Taxes around the world. What are the taxes in Europe? Which countries in Europe have low taxes? High VAT rates

Taxation of the income of citizens of the country and non-residents allows timely and in the required volume to fill the state and local treasury with funds. Therefore, income tax, which is levied on salaries, profits from commercial activities, rental of property, is required to be paid. Income tax in the countries of the world differs in interest rate, method of payment and reporting.

Taxation of income of citizens of Germany

Income tax here applies to residents (domicile - permanent residence in the country), as well as those who live for more than six months in their own housing in Germany according to the legislation of 2015.

The tax base is:

• . income received directly from the employer - pension, salary, bonus, salary, participation in the activities of a legal entity;
• profit of self-employed citizens - partial partnership, sole conduct of commercial activities (most often medical, legal, household services);
• investment income - interest, dividends;
• director's income - similar to the income of a self-employed person.

Income tax (Einkommensteuer) is mandatory in Germany. The source can be a local legal entity or a foreign company. However, an exception is made for foreign citizens legally working and living in the country - they pay income tax only on income within the country.

A progressive scale of tax rates is used:

• income up to 8004 euros per year is not taxed;
• from 8005 to 52881 euros - a rate of 14% is used;
• when the income for the year is in the range of 52882-250730, the rate is 42%;
• the highest rate of 45% applies if the annual income exceeds EUR 250,731 for 12 months.

The tax can be charged on an individual working citizen or on the total income of the family as a whole. Thus, the zero rate is applicable if the total family income does not exceed 16,009 euros per year.

There are also tax incentives. They are entitled to the disabled, wage workers of advanced age and so on. Reducing the amount of tax is possible by reimbursement of expenses for education at the university. Since 2014, a part of the tax has become available by accounting for the cost of care insurance or medical insurance. Employees with minor children are charged (not taxed) 3,775 euros.

US income tax

Income tax in the US is entirely the concern of citizens and Green Card holders. Calculation, payment is made by taxpayers themselves. The verification of payment is carried out by a special body - the Internal Revenue Service. Moreover, it checks no more than 2% of all declarations. Nevertheless, taxes are paid regularly here, since the punishment for evasion is imprisonment or a huge fine.

Income tax in the United States in 2015 is quite diverse:

• federal tax. A certain amount of tax is deducted from the salary of an employee of the company. The amount depends on the level of salary and marital status of the payer.
• Sales tax. Profit from the sale is necessarily taken into account by the state as a tax base. The rate is 3-7%. Exemptions are residents of the states of Alaska, Delaware, Oregon. Profits from the sale of certain medications are not taxed.
• City and/or state tax. At the place of residence, the payer is obliged to transfer to the treasury about 3-10% of his income. This money settles "on the ground".

The tax is reduced by the amount of deductions, of which there are several in the United States:

• Personal liberation. For bachelors, the base is reduced by $3,900 per year.
• Personal deduction. The base reduction starts at $6,000 and increases with the number of dependents.
• Special deductions. They are used if the payer makes regular expenses - for a mortgage, children, purchase of goods for work, medical care, loss of dividends, renting out housing and much more.

The federal type of tax is calculated on a progressive scale. Rates fluctuate between 0-13%. For example, an employer can transfer tax to the budget not from an employee's salary, but from his own "pocket". Self-employed persons are required to pay tax for themselves unless it is a full partnership.

State tax is deducted if the payer is a resident of that state. Eight states have no such tax at all. In others, it can be calculated on different scales - progressive or flat. The rate is varied - 3.07-13.3%.

Collection of income tax in Belarus

In Belarus, the income tax is in many ways similar to that in Russia in 2015. Most types of income of citizens and non-residents of the country are subject to it:

• dividends (rate 13%);
• income received in the field of high technologies (rate 9%);
• notarial, private lawyer and business activities (rate 16%);
• leasing real estate if the income does not exceed 43,660 thousand rubles per year (rate 13%);
• other types of income - 13%.

Tax benefits (deductions) are used:

• vouchers for the improvement of the child;
• income less than 43,600 thousand rubles a year;
• prizes, gifts, financial assistance at the place of employment;
• assistance for orphans and disabled children.

Also in the Republic of Belarus in 2015, standard deductions are applied for families with children, disabled people, heroes of the USSR, participants in the Second World War and other privileged categories of citizens - payers of income tax. The cost of housing purchased under a lease can also be offset by a deduction.

Income tax is the main one that fills the treasury of the state. Regardless of the rates, collection system and legislation, it is subject to mandatory payment by citizens and non-residents of the country, employed at enterprises or conducting private business.

) is the main type of direct tax levied on the salary of an employee. In Russia, this tax is 13%. This fee is called the main source of revenues to the federal budget. The share of income tax in Russian budget revenues is slightly less than 40%.

Income tax in different countries of the world.

US income tax.

US Income Taxes taxes began to be collected from the public in 1913. At first glance, American tax laws are very difficult to understand. The Internal Revenue Code, which was adopted in 1954, formed its basis.

US income tax every resident of the country pays, regardless of where he lives and from which country he receives income. In the process of calculating the taxable base, you can increase various types tax deductions.

In America, income tax is paid to 3 addresses (after filing a tax return):

• to the federal level;
• directly to the state where the declarant lives;
• city ​​or county (local taxes).

Interestingly, tax rates at all levels may differ or may not exist at all.

US federal taxes are calculated on a progressive scale of taxation from 10 to 39.6%. The tax will vary greatly from the one who draws up the declaration (single person / spouse), the tax-free base is $ 9,075-18,150. On income of $ 406,751, the tax is 39.6%.

In different states, the tax is also different - it varies from 1 to 11%, and in 5 states it does not exist at all.

Income tax in France.

In France, income tax is calculated by the tax office. For the population, all its incomes are divided into 8 categories, each of which has its own calculation method, taking into account benefits and tax deductions. The tax has a progressive scale (from 5.5 to 75%), which is updated annually. Unlike most other countries, in France income tax is calculated per family.

The non-taxable minimum is € 6,011 per year. The maximum rate of 75% applies if the family income is €1,000,000.

Income tax in Sweden.

In Sweden, income tax is handled by the government and municipalities. Each taxpayer has an assigned registration number and an account for transferring taxes. Each resident of Sweden must pay tax on each source of their income: from business, capital, salary. The income received is reduced with the help of deductions that are permitted by law.

The tax is calculated on a progressive scale, the total maximum tax rate is 56.9%. There is a tax on income over SEK 476,700.

Income tax in Norway.

In Norway, information about taxpayers and taxes is officially published. Every resident of Norway must pay national and local taxes on every type of income that he receives within or outside the country. Married couples pay income tax separately from each other. 9.5% is deducted from annual wages on incomes between NOK 220,501 and NOK 248,500. If income is above this interval, then the rate increases by 13.7%.

income tax in Canada.

In Canada, income tax is paid by individuals and organizations. For individuals, federal rates vary from 15 to 29%, regional - 5-21%. Max tax rate = 50%, it applies to income above CAD 136,270.

Income tax in Spain.

Information about all types of income that he received from any country in the world is entered into the declaration of income of a resident of Spain. His status is determined for the entire tax period, regardless of the place of residence. The tax rate varies from 24 to 52%. If income exceeds €300,000, the tax rate increases to 52%.

Income tax in the UK.

Income tax in the UK until 1973 was calculated according to the shedular system of taxation, which provides for the calculation of tax on all sources of income, global - on the total amount of income.

Having joined the EU, the UK had to change the taxation system to the global one, but the schedules remained in the calculation of the tax, taking into account discounts and tax deductions.

The tax period in the UK starts on 6 April and ends on 5 April of the following year. The annual tax-free minimum is £2,790. Tax rates are different - 20, 40 and 45%. Taxation at a rate of 45% corresponds to incomes of more than £150,000 per year.

Income tax in England.

Most of the UK is occupied by England, which is why income tax rates apply the same. The tax is paid 4 times during the tax year. After April 6, the total amount of income tax is calculated. To get the amount of tax payable, you must deduct tax credits from income. All residents of the country have their non-taxable minimums, which change throughout his life.

Income tax in European countries.

The highest income tax rates in such countries:

• Sweden 56.9%;
• Portugal 56.5%;
• Denmark 55.6%;
• Belgium 53.7%;
• Spain 52%.

Minimum income tax in Europe.

The lowest income tax in such European countries:

• Kazakhstan and Bulgaria (10%);
• Belarus - 12%;
• Russia - 13%;
• Lithuania - 15%;
• Romania and Hungary - 16%.

Income tax in South America.

Let's take a look at the characteristics of the South American income tax on the example of Brazil and Chile.

Brazil also has a progressive income tax rate. If the taxpayer's income does not exceed BRL 15,084, then he is not required to pay tax. If the income is 15,084 - 30,144 Brazilian reais, then the tax rate is 15%, even higher income is taxed at a rate of 27.5%.

In Chile, the income tax rate varies from 5 to 40%. Any income of residents of the state is taxed, regardless of the place of their receipt. To calculate the tax, monthly determine the amount of non-taxable income and the gradation of the amounts from which this or that rate will be applied.

Corporate income tax in Kazakhstan.

Corporate income tax (CIT) in Kazakhstan must be paid by legal entities from income from the sale of products, leasing property, and other types of income. Income is adjusted for the amount of expenses documented. Tax rates - from 10 to 20% depending on the profile of work legal entity and NC requirements.

Individual income tax (PIT) is paid by individuals. IIT rates - from 5 to 10%. Income at the place of work is taxed at a rate of 10%, dividends - 5%. Before applying the tax, income is reduced by the amount of tax deductions.

Income tax in other countries of the world.

Income tax in some other countries of the world:

• Argentina - 9-35%,
• Egypt - 10-20%,
• Israel - 10-47%,
• India - 10-30%,
• China - 5-45%.

In some countries of the world there is no income tax at all: Andorra, Bahamas, Bahrain, Kuwait, Monaco, Oman, Qatar, Somalia, UAE, Uruguay.

The modern tax system offers various mechanisms for collecting part of the income of the population. All of them have come a long way from exotic (bridge toll) to hard-to-calculate progressive ones.

The article will present a table of various taxes in the countries of the world, which taxes in the countries of the world are the most noticeable and influential. In conclusion - brief conclusions.

What are the taxes

VAT. A tax that is added every time the value of a product increases.

Income tax. It can be progressive or not (more on this below), not taken at all with a low income, or vice versa, not taken in principle in exchange for some conditions (offshore territories). It is paid on any income of a citizen, subject to some exceptions.

Corporate. In different countries, some industries have an increased rate. As a rule, these are enterprises that adversely affect the environment. Also extracting minerals: oil, gas, coal, etc.

Income tax in different countries

Below we have compiled two tables: with the lowest and highest income taxes in the countries of the world for 2019.

Lowest Rates

All these countries have a non-progressive scale. Any amount earned will be subject to an agreed fee.

The highest rates

Countries with progressive taxes

1. Australia. Income up to 4600 US dollars is not taxed (0%). Income above this amount but less than $29,000 is 9 percent. If a citizen has earned more than 140 thousand dollars, then it is from 30 to 44 percent.
2. Singapore. Those who receive a total monthly income of less than $ 16,000 are not taxed. Above - you pay 20%.
3. Spain. Those who earn less than 20 thousand US dollars pay 24 percent of the amount. If more than 20,000 are earned, then it will be 51%.
4. Italy. Less than $80,000 per month - 23%. More than 45 percent.
5. United Kingdom. For incomes less than 15500 no. More than 45%. There are additional corporate fees for oil companies.
6. Germany. Annual income less than $9,000 - 0%. Over $80,000 - 45%. The amount in between is taxed individually.
7. USA. The progression of fundraising in favor of the state goes from 10% to 39.6%. The zero rate applies to incomes less than $8,950. There are various deductions for annual income, which allows many to not deduct money from the state. For example, mortgage payments, health insurance, etc. are deducted. Marital status is taken into account, there are discounts for large families.

The amount of income tax depending on the type of family

US features

However, in the US, there is an additional fee from each state. As a result, the deduction can be up to 50% of the citizen's earnings. For example, a single person with $50,000 in income would give $25,000 to the government. And the family, having a non-working wife and three children, only 10 thousand.

According to local laws, winnings in the lottery or casino, inheritance, bonus can be considered income. At the same time, social benefits, allowances for military personnel, payments to donors, etc. are usually not taxed.

The governments establish the ratio of deductions from the employee, the employer, as well as the ratio of the division of money from them for medical insurance, pensions, benefits for possible disability or unemployment and other possible expenses.

Europe and offshore

Most of all, the needs of the employee are spent in France, Italy, Austria, Estonia, the Czech Republic, Sweden, and Greece. The share of the worker is much less.

The situation is reversed in Australia, Great Britain, Denmark, Luxembourg, Norway, Iceland. There, first of all, the employee pays for the future insurance of a prosperous life from his income tax. And fees from businessmen go to the treasury and the state disposes of them at its discretion.

In other European countries, the ratio is approximately equal.

As a contrasting example, we can cite a list of territories where there are no taxes on income. In addition to the obvious offshore formations, this group includes:

• Kuwait;
• UAE;
• Saudi Arabia;
• Andorra;
• Bahamas and some other states.

Conclusion

The table with income tax in different states shows that most developed economies have introduced a progressive fiscal scale. The rich pay more. The absence of such a practice is rather an exception, for example, among oil exporters or tourist centers.

Developing: in Eastern Europe, former USSR have relatively low income taxes. It's not progressive though. This may be due to the small population, the lack of large industrial enterprises.

For countries with a progressive taxation scale, the maximum tax rate was used. The progressive scale of taxation, which provides for an increase in payments with an increase in income, from the point of view of social justice, has the right to life, as it prevents the stratification of society. On the other side, high level tax rates for highly paid employees leads either to their migration to countries with lower taxes, or to tax evasion - "gray" and "black" salary schemes.

The maximum income tax rate is fixed in socially oriented Sweden - 56.4%, which took first place in the ranking. In many ways, this rate in recent years has led to an outflow from the country of some highly demanded professions with high salaries. The second line of the rating is occupied by Belgium, where the maximum personal income tax rate is 53.7%, the third is the Netherlands (52.0%), followed by Denmark and Austria with tax rates of 51.5% and 50.0% (the same in the UK). Russia, with its flat taxation scale and 13% tax rate, occupies a modest 34th place out of 37 positions in the rating (4th place from the bottom of the rating). Below our country, income tax is only in Belarus (12.0%), Bulgaria and Kazakhstan (10.0% each).

The total tax burden on citizens' wages, which can be defined as the sum of income tax payments and insurance premium payments, varies greatly in different countries. In Russia, insurance premiums since 2011 amount to 34% of the accrued wages (until 2010 it was the UST). With 50 thousand rubles paid into the hands of the employee. official salary, the total taxes of the employee will amount to 7.47 thousand (tax on personal income), plus 19.5 thousand rubles. insurance premiums paid by the employer. In total, with a net salary of 50 thousand rubles, the total cost of wages per employee will be 77 thousand rubles. At the same time, the tax burden on wages is 27 thousand rubles. (social insurance payments and personal income tax) or 35.1% of total labor costs. It is these 35.1% that are the level of tax (maximum, excluding possible tax deductions, etc.) that must be paid from wages in Russia. On an annualized basis, for highly paid categories of citizens, this level is somewhat lower, since, from the amounts of payments and other remuneration in favor of an individual, exceeding 463 thousand rubles. on an accrual basis from the beginning of the billing period, insurance premiums are not charged. Of course, in essence, personal income tax and insurance premiums are two different taxes - the first is paid by employees, and the enterprise acts as a tax agent, the second - by the enterprise. But in fact, in order to pay wages to employees, the company has to include tax payments on personal income tax into expenses.

RIA-Analytics experts ranked European countries in terms of the total tax burden on citizens' incomes, based on Eurostat data published in June 2011 on the level of tax burden on labor income of EU citizens (the ratio of paid income taxes and social payments to the taxable base at the end of 2009). In fact, these figures are the actual "tax" on the salaries of citizens, taking into account various types of taxation and deductions in different countries. It also allows us to take into account the progressive scale factor, namely the fact that not everyone pays according to maximum rate, so the final "payroll tax" in some countries is much lower than the income tax.

According to this indicator, Italy occupies the first place in Europe with a share of taxes and social payments in the wage fund of 42.6%. In second place is Belgium with a tax burden of 41.5%. The top five also includes France (41.5%), Hungary (41.1%) and Finland (40.4%). On average in Europe, this indicator is 32.3%, the tax burden is higher than it in 16 countries of the rating. Russia is in the middle of the list in terms of the burden in the form of taxes and mandatory deductions for wages, next to the Netherlands and Denmark.

Malta (20.2%), Portugal (23.1%), Romania (24.3%), Great Britain (23.1%) and Bulgaria (25.5%) have the lowest level of load among the countries for which the indicator was calculated. Employers in these countries are the easiest to work in terms of taxes and contributions to various funds.

Despite the integration processes taking place in Europe in recent decades after the signing of the Maastricht Treaty in 1992 (Treaty on the European Union), the adoption of various EU directives unifying EU legislation, tax regimes and the procedure for paying taxes in different EU countries can still vary significantly. Even more diversity in non-EU countries.

In Europe, it is quite difficult to find, for example, absolutely standardized mechanisms for taxing certain types of income, not to mention tax rates and preferential regimes.

Moreover, there are completely unique tax regimes and rules. For example, the “mixed company” regime in Switzerland, the tax system of Monaco or Estonia, the rules for determining the residence status of individuals in the UK, etc. Not all EU countries have taxation rules for foreign controlled companies (the so-called CFC rules), which, by the way, introduced in the Russian Federation since 2015.

Therefore, the different level of tax burden, the peculiarities of local legislation force businesses to be extremely careful in choosing a country for doing business or living.

At the same time, the differences in the tax systems of European countries create conditions for the so-called tax competition of jurisdictions for creating the most attractive conditions for private capital. Therefore, the choice of a particular country depends not only on the level of the tax burden, but also on the convenience of tax administration, transparency and stability of the tax system.

After analyzing the data of European countries, the authors of the study compared them in a number of ways with such major world economies as the United States, Japan and China.

It has been shown that the European Union is somewhat inferior to the United States in terms of administration of the processes of calculating and paying taxes, as well as filing tax returns by taxpayers. The European Union also demonstrates relatively low (compared to Japan, China and the United States) corporate income tax rates. Even though China and Japan cut these rates significantly (in 2008 and 2012 respectively), they remain above the EU average.

Finally, the tax burden on wages on the example of the average nominal personal income tax rate in the European Union is lower than the rates given in Asian countries and the United States. However, such a conclusion would be completely fair and correct just with a relatively unified system of taxation of wages in the EU countries, which is not observed in modern Europe. The fact is that in EU countries with a progressive scale of taxation and the possibility of charging municipal taxes and additional fees, the real effective rate can be much higher and reach 57% (Sweden) at rates in Japan of 50.84%, China - 45% (for 2014 year).

The tax policy of states often changes depending on the economic goals of the authorities, so an important factor in the attractiveness of countries for international capital or the choice of residence is the stability of taxation rules and the overall level of the tax burden. Of course, what is of interest here is not the declared indicator of stability, but the indicator confirmed in the historical perspective. From this point of view, the reaction of the strongest and weakest EU economies to the 2008 crisis in terms of changes in tax rates for some key taxes is of interest.

Thus, the three most powerful states of the European Union (Germany, France, Italy) did not increase corporate income taxes (and Germany and Italy even lowered them), which, among other things, made it possible to maintain the investment attractiveness of states and discourage capital outflow.

In the three least powerful EU economies (Latvia, Luxembourg, Estonia) there was also no increase in income tax and personal income. In Estonia and Latvia, the budget deficit was offset mainly by an increase in VAT (VAT) and excises.

With regard to personal income tax, the trends were similar: the tax rate in Germany and Italy remained the same, in Latvia, Luxembourg and Estonia the fluctuations were insignificant. In France, the sharp increase in the maximum tax rate from 41% to 45% was the result of the fulfillment by President François Hollande of his campaign promise: in particular, he announced his intention to increase the tax on wealthy citizens in order to offset the effect of the removal of the austerity regime that was in force under Nicolas Sarkozy.

Consider the basic rules of taxation in some states popular for Russian business.

Since December 5, 1998, the agreement between the government of the Russian Federation and the government of the Republic of Cyprus “On the avoidance of double taxation with respect to taxes on income and capital” has been in force (as amended by the protocol of October 7, 2010). Distinctive features of this document (hereinafter referred to as DOTS) is the absence of withholding taxes when paying interest to Cyprus, the ability to apply a preferential tax rate on dividends of 5% (one of the lowest in Europe) and other advantages.

income tax

• - Income tax is levied on companies that are residents of the Republic of Cyprus (in relation to global income), as well as non-residents - in terms of income arising from sources in the territory of the country.
• – A company is recognized as a resident of Cyprus, the management of which is carried out on the territory of the state, while the fact of registering a company in Cyprus does not matter for determining residency.
• – The income tax rate is 12.5% ​​(before 2013, the rate was 10% and was the lowest in Europe; the tax increase was dictated by the need to support the banking system during the financial crisis).
• – Capital gains are taxed separately at a rate of 20%. However, only income from the sale of real estate in Cyprus, as well as shares of companies owning real estate in Cyprus and not listed on foreign exchange markets, is subject to taxation.
• – Dividends received by a company that is a resident of the Republic of Cyprus are not subject to income tax at the recipient, regardless of whether the source of payment is resident.
• – Cyprus does not have developed transfer pricing rules. However, according to Art. 33 of the Cypriot income tax law, all transactions between related parties must be carried out on the basis of the arm's length rule, based on a fair assessment of the transaction price, assets and normal commercial relationships. Moreover, this requirement also applies to transactions with non-residents of Cyprus.
• – In the Republic of Cyprus there are no rules regarding the taxation of profits of controlled foreign companies.

Tax at source

– Only royalties paid to a non-resident are subject to withholding tax. The tax rate is 10%, except for royalty payments on films and television programs(the rate is 5%). SODN may be set at lower rates.

It is interesting:

An additional fee imposed on the residents of Cyprus is the so-called defense tax (special contribution for defense, SCD), introduced in 1984 in an attempt to raise funds to finance the republic's military budget to protect against Turkey, which sent troops in 1974, and today occupying about 40% of the island.

In tax planning involving the use of a Cypriot company, it is advisable to take SCD into account, since a significant part of the total tax burden can be precisely the defense tax.

– There is no defense tax on dividends received from both residents and non-residents, with some exceptions (the tax rate in this case is 17%). Defense tax is levied on interest payments received from other than the main activity (for example, companies that cannot prove their status as finance company), at a rate of 30% (before April 29, 2013, the rate was 15%). Defense tax on rental payments is 3% on 75% of the payment.

VAT

– The standard tax rate is 19% (since January 13, 2014). Until 2012, the rate was 15%, in 2012 it was increased to 17%, and in 2013 to 18%. The increase in VAT rates, along with the increase in corporate tax and defense tax rates, was caused by anti-crisis measures.

– For a number of goods and services, reduced rates of 8% and 13% are possible (also increased in 2014 from 5% and 9%, respectively).

– As in most European jurisdictions, Cyprus resident individuals are taxed on their worldwide income. Non-residents pay tax only on income received from sources in the territory of the Republic of Cyprus.

– A resident of Cyprus is a person who continuously stays in the territory of the Republic for more than 183 days during the year.

– Income tax is calculated on a progressive scale: income amounts up to 19,500 euros are not taxed; for incomes from 19,501 to 28,000 euros, the rate is 20%; from 28,001 to 36,300 euros - 25%; from 36,301 to 60,000 euros - at a rate of 30%; over 60,000 euros - at a rate of 35%.

– Dividends, interest payments and rental payments to residents are subject to defense tax at the rates of 17%, 30% and 3% respectively.

Real estate tax

– Real estate tax is levied on real estate at rates ranging from 0.6% to 1.9%. The tax base is the market value of real estate, determined on the date of January 1, 1980.

- If the value of real estate, determined on January 1, 1980, is less than 12.5 thousand euros, then the owner-individual is not taxed.

income tax

– The subjects of income tax in Germany are taxpayers of unlimited (taxation of worldwide income) and limited (on income from sources in Germany) tax liability to pay tax. Foreign companies that do not have a permanent establishment in Germany, as well as residents that are non-profit organizations and government agencies, have a limited income tax liability.

– A tax resident in Germany is an organization that has a registered office or place of business in Germany effective management. Until 2008, all companies registered in Germany were recognized as residents, however, from November 1, 2008, such companies can determine (choose) residency at the location of the control center, while remaining registered in Germany.

– base rate income tax is 15% (until 2008 the rate was 25%). The effective rate is on average 30%, since, in addition to income tax, the taxpayer pays a “solidarity contribution” (Solidaritaetszuschlag) in the amount of 5.5% of the tax amount and municipal taxes ranging from 14% to 17%.

VAT

– In Germany, as in other EU countries, there are pan-European rules for calculating and paying indirect taxes established by the EU rules (Directive 2006/112).

– The base tax rate is 19%. It is possible to apply reduced rates of 7% (in relation to profits from the sale of essential goods and hotel services) and 0% (in relation to profits from exports or intra-union deliveries).

Taxation of personal income

– Personal income tax is levied on both residents (in relation to any income) and non-residents of Germany. In addition to the income tax, taxpayers pay a solidarity contribution of 5.5% of the tax amount, and entrepreneurs pay a business tax (Gewerbesteuer).

– Tax rates in Germany are 0%, 14%, 23.97%, 42% and 45%, but the threshold amounts to which they apply differ depending on the subject of taxation (single taxpayer or married couple). For single taxpayers, the threshold amounts are €8,354, €13,469, €52,881 and €250,730 respectively. For married couples who have declared the joint taxation of family income, the rates are 16,708, 26,939, 105,763, 501,461 euros, respectively.

– Real estate tax is levied on local budgets. The tax amount is calculated as the product of the property value and the federal tax rate (0.35%), as well as local rates, which can range from 280% to 810%. Thus, the effective tax rate can range from 0.98% to 2.84% of the property value.

Czech Republic

income tax

– Income tax is levied on the income of residents worldwide, as well as income of non-residents from sources in the Czech Republic.

– A resident of the Czech Republic is a company registered in this country or managed from it.

– The standard income tax rate in the Czech Republic is 19%.

– Capital gains are subject to income tax.

– There are reduced rates on profits from investment and mutual funds in the amount of 5%.

- The Czech legislation contains rules on the regulation of transfer pricing - in particular, it is established that transactions between dependent parties must be carried out in accordance with the "arm's length" rule.

– In the Czech Republic, there are no rules regarding the taxation of profits of controlled foreign companies.

– Payments to persons residing in a country with which the Czech Republic does not have an appropriate double tax treaty or an exchange of information agreement are also subject to taxation at a rate of 35%.

– Interest and royalties paid by a Czech company to companies with a permanent establishment in the Czech Republic or registered in the EU are not taxable, subject to a number of conditions.

VAT

– The standard VAT rate is 21%. A reduced VAT rate of 15% is provided for basic foodstuffs, medicines, printed matter, medical equipment, heating, and social housing. The zero rate is provided for the export of goods, deliveries within the EU, international transport services.

– Financial services, real estate transactions, etc. are exempt from taxation.

– VAT payers are companies whose turnover exceeds CZK 1 million (~36 thousand euros) in 12 months (excluding non-taxable activities). This rule does not apply to non-residents.

Taxation of personal income

– Residents are taxed on all income, and non-residents are taxed on income from sources in the Czech Republic.

– The standard tax rate is 15%.

– Business income exceeding 48 times the average salary per year is subject to an additional solidarity tax at a rate of 7%.

– Profit from the transfer of real estate is included in the tax base for personal income tax.

Tax on real estate of individuals

– The taxpayer is the property owner or land plots on the territory of the Czech Republic. Depending on the location, area of ​​real estate or land, different coefficients are applied to calculate the tax.

– There is also a tax on the sale of real estate in the Czech Republic at a rate of 4%.