Minimum Wages, Available Workforce & Individual Income Taxes For All Countries and Territories In China’s Belt & Road Initiative

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Op/Ed by Chris Devonshire-Ellis

China’s Belt & Road Initiative now includes 147 countries and territories around the world that have signed up to participate in the scheme. This has resulted in a massive redevelopment and infrastructure push by Beijing, both to secure future supply lines and to develop new markets. China has been able to take this massive task on due to three major reasons:

  • It possesses the worlds largest foreign exchange reserves, valued at over US$3 trillion. (By comparison, the United States is 22nd)
  • China can afford to borrow money at very low rates. Via the BRI, it has been passing these rates on, together with a small mark up, to nations with poor credit ratings and who otherwise would not be able to afford development cost interest repayments.
  • China (and most recipient nations) understand that the infrastructure build itself, rather than the cost, will secure future fiscal growth in trade and wealth creation.

This will, and is, creating additional development opportunities, and especially as infrastructure build reaches conclusion in many countries affiliated to the BRI. Those with completed projects will start to see this infrastructure being utilized, facilitating the development of new trade routes and new market opportunities. These may be city to city, or city to port, or cross-border, or a combination of each; there are thousands of such projects underway on a global basis. Taking advantage of that is the key element for international MNC’s to keep an eye on when looking around for opportunities. Getting involved in China’s Belt & Road Initiative is rather more than than seeking project contracts. It is looking where the opportunities lie, post-build, contributing to that wealth creation, and profiting from it.

In this article we provide details of the available work forces, minimum wage levels and the pertinent individual income tax rates in each country associated with China’s BRI. This allows global MNC’s to begin an initial assessment of where the developing opportunities are as a local cost of business exercise.

Next week we shall identify the applicable Corporate Income Tax rates, Double Tax Treaties and Free Trade Agreements that will also impact on future trade flows – again including all 147 countries and territories along the BRI.  To ensure you obtain that report, readers may obtain a complimentary subscription to Silk Road Briefing here.

Note: Minimum wages can be dependent upon location or position and may not include other mandatory payable allowances.

Income Tax rates may vary dependent upon location, region, residency, and salary progression issues. For exact details contact your professional adviser or email us at silkroad@dezshira.com

Data from the World Bank, CIA Fact Sheet, pertinent local government resources & Dezan Shra Business Intelligence Unit. 

Country Available Workforce (millions of people) Minimum Wage (USD) Individual Income Tax Rates (Percentage of salary)
Afghanistan 14.5 779 20
Albania 13.2 234 0-23
Algeria 12.21 170 35
Angola 7.6 67.5 10.5-17
Antigua & Barbuda 0.03 526 0-25
Armenia 13.8 140 20-23
Austria 3.7 1,289 0-55
Azerbaijan 5.07 146 14-25
Bahrain 1.0 none zero
Bangladesh 69.7 19-95 0-30
Barbados 0.15 542 12.5-33.5
Belarus 4.97 171 13
Benin 4.86 69 0-35
Bhutan 0.38 58 25
Bolivia 5.42 307 13
Bosnia & Herzegovina 1.3 233 10
Brunei 0.21 none zero
Bulgaria 3.28 367 10
Burundi none 30 4.97
Cambodia 9.23 182 20
Cameroon 11.34 62 33
Cape Verde 0.27 141 4
Chad 6.0 110 0-30
Chile 9.53 389 0-35.5
Comoros 0.007 129 0-30
Republic of Congo 31.64 170 20
Cook Islands 0.006 1,206 0-30
Costa Rica 2.17 528 15
C’Ote D’Ivorie 8.5 72 0-10
Croatia 1.79 566 0-36
Cuba 5.3 9 10-50
Cyprus 0.62 1,006 0-35
Czech Republic 5.37 571 15
Djibouti 0.43 none 2-30
Dominica 0.025 256 15-35
Dominican Republic 4.5 166 0-25
Ecuador 8.67 467 0-35
Egypt 31.96 68 0-22.5
El Salvador 2.7 304 0-30
Equatorial Guinea 0.389 224 0-35
Estonia 0.693 634 20
Ethiopia 53.74 18 0-35
Fiji 0.359 269 0-20
Country Available Workforce (millions of people) Minimum Wage (USD) Individual Income Tax Rates (Percentage of salary)
Gabon 0.608 255 0-35
Gambia 0.781 26 0-30
Georgia 2.01 120 20
Ghana 12.84 48 0-30
Greece 5.0 794 22-45
Grenada 0.042 267 0-30
Guinea 4.39 62 0-40
Guyana 0.031 168 0-40
Hong Kong 3.9 773 2-17
Hungary 4.3 587 15
Indonesia 133.56 121-303 5-30
Iran 27.35 133 0-20
Iraq 8.2 214 15
Israel 4.16 1,472 10-47
Italy 23.22 collective bargaining 23-43
Jamaica 0.722 192 0-30
Jordan 1.72 450 5-30
Kazakhstan 9.26 78 10
Kenya 21.19 62 30
Kuwait 2.43 216 zero
Kyrgyzstan 2.65 14 10
Laos 3.80 100 0-24
Latvia 1.0 507 20-31.4
Lebanon 2.41 466 2-25
Lesotho 1.0 102 20-30
Liberia 1.64 114 15-25
Libya 2.31 325 5-10
Lithuania 1.6 716 15-20
Luxembourg 0.28 2,443 8-42
Madagascar 9.5 39 0-23
Malaysia 15.28 224 0-30
Maldives 0.278 242 0-15
Mali 6.45 57 3-30
Malta 918 35 0.156
Mauritania 0.879 84 15-30
Macau 0.39 640 12
Micronesia 0.016 424 10
Moldova 1.24 50 12
Mongolia 1.27 155 20
Montenegro 0.60 215 9-11
Morocco 12.04 310 0-34
Mozambique 6.92 51 0-32
Myanmar 24.74 63 30-35
Country Available Workforce (millions of people) Minimum Wage (USD) Individual Income Tax Rates (Percentage of salary)
Namibia 0.963 collective bargaining 0-37
Nepal 10.35 129 1-36
New Zealand 2.50 2,175 10.5-33
Niger 9.20 60 1-35
Nigeria 62.447 58 7-24
Niue 0.006 none 10-35
North Macedonia 1.0 306 10-18
Oman 1.6 592 15
Pakistan 1 0-35 57.2
Palestine 1.0 403 5-15
Panama 1.49 318 0-25
Papua New Guinea 3.19 191 0-42
Peru 10.58 294 15-30
Philippines 45.4 230 0-35
Poland 18.18 688 18-32
Portugal 5.6 708 14.5-48
Qatar 2.12 none zero
Romania 9.16 522 16
Russia 76.3 195 13
Rwanda 6.34 17 0-30
Samoa 0.038 137 0-27
Saudi Arabia 12.92 none 0-20
Senegal 4.32 55 0-40
Serbia 3.16 274 10
Seychelles 0.047 339 15
Sierra Leone 2.68 57 0-35
Singapore 3.74 none 0-22
Slovakia 2.74 613 19-25
Slovenia 1.02 887 16-50
Solomon Islands 0.286 79 11-40
Somalia 3.84 none 10
South Africa 23.1 293 18-45
South Sudan 4.72 none 0-15
South Korea 28.44 1,578 0-42
Sri Lanka 8.64 71 4-24
Sudan 12.06 70 0-15
Suriname 0.210 180 38
Syria 4.79 176 5-22
Country Available Workforce (millions of people) Minimum Wage (USD) Individual Income Tax Rates (Percentage of salary)
Tajikistan 3.4 31 13
Tanzania 23.51 17 0-30
Thailand 38.91 253 0-25
Timor-Leste 0.314 115 10
Togo 3.69 70 0-35
Tonga 0.405 none 0-25
Trinidad & Tobago 0.669 354 25-30
Tunisia 4.10 120 0-35
Turkey 28.169 498 15-35
Turkmenistan 2.67 156 10
Uganda 16.83 35 0-40
Ukraine 20.03 200 0-18
United Arab Emirates 0.006 none zero
Uruguay 1.64 436 0-36
Uzbekistan 15.55 35 12
Vanuatu 0.129 323 none
Venezuela 12.85 4 6-34
Vietnam 53.7 127 20-35
Yemen 6.81 100 10-20
Zambia 7.46 81 0-37.5
Zimbabwe 7.08 227 0-45

As can be seen, China has covered a lot of bases in its Belt & Road Initiative spread. At present most, but not all of the Belt & Road infrastructure projects being built use exported Chinese labor and construction workers. This is because they can be provided on a project basis, have their wages paid by the contractual terms to the relevant Chinese SOE in foreign currency yet be paid by their employer back in China, alleviating the need for any localized individual calculations on a workforce base that often numbers into thousands. Additionally, Chinese workers are relatively well disciplined.

However, at the same time, Chinese contractors has been building relations with managers, local contractors and partnering businesses, who have access to domestic labor forces. In future years, China will be able to utilize offshore, low cost labor to facilitate trade and production at far lower cost levels than may be achievable back in the PRC. This development of a relationship with employers of workforces that themselves run to 1.4 billion in total, and the increasing influence China will have over them is a major asset for China plc and the on-going ability for it to reach its trade and supply chain needs.     

 

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About Us

Silk Road Briefing is written by Dezan Shira & Associates. The firm provides strategic analysis, legal, tax and operational advisory services across Eurasia and has done since 1992. We maintain 28 offices throughout the region and assist foreign governments and MNC’s develop regional strategies in addition to foreign investment advice for investors throughout Asia. Please contact us at asia@dezshira.com or visit us at www.dezshira.com

 

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