Determining the most advantageous country to establish a company, open a bank account, or become an investor largely depends on the tax burden. To choose the direction of relocating your business, we offer to study countries with the highest personal and corporate income taxes.
Any decision to establish a business abroad, get a permanent residence, or choose a bank to open an account should be made deliberately and thoughtfully. To choose the best option for your goals and objectives, seek personalized advice from our experienced experts!
Countries with the highest taxes for businesses
In 2023, the following countries have established the highest corporate taxes in the world for local companies:
- Comoros – 50%
- Suriname – 36%
- Argentina – 35%
- Chad – 35%
- Cuba – 35%
- Guinea – 35%
- Malta – 35%
- Sudan – 35%
- Zambia – 35%
- Brazil – 34%.
However, some of these jurisdictions offer preferential tax conditions for foreign companies whose profits are generated outside the country of incorporation. For instance, Malta has established a global tax system in 2023, but shareholders are still eligible for refunds of up to 100%.
Explore the best strategies for tax planning and business optimization in 2023.
Countries with the highest personal income tax in 2023
Different countries have various ways of collecting income tax. This tax may be fixed or dependent on the taxpayer’s income, like other payments. In 2023, the highest rates are established by the following countries:
- Chad – 60%
- Sweden – 57%
- Denmark – 55.9%
- Austria – 55%
- Netherlands – 52%
- Zimbabwe – 52%
- Belgium – 50%
- Central African Republic – 50%
- Cuba – 50%
- Israel – 50%.
The maximum allowable tax rate per country is indicated, which can be reduced for several reasons.
However, many of our clients are interested not only in the lowest and highest taxes in all states but also in the rates in specific countries where foreign investors typically plan to create their businesses or relocate for permanent residency.
Reference: the best countries for obtaining citizenship in 2023 can be explored in a brief overview presented on our website. For personalized consultations on this topic, please contact our experts in any convenient way.
Ranking of countries based on tax burden
We present a brief overview of countries with the highest income tax rates, including those in Europe and Asia. The ranking includes only those countries that previously set high rates and have either lowered them or maintained high taxes in 2023.
United Kingdom
The highest income tax rate in the UK is 45%.
In 2010, the UK raised income tax by 10% to 50%, but it was reduced to 45% in April 2013. The social tax rate is 13.8%.
Ireland
The highest income tax rate in Ireland is 41%.
Today, Ireland’s personal income tax rate is higher than the average rate in all of Northern Europe (40%). Irish citizens are also required to pay a social tax, and the tax on capital gains in the country has increased to 33%, while VAT is levied at a rate of 23%.
Finland
The highest income tax rate is 44%, which can reach a total of 60.2% (including all tax payments).
In 2023, due to social security reform, municipal taxes were reduced by 12.64%, which is reflected in most rating studies as Finland’s income tax rate at 31%. However, the government could not simply leave it at that, and the reduction was compensated by an increase in other taxes and the abolition of a number of benefits, including:
- cancellation of deductions for housing loans
- increased waste tax
- cancellation of disability deductions from January 1, 2023.
There is also a tax requirement for the Finnish church, and if you belong to it, you must pay a church tax.
Japan
The maximum income tax rate in Japan is 46.1%.
Japan is the only Asian country to make it into the top 10. The average income tax rate in Asia is 23%, while in Japan, this tax reaches 46.1%. For example, if your income is $540,200 per year, approximately $200,000 will be paid toward income tax.
Austria
The highest income tax rate in Austria is 55%.
In addition to the high income tax, social security contributions in Austria are levied at a rate of 7.65% for medical insurance, 22.8% for pension insurance, and an additional 1.53% for self-employment insurance. The capital gains tax in the country is the same as the income tax.
Belgium
The highest income tax rate in Belgium is 50%.
The social security tax in the country is levied at a rate of 13.07%, municipal tax at 11%, and capital gains tax at 33%. The average income is $45,037 per year.
Netherlands
The highest income tax rate in the Netherlands is 52%.
Dutch citizens pay taxes at a fairly high rate but can take advantage of certain benefits. In 2023, the government introduced a number of changes to tax regulations, including:
- increasing the lower corporate tax rate to 19%
- no longer applying a discount on prepayment of profit tax
- reducing the basic rate of individual income tax to 36.93% for incomes up to €73,031 but keeping the maximum rate at 49.50%
- increasing the tax on property transfers from 8% to 10.4%
- increasing the gambling tax from 29.0% to 29.5%.
Denmark
The highest income tax rate in this country is 56%.
In 2023, the lower and upper income tax rates for individuals in the country’s regions will remain at 12.09% and 15.0%, respectively. And the maximum marginal tax rate will remain at 52.07%, including state, municipal, and some other taxes. The corporate tax rate will also remain at 22%.
Sweden
The highest income tax rate is 52.3%.
The tax rate on individual income in Sweden in 2023 remained unchanged at 52.3%. The maximum rate is 61.4%, and the minimum is 32.3%. The country also has a corporate tax rate of 20.6%, a sales tax of 25%, and a social security tax of 38.42%.
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