Tuesday, May 4, 2010

Global tax rates by type

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There are those countries which have something to promote when it comes to taxation. Consider Hong Kong. In the Asia-Pacific region it has the most forgiving tax regime. You can see a list of the taxes levied by country at the Invest HK website. I would caution you however these are other factors to consider - for instance:
1. Sovereign risk - HK is Chinese controlled so things might change. The same goes for any government, and some governments are prone to be more predictable than others, as Australia's Kevin Rudd is proving.
2. Your context - Depending on why you need a company in another country. Will it be an expense/cost centre, a revenue centre, an investment holding company, etc. Different countries treat different things differently. i.e. If its a holding company then a Goods & Services tax is not going to make a lot of difference.
Kind of amazing how some countries can support their economies on so little tax isn't it. Makes me wonder why you decide to pay so much. Oh that's right, you're a slave. You forgot. I guess you thought there needed to be a gun pointed at your head before you were defined as a slave. No, there just needs to be the threat of a gun pointing at your head, or the prospect of having your money siphoned from your bank account, or a tax office appointed debt collector taking possession on your home. Guns are so old fashion when you have an 'unrepresentative' democracy to destroy your freedoms. Don't get me wrong the idea of a representative democracy convened by you people scares me more. Give me consensus based democracy anytime.
3. The accuracy of the information - Forbes is the source of this information, and a reader suggests the numbers for France are wrong.
4. The information context - As a reader suggested, US might have lower taxes than Europe, but they have less complicated tax system, i.e. state & local taxes, etc.

If you think about this chart a bit you might just come up with a 'freedom strategy', or tax minimisation strategy if you prefer.
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Andrew Sheldon www.sheldonthinks.com

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