Tax Burden Index: Index evaluating the overall tax burden on individuals and businesses - Jan. 31, 2023

The Tax Burden Index evaluates the overall tax burden on individuals and businesses, taking into account factors such as income taxes, corporate taxes, and consumption taxes. This index provides insights into the tax environment and its implications for economic activity, investment decisions, and income distribution. Monitoring this index allows individuals to understand the relative tax burdens faced by different countries and their impact on economic performance.

As of January 2020, Qatar and Saudi Arabia ranked first and second, both with a Tax Burden Index of 99.8. Bahrain followed closely in third place with a score of 99.4. These countries exhibited high tax burdens on individuals and businesses. In terms of the lowest tax burden, Sweden had a Tax Burden Index of 43.6, Denmark scored 42, and North Korea had a score of 0.

In January 2021, Bahrain and the United Arab Emirates tied for first place with a Tax Burden Index of 100. Saudi Arabia ranked third with a score of 99.1. Denmark and Sweden maintained similar scores, with Denmark at 43.7 and Sweden at 43.6. North Korea still had a Tax Burden Index of 0, indicating a minimal tax burden.

By January 2022, the United Arab Emirates and Bahrain continued to hold the top positions with scores of 100 and 99.9, respectively. Saudi Arabia ranked third with a score of 99.3. Chad emerged in the rankings with a Tax Burden Index of 44.6. Denmark and Sweden had scores of 42.3 and 45.1, respectively, while North Korea remained at 0.

In January 2023, the United Arab Emirates and Bahrain maintained their top positions, with scores of 100 and 99.9, respectively. Qatar ranked third with a score of 99.7. Sweden had a Tax Burden Index of 45.1, Denmark scored 42.1, and North Korea remained at 0.

Monitoring the Tax Burden Index helps individuals understand the relative tax burdens faced by different countries and their implications for economic performance. It provides insights into the tax policies of nations and their impact on businesses, investment decisions, and income distribution.