Wednesday, July 1, 2020

Countries And Jurisdictions With A Flat Tax On July 2, 2020

Jurisdiction                         Tax Rate (%)

Abhkazia                                   10%
Andorra                                     10
Artsakh                                      21
Belarus                                      12
Belize                                        25
Bolivia                                       12
Bosnia & Herzegovinia                10
Bulgaria                                     10
Estonia                                       21
Georgia                                      20
Greenland                                  42
Guernsey                                    20
Hungary                                     15
Jersey                                        20
Kazakhstan                                 10
Kyrgyzstan                                  10  
Madagascar                                 10
Mongolia                                     10
North Macedonia                         10
Pridnestrovie                              10
Romania                                     10
Seychelles                                  15
South Ossetia                              12
Timor-Leste                                10
Turkmenistan                              10
Ukraine                                       18
Yemen                                        15

At the peak of the flat tax movement, 44 countries and jurisdictions had a flat tax.  The number  has declined to 27, with Russia the most recent to add a second top rate.  Politicians in both dictatorships and democracies find that imposing a second top rate on a small percentage of high-income earners is popular, especially when twinned with increased social benefits for lower- and middle-class taxpayers.  The same holds for a second lower rate.

Of the 27 jurisdictions listed above, 10 have populations under 100,000; 3 between 100,000-1 million; 3 between 1-10 million; 6 between 10-20 million; and 3 over 20 million (Ukraine is the largest at 42 million).

Four are disputed territories of other countries lacking international recognition (Abkhazia, Artsakh, Pridnestrovie [aka Transnistria], South Ossetia).  Two are British Overseas Territories (Jersey, Guernsey).  One is a Danish Autonomous Dependent Territory (Greenland).  Yemen has two claimants to the government, Houthis and forces loyal to Hadi based in Aden.

1 comment:

Joy Schwabach said...

I wonder if these countries have anything in common, besides the flat tax.