INTRODUCTION DFK INTERNATIONAL is an organisation whose membership consists of independent accounting firms and business advisers throughout the world. It is committed to meeting the needs of businesses and individuals with interests in more than one country. DFK INTERNATIONAL Member Firms provide international tax and accounting services and answers to questions on these subjects. The WORLDWIDE TAX OVERVIEW gives brief details on the taxation régimes in many nations of the world. The Member Firms of DFK INTERNATIONAL can provide additional information concerning taxation legislation in these and other territories upon request. The WORLDWIDE TAX OVERVIEW is published without responsibility on behalf of DFK INTERNATIONAL, its Directors and its Member Firms for loss occasioned by any person acting or refraining from action as a result of any information contained herein. Tax laws change frequently worldwide and some of the information contained herein may be impacted by treaties. You are advised to consult with your local DFK INTERNATIONAL Member or other tax adviser in connection with any data contained in this Overview. © DFK International 2017 Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous Argentina 35% 9%-35% 10.5%-21% Income, VAT, payroll, excise. Tax imposed on income Generally straight-line based Provinces may levy gross 15% on capital gains Tax on assets for companies from resources and activities on probable useful life receipts taxes. Branch profits Fiscal year end: derived from sales of and individuals within Argentina. Withholding tax on foreign company’s 31.12.2017 shares tax between 10%-35% on permanent establishment interests, rents, dividends is 35%. Lower tax rates are and royalties applied to some industrial activities. Payroll tax 23% Australia 28.5%-30% 19%-49% 10% Goods and Income, goods and services, Non-residents are taxed 2 methods – prime cost and Payroll tax, stamp duty, Services Tax payroll, capital gains, fringe between 32.5% and 47%. diminishing balance. Rates and land tax are levied by Fiscal year end: benefits, stamp duty, land tax, Withholding tax of 10%-30% vary based on effective life individual states (8) at varying 30.06.2017 excise, health care on interest, dividends and of asset. Effective life can be rates, but all other taxes royalties. 10% non-final self assessed or per tax office are levied by the Australian withholding tax on Taxable guidelines. federal government. Australia Australian Property from 1 has a compulsory employer July 2016. Abolition of 50% superannuation contribution general discount for capital regime, currently levied at gains made by non-residents 9.5% of qualifying employee after 8 May 2012. salary and wages Austria 25% 25%-55% 10%-20% Income, VAT, real estate, Income taxes on certain Movable assets: straight-line Tax incentives for Privatstiftung 55% is for income of payroll, import duties income derived from Austrian methods dependent on useful (foundations). Group taxation Fiscal year end: more than 1 million € sources. Withholding tax on life – 5%-33%, buildings – incentives 31.12.2017 and is temporary for interest (0)% and dividends 1.5%-2.5% the next 5 years (25%) and on royalties (20%) Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous Azerbaijan 20% Entrepreneurs – 4%, 18% Profit tax, income tax, turnover Non-residents are subject Reducing balance method. VAT exemption for oil regions – 2%), tax, VAT, import duties, to tax only on their income Buildings – 7%, vehicles – extracting companies (under Fiscal year end: Individuals property tax, pension and derived in Azerbaijan. 25%, computers, equipment special state agreements). 31.12.2017 14%-30% social security deductions, Withholding tax of 10% and machinery – 25%, other Tax incentives in agriculture road tax, etc on dividends and services assets 20% produced in/for Azerbaijan Bangladesh 25%-45% 0% to 30% 4%-15% Income tax VAT, Excise duty, Non-resident foreigners are Reducing balance method: Reduced tax rate and tax Surcharge will be Property tax, withholding tax, subject to tax @30% only Building 10%-20% holiday for certain business; Fiscal year end: applicable at different custom duty, land tax on their income derived on Furniture and fixtures 10% tax rebate on investment 30.06.2017 rate if the net Bangladesh Office equipment 10% allowance wealth exceeds Machinery and plant 12%- Tk. 2.5 million 50% Initial depreciation allowance: Factory building 10% Plant and Machinery 25% Belgium 24.98%-35.4% 25%-50% 6%-21% Income, VAT, inheritance and Tax on income from Belgian Buildings – 3%-5%, movable Municipalities and provinces (lower rates) 33.99% gifts, payroll sources. Personal tax machinery – 10%-20%. may impose taxes. Advance Fiscal year end: (standard) allowances under certain Straight-line or (up to) double payments of taxes required 31.12.2017 conditions. Withholding declining balance tax of 10%-15% – 27% on dividends, interest and royalties Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous Bosnia and Standard rate 10% 10% Standard rate – 17% Income, VAT, social security, Non – residents are taxed Mostly straight-line basis Real estate tax based upon Herzegovina tax on salaries, import duties, on income generated in with rates ranging from 1 to location, advance payment withholding tax, capital gains, Bosnia with withholding 100 years. For accounting of corporate taxes required. Fiscal year end: real property tax tax on dividends, interests, purposes, companies can Water tax – % based on 31.12.2017 authors ‘rights, performance choose any method which the number of employees, of entertainment programs, is in accordance IAS while Firefighting tax of 0,04% research of market, rates can be based on of yearly income, Wood tax commercial activities, fiscal management’s estimate of 0,07% of yearly income. and business consulting, Municipal and state tax – accounting and audit value is defined on core services, insurance policies, activity basis telecommunication services and rent of movable assets Brazil 34% over profit. For 7.5%-27.50% 7%-25% Income, sales or invoicing, Income taxed on Brazilian Straight-line method of 4% for Investments incentives available medium and small payroll, services and excise source income. Withholding buildings, 10% for machinery, in underdeveloped and Fiscal year end: companies can be (manufacturing) tax taxes of 15%-25% equipment, furniture and developing regions including 31.12.2017 reduced to 2.72% (remittances to fiscal havens) fixtures, 10% for tools Amazon region, Northeast over gross sales. apply to interest and royalties and 20% for vehicles and region and Manaus free trade (assumed profit) and paid to non-residents computer equipment zone. Specific incentives to IT manufacturing companies Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous Bulgaria Standard rate 10% 10% Standard rate – 20%, Income, VAT, social security, Witholding tax on royalties, Movable assets -depends on Real estate tax based upon (People’s touristic services – 9% corporate tax, real property dividends, rents and interests category assets 10%-50%, location, advance payment of Republic of) tax, customs tax generated in Bulgaria buildings 4%, other assets taxes required 15% Fiscal year end: 31.12.2017 Canada 10.5%-31% 19%-54% 5%-15% Goods and Income, goods and services, Employment income, business Declining balance method Each province and territory Services Tax sales, payroll, capital, income and dispositions of (in most cases) on assets may provide special tax Fiscal year end: healthcare, workman’s certain capital property within available or use and owned at incentives and impose its own 31.03.2017 compensation, excise import Canada. Withholding tax of year end; various rates from income, sales, health care and duties, land transfer, property 25% on dividends, rents, 4% to 100% other taxes royalties and non-arm’s- length-interest Chile 2017 taxpayers 0%-35% 19% Income, VAT, payroll, import Taxed on Chilean source Straight-line and accelerated subject to Article 14 duties, inheritance, excise, income; withholding tax rate methods. Buildings – Fiscal year end: Letter A LIR: 25% stamp duties and real estate (15% or 30% at the time of 20-40 years, havy machinery 31.12.2017 2017 taxpayers withdrawal, distribution or – 15 years subject to Article 14 remittance of income abroad) Letter B LIR: 25.5% 2018 taxpayers subject to Article 14 Letter B LIR: 27% Country Corporate Rates Individual Rates VAT Rates Types of Taxes Taxation of Non-Residents Depreciation Miscellaneous China 25% 3%-45% 3%, 6%, 11%,13%, Value-added Tax, Consumption Income tax on all China- Buildings – 20 years; Aircraft, A) Income tax of 15% for (People’s 17% Tax, Corporate Income Tax, sourced income and all non- train, steamer, machinery – high and new technology Republic of) Individual Income Tax, China-sourced income that 10 years; enterprises which require key Resource Tax, Urban and has an effective connection Business-related instruments, state support. B) Income tax Fiscal year end: Township Land-use Tax, Real with the establishment and/ furniture – 5 years; Other of 10%, 15% or tax holidays 31.12.2017 Estate Tax, City Maintenance or site in China, if any. 25% transportations vehicles – for eligible key software and and Construction Tax, Arable effective tax