Taxes in general seems to keep going up and has shown signs over the past years indicating that it is not coming down anytime soon. Even though some pay more taxes than others. this is the reason for the economic effect of the country of residence. in this article, we are comparing the taxes of Canada and the united kingdom.
The top tax rate in the United Kingdom is 45.0%, while the top tax rate in Canada is 33.0%. According to the OECD, the overall tax taken in Canada is nearly 40% of GDP, while in the UK it is less than 35%. However, the tax rates on a person’s pay are comparable in both countries.
what taxes do Canadians pay?
Canadians pay several types of taxes, including:
- Income tax.
- Sales tax.
- Property taxes.
- Customs duties and tariffs.
- Health services taxes.
Canada’s taxes fall under four broad categories: Personal income tax, Corporate tax, Goods and services tax (GST), and Excise tax.
what taxes do uk pay?
The types of taxes paid in the UK include:
- Income tax, which is a tax on people’s income. The basic rate of income tax is 20%, paid on income over the income tax threshold of £10,40013.
- National insurance contributions.
- Consumption tax, which is VAT at 17.5%.
- Excise duties on alcohol and tobacco.
- Corporation tax, which is a tax on company profit.
Stamp duty, which is a tax on buying houses/shares.
Other taxes include property taxes, capital gains, UK inheritance taxes, and Value Added Tax (VAT).