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And that shift may have implications for international assignment programmes and future global workforce mobility trends.

According to KPMG's 2009 Individual Income Tax and Social Security Rate Survey, the top average personal income tax rate dropped 0.3 percent worldwide in 2009 to 28.9 percent from 29.2 percent in 2008.  However, some countries are already making plans to implement personal income tax rate increases for its top earners, while other countries are examining this option, according to subsequent country budgets and income levies.

"In the current economic environment where countries face increasing budget deficits and need funding for various economic stimulus packages, it is becoming clear that some are turning to those in the highest income brackets amongst their current tax bases to increase revenue," said Benjamas Kullakattimas, partner and head of International Executive Services at KPMG Phoomchai Tax Ltd.

"Our study has recorded a general decline in top personal income rates over the past seven years, but in 2010 we are seeing indications that a reversal may be on the way, as a few countries in the European Union - Ireland and the United Kingdom, specifically - are already proposing rate increases for its top earners," she added.

According to the KPMG study, the highest personal income taxes in the world are still paid by the citizens of the European Union (EU).  But with the introduction of flat rate taxes in a number of Eastern European countries - including Latvia and Poland, which reduced their top rates to 23 and 32 per cent respectively for 2009 - average rates have fallen from 41.1 percent in 2003 to 36 per cent in 2009.

Denmark - when looking at social security and the personal income tax rate together - has the highest personal income tax rate at 62.3 per cent.  In the Asia-Pacific region, Japan has the top rate at 50 per cent.  Chile has the highest rate in the Latin American region at 40 percent.

"Despite the global decline in top personal income tax rates over the past seven years, at 37 per cent, Thailand's top current personal income tax rate has remained static for the past five years," said Benjamas.

"The global decline is much the same with respect to the Asia Pacifica region as a whole.  On average the top personal income tax rates in this region have steadily declined from 36.1 per cent in 2003 to 33.9 per cent in 2009," she added. 

"Some of the larger countries in the region such as China, India and Japan, have not seen any rate changes over the past seven years.  That said, given the current economic climate, larger more stable countries and countries with lower personal income tax rates may find it easier to attract investors and foreign executives, while Thailand may struggle," she continued.

KPMG's 2009 survey also included an analysis of social security rates, specifically examining income tax and social security rates for gross incomes of employees earning US$100,000 and $300,000.  Social security components can vary significantly by country, employer and employee type.  

When taking both the personal income tax rate and social security rates into account for employees earning $100,000, the countries with the highest rates were Slovenia (54.9 percent), Croatia (53.5 per cent) and Hungary (48.1 per cent).

For employees earning $300,000, the countries with the highest rates were Slovenia (60.4 per cent), Denmark (57.1 per cent) and Croatia (54.5 per cent).

"Social security is often a forgotten tax and many countries are talking about increasing contributions made to these programs," said Benjamas.  "HR professionals need to consider social security along with the entire gamut of taxes - national, state, municipal, etc. - in order to better inform their international assignment program decisions and discussions." 

The study also reviewed contribution requirements (for both employer and employee) for employees earning gross income of $100,000 and $300,000.  France had the highest combined rate at approximately 60 percent under either scenario, followed by Belgium at 47 percent and then Hungary and Italy both in the lower 40 percent range.