Tax: Nations with highest and lowest rates

In most economies the tax system is the primary source of funding for a wide range of social and economic programmes.

How much revenue these economies need to raise through taxes depends on several factors, including the government's capacity to raise revenue in other ways.

The recent global downturn has changed the economic scenario. Governments in economies of all sizes and at all stages of development are struggling with the tax policy choices available to them.

For companies, the challenge is dealing with the loss of public trust and increased scrutiny over how much tax they pay. Corporate income tax is only one of many taxes and is only part of the burden.

"Business has a key role to play and it is important for governments, business and civil society to foster a new collaborative approach to meet the common aims of a fair, stable and sustainable tax system," a study by the World Bank and International Finance Corporation on corporate tax rates the world over noted in their Paying Taxes - the global picture study.

While India does not figure either in the highest or the lowest bracket following is the tax rates in India:

India -- Total Tax Rate (TTR): 63.3%
Profit tax: 24.0%; Labour tax: 18.2%; Other taxes: 21.1%. The following are the countries have the world's highest corporate tax rate, and which have the lowest?

Congo Democratic Republic -- TTR: 339.7%
Profit tax: 58.9%; Labour tax: 7.9%; Other taxes: 272.9%. The Democratic Republic of the Congo is the third largest country in Africa by area after Sudan and Algeria and has a corporate tax of 339.7 per cent!
Capital: Kinshasa
GDP (PPP) 2010 estimate - Total $22.718 billion
                                            - Per capita $340
GDP (nominal) 2010 estimate - Total $12.600 billion
                                                 - Per capita $188
Currency: Congolese franc
Economy: The economy of Congo relies heavily on mining.
The Congo is the world's largest producer of cobalt ore, and a major producer of copper and industrial diamonds.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

Gambia -- TTR: 292.3%
Profit tax: 41.4%; Labour tax: 12.9%; Other taxes: 238.0%. The Republic of the Gambia is the smallest country on mainland Africa.
Capital: Banjul
GDP (PPP) 2009 estimate - Total $2.406 billion
                                           - Per capita $1,438
GDP (nominal) 2009 estimate - Total $736 million
                                                - Per capita $440
Currency: Dalasi
Economy: The Gambia has a liberal, market-based economy characterized by traditional subsistence agriculture.
It accounts for roughly 30 per cent of gross domestic product (GDP) and employs about 70 per cent of the labour force.
The limited amount of manufacturing is primarily agricultural-based -- peanut processing, bakeries, a brewery, and a tannery).
Other manufacturing activities include soap, soft drinks, and clothing.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etcSierra

Leone -- TTR: 235.6%
Profit tax: 0.0%; Labour tax: 11.3%; Other taxes: 224.3%. Sierra Leone is rich in mineral resources, possessing some of the rarest and most valuable mineral types in the world, many of which are found in significant quantities.

Capital: Freetown
GDP (PPP) 2009 estimate - Total $4.585 billion
- Per capita $759
GDP (nominal) 2009 estimate - Total $1.877 billion
- Per capita $311
Currency: Leone
Economy: The country is among the top 10 diamond producing nations in the world. Mineral exports remain the main foreign currency earner.
Sierra Leone is perhaps best known for its blood diamonds that were mined and sold to De Beers and other diamond conglomerates during the civil war.
Besides, its economy depends on agriculture, trade and tourism, manufacturing and handicrafts, construction, and electricity and water.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

Comoros -- TTR: 217.9%
Profit tax: 31.4%; Labour tax: 0.0%; Other taxes: 186.5%. The Union of the Comoros is an archipelago island nation in the Indian Ocean.
Capital: Moroni
GDP (PPP) 2009 estimate - Total $772 million
                                           - Per capita $1,159
GDP (nominal) 2009 estimate - Total $532 million
                                                - Per capita $798
Currency: Comorian franc
Economy: Comoros is one of the world's poorest countries.
Agriculture contributes 40 per cent to GDP, employs 80 per cent of the labour force, and provides most of the exports.
Comoros is the world's largest producer of ylang-ylang, and a large producer of vanilla.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc.

Central African Republic -- TTR: 203.8%
Profit tax: 176.8%; Labour tax: 8.1%; Other taxes: 18.9%. The Central African Republic covers a land area of about 240,000 square miles (623,000 km), and has an estimated population of about 4.4 million as per 2008.
Capital: Bangui
GDP (PPP) 2009 estimate - Total $3.309 billion
                                           - Per capita $745
GDP (nominal) 2009 estimate - Total $1.986 billion
                                                - Per capita $447
Currency: Central African franc
Economy: The economy of the CAR is dominated by the cultivation and sale of food crops such as cassava, peanuts, maize, sorghum, millet, sesame, and plantain.
The CAR's largest import partner is South Korea (20.2 per cent), followed by France (13.6 per cent) and Cameroon (7.7 per cent), while its largest export partner is Japan (40.4 per cent), followed by Belgium (9.8 per cent) and China (8.2 per cent).
Diamonds constitute the most important export of the CAR, accounting for 40-55 per cent of export revenues.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc.

Burundi -- TTR: 153.4%
Profit tax: 19.4%; Labour tax: 7.8%; Other taxes: 126.2%. Republic of Burundi is a landlocked country in the Great Lakes region of Eastern Africa.
Cobalt and copper are among Burundi's natural resources. Some of Burundi's main exports include coffee and sugar.
Capital: Bujumbura
GDP (PPP) 2009 estimate - Total $3.245 billion
                                          - Per capita $400
GDP (nominal) 2009 estimate - Total $1.321 billion
                                                - Per capita $162
Currency: Burundi franc
Economy: Burundi is one of the world's poorest countries.
Its largest industry is agriculture and its largest source of revenue is coffee, which makes up 93 per cent of Burundi's exports.
Besides agriculture, other industries include: assembly of imported components; public works construction; food processing, and light consumer goods such as blankets, shoes, and soap.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

Argentina -- TTR: 108.2%
Profit tax: 2.8%; Labour tax: 29.4%; Other taxes: 76.0%. Argentina is the second largest country in South America, after Brazil.
Capital: Buenos Aires
GDP (PPP) 2010 estimate - Total $632.223 billion
                                           - Per capita $15,603
GDP (nominal) 2010 estimate - Total $351.015 billion
                                                - Per capita $8,663
Currency: Peso
Economy: Argentina has a market-oriented economy with abundant natural resources.
The nation's services sector accounts for around 59 per cent of the economy and 72 per cent of employment, manufacturing is 21 per cent of GDP and 13 per cent of employment, and agriculture is 9 per cent of GDP, with 7 per cent of employment; construction, mining, and public utilities divide the rest.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

Uzbekistan -- TTR: 95.6%
Profit tax: 1.6%; Labour tax: 27.1%; Other taxes: 66.9%. Republic of Uzbekistan shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south.
Capital: Tashkent
GDP (PPP) 2010 estimate - Total $85.188 billion
                                           - Per capita $3,015
GDP (nominal) 2010 estimate - Total $37.290 billion
                                                - Per capita $1,320

Currency: Uzbekistan som
Economy: Uzbekistan's economy relies mainly on commodity production, including cotton, gold, uranium, potassium, and natural gas.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

Tajikistan -- TTR: 86.0%
Profit tax: 17.7%; Labour tax: 28.5%; Other taxes: 39.8%. Republic of Tajikistan is a mountainous landlocked country in Central Asia.
Capital: Dushanbe
GDP (PPP) 2009 estimate - Total $13.666 billion
- Per capita $2,103
GDP (nominal) 2009 estimate - Total $4.982 billion
- Per capita $767
Currency: Somoni
Economy: Tajikistan was the poorest republic of the Soviet Union and is the poorest country in Central Asia.
The current economic situation remains fragile, largely owing to corruption, uneven economic reforms, and economic mismanagement.
The primary sources of income in Tajikistan are aluminium production, cotton growing and remittances from migrant workers.
Aluminium industry is represented by the state-owned Talco - the biggest aluminium plant in Central Asia and one of the biggest in the world.
In 2010, remittances from Tajik labour migrants totaled an estimated $2.1 billion.
NOTE: Profit tax: Corporate Income Tax, etc; Other taxes: Sales Tax, Value Added Tax, etc

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