Tax rates are different in different countries in the world.
The total tax rate is actually defined by the World Bank.
The total amount of taxes is the sum of five different types of taxes and contributions payable after accounting for deductions and exemptions: profit or corporate income tax, social contributions and labor taxes paid by the employer, property taxes, turnover taxes, and other small taxes.
So it includes any taxes on labour that fall on the employer, but not ones like income tax that fall on the employee.
So where are the lowest tax rates?
Below is top 10 countries with the lowest tax:
- Macedonia 7,4%
- Qatar 11,3%
- Kuwait 12,8%
- Bahrain 13,5%
- Lesotho 13,6%
- Saudi Arabia 14,5%
- United Arab Emirates 14,8%
- Zambia 14,8%
- Georgia 16,4%
- Singapore 18,4%
As we can see there are 5 Gulf countries in this list.
Does this mean that people live better in these countries?