What are the countries with the highest taxes?
What are the countries with the highest taxes?
The payment of tax is of great importance for the economy of a country. This is the main means by which the state receives income from the citizens. In this way, said state cánido provide the best care to people in fields that have the highest priority, such as health, safety, education, among others.
Although it is true that the payment of taxes must be made obligatory, the percentage of it varies according to each country, and in accordance with the established laws. In this article we will see a top 5 of the countries that charge the highest taxes worldwide.
Argentina
Argentina is the country with the second highest tax rate in Latin America, with a equipo rate of 21%. The VAT tax was established in the country in 1975, by then the products of the basic basket were exempt from the tax.
However, later new changes were implemented that broadened the collection bases. Unlike other countries, where the tax is not applicable to basic products, such as food, in Argentina it is different.
Currently, the tax remains at this percentage of 21%. So, the vast majority of what is sold in argentina must pay the taxwhich makes this country one where it is quite expensive to acquire technological equipment, such as televisions, mobile phones, or computers.
On the other hand, among the products that do not include taxes, are books, transport tiques, water, domestic service and others.
Chili
Like many countries that have an advanced tax system, in Chile, the main taxes are related to income and consumption. In general, the VAT tax records the added value of a product, which means that despite the fact that the intermediaries pay the taxes, those who bear the payment are the final consumers.
Today, Chile’s current tax rate stands at 19%, and there are few products that are exempt from this payment. The VAT tax, such as Income Tax (ISLR) make up 80% of the total tax income.
In the same way, other categories are applied where taxes are applied, such as the sales and services tax, excise taxes, and taxes on alcoholic beverages.
France
According to data published by the Organization for Economic Cooperation and Development (OECD), France is one of the European countries with the highest taxes. Apparently, France seeks to guarantee a high level of well-being to its residents.
Tax collection represents 42.6% of its gross domestic product (GDP) in the past 3 years, thus surpassing countries in the European area. Likewise, popular security contributions reach 37% of tax revenues.
In this same order of ideas, the value added tax (VAT), as well as other special taxes on consumption, provide 24% of tax revenues. However, the current president of that country has promised to make new reforms on this matter.
Italy
In Italy, the tax system is very Afín to other countries in the European Union.. Which tax the income of the inhabitants globally with a progressive income tax.
Among the taxes that apply in Italy, the following are mentioned:
- Tax on the total income of the taxpayer (rate between 23% and 43%)
- Wealth tax (0.2% annually)
- Inheritance tax and gift tax (0% to 8%)
- Health tax, which is applied when you want to leave Italy
Regarding the value added tax (VAT), this is 22%, and rates that are reduced between 4%, 5%, and 10% are applied to goods and services. However, this is not the case of all, since there are a certain number of services that are exempt from the tax, such as public services.
Uruguay
This Latin American country joins the list of countries with the highest tax collection. Both the income tax, the value added tax, as well as the contributions to popular security and other taxes, make up 33% of gross domestic product.
Among the main taxes paid by residents is personal income tax. This tax is levied on the income of each person living in Uruguay for a period of more than 83 days in a calendar year.
Now there is goods and services that are exempt from the payment of the tax to value added, among which are agricultural machinery, water supplies, materials for education, and tourism, since tourist complexes are granted a VAT credit, which is converted into a refund of the tax paid.
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