizens. From developing infrastructures to make schemes for human welfare, the tax that government gets in monetary form is used for various purposes to elevate the life of people and the country as a whole.
Generally, the people with high earning have to pay high taxes and those making lower wages have a smaller deduction as a tax by the government. Here we have tried to enlist the countries with the highest taxation rates.
Let’s take a look at the list of top 10 Highest Tax Paying Countries In The World in 2017-2018
Ireland is a beautiful island situated in North Atlantic. It has the privilege to be the second largest island of the British Isles and the third-largest in Europe. It is also the twentieth-largest island on the planet Earth. Focusing more on services and high-tech industries the economy of Ireland can be termed as a modern knowledge economy. It is dependent on trade, industry, and investment. Ireland is ranked as one of the wealthiest countries in the OCED rankings. The Ireland has to meet the taxation rate of 48% on income over $40,696. Although corporations like Google and Apple are on the verge of taking advantage of the relatively low-income tax of 12.% %, Ireland didn’t seem to be really lucky here.
Finland which is officially the Republic of Finland is situated in the Northern Europe and is a sovereign state. The median income of the country is estimated to be around $ 31,000. It is also reported that this country is one of those who pays the most to its teachers as compared to others. Also, it was well renowned for improving the educational infrastructure to enhance the knowledge of its children. The average rate of taxation in the country from 1996 until 2016 is estimated to be around 52.96 %. It was the year 1995 when the country has the record taxation rate of 62.20 %. At present, it is recorded to be 51.60 % on income over $ 87,222.
8. United Kingdom
The United Kingdom is the cumulative name of the United Kingdom of Great Britain and Northern Ireland. It is a sovereign country in Western Europe and should not be confused with Great Britain. The country is nice enough to exempt the tax from the people earning less than $ 14, 000. However, without showing any mercy to high class the people who earn more than this have to pay tax on a regular basis. For the people earning income in excess of $234,484, the tax rate is at 50% as per the British government.
With a tax rate of 50% on income, Japan holds the major position for being capital home for most of the millionaires than any other country on the planet earth. The country proudly announces that the median income of the country is approximately $27, 000. The corporations of the country are enough to tell about the high economy among the fellow Asian countries. They provide advanced technologies and their automobiles corporations do not require any introduction or special mention here since it is famous and well known worldwide. As a result, there is plenty of income for the government for taxation.
A German-speaking country which is well known by its mountain villages and majestic ancient architecture is Austria. With Vienna as its Danube River capital, Austria has Schönbrunn and Hofburg palaces. Austria is stated as one of the most taxed countries in the Europe. The population of Austria is around 8 million and their rich economy is the proof that the government has enough income to get a good amount in the form of tax. It is reported that people having a salary of more than $ 74,442 USD need to pay around 50% in the form of tax.
A well known Western Europe country for its medieval town and Russian architecture is Belgium. It is enriched with French speaking, Dutch-speaking and German-speaking citizens. Belgium is on the verge of being one of the most taxed countries in the world with around 50% total tax rate on income. The population of Belgium is around 12 million and is called as the home for the European Union.
With a total tax rate of 52% on per capita income, Netherlands holds the fourth position in the list of highest tax paying countries in the world. A highly productive floriculture sector and the shipping ports are what make the Netherlands one of the most admirable countries. With the population of 16.94 million people, Netherland is well known all around the world for a flat landscape of canals, tulip fields, windmills and cycling routes.
The reason why Denmark is claimed to have the happiest people on earth is because of their small population and the high taxation rate which is 55.38% of per capita income. Since the population is really small the government of the country had to impose a high tax to meet the needs of the country. The Danish people understand this and happily pay their taxes to make their country awesome. The high tax is quite justified and also leads to more social programs for the accessibility of Danish people.
Encompassing thousands of coastal islands and inland lakes, Sweden also has boreal forests and glaciated mountains. The capital of the country Stockholm is built on 14 islands. Highest in Europe and second largest in the world, Sweden used to deduct around 56.6% tax from the annual income of its people. Sweden is very expensive when it comes to every day to day things but the government showing little mercy has exempted tax from sales on residential properties.
Aruba is a Dutch Caribbean island with the population of about 103,889 people. It is enriched with people speaking English, Dutch and Spanish along with Papiamento which is the local language of the country. The citizens of Aruba have been reported to earn highest as compared to other parts of the world or of all the places in the Caribbean. This is the reason why the government of Aruba has enough income to get the tax on. This makes it the highest tax paying country in the world too. With its 58.95 % taxation rate, Aruba tops the list.
Paying tax is necessary to sustain the welfare programs of any country. While these countries are considered as the highest tax paying, they have utilized the money they get from the tax in beneficial ways to improve the infrastructure and thus the status of their respective countries.