As part of a nation, we have to pay various taxes imposed by the government, whether it's an indirect tax or a direct tax. There are various types of taxes, like income tax, corporate tax, and value-added tax (VAT), etc. Some of these we have to pay directly, and some indirectly to the government. Has your mind ever been flooded with questions like what are the taxes, different types of taxes, why the government imposes such taxes, why do we have to pay these taxes, what would happen if we don't pay these taxes, and what are the different kinds of taxes? If yes, then definitely you have a curious mind, and you want to earn knowledge as much as possible. If not, then as a citizen, you must know about these. So let us unbox all the information about taxes.

What Is Tax?

Tax is some percentage of income or profit paid by individuals, businesses, organisations, companies and corporations, firms, LLPs, and Local Authorities, and cooperative societies of a nation to the government. The government uses this money to fund the various important tasks responsible for the development of the nation, maintain the equality of income distribution, public services, and control inflation.

Different Kinds of Taxes Worldwide

To make a clear understanding of various taxes, we will divide them into two major categories: direct and indirect taxes.

Direct Taxes

These are the taxes we have to pay directly to the government by the individual or entity. The burden cannot be shifted to someone else. The major direct taxes are :

Income Tax

This is a type of tax paid by an individual or a business on their income. Salaried individuals, freelancers, and businesses pay these.

Corporate Tax

This is a type of tax paid by a business on its company's profit. Domestic and foreign companies pay these.

Capital Gain Tax

This is a type of tax paid by businesses on profit earned from asset or investment sales. Investors and property sellers pay these.

Wealth Tax

This is a type of tax paid by businesses on net wealth exceeding a threshold. Individuals pay these.

Gift Tax

This is a type of tax we have to pay when we receive any gift above the exemption limit. Individuals pay these.

Securities Transaction Tax (STT) 

This is a type of tax paid by investors and traders investing in the share market, whether buying or selling securities listed on recognized Indian Stock Exchanges, against their stock market trades. Also paid by Companies trading in securities, brokers collecting STT on behalf of clients.

Inheritance Tax

This type of tax is paid by beneficiaries who get the properties, money, or investments from a deceased person.

Estate Tax

This type of tax is paid by the estate levied on the total value of a deceased person's estate before it is distributed to heirs. It’s sometimes called the “death tax,” especially in the U.S., and is distinct from the inheritance tax, which is paid by the recipient of the assets.

Indirect Taxes

These are the taxes paid by an individual or entity indirectly to the government. These apply to goods/services; their journey starts from the manufacturing of any goods and ends with the final consumer. The major indirect taxes are :

Goods and Services Tax

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax levied on every value addition.

Customs Duty

This applies whenever we import or export something, and applies to importers/exporters.

Excise Duty

This applies to the manufacturing of something and is paid by the manufacturer.

Service Tax

This applies to services like telecom, travel, etc., and is paid by the consumer.

Value Added Tax (VAT)

It applies to the sale of goods at each stage and is paid by the consumer.

Sales Tax

It applies to the final sale of goods and is paid by the consumer.

Some other Levies and cesses

Besides these taxes, there are some levies and taxes imposed by the government. Let us understand these:

Stamp Duty 

We have to pay these when we buy properties or create any agreement for generating their legal documents.

Registration Fees

This is paid by individuals or businesses for the registration of their property or documents, allowing them to be the legal owners.

Professional Tax

This is imposed by the state government and paid by salaried employees, freelancers, and professionals. Employer deducts this from the employee's salary.

Toll Tax

This tax applies to vehicle owners for driving a vehicle on specific roads, bridges, or tunnels, the tax being collected by the government to recover construction and maintenance costs of roads, bridges, or tunnels.

Education Cess

This applies to all individuals (salaried or self-employed), companies and corporations, firms, LLPs, and Local Authorities, and cooperative societies. The government uses these cesses for improving education infrastructure in rural and underserved areas, supporting schemes like mid-day meals, scholarships, and educational loans, and enhancing healthcare access for low-income families.

Why Does Government Impose These Taxes?

As the nationwide developments are the responsibility of the government, and to do these developments government needs funds. All the money the government collects from different taxes is used for various redistribution, regulation, and responsibilities. These are :

To Fund Public Services

Taxes pay for:
  • Roads, bridges, and highways (yes, even the toll booths you code logic for!)
  • Schools, universities, and skill development programs
  • Hospitals, sanitation, and public health
  • Police, judiciary, and defense

To Promote Equity

Progressive taxes (like income tax) ensure:
  • Higher earners contribute more
  • Funds can be redistributed via subsidies, welfare schemes, and rural development

To Stabilize the Economy

Through taxation, the government can:
  • Control inflation (by reducing disposable income)
  • Stimulate growth (via tax cuts or incentives)
  • Influence consumer behavior (e.g., higher GST on luxury goods

To Shape Social and Economic Policy

  • Lower taxes on EVs or solar panels promote sustainability
  • Higher taxes on tobacco or alcohol discourage harmful consumption
  • GST structure helps unify the market and reduce cascading taxes

Why Every Individual or Business Must Pay Tax?

For being a responsible citizen, it's every individual's responsibility to contribute to the development of the nation. To support the government so that they can smoothly accomplish their responsibility of developing the nation, maintain the equality of income distribution, public services, and control inflation.

What If We Do Not Pay Tax?

Paying tax is not a burden; it's our responsibility to the nation. If we don't pay taxes, we slow down the progress and growth of our nation. Not paying tax can affect you in the following ways
  • You will have to pay 1 percent monthly interest on the total amount of unpaid taxes.
  • You will get a demand notice issued by the Income Tax Department against unpaid taxes.
  • Legal action can be taken against you.
  • Authorities can lien and seize your properties and assets so that you can neither sell them nor borrow money against them. They can also seize your bank account so that you can't withdraw money.
  • You lose the ability to carry forward losses for future tax deductions.
  • If you are an Individual, this will lead to Non-compliance that can hurt your credit score, business credibility, and investor trust.
  • If you run businesses, it may trigger audits, license issues, or loss of government contracts.

Rates Of All Different Taxes In Different Nations

As different countries of different continents have different tax rates, let us compare the rates of different taxes in different countries of different continents:

Africa (Part 1)

Algeria

Algeria applies a corporate tax ranging from 19% to 26%, no personal income tax, and a steep 35% capital gains tax. Wealth tax is 15% for residents and 20% for non-residents. VAT is 19%, with basic items taxed at 9%.

Angola 

Angola enforces a 30% corporate tax, no income tax, and a 17% capital gains tax. Wealth tax is 10%, and VAT is 14%. Property and inheritance taxes are not widely applied.

Benin

Benin levies a 30% corporate tax, personal income tax up to 35%, and a VAT of 18%. Capital gains are taxed at 15%, and property tax applies locally. Inheritance tax is minimal.

Botswana

Botswana charges 22% corporate tax, personal income tax up to 25%, and capital gains tax at 25%. There’s no wealth tax, and VAT is 12%. Property and inheritance taxes are modest.

Burkina Faso

Burkina Faso applies a 27.5% corporate tax, income tax up to 30%, and a 15% capital gains tax. VAT is 18%, and property tax is levied municipally. Inheritance tax is rare.

Burundi

Burundi enforces a 30% corporate tax, income tax up to 35%, and capital gains tax at 15%. VAT is 18%, and property tax is minimal. No formal wealth or inheritance tax.

Cameroon

Cameroon levies a 33% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. VAT is 19.25%, and property tax is applied locally. Inheritance tax exists but is not widely enforced.

Cape Verde

Cape Verde applies a 25% corporate tax, income tax up to 35%, and capital gains tax at 20%. VAT is 15%, and property tax is levied municipally. No wealth tax.

Central African Republic

The Central African Republic charges 30% corporate tax, income tax up to 40%, and capital gains tax at 20%. VAT is 19%, and property tax is minimal. Inheritance tax is rare.

Chad 

Chad enforces a 35% corporate tax, income tax up to 35%, and capital gains tax at 20%. VAT is 18%, and property tax is applied locally. No wealth or inheritance tax.

Africa (Part 2)

Congo (DRC)

Congo (DRC) levies a 30% corporate tax, personal income tax up to 40%, and capital gains tax at 20%. VAT is 16%, and property tax is applied locally. Inheritance tax is minimal.

Côte d'Ivoire (Ivory Coast)

Côte d'Ivoire (Ivory Coast) applies a 25% corporate tax, income tax up to 36%, and capital gains tax at 20%. VAT is 18%, and property tax is levied municipally. No formal wealth tax.

Djibouti

Djibouti enforces a 25% corporate tax, income tax up to 30%, and capital gains tax at 20%. VAT is 10%, and property tax is minimal. Inheritance tax is not widely applied.

Egypt

Egypt charges 22.5% corporate tax, income tax up to 25%, and capital gains tax at 10%. VAT is 14%, and property tax is levied on real estate. No wealth tax.

Ethiopia

Ethiopia applies a 30% corporate tax, income tax up to 35%, and capital gains tax at 15%. VAT is 15%, and property tax is minimal. Inheritance tax is rare.

Gabon

Gabon levies a 30% corporate tax, income tax up to 35%, and capital gains tax at 20%. VAT is 18%, and property tax is applied locally. No wealth or inheritance tax.

Gambia

Gambia enforces a 31% corporate tax, income tax up to 35%, and capital gains tax at 15%. VAT is 15%, and property tax is minimal. Inheritance tax is not common.

Ghana

Ghana charges 25% corporate tax, income tax up to 30%, and capital gains tax at 15%. VAT is 12.5%, and property tax is levied municipally. No wealth tax.

Guinea

Guinea applies a 35% corporate tax, income tax up to 40%, and capital gains tax at 20%. VAT is 18%, and property tax is minimal. Inheritance tax is rare.

Kenya

Kenya levies a 30% corporate tax, income tax up to 30%, and capital gains tax at 5%. VAT is 16%, and property tax is applied locally. No wealth or inheritance tax.

Asia (Part 1)

Afghanistan

Afghanistan levies a flat 20% corporate tax and 20% capital gains tax, with no individual income tax or VAT. Wealth and property taxes are not formally structured, and the inheritance tax is absent.

Armenia

Armenia applies an 18% corporate tax, personal income and capital gains tax both at 22%, and a 20% VAT. Wealth and inheritance taxes are not commonly enforced.

Azerbaijan

Azerbaijan enforces a 20% corporate tax, personal income tax up to 14%, and capital gains tax at 25%. VAT is 18%, with no formal wealth or inheritance tax.

Bahrain

Bahrain has no corporate or personal income tax, and no capital gains tax. VAT is 10% on non-essential goods, with 0% on essentials. There are no wealth or inheritance taxes.

Bangladesh

Bangladesh charges 32.5% corporate tax, no personal income tax on lower brackets, and 25% capital gains tax. VAT is 15%, and property tax is applied locally. Inheritance tax is minimal.

Bhutan

Bhutan applies a 30% corporate tax, personal income tax up to 25%, and capital gains tax at 15%. VAT is not used; instead, a sales tax applies selectively. Wealth and inheritance taxes are rare.

Brunei

Brunei imposes no personal income tax and no capital gains tax. Corporate tax is 18.5%, and there is no VAT. Property and inheritance taxes are not applied.

Cambodia

Cambodia levies a 20% corporate tax, personal income tax up to 20%, and capital gains tax at 20%. VAT is 10%, and property tax is minimal. No wealth or inheritance tax.

China

China enforces a 25% corporate tax, personal income tax up to 45%, and capital gains tax around 20%. VAT is 13% standard, with reduced rates. Property tax is applied in pilot cities, and inheritance tax is not yet formalized.

Georgia

Georgia applies a 15% corporate tax, personal income tax at a flat 20%, and capital gains tax at 20%. VAT is 18%, and there are no wealth or inheritance taxes.

India

India levies a corporate tax between 25% and 34.94% depending on turnover and surcharges. Personal income tax goes up to 42.74% including cess. Capital gains tax varies by holding period. GST is 18% standard, with multiple slabs. Property tax is municipal, and inheritance tax is abolished.

Indonesia

Indonesia charges 22% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. VAT is 11%, and property tax is levied locally. No formal wealth or inheritance tax.

Iran

Iran applies a 25% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. VAT is 9%, and property tax is minimal. Inheritance tax is applied progressively.

Iraq

Iraq enforces a 15% corporate tax, personal income tax up to 15%, and capital gains tax at 15%. VAT is not implemented; instead, a sales tax applies. Property and inheritance taxes are limited.

Israel

Israel levies a 23% corporate tax, personal income tax up to 50%, and capital gains tax at 25%. VAT is 17%, and property and inheritance taxes are applied selectively.

Japan

Japan has a combined corporate tax rate of ~30.62%, personal income tax up to 55.95%, and capital gains tax around 20%. Consumption tax (VAT equivalent) is 10%. Property tax is local, and inheritance tax is progressive.

Asia (Part 2)

Jordan

Jordan levies a 20% corporate tax, personal income tax up to 30%, and capital gains tax at 10%. VAT is 16%, and property tax is applied municipally. Inheritance tax is minimal.

Kazakhstan

Kazakhstan applies a 20% corporate tax, personal income tax at a flat 10%, and capital gains tax at 15%. VAT is 12%, and there’s no formal wealth or inheritance tax.

South Korea

South Korea enforces a 22% corporate tax (plus local surtax), personal income tax up to 45%, and capital gains tax up to 25%. VAT is 10%, and property and inheritance taxes are significant.

Kuwait

Kuwait charges 15% corporate tax (only on foreign entities), no personal income tax, and no capital gains tax. VAT is not implemented. Property and inheritance taxes are minimal.

Kyrgyzstan

Kyrgyzstan levies a 10% corporate tax, personal income tax at a flat 10%, and capital gains tax at 10%. VAT is 12%, and there are no wealth or inheritance taxes.

Laos

Laos applies a 24% corporate tax, personal income tax up to 24%, and capital gains tax at 20%. VAT is 10%, and property tax is minimal. Inheritance tax is not formalized.

Lebanon

Lebanon enforces a 17% corporate tax, personal income tax up to 25%, and capital gains tax at 15%. VAT is 11%, and property tax is applied locally. Inheritance tax exists but is modest.

Malaysia

Malaysia charges 24% corporate tax, personal income tax up to 30%, and capital gains tax on real property at 30%. VAT is replaced by a Sales and Service Tax (SST) at 6%. No wealth tax; inheritance tax was abolished.

Maldives

Maldives levies a 15% corporate tax, no personal income tax, and no capital gains tax. GST is 6% for tourism and 0–6% for other goods. No property or inheritance tax.

Mongolia

Mongolia applies a 25% corporate tax, personal income tax at a flat 10%, and capital gains tax at 10%. VAT is 10%, and property tax is minimal. No wealth or inheritance tax.

Myanmar

Myanmar enforces a 25% corporate tax, personal income tax up to 25%, and capital gains tax at 10%. Commercial tax replaces VAT at 5%. Property and inheritance taxes are limited.

Nepal

Nepal charges 25% corporate tax, personal income tax up to 36%, and capital gains tax at 10%. VAT is 13%, and property tax is applied locally. Inheritance tax is rare.

Oman

Oman levies a 15% corporate tax, no personal income tax, and no capital gains tax. VAT is 5%, and property and inheritance taxes are minimal.

Pakistan

Pakistan applies a corporate tax between 29% and 35%, personal income tax up to 35%, and capital gains tax at 15%. VAT is 17%, and property tax is local. No wealth tax; inheritance tax is minimal.

Palestine

Palestine enforces a 15% corporate tax, personal income tax up to 20%, and capital gains tax at 10%. VAT is 16%, and property tax is applied municipally. Inheritance tax is not widely enforced.

Philippines

Philippines charges 25% corporate tax, personal income tax up to 35%, and capital gains tax at 15%. VAT is 12%, and property and inheritance taxes are applied progressively.

Qatar

Qatar levies a 10% corporate tax (on foreign entities), no personal income tax, and no capital gains tax. VAT is not implemented. Property and inheritance taxes are minimal.

Saudi Arabia

Saudi Arabia applies a 20% corporate tax (on foreign entities), no personal income tax, and a 5% VAT. Zakat (a religious wealth tax) applies to Saudi-owned businesses. No inheritance tax.

Singapore

Singapore features a 17% corporate tax, personal income tax up to 22%, and capital gains tax is not levied. GST is 8%, rising to 9%. No wealth or inheritance tax.

Sri Lanka

Sri Lanka enforces a 30% corporate tax, personal income tax up to 36%, and capital gains tax at 10%. VAT is 15%, and property and inheritance taxes are applied selectively.

Syria

Syria charges 22% corporate tax, personal income tax up to 22%, and capital gains tax at 10%. VAT is not implemented. Property and inheritance taxes are minimal.

Taiwan

Taiwan levies a 20% corporate tax, personal income tax up to 40%, and capital gains tax at 15%. VAT is 5%, and property and inheritance taxes are applied progressively.

Tajikistan

Tajikistan applies a 13% corporate tax, personal income tax at a flat 13%, and capital gains tax at 15%. VAT is 18%, and property tax is minimal. No inheritance tax.

Thailand

Thailand enforces a 20% corporate tax, personal income tax up to 35%, and capital gains tax is treated as income. VAT is 7%, and property and inheritance taxes are applied selectively.

Timor-Leste

Timor-Leste charges 10% corporate tax, personal income tax up to 10%, and capital gains tax at 10%. VAT is not implemented. Property and inheritance taxes are minimal.

Turkmenistan

Turkmenistan levies a 20% corporate tax, personal income tax at a flat 10%, and capital gains tax at 10%. VAT is 15%, and property tax is applied locally. No inheritance tax.

United Arab Emirates (UAE)

United Arab Emirates (UAE) recently introduced a 9% corporate tax, has no personal income or capital gains tax, and applies a 5% VAT. No wealth or inheritance tax.

Uzbekistan

Uzbekistan applies a 15% corporate tax, personal income tax at a flat 12%, and capital gains tax at 15%. VAT is 15%, and property tax is applied municipally. No inheritance tax.

Vietnam

Vietnam enforces a 20% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. VAT is 10%, and property and inheritance taxes are applied selectively.

Yemen

Yemen charges 20% corporate tax, personal income tax up to 15%, and capital gains tax at 15%. VAT is not implemented. Property and inheritance taxes are minimal.

Europe (Part 1)

Austria

Austria levies a 23% corporate tax, personal income tax up to 55%, and capital gains tax at 27.5%. There’s no formal wealth tax, but property tax is applied locally. Inheritance tax was abolished. VAT is 20%, with reduced rates of 13% and 10%.

Belgium

Belgium applies a 25% corporate tax, personal income tax up to 50%, and capital gains tax varies based on asset type and holding period. Wealth tax is not levied, but property tax is significant. Inheritance tax is progressive and region-specific. VAT is 21%.

Bulgaria

Bulgaria enforces a flat 10% corporate and personal income tax, with capital gains also taxed at 10%. There’s no wealth tax, and property tax is applied municipally. Inheritance tax is minimal. VAT is 20%.

Croatia

Croatia charges 18% corporate tax, personal income tax up to 30%, and capital gains tax at 10%. No wealth tax is applied. Property tax is local, and inheritance tax is limited. VAT is 25%, with reduced rates of 13% and 5%.

Cyprus

Cyprus levies a 12.5% corporate tax, personal income tax up to 35%, and capital gains tax at 20% (mainly on real estate). There’s no wealth tax, and property tax was abolished. Inheritance tax is not applied. VAT is 19%.

Czech

Czech Republic applies a 19% corporate tax, personal income tax at a flat 15% (with a solidarity surcharge), and capital gains tax at 15%. No wealth tax is levied. Property tax is local, and inheritance tax is minimal. VAT is 21%.

Denmark

Denmark enforces a 22% corporate tax, personal income tax up to 55.9% including municipal and labor market contributions, and capital gains tax up to 42%. No wealth tax is applied. Property and inheritance taxes are significant. VAT is 25%.

Estonia

Estonia has a unique system where corporate tax is deferred until profits are distributed (20%). Personal income tax is flat at 20%, and capital gains are taxed as income. No wealth or inheritance tax. Property tax is minimal. VAT is 20%.

Finland

Finland levies a 20% corporate tax, personal income tax up to 51.5%, and capital gains tax up to 34%. No wealth tax is applied. Property and inheritance taxes are progressive. VAT is 24%, with reduced rates of 14% and 10%.

France

France applies a 25% corporate tax, personal income tax up to 45%, and capital gains tax at 30% (including social contributions). Wealth tax applies to real estate holdings above €1.3 million. Property and inheritance taxes are significant. VAT is 20%.

Germany

Germany enforces a combined corporate tax of ~30% (including trade tax), personal income tax up to 45%, and capital gains tax at 25%. No wealth tax is levied. Property tax is local, and inheritance tax is progressive. VAT is 19%.

Greece

Greece charges 22% corporate tax, personal income tax up to 44%, and capital gains tax at 15%. No wealth tax is applied. Property tax is significant, and inheritance tax is progressive. VAT is 24%, with reduced rates of 13% and 6%.

Hungary

Hungary features a flat 9% corporate tax (lowest in the EU), personal income tax at 15%, and capital gains tax at 15%. No wealth tax is levied. Property tax is local, and inheritance tax is minimal. VAT is 27%, the highest standard rate in the EU.

Iceland

Iceland levies a 20% corporate tax, personal income tax up to 46.24%, and capital gains tax at 22%. No wealth tax is applied. Property and inheritance taxes are modest. VAT is 24%, with reduced rates of 11%.

Ireland

Ireland applies a 12.5% corporate tax (standard), personal income tax up to 40%, and capital gains tax at 33%. No wealth tax is levied. Property tax is local, and inheritance tax is progressive. VAT is 23%.

Italy

Italy charges a 24% corporate tax plus regional surcharges, personal income tax up to 43%, and capital gains tax at 26%. No wealth tax is applied. Property and inheritance taxes are significant. VAT is 22%, with reduced rates of 10% and 4%.

Latvia

Latvia enforces a 20% corporate tax, personal income tax up to 31.4%, and capital gains tax at 20%. No wealth tax is levied. Property tax is local, and inheritance tax is minimal. VAT is 21%.

Lithuania

Lithuania applies a 15% corporate tax, personal income tax up to 32%, and capital gains tax at 15%. No wealth tax is levied. Property tax is applied municipally. Inheritance tax is modest. VAT is 21%.

Europe (Part 2)

Luxembourg

Luxembourg levies a corporate tax of around 24.94% (including municipal business tax), personal income tax up to 42%, and capital gains tax varies based on holding period. Wealth tax applies to corporations, not individuals. Property and inheritance taxes are moderate. VAT is 17%, the lowest standard rate in the EU.

Malta

Malta applies a 35% corporate tax, though effective rates can be much lower due to refunds. Personal income tax goes up to 35%, and capital gains tax is applied selectively. No wealth tax is levied. Property tax is minimal, and inheritance tax is not applied. VAT is 18%.

Moldova

Moldova charges 12% corporate tax, personal income tax at a flat 12%, and capital gains tax at 12%. No wealth tax is applied. Property tax is local, and inheritance tax is minimal. VAT is 20%.

Netherlands

Netherlands enforces a 25.8% corporate tax, personal income tax up to 49.5%, and capital gains tax is treated as income. No wealth tax is levied, but a deemed return on assets is taxed. Property and inheritance taxes are significant. VAT is 21%.

North Macedonia

North Macedonia levies a flat 10% corporate and personal income tax, with capital gains taxed at the same rate. No wealth tax is applied. Property tax is local, and inheritance tax is minimal. VAT is 18%.

Norway

Norway applies a 22% corporate tax, personal income tax up to 39.6%, and capital gains tax at 22%. No wealth tax is levied, but a net wealth tax applies to individuals. Property and inheritance taxes are moderate. VAT is 25%.

Poland

Poland charges 19% corporate tax, personal income tax up to 32%, and capital gains tax at 19%. No wealth tax is applied. Property tax is local, and inheritance tax is progressive. VAT is 23%.

Portugal

Portugal levies a 21% corporate tax (plus municipal surtax), personal income tax up to 48%, and capital gains tax at 28%. No wealth tax is applied. Property and inheritance taxes are significant. VAT is 23%, with reduced rates of 13% and 6%.

Romania

Romania applies a 16% corporate tax, personal income tax at a flat 10%, and capital gains tax at 10%. No wealth tax is levied. Property tax is local, and inheritance tax is minimal. VAT is 19%.

Russia

Russia enforces a 20% corporate tax, personal income tax at a flat 13% (15% for high earners), and capital gains tax at 13%. No wealth tax is applied. Property and inheritance taxes are modest. VAT is 20%.

Serbia

Serbia charges 15% corporate tax, personal income tax up to 20%, and capital gains tax at 15%. No wealth tax is levied. Property tax is local, and inheritance tax is progressive. VAT is 20%.

Slovakia

Slovakia applies a 21% corporate tax, personal income tax up to 25%, and capital gains tax at 19%. No wealth tax is levied. Property and inheritance taxes are modest. VAT is 20%.

Slovenia

Slovenia levies a 19% corporate tax, personal income tax up to 50%, and capital gains tax at 25%. No wealth tax is applied. Property and inheritance taxes are moderate. VAT is 22%.

Spain

Spain enforces a 25% corporate tax, personal income tax up to 47%, and capital gains tax up to 26%. Wealth tax applies to individuals with assets above €700,000. Property and inheritance taxes are significant. VAT is 21%.

Sweden

Sweden charges 20.6% corporate tax, personal income tax up to 52.3%, and capital gains tax at 30%. No wealth tax is levied. Property tax is minimal, and inheritance tax was abolished. VAT is 25%.

Switzerland

Switzerland has a combined corporate tax averaging ~14.6% depending on canton, personal income tax up to 40%, and capital gains tax is generally exempt for individuals. Wealth tax applies at cantonal level. Property and inheritance taxes vary by region. VAT is 8.1%.

Ukraine

Ukraine applies an 18% corporate tax, personal income tax at a flat 18%, and capital gains tax at 18%. No wealth tax is levied. Property and inheritance taxes are modest. VAT is 20%.

United Kingdom

United Kingdom levies a 25% corporate tax, personal income tax up to 45%, and capital gains tax up to 28%. No wealth tax is applied. Property and inheritance taxes are significant. VAT is 20%.

Americas (Part 1)

Argentina

Argentina applies a 35% corporate tax for residents and 15% for non-residents. Personal income tax ranges from 9% to 35%, capital gains are taxed at 15%, and wealth tax applies to individuals with assets over a threshold. Property tax is local, and inheritance tax is not federally applied. VAT is 21%.

Bahamas

Bahamas has no corporate or personal income tax, nor capital gains tax. A 12% VAT applies to most goods and services. There are no wealth or inheritance taxes.

Barbados

Barbados uses a tiered corporate tax system: 5.5% for profits under BBD$1M, down to 1% for profits over BBD$30M. Personal income tax reaches 38%, capital gains are taxed selectively, and VAT is 17.5%. Property and inheritance taxes are modest.

Belize

Belize levies a 25% corporate tax, personal income tax up to 25%, and capital gains tax at 15%. VAT is 12.5%, and property tax is applied locally. Inheritance tax is minimal.

Bolivia

Bolivia applies a 25% corporate tax, personal income tax up to 25%, and capital gains tax at 13%. VAT is 13%, and property and inheritance taxes are modest.

Brazil

Brazil enforces a 34% corporate tax, personal income tax up to 27.5%, and capital gains tax at 15%. Wealth tax is not levied, but property and inheritance taxes are significant. VAT varies by state, averaging around 17%.

Canada

Canada has a combined federal and provincial corporate tax averaging ~26.5%, personal income tax up to 33% federally (plus provincial rates), and capital gains taxed at 50% of the gain. No wealth tax is applied. Property and inheritance taxes vary by province. GST is 5%, with provincial sales taxes added.

Chile

Chile charges 27% corporate tax, personal income tax up to 40%, and capital gains tax at 10%. No wealth tax is applied. Property and inheritance taxes are moderate. VAT is 19%.

Colombia

Colombia levies a 35% corporate tax, personal income tax up to 39%, and capital gains tax at 10%. Wealth tax applies to high-net-worth individuals. Property and inheritance taxes are significant. VAT is 19%.

Costa Rica

Costa Rica applies a 30% corporate tax, personal income tax up to 25%, and capital gains tax at 15%. No wealth tax is levied. Property and inheritance taxes are modest. VAT is 13%.

Cuba

Cuba enforces a 35% corporate tax, personal income tax up to 50%, and capital gains tax at 30%. VAT is not widely applied; instead, turnover taxes are used. Property and inheritance taxes exist but are limited.

Dominican Republic

Dominican Republic charges 27% corporate tax, personal income tax up to 25%, and capital gains tax at 25%. VAT is 18%, and property and inheritance taxes are applied progressively.

Ecuador

Ecuador levies a 25% corporate tax, personal income tax up to 35%, and capital gains tax at 10%. Wealth tax is not applied. Property and inheritance taxes are moderate. VAT is 12%.

El Salvador

El Salvador applies a 30% corporate tax, personal income tax up to 30%, and capital gains tax at 10%. VAT is 13%, and property and inheritance taxes are modest.

Guatemala

Guatemala charges 25% corporate tax, personal income tax up to 31%, and capital gains tax at 10%. VAT is 12%, and property and inheritance taxes are minimal.

Guyana

Guyana enforces a 40% corporate tax for commercial companies, 25% for others. Personal income tax goes up to 33.33%, and capital gains tax is 20%. VAT is 14%, and property and inheritance taxes are applied locally.

Haiti

Haiti levies a 30% corporate tax, personal income tax up to 30%, and capital gains tax at 15%. VAT is 10%, and property and inheritance taxes are modest.

Honduras

Honduras applies a 25% corporate tax, personal income tax up to 25%, and capital gains tax at 10%. VAT is 15%, and property and inheritance taxes are minimal.

Jamaica

Jamaica charges 25% corporate tax, personal income tax up to 25%, and capital gains tax is not widely applied. VAT (called GCT) is 15%, and property and inheritance taxes are modest.

Mexico

Mexico enforces a 30% corporate tax, personal income tax up to 35%, and capital gains tax at 10%. No wealth tax is levied. Property and inheritance taxes are applied locally. VAT is 16%.

Nicaragua

Nicaragua levies a 30% corporate tax, personal income tax up to 30%, and capital gains tax at 10%. VAT is 15%, and property and inheritance taxes are modest.

Panama

Panama applies a 25% corporate tax, personal income tax up to 25%, and capital gains tax at 10%. No wealth tax is levied. Property and inheritance taxes are moderate. VAT is 7%.

Paraguay

Paraguay charges 10% corporate tax, personal income tax up to 10%, and capital gains tax at 10%. VAT is 10%, and property and inheritance taxes are minimal.

Peru

Peru enforces a 29.5% corporate tax, personal income tax up to 30%, and capital gains tax at 5%. No wealth tax is applied. Property and inheritance taxes are modest. VAT is 18%.

Suriname

Suriname levies a 36% corporate tax, personal income tax up to 38%, and capital gains tax at 25%. VAT is not implemented; turnover tax applies. Property and inheritance taxes are limited.

Trinidad & Tobago

Trinidad & Tobago applies a 30% corporate tax, personal income tax up to 25%, and capital gains tax is not widely applied. VAT is 12.5%, and property and inheritance taxes are modest.

United States

United States has a federal corporate tax of 21%, personal income tax up to 37% federally (plus state taxes), and capital gains tax up to 20%. No wealth tax is levied. Property and inheritance taxes vary by state. Sales tax ranges from 0% to ~10% depending on the state.

Uruguay

Uruguay charges 25% corporate tax, personal income tax up to 36%, and capital gains tax at 12%. No wealth tax is applied. Property and inheritance taxes are moderate. VAT is 22%.

Venezuela

Venezuela levies a 34% corporate tax, personal income tax up to 34%, and capital gains tax at 10%. VAT is 16%, and property and inheritance taxes are applied selectively.

Oceania

Australia

Australia applies a 30% standard corporate tax, with a reduced 25% rate for base rate entities. Personal income tax ranges from 0% to 45%, and capital gains are taxed at the same rate as income, with discounts for long-term holdings. There’s no formal wealth tax. Property tax is levied at the state level, and inheritance tax has been abolished. GST is 10%, with exemptions for essentials.

New Zealand

New Zealand charges a 28% corporate tax, personal income tax up to 39%, and capital gains are generally not taxed unless part of business income. There’s no wealth or inheritance tax. Property tax is local, and GST is 15%.

Fiji

Fiji levies a 20% corporate tax, personal income tax up to 20%, and capital gains tax at 10%. There’s no wealth tax. Property tax is applied municipally, and inheritance tax is minimal. VAT is 15%.

Papua New Guinea

Papua New Guinea applies a 30% corporate tax, personal income tax up to 42%, and capital gains tax at 30%. No wealth tax is levied. Property and inheritance taxes are modest. VAT is 10%.

Samoa

Samoa enforces a 27% corporate tax, personal income tax up to 27%, and capital gains tax is not widely applied. No wealth tax is levied. Property tax is local, and inheritance tax is minimal. VAT is 15%.

Tonga

Tonga charges a 25% corporate tax, personal income tax up to 20%, and capital gains tax is not commonly applied. No wealth or inheritance tax. Property tax is minimal, and VAT is 15%.

Vanuatu

Vanuatu is a true tax haven with no corporate, income, capital gains, wealth, or inheritance taxes. Property tax is minimal, and VAT is 15%.

Solomon Islands

Solomon Islands levies a 30% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. No wealth tax is applied. Property and inheritance taxes are modest. VAT is 10%.

Micronesia and Palau

Micronesia and Palau have no VAT or GST, and tax systems are relatively simple. Corporate and income taxes are applied at moderate rates, and capital gains are not widely taxed. Property and inheritance taxes are minimal.

Middle East

Bahrain

Bahrain imposes no corporate or personal income tax, and no capital gains tax. A 10% VAT applies to non-essential goods, while essentials are exempt. There are no wealth or inheritance taxes.

Iran

Iran applies a 25% corporate tax, personal income tax up to 35%, and capital gains tax at 20%. VAT is 9%, and property tax is minimal. Inheritance tax is applied progressively.

Iraq

Iraq levies a 15% corporate tax, personal income tax up to 15%, and capital gains tax at 15%. VAT is not implemented; instead, a sales tax applies. Property and inheritance taxes are limited.

Israel

Israel charges a 23% corporate tax, personal income tax up to 50%, and capital gains tax at 25%. VAT is 17%, and property and inheritance taxes are applied selectively.

Jordan

Jordan applies a 20% corporate tax, personal income tax up to 30%, and capital gains tax at 10%. VAT is 16%, and property tax is applied municipally. Inheritance tax is minimal.

Kuwait

Kuwait levies a 15% corporate tax (only on foreign entities), no personal income or capital gains tax. VAT is not implemented. Property and inheritance taxes are minimal.

Lebanon

Lebanon enforces a 17% corporate tax, personal income tax up to 25%, and capital gains tax at 15%. VAT is 11%, and property tax is applied locally. Inheritance tax exists but is modest.

Oman

Oman charges a 15% corporate tax, no personal income or capital gains tax. VAT is 5%, and property and inheritance taxes are minimal.

Palestine

Palestine applies a 15% corporate tax, personal income tax up to 20%, and capital gains tax at 10%. VAT is 16%, and property tax is applied municipally. Inheritance tax is not widely enforced.

Qatar

Qatar levies a 10% corporate tax (on foreign entities), no personal income or capital gains tax. VAT is not implemented. Property and inheritance taxes are minimal.

Saudi Arabia 

Saudi Arabia enforces a 20% corporate tax (on foreign entities), no personal income tax, and a 5% VAT. Zakat (a religious wealth tax) applies to Saudi-owned businesses. No inheritance tax.

Syria

Syria charges 22% corporate tax, personal income tax up to 22%, and capital gains tax at 10%. VAT is not implemented. Property and inheritance taxes are minimal.

United Arab Emirates (UAE)

The United Arab Emirates (UAE) recently introduced a 9% corporate tax, has no personal income or capital gains tax, and applies a 5% VAT. No wealth or inheritance tax.

Yemen

Yemen levies a 20% corporate tax, personal income tax up to 15%, and capital gains tax at 15%. VAT is not implemented. Property and inheritance taxes are minimal.

Territories & Dependencies

Hong Kong (China)

Hong Kong (China) applies a 16.5% corporate tax, personal income tax up to 17%, and no capital gains tax. No wealth or inheritance tax. VAT is not implemented; a simple sales tax system applies.

Macau (China)

Macau (China) levies a 12% corporate tax, personal income tax up to 12%, and no capital gains tax. No VAT or inheritance tax is applied.

Puerto Rico (US territory)

Puerto Rico (US territory) enforces a 37.5% corporate tax, personal income tax up to 33%, and capital gains tax up to 15%. Sales tax is 11.5%, and property and inheritance taxes follow US-style rules.

Guam (US territory)

Guam (US territory) follows US federal tax rules: 21% corporate tax, personal income tax up to 37%, and capital gains tax up to 20%. Sales tax is not applied; instead, a gross receipts tax exists.

Isle of Man (UK dependency)

Isle of Man (UK dependency) levies a 0% corporate tax for most businesses, personal income tax up to 20%, and no capital gains tax. No VAT; instead, it follows UK customs rules. No inheritance or wealth tax.

Jersey & Guernsey (UK dependencies)

Jersey & Guernsey (UK dependencies) apply 0% corporate tax for most companies, personal income tax up to 20%, and no capital gains or inheritance tax. GST is 5% in Jersey; Guernsey has no GST.