New York, USA, May 20, 2003 - American financial magazine Forbes has ranked certain countries of the world in terms of their tax structure in an evaluation titled "Wretchedness Index of the Tax Burden." The evaluation was performed by assessing institutional, income and luxury taxes, social insurance premiums paid by employers and employees and Value Added Tax (VAT). From the standpoint of tax heaven and hell, Turkey is in the middle of the spectrum but closer to hell than heaven.
Of the 47 countries included in the survey Hong Kong, Greek Cypriot Side, Indonesia, Taiwan, Thailand and South Africa were classified as being in "tax heaven" by scoring below 85 points. France, Belgium, Sweden, Italy and China, on the other hand, receiving more than 145 points, were relegated to "tax hell."
Turkey was ranked 27th from tax heaven and 20th from tax hell with 124.5 points. Forbes pointed out that institutional tax is 33 percent, income tax tops 40 percent, Social Security Authority (SSK) taxes for employers total 19.5 percent and 14 percent for employees, and VAT amounts to 18 percent.