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 | |
There are some wrong informations in this chart:
ReplyDelete1. 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/).
One more thing. Albania has 10% corporate tax and Czech's corporate tax rate is 19%.
ReplyDeleteStill you missed to change Serbian personal income tax rate, which is 12%.
Dear Alvin,
ReplyDeleteJust to add that some sources also claim Bolivia (since 1986) and Tonga to have a flat tax.
Alari Paulus
U Essex