Individual Tax Low For Caribbean, Latin American Workers: OECD
by Mike Godfrey, Lowtax.net, Washington
27 September, 2016
Taxes on individual workers in the Caribbean and in Latin American countries are on average one-third lower than in OECD countries, says a new report.
A report from the OECD says that more than 90 percent of the difference is due to personal income tax. The average personal income tax rate among Caribbean and Latin American countries was 9.3 percent, compared with the OECD average of 25.4 percent, with rates as low as 4.5 percent in Trinidad and Tobago and 3.6 percent in Honduras.
The report says the very low average personal income tax rates in the Latin American and Caribbean region can be traced to generous tax concessions, which result in the vast majority of the working population being exempt from tax.
The report also pointed to the prevalence of informal labor markets and tax evasion as contributors to their low personal income tax revenue collections.
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