5 Countries That Have The Highest Taxes On High Incomes

2. Japan

Top income tax rate: 55.97%

In Japan, permanent residents are taxed on their worldwide income, while non-residents are taxed only on their Japan-sourced income. A surtax of 2.1% is imposed on an individual’s national income tax. Local governments levy local income taxes of 10% based on the previous year’s income.

Non-residents pay a flat 20.42% national income tax on Japan-source compensation, including the surtax. If registered as residents, they may also be subject to a 10% local inhabitant’s tax.