Highest Taxed Countries 2021

As the old adage goes, only two things in life are certain: death and taxes. Taxes can be a burden, but paying taxes is important for several reasons. Taxes are used to fund education, technology, infrastructure, the military, and health programs. Taxes provide the funds that a country needs to survive, so it’s a necessary evil.

If you look at tax rates around the world, you’ll see a wide variation of tax rates. Some nations also have different types of taxes and rules surrounding taxation. Rules and tax rates can even vary within the same country. For example, within the United States, some states have a sales tax while others do not. However, these states without a sales tax may face additional taxes or higher tax rates to make up for the deficit, such as higher property tax rates. Additionally, some U.S. states have significant income tax rates while seven do not collect any state income tax.

Finding the countries with the highest taxes can be a challenge because of the various rules, regulations, and taxes. For this article, we’ll look at three main types of taxes: income tax, corporate tax, and sales tax. We’ll look at these different types of taxes to determine which nations have the highest taxes.

First, let’s start with income taxes. The highest maximum income tax rate can be found in Portugal. In this country, the maximum rate is 59.00%. Following behind is Aruba. This nation has income taxes of 58.95%. Coming in third for the highest maximum income tax rate is Sweden at 57.00%.

Next, we’ll take a look at corporate tax rates around the globe. The highest corporate tax rate can be found in American Samoa, where the highest bracket is 44%, and the lowest is 15%. Following American Samoa is Seychelles, with the highest rate set at 40% and the lowest at 33%. Canada follows at 38% and 12%. About 40 additional countries have corporate tax rates at 30% or higher.

Finally, let’s look at sales tax rates. The highest rates are found in India, with rates up to 28%. Next is Hungary, which has a standard rate of 27%. In third place is Brazil, which has a maximum rate of 25%. Croatia, Denmark, Norway, and Sweden also have standard rates of 25%.

Countries where taxes are levied at a very low rate for foreign investors are called tax havens. Tax havens generate government revenue by attracting a generous amount of capital inflow and imposing fees, charges, and low tax rates. Tax havens also facilitate economic growth as high-tax countries lose corporate tax revenue from businesses moving overseas to the havens.