Main Worldwide Taxes – Rates, Laws, and Regulations
If you are looking for information about the main worldwide taxes, read this article. It contains the most important and useful information concerning the most widespread types of taxes as well as existing legislation systems. The two main worldwide taxes imposed on taxpayers include income tax and corporate tax.
Income tax is incurred on taxpayers and depends on their profit. Corporate tax is a tax paid by a company and is predetermined by the income of the entity. Corporate tax rates worldwide as well as worldwide tax rates, in general, vary from country to country and are regulated by a particular jurisdiction and tax system applied within it.
Tax Rates Worldwide
Worldwide corporate tax rates range from 10% to 40%. They reach 35% in such countries as Malta, Sudan, and Congo. A corporate tax rate for such countries as Australia, Japan, Costa Rica, Mexico, and India comprises 30%. The United Kingdom levies 19% corporate tax while the USA imposes 40% tax on its citizens.
However, there are countries in the world where there is no income or corporate tax. They are known as offshore zones. The most well-known offshore zones include the Caribbean, the British Virgin Islands, Panama, Cyprus, Seychelles, and the UAE.
The United Arab Emirates is one of the most famous tax havens around the globe. The UAE are devoid of income and corporate tax, tax on dividends and interest, tax on import and export (on the territory of free trade zones). The only areas where tax is imposed in the UAE are oil and banking sectors.
Corporate tax worldwide is governed by the rules of a particular country, although there are some universal international regulations. Numerous countries of the world have signed agreements on the avoidance of double taxation in order to make sure that taxpayers do not pay the same tax twice to two different jurisdictions.
The borders between the countries are either gradually disappearing or becoming more transparent. On the one hand, this increases the competition; however, on the other hand, it gives entrepreneurs a great chance to enter the international market. Modern entrepreneurs are not limited in terms of location – they can choose the best, the most favorable place for a business. Very often the choice of the investors falls on offshore zones as they offer the most convenient corporate tax rates and have a genuinely facilitating investment climate. The UAE are one them.