Wednesday, September 1, 2010

Flat Tax Countries and Jurisdictions September 2010

The table that appears below is a [corrected] current list of countries and jurisdictions (some not internationally recognized) that have adopted a flat tax as of September 1, 2010, with the current rates. It replaces an earlier posting that contained some incorrect numbers and dates. [HT: Thanks Charlie]

I have been unable to find the year of implementation for Nagorno Karabakh and Abkhazia.  I include Hungary based on the government's firm statement that a flat tax will begin on January 1, 2011.  Detailed information about the specific countries appears in previous posts, including an explanation of Paraguay's inclusion.

Flat Tax Jurisdictions
Jurisdiction Year of Implementation Personal Tax Rate Percent Corporate Tax Rate Percent
Jersey 1940 20 20
Hong Kong 1947 16 17.5
Guernsey 1960 20 0
Jamaica 1986 25 33.3
Tuvalu 1992 30 30
Estonia 1994 21 0
Lithuania 1994 15 15
Grenada 1994 30 30
Latvia 1995 26 15
Russia 2001 13 24
Serbia 2003 12 10
Iraq 2004 15 15
Slovakia 2004 19 19
Ukraine 2004 15 25
Georgia 2005 20 20
Romania 2005 16 16
Turkmenistan 2005 10 20
Trinidad & Tobago 2006 25 25
Kyrgyzstan 2006 10 10
Albania 2007 10 10
Macedonia 2007 10 10
Mongolia 2007 10 10,25
Montenegro 2007 9 9
Kazakhstan 2007 10 15
Pridnestrovie 2007 10 0
Mauritius 2007 15 15
Bulgaria 2008 10 10
Czech Republic 2008 15 19
Timor Leste 2008 10 10
FBiH 2009 10 10
Belarus 2009 12 24
Belize 2009 25 25
Nagorno Karabakh   5 5
Seychelles 2010 15 35
Paraguay 2010 10 10
Hungary 2011 16 10
Abkhazia   10 18

6 comments:

charlie said...

There are some wrong informations in this chart:
1. Iceland doesn't have flat tax anymore. And before the change to progressive taxation, they had rate of 37,2%. When they implemented flat tax, the tax rate was 35,7%. Jamaica at the moment doesn't have flat tax (http://flattaxes.blogspot.com/2010/01/january-2010-ups-and-downs-with-flat.html).
2. Serbia has witholding tax of 12 %. But they have 2 rates for personal income tax(10% and 15%) so they don't have a flat tax per se. The same is with Paraguay because they have 2% surtax.
2. Lithuania has from 2009 only 15% rate on income tax and Latvia has 26% from 2009. One more thing. According to my informations Lithuania enacted flat tax in 1994.
3. Georgia has now 20% rate on income tax (before that they have 12%, but in 2008 they abolish social security countribution and instead of that raised personal income tax. But they are planning to lower tax rate by 2013 to 15% (http://www.government.gov.ge/old/files/34_522_239771_GOVERNMENT_OF_GEORGIA_PROPOSES_FURTHER_TA.pdf).
4. Czech Republic has rate of 15% but in reality the real rate is 20,1% (1,34 * 15 %) because the social security contributions are taxed together with wages.
5. Mauritius enacted flat tax in 2007 (http://www.cato-at-liberty.org/mauritius-accelerates-move-to-flat-tax/).

charlie said...

One more thing. Albania has 10% corporate tax and Czech's corporate tax rate is 19%.
Still you missed to change Serbian personal income tax rate, which is 12%.

Alari said...

Dear Alvin,

Just to add that some sources also claim Bolivia (since 1986) and Tonga to have a flat tax.

Alari Paulus
U Essex

charlie said...

Updated informations:
1.The rate of corporate profits tax in Russia is currently 20% (reduced from 24% in 2008).
http://www.lowtax.net/lowtax/html/offon/russia/rustax.html

2. Tonga has indeed flat tax as Alari has mentioned already:
Taxation

Personal

Personal income tax is charged at a rate of 10%, but there is a number of incentives and exemptions.

Corporate

A standard corporation tax is levied at 30%. Several exemptions can be granted. Main indirect taxes comprise custom duties, port and serviced taxes, which bring 68% of tax revenue to the government.
http://www.carloscevola.com/tonga.php

Many Falson said...

The top 1% own 43% of America's wealth, the next 19% own 50% of America's wealth and the other 80% own SEVEN PERCENT of America's wealth. I think you may have forgotten to mention that in your little article.
Didn't forget to mention it, because it has nothing to do with who pays how much Federal income 2013 tax brackets.
2) The earners in the top income brackets are already taxed. The top 40% of income earnerspay more than anyone else does in taxes. The top 20% pay 65.3% and the top 10% pay 50% and the top 1% pay.

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