(1) today's foreign currency exchnage rate: 1 Chinese yuan (CNY) = 1.2 Hong Kong dollar, or
1 Hong Kong dollar = 0.83 CNY
(2) In a sense, it is unfair to compare Hong Kong with other economies, for HK has one of the lowest tax rates in the world.*
* One reason is readily apparent: It does not support trappings of a nation, such as military and diplomacy.
(3) List of countries by tax revenue as percentage of GDP. Wikipedia
http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP
According to Heritage Foundation (column 1),** total tax revenue as a percentage of gross domestic product (GDP) for the following economies:
Canada ...............................................33.4%
China, People's Republic of ................17.0
China, Republic of (Taiwan) ................12.4
Cuba ....................................................44.8
Denmark ..............................................50.0
France .................................................46.1
Germany ..............................................40.6
Greece .................................................33.5
Hong Kong ...........................................12.8
Inida ......................................................17.7
Irealnd ..................................................34.0
Israel .....................................................36.8
Italy .......................................................42.6
Japan ....................................................27.4
Luxembourg ..........................................36.4
Korea, South .........................................26.8
Mexico .....................................................9.7
Netherlands ...........................................39.5
Norway ..................................................43.6
Russia ....................................................36.9
Spain ......................................................37.3
Sweden ..................................................47.9
Switzerland ............................................30.1
United Arab Emirates ..............................1.4
United Kingdom .....................................39.0
United States (all levels) ........................26.9
** Reference 1: "Index of Economic Freedom, Heritage Foundation. Note: Tax revenue as a percentage of GDP was obtained from the individual country pages, under the "Fiscal Freedom" section. These numbers change. Please update the numbers for individual countries in the list."
My comment: Take Hong Kong for example:
"FISCAL FREEDOM 93.3 +0.3 [compared with the previous year]
Hong Kong’s effective tax rates are among the lowest in the world. Individuals are taxed either progressively, between 2 percent and 17 percent on income adjusted by deductions and allowances, or at a flat 15 percent of gross income, depending on which liability is lower. The top corporate income tax rate is 16.5 percent. Unincorporated businesses enjoy a lower rate of 15 percent. Excise duties on beer and wine were removed in 2008. In the most recent year, overall tax revenue as a percentage of GDP was 13 percent."
Hong Kong, in "2011 Index of Economic Freedom," Heritage Foundation. http://www.heritage.org/index/Country/HongKong
(4) It just happens that a few days ago an international comparison of tax regimes in 19 nations (China, Taiwan, Hong Kong not among them) were released: taxing salary of $25,000 and $200,000.
Press Releases: Wide Tax Gaps Among Countries, UHY Study Finds. UHY, June 10, 2011.
http://www.uhy.com/pages/posts/wide-tax-gaps-among-countries-uhy-study-finds164.php
Please take notice that Dubai is a constituent emirate of UAE.
(The following report took up with the first half of the press release:
Alistair MacDonald, Europeans Found Taxed Heaviest: Russia's Rich Have Lightest Load. Wall Street Journal, Juen 13, 2011.
http://online.wsj.com/article/SB10001424052702304778304576377710593726674.html
)
(5) After I came to US, I frequently was puzzled by tax battles between Congress and the president. At last I learned that tax in Taiwan was (and is) among the lowest in the world--both individual and corporate income tax. After slashing tariff in advance of accession to World Trade Organization, Taiwan's tariff is also low.
What is the meaning of the table at the top of the report? Is there a separate tax payment to Beijing?
A second question is: An individual or company in China pays tax to different levels of government separately?
In United States, an individual will pay federal tax (income as well as social security), state tax, property tax to town or city where he lives--besides sales tax in transactions and excise tax (for gasoline, tobacco and so on).
In Taiwan, an individual pays income tax once a year to the central government, which then distributes the revenue to governments below.
【 在 choi (choi) 的大作中提到: 】
: I rethink your original posting.
: What is the meaning of the table at the top of the report? Is there a separate tax payment to Beijing?
: A second question is: An individual or company in China pays tax to different levels of government separately?
: In United States, an individual will pay federal tax (income as well as social security), state tax, property tax to town or city where he lives--besides sales tax in transactions and excise tax (for gasoline, tobacco and so on).
: ...................
【 在 choi (choi) 的大作中提到: 】
: I rethink your original posting.
: What is the meaning of the table at the top of the report? Is there a separate tax payment to Beijing?
: A second question is: An individual or company in China pays tax to different levels of government separately?
: In United States, an individual will pay federal tax (income as well as social security), state tax, property tax to town or city where he lives--besides sales tax in transactions and excise tax (for gasoline, tobacco and so on).
: ...................
(1) I want to make a correction in my previous posting: "In Taiwan, an individual pays income tax once a year to the central government, which then distributes the revenue to governments below."
I want to replace "pays" with "file a tax form" (as in US). And in Taiwan salaried workers get deduction from their salary (as in US; monthly in Taiwan but can be monthly, biweekly or weekly in US).
Taiwan has never imposed sales tax, but has always has excise tax (eg, commodity tax 貨物税, license tax 牌照稅, fuel tax 燃料稅, and liquor or alcohol tax 酒稅).
(2) 消费税 (中华人民共和国)
http://zh.wikipedia.org/wiki/%E6%B6%88%E8%B4%B9%E7%A8%8E_(%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD)
(3.1 税目)
appears to be excise tax, rather than sales tax.
(a) In other words, shoppers to a supermarket in China do not pay sales tax.
(b) I live in Boston. So I will use Massachusetts as an example.
A Guide to Sales and Use Tax. Department of Revenue, Massachusetts.
http://www.mass.gov/?pageID=dorterminal&L=6&L0=Home&L1=Individuals+and+Families&L2=Personal+Income+Tax&L3=Forms+%26+Publications&L4=Publications&L5=Publications+Index&sid=Ador&b=terminalcontent&f=dor_publ_sales_use&csid=Ador
Supermarket shoppers in Massachusetts, as a rule of thumb, do not pay sales tax (even a loaf of bread), but does pay sales tax for salad bar and cooked chicken--because there is a sales tax on meals (which the state emphasizes is "not a separate 'meals tax'"). When we go to a restaurant, we pay sales tax.
(3) Individual income tax in PRC.
(a) 所得稅
http://zh.wikipedia.org/wiki/%E6%89%80%E5%BE%97%E7%A8%85
(PRC started collecting income tax in 1980, and Republic of China, in 1943)
ROC started income tax in mainland China of course; at the time, Taiwan was a colony of Empire of Japan.
(b) I did some research just now. It seems that an individual pays income tax to Beijing 国库 (no separate income tax to province, unlike US).
中华人民共和国个人所得税法 itself mentions only 国库, not a word about 省库.
(c) From collected income tax nationwide, Beijing keeps 50% and distributes the rest to respective provincial (20%) and city/county (30%) governments.
【 在 choi (choi) 的大作中提到: 】
: (1) I want to make a correction in my previous posting: "In Taiwan, an individual pays income tax once a year to the central government, which then distributes the revenue to governments below."
: I want to replace "pays" with "file a tax form" (as in US). And in Taiwan salaried workers get deduction from their salary (as in US; monthly in Taiwan but can be monthly, biweekly or weekly in US).
: ...................
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※ 修改:．bridged 于 Jun 20 15:11:46 修改本文．[FROM: 71.58.0.0]
※ 修改:．bridged 于 Jun 20 15:12:02 修改本文．[FROM: 71.58.0.0]
※ 来源:．一路BBS yilubbs.com．[FROM: 71.58.0.0]
※ 修改:．bridged 于 Jun 20 15:13:41 修改本文．[FROM: 71.58.0.0]