Look at the personal income tax in European countries. Do you think it is high or low?

Taxation is the main source of national finance, and national finance is the basic economic guarantee for performing public management functions. Therefore, taxation is a necessary right of any regime; For citizens of a country, paying taxes naturally becomes an obligation.

Among many taxes, personal income tax is one of the most common taxes. Except for Brunei, Saudi Arabia and dozens of other countries, which do not tax their personal income, all other countries in the world do.

Of course, in this field, how much tax is charged is not a simple question. The income is too high, and the disposable income in the hands of the people is insufficient, which affects consumption and then affects production and investment; Low income and high government deficit are not conducive to the construction and management of public facilities, the normal operation of management functions, the secondary distribution of wealth and the adjustment of the gap between the rich and the poor.

Then, for European countries with relatively developed economies and high national income levels, how do they set personal income tax rates? As some netizens said, do you maintain a high level of social welfare with high taxes?

This article will share with you the five countries with the highest personal income tax in Europe. Because in European countries, single people and people with families and children apply different rates, so they can only be introduced separately.

It should be noted that due to the outbreak of COVID-19 in 2020, many European countries temporarily adjusted their tax rates or introduced temporary tax reduction and exemption measures. For countries that take this measure, we adopt the tax rate before adjustment.

Let's first look at the personal income tax rate of single people.

1. Denmark

Denmark's progressive tax rate is capped at 55.9%. Residents pay global income tax. Taxable income sources include employment income, bonuses, fringe benefits, operating income, expenses, pensions, annuities, social security benefits, dividends, interest, capital gains and real estate rental income.

Other income taxes: the capital gains tax is 27% or 42%, and the royalties are subject to 22% withholding tax.

Pension, unemployment insurance, debt interest, charitable donations and unreimbued business travel expenses can be included in the offset of tax payable.

2. Slovenia

The personal income tax rate in Slovenia is between 16% and 50%. Local residents tax their global income, while non-local residents only tax their income from Slovenia. Taxable income sources include employment and business; , agriculture and forestry, rents and royalties, dividends, interest and capital gains and other income.

The capital gains tax rate is 27.5%. If the relevant assets have been held for more than 5 years, the tax rate will be reduced to 20%, and the tax rate will be reduced by 5% every 5 years. If assets are held for more than 20 years, they will be tax-free. It should be noted that if you hold derivative capital gains within one year, you need to pay a tax rate of 40%.

3. Belgium

Belgium also implements a progressive tax rate with an upper limit of 50%. Taxable income sources include personal property, work, investment and other income sources. The capital gains tax rate depends on the type of capital, and the highest tax rate is 30%. Social security and alimony can apply for tax deduction.

4. Germany

Germany implements a progressive tax rate (that is, the higher the income, the higher the corresponding tax rate), with a threshold of 9408 euros and a tax rate ceiling of 45%. Taxable income sources include agriculture, forestry, enterprise ownership, self-employment, savings and investment, property rental, capital gains and other income.

Other special provisions: a. Withholding tax of 25% is levied on interest and dividends, and withholding tax of 15% is levied on royalties (such as patent or copyright income). The tax exemption for savings and investment income is 80 1 euro.

B, some church members need to pay 8% or 9% church tax, and they can apply for tax exemption under special circumstances-for example, church members can get tax credits as long as they give a certain percentage of their income to the church.

C. Other circumstances in which the application amount can be deducted: statutory pension insurance plan, health insurance premium, personal accident injury, life insurance premium, unemployment and disability insurance premium, donation to registered charity, and future vocational training fee of up to 6,000 euros per year.

5. Lithuania

Although Lithuania has a progressive tax rate, there are not many grades, and the highest tax rate is only 32%. Taxable income sources include employment, business activities, royalties, leased assets and others. Income unrelated to employment-including royalties, capital investment income, interest and income from the sale of property-is taxed at the rate of 15% or 20%.

Looking at people who are married and have children, the European countries with the highest personal income tax rate are the following five:

1. Denmark

Spouses of married families in Denmark must file separate tax returns. The tax rate is similar to that of single people, but there will be a tax exemption of 46,200 kroner, and the capital gains from house sales are usually tax-free. Spouses do not have to pay inheritance tax when they inherit property.

2. Netherlands

The Netherlands classifies all the income of married people into one of the following three categories: 1) income from wages, wages, benefits in kind, pensions and house ownership; 2) Enterprise income controlled by bulk business; 3) Savings and investment income. Each category has its own deduction and tax rate, and the general tax credit applies to the total net income of the three categories. Family income tax is subject to a progressive tax rate of 37.35% to 49.5%. Married couples must submit the same declaration unless they have filed for divorce, and some unmarried couples (that is, those with children) must also submit the same declaration.

3. Finland

Finland imposes progressive income tax on married families, with the highest tax rate of 3 1.25%. Finland is unique in that there is no deductible application amount, resulting in higher actual tax paid than other countries.

4. Lithuania

It is basically the same as being single, but the difference is that income tax is paid on a family basis. If you are married and have two or more children, you can enjoy 4,200 euros to 3 1.990 euros a year. This allowance decreases with the increase of income. In other words, the lower the income, the higher the tax allowance.

5.turkey

Geographically, Turkey should be regarded as an Asian country, but it prefers to regard itself as a European country, and many statistical agencies also classify it as a European country. Originally, Turkey's personal income tax rate (15% to 30%) was not too high, but because singles and married people were treated equally, the personal income tax of married families immediately entered the top five. In Turkey, medical and educational expenses, pension and private health insurance expenses and some donations can be deducted from the taxable amount.