| Pages in topic: < [1 2 3] | Poll: Income tax: how much do you have to pay in your country of residence? Thread poster: ProZ.com Staff
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Michael Harris 
Germany
Local time: 02:15
Member (2006)
German to English
| Would like to | Sep 14, 2016 |
Michael Wetzel wrote: Michael Harris wrote:
One of my polls has actually been posted☺
I was wondering how much income tax you have to pay in New Zealand, anyone know?
Here I am by 39% and except for earning less, cannot do anything about it and I have a good accountant You're earning well over EUR 100,000 per year after deductions? That's impressive. Earning EUR 40,000 after business expenses and private tax deductions (various expenses that lower the amount of income tax due) would mean paying a little over 17.5% income tax overall. I never thought of Germany as a high-tax country.
but you also have to consider that my wifes income is pleasantly put on top of mine so that I am allowed to pay a heck of a lot of tax - Life!!
| | | | Andy Watkinson
Spain
Local time: 02:15
Member
Catalan to English
+ ...
| Not the case | Sep 14, 2016 |
Alexandra Villeminey wrote: neilmac wrote:
Spain: 15% Income tax, 21% VAT, the last time I looked, which was yesterday (a client informed me that I had billed them with the wrong tax rate and I had to rectify the invoice).
Actually I preferred it when both income tax and VAT were at 21%, because the gross amount on my bill was the same as the net amount, which made calculations easier. Moreover, since they cut the income tax rate to 15%, this is the first year I've had to pay tax at the end of the year rather than getting a rebate, which used to be the case. However, the workings of Hacienda are a mystery to me and I'm too busy with other things to try to find out why this happened. You prefer to pay 6% more taxes because the calculations are easier?!!!
I'm afraid what Neil's written is rather misleading.
15% is not the final rate you will actually pay in most cases.
When you issue an invoice in Spain you deduct XX% in respect of income tax which the client then pays on your account to the tax authorities. This is not your tax rate - it's an artificial percentage which, curiously enough, tends to be lowered just when elections are looming.
At the end of the year your final tax rate - depending on income, allowances, sundry deductions, etc...) may be under 15% (in which case you receive a rebate), or above (in which case you have to fork out several thousand euros you may not have made sufficient allowance for).
I also regret the latest reduction to 15% because I'd prefer to receive a rebate than a demand for more money.
| | | | Daniel Penso
United States
Local time: 17:15
Member (2012)
Japanese to English
+ ...
| Complicated! | Sep 14, 2016 |
It's the argument of capitalism vs. socialism.
Obviously crony capitalism (where the head-hanchos benefit where the little guy gets stepped all over) doesn't work
but neither does a 100% socialism system. A balance of both is desirable.
Minna Bäckman wrote:
Greetings from Finland. I have had some very good years so I last year I paid over 40 % in income taxes (progressive taxation).
BUT I have promised never again to complain about our taxation: my younger son was diagnosed with JIA (children's rheumatism) last autumn and now I realize how much we get in return!
| | | | | Ukraine 5% :-) | Sep 15, 2016 |
Being registered as an individual sole proprietor and having no hired labour, you have to pay 5% from your gross income + an equivalent of approx. $12-13/monthly as a mandatory social contribution to the State Pension Fund.
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| Then your wife is earning EUR 100,000 + x per year? | Sep 15, 2016 |
Michael Harris wrote: Michael Wetzel wrote: Michael Harris wrote:
One of my polls has actually been posted☺
I was wondering how much income tax you have to pay in New Zealand, anyone know?
Here I am by 39% and except for earning less, cannot do anything about it and I have a good accountant You're earning well over EUR 100,000 per year after deductions? That's impressive. Earning EUR 40,000 after business expenses and private tax deductions (various expenses that lower the amount of income tax due) would mean paying a little over 17.5% income tax overall. I never thought of Germany as a high-tax country. but you also have to consider that my wifes income is pleasantly put on top of mine so that I am allowed to pay a heck of a lot of tax - Life!!
I also file my income taxes together with my wife, but that doesn't really affect the numbers. You would still have to earn in excess of EUR 200,000 per year as a couple in order to pay 39% income tax. Are you considering all of the taxes you pay as a couple as "your" taxes or are you including some kind of state insurance payments (retirement, medical, nursing care?) in your figure?
| | | | Mario Freitas
Brazil
Local time: 21:15
Member (2014)
English to Portuguese
+ ...
| Income Tax <> VAT and Social Security | Sep 15, 2016 |
Mario Freitas wrote:
... somewhere between 20% and 24% of the gross income.
People are mentioning VAT, Social Security, etc., but the question was about Income Tax. If we consider the other charges, all answers are incomplete, but that's not the case. Those who mentioned VAT and Social Security have deviated from the actual question.
| | | | | figured out the confusion | Sep 16, 2016 |
I think I've figured out why Michael and I couldn't figure out what the other one was saying. I had assumed that the German tax brackets function the same way as American tax brackets (you pay a fixed percentage on all income within a given bracket), but they don't. The rate paid on additional income within a bracket continuously increases, so the income tax on additional income gradually increases from around 24% for additional income at around EUR 13,500 income to 42% for additional income at ... See more I think I've figured out why Michael and I couldn't figure out what the other one was saying. I had assumed that the German tax brackets function the same way as American tax brackets (you pay a fixed percentage on all income within a given bracket), but they don't. The rate paid on additional income within a bracket continuously increases, so the income tax on additional income gradually increases from around 24% for additional income at around EUR 13,500 income to 42% for additional income at around EUR 52,900.
That means that Michael does not pay 39% of his income in income tax: His average is much lower, but if he earned one more euro, then about EUR 0.39 of it would have to be sent to the tax office as income tax. On the other hand, the averages that I calculated are too low, and someone in Germany earning EUR 40,000 (or a couple earning EUR 80,0000) after all deductions would actually pay somewhere in the range of 20-25% of their total income as income tax.
The question of whether that is a lot or a little obviously depends on your perspective: Personally, having two children and comparing things to the US, that is a tiny price to pay for excellent and affordable childcare (at least in what used to be East Germany), tuition-free universities, excellent public transportation, high subventions for culture, low violent crime rates, considerably less abject poverty, great parks, etc. ▲ Collapse
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