Comparison of personal (PIT) and corporate income (CIT) and value added tax (VAT) rates in different countries
Table compares rates of personal (PIT) and corporate (CIT) income and value added (VAT) tax rates in different countries.

Beta version#

BETA TEST VERSION OF THIS ITEM
This online calculator is currently under heavy development. It may or it may NOT work correctly.
You CAN try to use it. You CAN even get the proper results.
However, please VERIFY all results on your own, as the level of completion of this item is NOT CONFIRMED.
Feel free to send any ideas and comments !

Taxes over the world: PIT, CIT, VAT#

CountryFlagPersonal Income Tax rate (PIT)Corporate Income Tax rate (CIT)Basic Value Added Tax rate (VAT)Review date
Afghanistan20%20%0%2020
Albania23%15%20%2020
Algeria35%26%19%2020
Angola17%30%10%2020
Antigua and Barbuda0%25%15%2020
Argentina35%30%21%2020
Armenia23%18%20%2020
Aruba52%25%2%2020
Australia45%30%10%2020
Austria55%25%20%2020
Bahamas0%0%12%2020
Bahrain0%0%5%2020
Bangladesh30%25%15%2020
Barbados28.5%5%17.5%2020
Belarus13%18%20%2020
Belgium50%25%21%2020
Bermuda0%0%0%2020
Bosnia and Herzegovina10%10%17%2020
Botswana25%22%12%2020
Brazil27.5%34%18%2020
Bulgaria10%10%20%2020
Cambodia20%20%10%2020
Canada33%26%5%2020
Cayman Islands0%0%0%2020
Chile40%25%19%2020
China45%25%13%2020
Colombia39%32%19%2020
Costa Rica25%30%13%2020
Croatia36%18%25%2020
Cyprus35%12%19%2020
Denmark55.89%22%25%2020
Dominica35%25%15%2020
Dominican Republic25%27%18%2020
Ecuador35%25%12%2020
Egypt22.5%22%14%2020
El Salvador30%30%13%2020
Estonia20%20%20%2020
Fiji20%20%9%2020
Finland56.95%20%24%2020
France45%32%20%2020
Georgia20%15%18%2020
Germany45%29%19%2020
Ghana30%25%18.13%2020
Gibraltar25%10%0%2020
Greece44%24%24%2020
Grenada28%28%15%2020
Guatemala7%25%12%2020
Guernsey20%0%0%2020
Honduras25%25%15%2020
Hungary15%9%27%2020
Iceland46.24%20%24%2020
India42.74%30%18%2020
Indonesia30%25%10%2020
Iraq15%15%0%2020
Ireland48%12%23%2020
Isle of Man20%0%20%2020
Israel50%23%17%2020
Italy43%27%22%2020
Jamaica25%25%16.5%2020
Japan55.95%29%10%2020
Jersey20%0%5%2020
Jordan30%20%16%2020
Kazakhstan10%20%12%2020
Kenya30%30%16%2020
Kuwait0%15%0%2020
Latvia31.4%20%21%2020
Lebanon25%17%11%2020
Lithuania20%15%21%2020
Luxembourg45.78%24%17%2020
Macedonia, the former Yugoslav Republic of10%10%18%2020
Malawi30%30%16.5%2020
Malaysia30%24%10%2020
Malta35%35%18%2020
Mauritius15%15%15%2020
Mexico35%30%16%2020
Mongolia10%25%10%2020
Montenegro9%9%21%2020
Morocco38%31%20%2020
Mozambique32%32%17%2020
Namibia37%32%15%2020
Netherlands49.5%25%21%2020
New Zealand33%28%15%2020
Nicaragua30%30%15%2020
Nigeria24%30%7.5%2020
Norway38.2%22%25%2020
Oman0%15%0%2020
Pakistan35%29%17%2020
Panama25%25%7%2020
Papua New Guinea42%30%10%2020
Peru30%29%18%2020
Philippines35%30%12%2020
Poland32%19%23%2020
Portugal48%31%23%2020
Puerto Rico33%37%11.5%2020
Qatar0%10%0%2020
Romania10%16%19%2020
Saint Kitts and Nevis0%33%17%2020
Saint Lucia30%30%12.5%2020
Saint Vincent and the Grenadines30%30%16%2020
Samoa27%27%15%2020
Saudi Arabia0%20%15%2020
Senegal40%30%18%2020
Serbia10%15%20%2020
Sierra Leone15%30%15%2020
Singapore22%17%7%2020
Sint Maarten (Dutch part)48%35%5%2020
Slovakia25%21%20%2020
Slovenia50%19%22%2020
South Africa45%28%15%2020
Spain45%25%21%2020
Sri Lanka24%28%8%2020
Sudan15%35%17%2020
Sweden32.28%21%25%2020
Switzerland40%21%7.7%2020
Tanzania, United Republic of30%30%18%2020
Thailand35%20%7%2020
Trinidad and Tobago25%30%12.5%2020
Tunisia35%25%18%2020
Turkey40%22%18%2020
Uganda40%30%18%2020
Ukraine18%18%20%2020
United Arab Emirates0%0%5%2020
United Kingdom45%19%20%2020
United States37%25%0%2020
Uruguay36%25%22%2020
Venezuela, Bolivarian Republic of34%34%16%2020
Vietnam35%20%10%2020
Yemen15%20%5%2020
Zambia37.5%35%16%2020
Zimbabwe40%24%14.5%2020

Facts about VAT#

  • Name VAT stands for "Value Added Tax". It's a kind of tax, which is added at all production stages.
  • VAT is intended to apply to consumption. The more goods you buy, the more VAT you pay.
  • VAT is payed by a person who is at the end of the consumption chain, buying the product for consumption. For example, a customer buying crisps in the supermarket or the driver using the car wash.
  • Formally, the same amount of VAT is also added at the each stage of the chain (supermarket, car wash, a manufacturer of chips, etc.), but in fact they only pay back tax received from the previous stage. Finally, the VAT paid by the consumer goes "from hands to hands" - through supermarket, the manufacturer of chips, potato farmer etc. - until it goes to the tax office.
  • Trader, who simultaneously buys (pays VAT) and sells goods (receives VAT), doesn't really pay VAT. The amount of tax charged while buying is canceled by tax charged while selling.
  • The disadvantage of VAT is that it increases social stratification - it's applied to the final consumer, so it is most noticeable to the least wealthy people. This issue is partially solved by varying tax rates for example by setting lower VAT levels to the most basic goods like bread. It's also considered that procedures for charging and collecting VAT are too complex and they allow for many forms of abuse, for example fake invoices fraud to claim back VAT which was never really paid.

CIT in Poland#

  • Corporate Income Tax (CIT) is a income tax paid by legal persons.
  • CIT in Poland is paid by joint-stock companies (polish: S.A.) or limited liability companies (polish: sp. z o.o.).
  • The legal basis regulating the CIT in Poland is the Act of February 5, 1992 (Journal of Laws of 2019, item 865) with later changes.
  • The basic CIT rate in Poland is currently 19% (as of 2019).
  • In addition, from January 1, 2019, companies whose gross turnover did not exceed the equivalent of 1,2 million EUR (the so-called small taxpayers) can switch to preferential CIT rate in the amount of 9%.
  • If you're looking for Polish PIT rates (personal income tax) you can check out our other calculator: PIT rates in Poland (archive).
  • If you're interested in comparison of tax rates (PIT and CIT) in different countries check out our other calculator: Taxes over the world: PIT, CIT, VAT.

PIT in Poland#

  • Currently (as of 2020), taxpayers who settle on general rules are subject to the so-called tax thresholds. This means that the tax rate (percentage) depends on achieved incomes. Until September 2019, income below 85 528 PLN was taxed with 18% rate. Starting from October 2019 the rate for the first threshold was reduced to 17%. Income above this amount is taxed with 32% rate.
  • ⚠ WARNING! Because the tax rates changed during the tax year, the annual settlement for income earned during 2019 should use effective 17.75% tax rate:
    912×18%+312×17%=17.75%\frac{9}{12} \times 18\% + \frac{3}{12} \times 17\% = 17.75\%
  • The tax base (ie the amount from which the tax is calculated) is the sum of revenues obtained in a given year decreased by social insurance contributions (polish: ZUS) and costs of getting incomes.
    tax base = gross earnings - social insurance - cost of getting income
  • There is a tax-free amount in the Poland, from which we will not pay any tax. In this case, the final tax would be slightly lower than it would appear from the tax thresholds alone.
  • Before 2017 year the tax-free amount was fixed (in 2009-2016 it amounted to 3091.00 PLN) and was entitled to all taxpayers using general rules.
  • Starting from 2017, the tax-free amount depends on income, in such a way that the taxpayers with very small income are fully covered, then the tax-free amount is gradually reduced as revenue increases.
  • In practice, the so-called tax reduction amount is more common, when calculating income tax (PIT). This is the effective amount that should be deducted from the tax already calculated, to apply the allowance associated with the tax-free amount.
  • To calculate the tax for 2019 year, use the below formula:
    • in the case of income below 85 528 PLN:
      tax = 17.75% × tax base - tax reduction amount
    • in the case of an income of 85 528 PLN or more :
      tax = 15181.22 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
  • To calculate the tax for 2020 year, use the below formula:
    • in the case of income below 85 528 PLN:
      tax = 17% × tax base - tax reduction amount
    • in the case of an income of 85 528 PLN or more :
      tax = 14539.76 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
  • To calculate the tax reduction amount for income earned in 2019 or 2020 year, use the following formula:
    • in case of income in the amount of 8000 PLN or less:
      tax reduction amount = 1420 PLN,
    • in case of income from 8001 PLN to 13000 PLN:
      tax reduction amount = 1420 PLN - 871.70 PLN × (tax base - 8000 zł) / 5000 zł,
    • in case of income from 13001 PLN to 85528 PLN:
      tax reduction amount = 548.30 PLN,
    • in case of income from 85529 PLN to 127000 PLN:
      tax reduction amount = 548.30 PLN - 548.30 PLN × (tax base - 85528 zł) / 41472 zł,
    • in case of income above 127000 PLN there is no tax-free amount, so tax reduction amount is 0.
  • In addition, tax should be decreased by health insurance (polish: NFZ), but not more than 7,75% of the basis.
    ⚠ WARNING! Health insurance contributions (polish: NFZ) are deducted from already calculated tax, instead of tax base like in case of other expenses.
  • Starting from August 2019, people under 26 y.o. in Poland do not need to pay income tax (PIT).
    In 2019, the tax-relief covers annual revenues up to 35636.67 PLN, and from 2020, this limit will be increased to 85528 ​​PLN. Revenues exceeding the annual limit remain taxed using tax-scale.
  • Tags and links to this website#

    What tags this calculator has#

    Permalink#

    This is permalink. Permalink is the link containing your input data. Just copy it and share your work with friends:

    Links to external sites (leaving Calculla?)#

    JavaScript failed !
    So this is static version of this website.
    This website works a lot better in JavaScript enabled browser.
    Please enable JavaScript.