When it comes to individual taxes, my home country can’t boost with low one, but I always like to compare it to other countries – so I am day-dreaming about the countries with the lowest individual tax rates in the world. Whichever country we examine there are several points in common, and one of them is that they all have some kind of tax systems. Many of them have high income taxes, while the other have low personal income taxes.
Now without a further ado let’s see what Insider Monkey has investigated for us. We have picked three countries with the lowest individual tax rates in the world from their list.
The first country on our list is Hungary, my home country. In Hungary, personal income tax (PIT) is 15% of taxable gross income, from 2016. If income is derived from employment activity which is performed in Hungary but paid from abroad, it is still considered to be a domestic-source income. If the income is paid from abroad, income taxation depends on whether the income was transferred electronically or brought into the country in cash. The truth is we earn very little amounts and taxes are high for us. half of our salary disappear by the time we get it. So I wouldn’t say that taxes are low in my country. But ok, go on with listing the countries with the lowest individual tax rates, and the next country is Serbia. If your income exceeds the threshold (between three and six times the average annual salary which is around 400$), the tax rate is 10%. However, if the income exceeds six times the annual average wage, then the rate is bigger (15%). Non-residents of Serbia are taxed based on their Serbian-sourced income related to their work in or for the Republic of Serbia. They also have the annual tax which represents an additional tax. At last, but not least we are mentioning Jordan. Individual tax rate in Jordan depends on the amount of the income. For the first 10,000 Jordanian dinars your tax rate will be 7%, for the next 10,000 it will be double (14%), and finally, the remaining balance will be taxed 20%. Any income incurred in or for Jordan is taxed under these measures. The Jordan PIT is the only tax on personal income in Jordan, which means there are no additional ones on the local level.
For any further useful information, read Insider Monkey’s article about 18 countries with the lowest individual tax rates in the world.