Hong Kong Comes Out Top In Ernst & Young Tax Index

by Mary Swire, Tax-News.com, Hong Kong

25 July 2003

Hong Kong has claimed top spot in Ernst and Young's 'international tax misery index', which measures how accommodating a country's taxation system is to business and entrepreneurs.

The index ranks 50 countries, taking into account the burden placed on firms by personal, corporate and social security taxes. The lower the index score achieved, the higher the country will be placed on the ranking. Hong Kong, with an index score of 43 is placed first in the league table, whilst France props up the list with a score of 179.4. Other notable scores include the USA, which is ranked eighth, and India, which is placed third in the survey. China, meanwhile, was ranked 45th.

Western European countries which generally impose higher social taxes to pay for larger welfare states tended to be ranked lower in the list.

The study also found that a married individual earning the equivalent of 50,000 euros can expect to take home 70% of their pay in India, and 75% in China.

Recommended