November and December
2014 |
A
SIA
B
RIEFING
-
5
IIT
Individual Income Tax
An individual income tax (IIT) is a tax levied on all wage earners
within a given jurisdiction. With the exception of Brunei and
Cambodia, the former having no IIT in place and the latter a fixed
20 percent rate, the Asian countries highlighted in this magazine
all employ a progressive IIT system wherein an individual is taxed
according to how much they earn. This results in individuals with a
higher salary being taxed at a greater rate than those with a lower
one. Rates vary wildly across Asia, with some countries capping
their maximum IIT at as much as 45 percent and others at as little
as 17 percent.
Ease of Paying Taxes 2015
One of the key contributing factors to the World Bank’s “Doing
Business” rankings is the ease of paying taxes, which takes into
account the time, total tax rate and number of payments necessary
for a company to pay off all of its tax obligations. Here we provide
the rankings for the 13 countries highlighted in this magazine, as
well as the U.S., Germany, and Italy.
Compared to 2014’s rankings, there have been several significant
changes to the ease of paying taxes in Asia. India has moved up
two ranks, and Indonesia and Vietnam have dropped 23 and 24
ranks respectively. In the context of the 13 countries highlighted
in this magazine, this means that India has moved from being the
worst ranked country last year to 11th position, whilst Indonesia
and Vietnam have dropped to be the two worst ranked.
The top five positions have also seen a slight change. Thailand has
moved up eight ranks overall and Cambodia has dropped 25. As a
result, Thailand is now the fifth ranked country out of the 13 and
Cambodia the sixth.
For additional business intelligence on taxation in Asia, please
visit
to browse our full selection of Asia
Briefing tax guides:
Related Reading
Ease of Paying Tax Rankings
1
189
5
30
32
47
62
64
90
116
120
127
129
141
156
160
4
173
SINGAPORE
HONG KONG
BRUNEI
10
25
23
3
24
+4
+17
+8
+9
+4
+10
+2
MALAYSIA
U.S.
+21
GERMANY
THAILAND
CAMBODIA
CHINA
ITALY
MYANMAR
PHILIPPINES
LAOS
INDIA
INDONESIA
VIETNAM
1
Country
Country
Country
Same
Gainers
Decliners
Key
