This is a tool that calculates and compares the income tax on earned income for various centres around the world. Optionally, it is possible to include social insurance and/or mandatory pension contributions in the analysis. The comparison is for a single person or married couple, and is over a specified group of tax years, handling the fact that in different countries, tax years can run between different dates. The results are displayed in two main tables.

The first results table shows the annual gross income in the currencies associated with the compared centres, with a row for your own income and, if you are married, your spouse's income and the resulting totals.

The second results table displays the calculated annual income tax and net income for each compared centre, together with a percentage indicating the proportion of the gross income that is tax. If the relevant options are switched on, the table also displays the calculated social insurance and/or mandatory pension contributions, with the net income reflecting these extra deductions. In the case of a married couple, the displayed results show the total income tax and net income, though the tax may be calculated via separate or joint assessment. Since the resulting tax assessment for a centre may differ from the inputted preference, e.g. a country may not allow separate or joint assessment for a married couple, this is also shown.

Additionally, if required, the tool displays more detailed results from the tax calculations: a general currency exchange rate table plus details on a centre by centre basis. The details for each centre are described later on in this document.

Note: To be able to compare the tax between different countries, some compromises need to be made and this should be taken into consideration when comparing results. For example, the tool has one input field for gross income, from which standard deductions and allowances are subtracted to give the taxable income, while in practice, specific deductions could result in differently adjusted gross income values for different countries. The standard deductions and allowances that are handled by this tool are described in the centre specific sections below.

Note: This tool does not cover any country specific tax credits.

For the income tax calculations, it is necessary to supply the following compulsory information:

If you are married, it is necessary to supply the following additional information:

Currently seven centres are compared with this tool: the United Kingdom (UK), the United States (US) centres of New York and Chicago, Hong Kong (HK), Singapore (SG) and the Swiss centres of Zurich and Geneva. Each centre is discussed in turn below.

The first centre in the comparison is the United Kingdom. Various points to note concerning the UK tax calculation are:

The data (e.g. rates and allowances) used by this tool for the UK tax calculation was obtained primarily from...

http://www.hmrc.gov.uk/rates/it.htm

and...

http://www.hmrc.gov.uk/rates/nic.htm

The second and third centres in the comparison are the US centres of New York and Chicago. Various general points to note concerning the US tax calculations are:

The data used by this tool for the US regular federal tax calculation was obtained primarily from the following sources:

The data used by this tool for the US alternative federal tax calculation was obtained primarily from the following sources:

The data used by this tool for the US federal social insurance contributions calculation was obtained primarily from the following sources:

Various points to note concerning the New York state and city tax calculations are:

The data used by this tool for the New York tax calculations was obtained primarily from the following sources:

Various points to note concerning the Chicago (Illinois) state and city tax calculations are:

The data used by this tool for the Chicago tax calculations was obtained primarily from the following sources:

The fourth centre in the comparison is Hong Kong. Various points to note concerning the HK tax calculation are:

The data used by this tool for the HK tax calculation was obtained mainly from the following sources:

The data used by this tool for the HK mandatory pension contributions calculation was obtained primarily from the following sources:

The fifth centre in the comparison is Singapore. Various points to note concerning the SG tax calculation are:

The data used by this tool was obtained mainly from the following sources:

The data used by this tool for the SG mandatory savings contributions calculation was obtained primarily from the following sources:

The sixth and seventh centres in the comparison are the Swiss centres of Zurich and Geneva. Various general points to note concerning the Swiss tax calculations are:

The data used by this tool for the Swiss federal tax calculation was obtained primarily from the following sources:

The data used by this tool for the Swiss federal social insurance and mandatory pension contributions calculations was obtained primarily from the following sources:

Note: Need to find some more official sources for some data.

Various points to note concerning the Zurich cantonal and municipal tax calculations are:

The data used by this tool for the Zurich tax calculations was obtained primarily from the following sources:

Various points to note concerning the Geneva cantonal and municipal tax calculations are:

The data used by this tool for the Geneva tax calculations was obtained primarily from the following sources:

Associated tool link: http://www.coggit.com/tools/world_income_tax_comparison.html