Editing Income tax (section)

==Around the world==
{{main|Tax rates around the world|International taxation}}
[[File:Individual Taxation Systems.svg|right|thumb|upright=1.8|Systems of taxation on personal income {{legend|#00FF00|No income tax on individuals}} {{legend|#0080FF|Territorial}} {{legend|#000080|Residential}} {{legend|#FF00FF|Citizenship-based}}]]
[[File:Payroll and income tax by country.png|thumb|350px|right|[[Payroll tax|Payroll]] and income tax by OECD Country in 2021]]
Income taxes are used in most countries around the world.  The tax systems vary greatly and can consist of [[flat tax|a flat fixed rate]], [[progressive tax|progressive]], or [[regressive tax|regressive]], structures depending on the type of tax.  Comparison of tax rates around the world is a difficult and somewhat subjective enterprise. Tax laws in most countries are extremely complex, and tax burden falls differently on different groups in each country and sub-national unit. Of course, services provided by governments in return for taxation also vary, making comparisons all the more difficult.

Countries that tax income generally use one of two systems: territorial or residential. In the territorial system, only local income – income from a source inside the country – is taxed. In the residential system, [[tax resident]]s of the country are taxed on their worldwide (local and foreign) income, while non-residents are taxed only on their local income. In addition, a very small number of countries, notably the [[Income tax in the United States|United States]], also tax their non-resident citizens on worldwide income.

Countries with a residential system of taxation usually allow deductions or credits for the tax that residents already pay to other countries on their foreign income. Many countries also sign [[tax treaty|tax treaties]] with each other to eliminate or reduce [[double taxation]].

Countries do not necessarily use the same system of taxation for individuals and corporations. For example, France uses a residential system for individuals but a territorial system for corporations,<ref>{{cite web |url=http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2012/dttl_tax_highlight_2012_France.pdf |title=International tax - France Highlights 2012 |date=2012 |publisher=Deloitte |url-status=dead |archive-url=https://web.archive.org/web/20121025173841/http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2012/dttl_tax_highlight_2012_France.pdf |archive-date=October 25, 2012}}</ref> while [[Singapore]] does the opposite,<ref>{{cite web |url=http://www.fullermoney.com/content/2012-07-17/dttl_tax_highlight_2012_Singapore.pdf |title=International tax - Singapore Highlights 2012 |date=2012 |publisher=Deloitte |url-status=dead |archive-url=https://web.archive.org/web/20130603162133/http://www.fullermoney.com/content/2012-07-17/dttl_tax_highlight_2012_Singapore.pdf |archive-date=June 3, 2013}}</ref> and Brunei taxes corporate but not personal income.<ref>{{cite web |url= http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2012/dttl_tax_highlight_2012_Brunei.pdf |title=International tax – Brunei Darussalam Highlights 2012 |date=2012 |publisher=Deloitte |url-status=dead |archive-url=https://web.archive.org/web/20121025173846/http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Taxation%20and%20Investment%20Guides/2012/dttl_tax_highlight_2012_Brunei.pdf |archive-date=October 25, 2012}}</ref>

[[File:Tax rates on dividend income in OECD.svg|thumb|none|500px|Marginal statutory corporate income tax rate,  marginal statutory personal income tax rate in OECD]]
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