World bank income tax rates

A recent paper argues persuasively that the two basic pillars of taxation in most countries are the income tax and the VAT Barreix and Roca The authors argue that the VAT is excellent as a revenue raiser and works best if it is applied in the The authors argue that the VAT is excellent as a revenue raiser and works best if it is applied in the simplest and most neutral fashion possible that is, on as broad a base as possible and preferably at a uniform rate. Given the relative unimportance of personal income taxes in most developing countries this argument is at first sight perhaps somewhat surprising. Personal income tax PIT revenues are often three to four times corporate tax revenues in developed countries, but in developing countries corporate tax revenues usually substantially exceed PIT revenues. As a percentage of gross domestic product GDP , PIT revenues in developed countries average about seven percent of GDP as compared to about two percent for developing countries.

Documents & Reports

This report is based on a detailed analysis of the impact that CEE corporate income tax regimes have on the profitability of foreign investment. It has two purposes. The first is to describe the analysis and compare the corporate income tax regimes in The first is to describe the analysis and compare the corporate income tax regimes in the five CEE countries with the regimes in other countries that might compete for the same capital.

The second purpose is to discuss the benefits and costs of the various options that the five CEE countries may consider for development of their corporate income tax policies.

Particular attention is paid to the effects of tax holidays, which are temporary tax relief that all five countries offer to foreign investors. Some other tax incentives are examined including the impact that inflation would have on them.

See Less -. All language versions and volumes across World Bank Repositories. Legal Access to Information Jobs Contact. Report Fraud or Corruption. The World Bank. Google Buzz Stumble Upon Delicious. This Page in:. Corporate income taxation and foreign direct investment in Central and Eastern Europe English Abstract This report is based on a detailed analysis of the impact that CEE corporate income tax regimes have on the profitability of foreign investment. Details Author Mintz, Jack M.

Mintz, Jack M. Corporate income taxation and foreign direct investment in Central and Eastern Europe English. Foreign investment advisory service occasional paper ; no. FIAS 4. You are here. Corporate income taxation and foreign direct investment in Central and

Personal income taxes in developing countries: international comparis Legal | Access to Information | Jobs | Contact. © The World Bank Group, All Rights​. Taxes on income, profits and capital gains (% of total taxes) from The World Bank​: Data.

This report is based on a detailed analysis of the impact that CEE corporate income tax regimes have on the profitability of foreign investment. It has two purposes. The first is to describe the analysis and compare the corporate income tax regimes in The first is to describe the analysis and compare the corporate income tax regimes in the five CEE countries with the regimes in other countries that might compete for the same capital. The second purpose is to discuss the benefits and costs of the various options that the five CEE countries may consider for development of their corporate income tax policies.

The author analyzes both theoretically and empirically the international distortions and fiscal interdependence that arise because of different tax rates among a region's countries. The author also studies what happens when the countries try to harmonize

This paper examines personal income taxes. Specifically, it defines and then constructs marginal and average tax schedules for personal income tax for fifty developing countries; three high income countries are used in addition to provide further basis

Total tax and contribution rate (% of profit)

Many countries tax business income. Often the statutory tax rate differs substantially from the effective tax rate because of the many features involved in calculating taxable income and the frequent use of credits and other taxes on investment. The marginal The marginal effective tax rate METR model was developed for calculating the effective tax rates implied by business tax systems in developing countries. METR reveals some interesting patterns for ordinary tax systems : 1 with zero inflation, the statutory tax rate closely approximates the effective tax rate for ordinary tax systems.

Tax revenue (% of GDP)

One of the central predictions of growth theory, old and new, is that income taxes have a negative effect on the pace of economic expansion. Little empirical work has been done on the topic because of the difficulty of measuring the relevant marginal Little empirical work has been done on the topic because of the difficulty of measuring the relevant marginal tax rates. Easterly and Rebelo experiment with a method for computing average marginal income tax rates that combines information on statutory rates with the amount of tax revenue collected and with data on income distribution. Their method relies heavily on the assumption that the marginal tax schedule has a logistic form. Their method stands a better chance of measuring the relevant average marginal tax rate than the widely used alternative of assuming implicitly or explicitly that the income tax is proportional. The possibility of estimating marginal income tax rates suggests two lines of research: a study of the properties of models with nonlinear income taxes and a search for adequate empirical strategies for testing those models with cross-country data. See Less -. All language versions and volumes across World Bank Repositories.