With employees across India rushing to complete their income-tax formalities, let's take a look at countries that have some of the highest income-tax rates. While Scandinavian nations are famous for their high rates, there are some countries, such as Saudi Arabia, the United Arab Emirates and Kuwait, that don't levy any income tax at all.
NOTE: Rates mentioned are of highest income slab.
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India
Income tax in the highest slab: 30 per cent
Although many Indians feel they pay high taxes, compared to some countries its tax rate is not that high. There are some nations that levy more than 50 per cent income tax. Naturally, the biggest revenue generator for the government is income tax.
Click NEXT to see 25 countries that levy the highest income tax...
Aruba
Income tax in the highest slab: 58.95 per cent
Overall rank: 1
The island in the southern Caribbean Sea has the highest income tax rate in the world. With nearly 59 per cent as income tax, it beats even Scandinavian countries famous for their high income tax rates.
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Sweden
Income tax in the highest slab: 56.6 per cent
Overall rank: 2
Sweden follows Aruba in charging high income tax. Workers in Sweden contribute taxes to three separate sections of government: municipality, county council and central government.
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Denmark
Income tax in the highest slab: 55.56 per cent
Overall rank: 3
In Denmark, employees are charged 8 per cent even before income tax kicks in. The government calls this "gross tax". Even those who are self-employed are charged this gross tax.
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The Netherlands
Income tax in the highest slab: 52 per cent
Overall rank: 4
The Netherlands has a system that levies taxes on wages, profits, social security benefits and pensions. Just like India, there are tax brackets each with their own tax rates.
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Spain
Income tax in the highest slab: 52 per cent
Overall rank: 5
Personal income tax in Spain was introduced in 1900. It represents over 50 per cent of government revenues, according to Wikipedia.
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Finland
Income tax in the highest slab: 51.13 per cent
Overall rank: 6
All taxes are collected by state agencies who then give them to local authorities, municipalities and other institutions.
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Slovenia
Income tax in the highest slab: 50 per cent
Overall rank: 7
In Slovenia, taxes are paid every month, that is they are withheld by companies when the salary is sent to banks. If a resident is paid salary by a foreign company, tax advances are paid on tax return.
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Japan
Income tax in the highest slab: 50 per cent
Overall rank: 8
In Japan, taxes are paid on income, property and consumption on three levels: national, prefectural and municipal.
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Israel
Income tax in the highest slab: 50 per cent
Overall rank: 9
In Israel, the major taxes are income tax, capital gains tax, VAT and land appreciation tax.
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Belgium
Income tax in the highest slab: 50 per cent
Overall rank: 10
Residents of Belgium pay personal income tax on their total income from all worldwide sources on a sliding scale.
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Austria
Income tax in the highest slab: 50 per cent
Overall rank: 11
In Austria, the income tax was established up to 50 per cent on a four-bracket structure. There are separate taxes for married people.
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Ireland
Income tax in the highest slab: 48 per cent
Overall rank: 12
In Ireland there is an income tax, a VAT and several other taxes. Workers pay pay-as-you-earn based on their salary.
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Portugal
Income tax in the highest slab: 48 per cent
Overall rank: 13
All income generated by a resident in Portugal, such as salaries, is taxed through Personal Income Tax.
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Norway
Income tax in the highest slab: 47.8 per cent
Overall rank: 14
Central government, county municipality and municipality levy taxes in Norway. The tax level in Norway is among the highest in the world.
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St Maarten
Income tax in the highest slab: 47.5 per cent
Overall rank: 15
St Maarten tax system consist of taxes on corporations and taxes on individuals. For tax purposes, corporations are classified as either resident or non-resident.
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Zimbabwe
Income tax in the highest slab: 46.35 per cent
Overall rank: 16
Individuals pay tax only on Zimbabwe-source earnings or income deemed to be Zimbabwe source.
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Iceland
Income tax in the highest slab: 46.22 per cent
Overall rank: 17
Income tax in Iceland is deducted at source. Up to 8 per cent of gross income may be cut for private pension insurance.
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Germany
Income tax in the highest slab: 45 per cent
Overall rank: 18
Federal government, states as well as municipalities levy taxes in Germany. There are many direct and indirect taxes exist, among them income tax and VAT are major players.
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United Kingdom
Income tax in the highest slab: 45 per cent
Overall rank: 19
Central government and local governments are just two entities that may levy taxes in the United Kingdom.
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China
Income tax in the highest slab: 45 per cent
Overall rank: 20
In China, taxes are the most important source of revenue generation. As they are the biggest contributor to national income, they form a major part of macro-economic regulation and has a big impact on economic and social development.
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Australia
Income tax in the highest slab: 45 per cent
Overall rank: 21
Personal earnings (such as salary and wages), business income and capital gains are three sources of income tax in Australia. Like China, income tax play a big role in the nation's revenue scheme.
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Luxembourg
Income tax in the highest slab: 43.6 per cent
Overall rank: 22
For workers in Luxembourg, the basic types of tax and social security costs are income tax, social security, investment income and capital gains.
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Italy
Income tax in the highest slab: 43 per cent
Overall rank: 23
If you are a tax resident in Italy (which means living there for more than 183 days in the calendar year), Italy taxes you on income generated anywhere in the world.
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Greece
Income tax in the highest slab: 42 per cent
Overall rank: 24
A worker in Greece is liable for tax on their income as an employee and on income as a self-employed. Income tax in Greece is based on income brackets.
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South Africa
Income tax in the highest slab: 40 per cent
Overall rank: 25
Central government and local government are just two entities that levy taxes in South Africa. Federal government generates revenue primarily from income tax and corporation tax.
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