Sweden has long been considered one of the most taxed countries in the world, but the middle class in at least 19 other countries pay more of their income to the state, according to a new report from KPMG.
Middle income earners, those earning more than US$100,000 a year, pay an ‘effective rate’ of 38.3 per cent, lower than countries such as Greece, Belgium and even Curacao and Senegal. That’s an equivalent of 55,000 Kronor a month.
The business daily Dagens Industry (DI), which got a sneak peek at the list, noted that Sweden had a lower median tax rate than many countries, although top earners (above $300,000) were taxed 49.8 per cent which made them the fifth most taxed nationals (in that bracket) worldwide. And it still has the Europe’s highest tax bracket, at 56.6 per cent. Surprisingly, little Aruba, a Dutch protectorate in the Caribbean, has the world’s highest rate for top earners, 58.95 per cent.
“While these top rates may appear high, it is important to remember that a country’s highest personal income tax rate is only one indicator of what taxes individuals may pay on their income,” the report noted.
“Just as influential are which other taxes may apply and on which income thresholds those rates are charged.”