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.

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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 2022) taxpayers who settle accounts on general rules are subject to the so-called tax thresholds. This means that the rate (percentage) of the tax depends on the achieved incomes.
  • At the beginning of 2022, after the so-called "Nowy Ład" (en: "New Deal") entered into force, the thresholds have been changed, so that income below 120 000 PLN is taxed at 17%. Starting from July 2022 the rate of the first threshold will be reduced to 12%. Income above this amount is taxed at 32% rate (before and after July 1). This means that for the first six months we should count advances on income tax according to the scale of 17% and 32% (before July 1, 2022), and in the second - 12% and 32% (after July 1, 2022).
  • In Poland, there is a free amount (tax allowance), on which we will not pay tax. For this reason, the final tax will be slightly lower than it would appear from the thresholds. In 2022 the tax-free amount is 30 000 PLN.
  • The tax base (i.e. the amount on which the tax is calculated) is the sum of revenues obtained in a given year decreased by social insurance contributions contributions (polish: ZUS) and costs of getting incomes:
    tax base = gross earnings - social insurance - cost of getting income
    ⚠ WARNING! Beginning from 2022 (→ see "Nowy Ład") we cannot decrease tax by health insurance contribution if we use tax thresholds (general rules).
  • Despite the fact that the method of calculating the monthly tax advance changes during the year, the annual tax for 2022 year will be calculated in the unified way i.e. using 12% and 32% rates for the whole year. To calculate annual tax for income earned in 2022 use the following formula:
    • if your tax base does not exceed 120 000 PLN:
      12%×tax base360012\% \times \text{tax base} - 3600
    • if your tax base exceeds 120 000 PLN:
      1440+32%×(tax base120000)1440 + 32\% \times (\text{tax base} - 120000)
  • Because so-called "Polski Ład" (en: "New Deal") introduced in 2022 caused a decrease in the net salaries of selected groups (on-the-hand), the polish rulers introduced the so-called relief for the middle class. This is the amount that should be subtracted from the tax base when calculating the monthly tax advances from January to June 2022 inclusive. However, the rulers gave up this idea and we should stop including this relief after July 1, 2022. To calculate the middle class relief, the we use following formula:
    If your gross monthly earnings:
    • do not exceed 5 700 PLN - no discount,
    • are in the range from 5701 PLN to 8549 PLN:
      middle class tax relief=gross monthly earnings×0.0668380.50.17\text{middle class tax relief} = \frac{\text{gross monthly earnings} \times 0.0668 - 380.5}{0.17}
    • are within the range from 8550 PLN to 11141 PLN:
      middle class tax relief=gross monthly earnings×(0.0735)+819.080.17\text{middle class tax relief} = \frac{\text{gross monthly earnings} \times (-0.0735) + 819.08}{0.17}
    • exceed 11141 PLN - no relief.
  • 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. In 2020, 2021 and 2022 tax-relief covers annual revenues up to 85528 ​​PLN. Revenues exceeding the annual limit remain taxed using tax-scale.

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