For expats who have the opportunity where to live or run a business to pay the least tax, some new research comparing government tax takes as a percentage of GDP shows up some surprises.
Some countries that hail their low tax environments for individuals and business come out much higher on the scale than expected.
Britain is considered as one of the developed countries with the lowest corporation taxes for business, but the UK government tax take is a third of GDP – 20% higher than the global average.
The figures come from a survey of 53 countries by accountants UHY Hacker Young.
Despite the British government’s claim that the UK is open for business, Britain ranks 18th in the list – about a third of the way down.
Western Europe governments take the most
On average Western European governments take the largest tax slice out of earnings, with an average 38.90% compared to a global average of 27.80%.
The G7 nations of France, Germany, Italy, Japan, the US, UK and Canada come next, grabbing 34.60% of GDP as tax, mainly due to the Western European majority in the group.
The lowest tax burdens are in emerging economies, says the accounting firm.
Denmark tops the table with a 48.60% tax take, while Nigeria is last, deducting only 1.60%.
Spokesman Roy Maugham said: “Eastern European countries and new financial centres in Dubai, Singapore and Qatar are becoming viable threats to the British economy unless steps are taken by the next government to reduce rather than soak businesses and individuals for tax.
“No doubt those that have the choice will go, but we need to encourage their earnings and jobs to stay.”
Who Pays The Most Tax? | |
---|---|
Country | Tax revenue as % of GDP |
Denmark | 48.60% |
France | 45.00% |
Belgium | 44.60% |
Finland | 44.00% |
Sweden | 42.80% |
Italy | 42.60% |
Austria | 42.50% |
Norway | 40.80% |
Luxembourg | 39.30% |
Hungary | 38.90% |
Slovenia | 36.80% |
Germany | 36.70% |
Netherlands | 36.30% |
Iceland | 35.50% |
Czech Republic | 34.10% |
Greece | 33.50% |
Portugal | 33.40% |
United Kingdom | 32.90% |
Spain | 32.60% |
New Zealand | 32.10% |
Poland | 32.10% |
Estonia | 31.80% |
Canada | 30.60% |
Israel | 30.50% |
Barbados | 29.80% |
Slovak Republic | 29.60% |
Japan | 29.50% |
Brazil | 29.50% |
Turkey | 29.30% |
Ireland | 28.30% |
Australia | 27.30% |
Switzerland | 27.10% |
Uruguay | 25.80% |
United States | 25.40% |
Korea | 24.30% |
Jamaica | 23.90% |
China | 21.00% |
Chile | 20.20% |
Mexico | 19.70% |
India | 19.40% |
Croatia | 19.00% |
Romania | 18.00% |
Argentina | 17.60% |
Russia | 17.00% |
Malaysia | 16.10% |
Singapore | 15.10% |
Peru | 14.20% |
Bangladesh | 12.30% |
Guatemala | 11.70% |
Egypt | 10.30% |
Puerto Rico | 7.60% |
UAE | 2.70% |
Nigeria | 1.60% |
Regional averages | |
Regions | Average Tax Revenue as % GDP |
Western Europe | 38.90% |
G7 | 34.60% |
Global | 27.80% |
Central and Eastern Europe | 25.90% |
BRIC | 21.70% |
Lower income emerging economies** | 15.10% |
SOURCE: UHY Hacker Young |