Tax on natural and legal persons
Learning about tax legislation of each country is a difficult task since there is no fiscal harmony between countries but each one of them applies a different tax rate depending on its needs. Most high-tax countries collect tax from natural and legal persons based on their world wide income, that is, if a person is a tax resident in Germany and opens a bank account in the United Kingdom to invest in the stock market, the benefits collected in United Kingdom account will have to be declared in tax agency of his resident country, in this case Germany. On the other hand there are countries like Panama and Belize that do not oblige its citizens to pay taxes on income obtained outside of their country of residence and therefore only local or national taxes of the country should be paid.
Types of taxes
The highest and the most indicative types of income taxes are taxes on natural and legal persons.
Tax on natural persons
Taxes on natural persons affect both residents and non-resident of a country. In a country of high taxation, taxes on natural persons are those that are imposed for all the worldwide income that can come from any legal activity such as: employment, self-employment, commissions, capital yields, savings accounts.
Taxes on legal persons
Taxes on legal persons or companies, also called corporate taxes, are those taxes that are subject to the benefits generated by a company. For example, if a company is registered in the United Kingdom and at the end of the year presents profits, the English tax agency will impose the payment of tax, a percentage of these benefits. In the United Kingdom the tax rate for a company that has profits below 300,000 British Pounds is 19%.
In this section you will obtain the necessary knowledge to save and delay the payment of taxes in your country of residence in a legal manner and without breaching any international regulations or local law. As we said above there is no fiscal harmony between countries and you will verify that there are countries with higher taxes than the one you pay in your country and yet other countries have lower or no taxes.