“ZERO” tax countries – Do you want to immigrate?
Taxation may be necessary from a government perspective, but it is often a burden on taxpayers. Taxation takes away your hard earned money and is usually a complex and cumbersome process. Taxpayers generally need to hire a chartered accountant to fulfill their tax obligations.
Ask the taxpayers and most would be very happy if their tax burden could be eliminated. Can it be done? Well, most of the nations in the world are tax friendly. However, there are a few countries that have a tax-exempt governance structure. Here are some examples of countries where you don’t have to pay taxes.
United Arab Emirates – A federation of seven emirates, the UAE includes Abu Dhabi, Dubai, Sharjah, Umm Al Quwain, Ajman, Fujairah and Ras Al Khaimah. One of the best things about UAE is that citizens don’t have to pay income tax. So how does the government generate revenue? Well, the funds for the government are generated by the corporate tax imposed on foreign banks and oil companies. The United Arab Emirates also levies an excise tax on certain products considered harmful to health and the environment. Another source of government revenue is value added tax (VAT), which is imposed on most goods and services.
Brunei – Located in South East Asia, Brunei is governed by a mixture of Islamic, Sharia and English common law practices. There is no personal tax for individuals. This rule applies to both residents and non-residents. However, individuals must contribute 5% of their salary income to Tabung Amanah Perkerja (TAP), which is a state-run provided fund system. Citizens and permanent residents of Brunei are also required to contribute 3.5% of their salary income to the Supplementary Contributory Pension Scheme (SCP).
Bermuda – Considered a tax haven, Bermuda does not levy any personal income tax. Even companies incorporated in the country do not have to pay corporate tax. However, other taxes such as payroll tax, customs duty, import tax, property tax and stamp duty must be paid, depending on the applicable rates.
Bahamas – Another tax haven, the Bahamas has granted exemption from various taxes such as personal income tax, corporation tax, inheritance tax and capital gains tax. This is why many wealthy people moved to the Bahamas and settled there permanently. The Bahamian government collects revenue from other sources such as import tax, property tax, consumption tax, and license fees.
Monaco – Located along the Côte d’Azur in Western Europe, Monaco does not levy income tax on its residents. People of other nationalities and French nationals must pay taxes, according to the rates in force. There is also no direct tax for businesses. However, they are required to pay income tax. Other sources of government revenue include revenue stamps and registration fees.