Question

Which tax system is most like Mainland China (Hong Kong, Taiwan, or Macau)? Why?

Answer 1

The progressive tax system is mostly opted in Mainland China (Hong Kong, Taiwan, or Macau). The Individual Income Tax in China is based on the progressive tax system however it is entirely separated from Hong Kong, and Macau. In Hong Kong the taxes are generally classified as direct taxes and indirect taxes. Direct taxes include the property tax, salaries tax, and profits tax; while indirect taxes include the stamps duty, estate duty and betting duty. Under a progressive income tax the average rate of taxation on income increases with income thus it impose a lower rate on low-income earners and higher rate on higher--income earners; and the same is mostly opted in Mainland China (Taiwan, Hong Kong, or Macau)