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KPMG's Individual income tax and social security rate survey 2009
KPMG’s International Executive Services practice has provided insights into personal tax trends by conducting a cross-border survey of personal income tax and social security rates from 86 countries with historical data from 2003 to 2009 in a new report, Individual Income Tax and Social Security Rate Survey 2009. This is the second year that KPMG’s IES practice has completed this report, which looks at how people have been taxed in different parts of the world and how different governments approach the difficult task of raising funds for necessary public services without losing the support of their citizens.
The global decline in top personal income tax rates over the past seven years may be coming to an end due to the need for new sources of budgetary and stimulus funding among governments, according to a survey released today by KPMG International, and that shift may have implications for international assignment programs and future global workforce mobility trends.
According to the KPMG study, the highest personal income taxes in the world are still paid by the citizens of the European Union (EU). But with the introduction of flat rate taxes in a number of Eastern European countries — including Latvia and Poland, which reduced their top rates to 23 and 32 percent respectively for 2009 — average rates have fallen from 41.1 percent in 2003 to 36 percent in 2009.
Denmark — when looking at social security and the personal income tax rate together — has the highest personal income tax rate at 62.3 percent. In the Asia-Pacific region, Japan has the top rate at 50 percent. Chile has the highest rate in the Latin American region at 40 percent.
According to KPMG’s 2009 Individual income tax and social security rate survey, the top average personal income tax rate dropped 0.3 percent worldwide in 2009 to 28.9 percent from 29.2 percent in 2008. However, some countries are already making plans to implement personal income tax rate increases for its top earners, while other countries are examining this option, according to subsequent country budgets and income levies.
KPMG’s 2009 survey also included an analysis of social security rates, specifically examining income tax and social security rates for gross incomes of employees earning 100,000USD and 300,000USD. Social security components can vary significantly by country, employer and employee type.
When taking both the personal income tax rate and social security rates into account for employees earning 100,000USD, the countries with the highest rates were Slovenia (54.9 percent), Croatia (53.5 percent) and Hungary (48.1 percent).
For employees earning 300,000USD, the countries with the highest rates were Slovenia (60.4 percent), Denmark (57.1 percent) and Croatia (54.5 percent).
KPMG’s 2009 Individual Income Tax and Social Security Rate Survey is a cross-border survey of personal tax and social security rates with historical data from 2003-2009. The report covers 86 countries, concentrating on the highest level of personal tax payable to the central government. For ease of comparison, the survey has excluded, where possible, other taxes such as state and municipal taxes.
The study was commissioned by the global International Executive Services practice, comprising professionals from several KPMG International member firms.
A copy of the publication can be downloaded by clicking on the link below. A hard copy can be ordered at marketing@kpmg.hr.
According to the KPMG study, the highest personal income taxes in the world are still paid by the citizens of the European Union (EU). But with the introduction of flat rate taxes in a number of Eastern European countries — including Latvia and Poland, which reduced their top rates to 23 and 32 percent respectively for 2009 — average rates have fallen from 41.1 percent in 2003 to 36 percent in 2009.
Denmark — when looking at social security and the personal income tax rate together — has the highest personal income tax rate at 62.3 percent. In the Asia-Pacific region, Japan has the top rate at 50 percent. Chile has the highest rate in the Latin American region at 40 percent.
According to KPMG’s 2009 Individual income tax and social security rate survey, the top average personal income tax rate dropped 0.3 percent worldwide in 2009 to 28.9 percent from 29.2 percent in 2008. However, some countries are already making plans to implement personal income tax rate increases for its top earners, while other countries are examining this option, according to subsequent country budgets and income levies.
KPMG’s 2009 survey also included an analysis of social security rates, specifically examining income tax and social security rates for gross incomes of employees earning 100,000USD and 300,000USD. Social security components can vary significantly by country, employer and employee type.
When taking both the personal income tax rate and social security rates into account for employees earning 100,000USD, the countries with the highest rates were Slovenia (54.9 percent), Croatia (53.5 percent) and Hungary (48.1 percent).
For employees earning 300,000USD, the countries with the highest rates were Slovenia (60.4 percent), Denmark (57.1 percent) and Croatia (54.5 percent).
KPMG’s 2009 Individual Income Tax and Social Security Rate Survey is a cross-border survey of personal tax and social security rates with historical data from 2003-2009. The report covers 86 countries, concentrating on the highest level of personal tax payable to the central government. For ease of comparison, the survey has excluded, where possible, other taxes such as state and municipal taxes.
The study was commissioned by the global International Executive Services practice, comprising professionals from several KPMG International member firms.
A copy of the publication can be downloaded by clicking on the link below. A hard copy can be ordered at marketing@kpmg.hr.
Individual Income Tax and Social Security Rate Survey 2009, Size: 2.4Mb