Tax rates can differ significantly between countries. and even within country For example, in the United States, some state. have income and sales taxes. high others do not. Other taxes that need to be considered include property taxes and payroll taxes In many western European countries, like France and Germany. payroll taxes high as 50 percent. To attract businesses, many countries and states will offer significant tax incentives. For example, a country may exempt a firm from paying income taxes during its first five or 10 years of operation, after which normal tax rates will apply.