Countries economy operates the entire global economy. Long term economic growth is also effected by individual income tax. Countries with the higher economy shows the higher standard of living that raise the income tax as a result provide free schooling, free health care and high standard of living. Number of surveys has been done to monitor the income tax over the entire world.
This article highlights the taxation by the various countries and why? Top 4 countries with the income tax rate are listed below.
1. Belgium (42.0%)
Belgium income tax rate is commonly cited as the highest in the world. It follows the progressive tax system where taxes are collected on both state and local level. Most of the tax is collected on federal level which includes an income tax, value added tax, social security (13.07%) and corporate tax. Other than these taxes, tax on property and other taxes are collected on the local level. With such taxes Belgium imposes the highest income tax rate in the world.