Tax rate

The tax rate shows the ratio of the tax base and the tax we receive, the amount of tax burden in relation to the tax base. The tax rate is determined in absolute or relative (as a percentage) amount. 

The amount of the tax burden can be calculated:

• by the average tax rate → the ratio between the total tax and the total tax base

• by the marginal tax rate → by how many percent the tax burden will change if the base changes. 

• the actual tax rate → shows how much tax we have to pay for a particular tax base

The amount of the tax rate is not the same in every country and also not the same for every industry. There are entities that are exempt from taxation such as sun pr. some embassies, consulates, etc.