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2015 Global Personal & Corporate Tax Rate at a Glance

2015 Global Personal & Corporate Tax Rate:

  • Asia: China, Hong Kong, Japan, India, Malaysia, Singapore, Indonesia, Thailand
  • Europe: United Kingdom, Switzerland, Russia
  • America: United States, Canada
  • Oceania: New Zealand, Australia

The 15 Countries represent 58.63% of global GDP.  The countries are selected because of their financial connectivity to Asia Wealth Management Industry.  Read More: 5 Reasons why Wealth Management is harder in low-tax countries

Fast Facts

Highest Personal Income Tax RateAustralia45%
Lowest Personal Income Tax RateRussia13%
Average Personal Income TaxGlobal*32.57%
Highest Corporate Tax RateUnited States47%
Lowest Corporate Tax rateHong Kong16.5%
Average Corporate TaxGlobal*26.02%

*Global – Refers to 15 Countries

7 Observations:

  • Australia & China have the highest tax for highest-tier Personal Income Tax at 45%
  • 10 out of 15 countries have personal income tax (highest tier) of more than 30%
  • Russia, Hong Kong and Singapore have the lowest income tax rate for highest tier tax – 13%, 17%, 20%.
  • 6 out of 15 countries have zero tax for the lowest income earner
  • United Kingdom has the highest tax on lowest income earner at 20%
  • Hong Kong, Singapore and Switzerland have the lowest corporate tax rate – 16.5%, 17%, 17.92%.
  • The highest corporate tax: United States – 47%, Japan – 38.01%, Canada, 31% tax.

Read More: 5 Reasons why Wealth Management is harder in low-tax countries


 

No. 1 Which country have the highest tax for the highest-tier Personal Income Tax?

Connections
Connections

Australia & China have the highest tax for highest-tier Personal Income Tax at 45% tax rate.  10 out of 15 countries have Personal Income Tax of more than 30%.

There is a substantial tax-difference of more than 15% between Personal Income Tax and Corporate Tax in Switzerland, United Kingdom, China, Japan, Australia and Thailand.  See below:

List of Countries with Personal Income Tax higher than than 30%:

CountryPersonal Highest Tier Tax RateCorporate TaxDifference
Australia45%30%15%
China45%25%20%
United Kingdom40%20%20%
Japan40%20%20%
Switzerland40%17.92%22.08%
United States39.6%47%7.4%
Thailand35%20%15%
Canada33%41%8%
New Zealand33%31%2%
Indonesia30%25%5%

 

No. 2 Which country have the lowest tax for highest-tier Personal Income Tax?

Private Banking
Private Banking

Russia, Hong Kong and Singapore have the lowest tax for the highest-tier income tax bracket.

Russia have a flat personal income tax rate of 13%.  Hong Kong highest personal income tax tier is 17% while in Singapore, it is at 20%.

CountryHighest Tier Tax Rate
RussiaFlat rate 13%
Hong Kong17%
Singapore20%
Average32.57%

 

The average highest personal income tax tier is 32.57% for the 15 countries.  Having a tax rate of 13%, 17% or 20% means the top income earner enjoy significant savings, compared to the highest tax countries such as Australia, China, United Kingdom, Japan and Switzerland.  The 5 countries have a personal income tax of more than 40% for the highest tier tax rate.

 

No. 3 Which are the countries with zero tax for the lowest income earners?

Savings
Savings

6 out of 15 countries have zero tax for the lowest income earner.  The countries are Switzerland, India, Malaysia, Singapore, Thailand and Australia.

Zero TaxWith Tax
SwitzerlandUnited Kingdom – 20%
IndiaRussia – 13%
MalaysiaJapan – 5%
SingaporeChina – 3%
ThailandHong Kong – 2%
AustraliaIndonesia – 5%
United States – 10%
Canada – 15%
New Zealand – 10.5%

 

United Kingdom has the highest tax on lowest income earner at 20%, followed by Canada at 15% and Russia at 13%.

 

No. 4 Which countries have the lowest corporate tax?

Hong Kong Skyline
Hong Kong Skyline

Hong Kong, Singapore and Switzerland have the lowest corporate tax rate. Hong Kong tax rate is 16.5%, Singapore is 17%, Switzerland is 17.92%.  All of them are leading global financial center.

CountryCorporate Tax Rate
Hong Kong16.5%
Singapore17%
Switzerland17.92%
Average26.02%

 

Of the 15 countries on this list, these are the only 3 countries with less than 20% corporate tax rate.  They are comparatively lower than the average of 26.02%.

 

No. 5 Which country have the highest corporate tax?

Financial Times
Financial Times

United States have the highest corporate tax.  United States corporates pay 47% corporate tax while in Japan, companies pay 38.01%. In Canada, companies pay 31% tax.

CountryCorporate Tax Rate
United States47%
Japan38.01%
Canada31%
Average26.02%

 

Of the 15 countries on this list, these are the only 3 countries with more than 30% corporate tax rate.

 

No. 6 What is the most common corporate tax rate?

Credit Ratings
Credit Ratings

9 out of 15 countries have a corporate tax between 20% to 30%. The list below:

CountriesCorporate Tax Rate
United Kingdom, Russia, Thailand20%
China, Malaysia, Indonesia25%
New Zealand28%
India, Australia30%

 

The highest corporate tax is United States at 47% while the lowest is Hong Kong at 16.5%.

 

No. 7 Which countries are the most tax friendly?

Digital Connection
Digital Connection

United Arab Emirates and Qatar.  Both countries have zero personal income tax.  For corporate tax, it is zero in United Arab Emirates while in Qatar, it is only 10%.

We exclude countries such as British Virgin Islands, Cayman Islands, Seychelles, Bermudas … … for economic viability reasons.

Learn More: 5 Reasons why Wealth Management is harder in low-tax countries

Data Source: World Bank, IMF, KPMG, Income Tax Department of respective countries

 

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