These countries have 0% income tax
A tourist snorkels in clear
waters near a reef in this July 15, 2013 file photo shot offshore from
Hamilton, Bermuda. To match Special Report BRITAIN-TAX/NONDOMS
REUTERS/Gary Cameron/Files
In some places around the world, even rich residents don’t pay income taxes.
An analysis of personal top income tax rates released Thursday by Howmuch.net
revealed that residents of some countries — many of which are in the
Middle East — don’t pay any income taxes at all. The analysis
cross-referenced the country’s top personal income tax rates with gross
domestic product per capita to highlight countries with both low taxes
and a healthy economy.
Some
important caveats: There are other taxes that are unavoidable and you
may have to be a resident and/or citizen to skip paying income tax.
10 countries with a 0% personal income tax rate
While
Bermuda has “the most extreme combination of tax rate and GDP per
capita in the world,” it’s got other downsides like a high cost of
living, a 14.5% payroll tax for some employers and high customs duties
that are typically 25%. The Cayman Islands also have a high GDP per
capita and no personal income tax, though companies do have to provide
pensions for employees, the report reveals.
Many
of the countries on the list of tax havens are in the Middle East.
While the governments in these countries may not tax income, “these
countries often have significant oil resources which are taxed by the
government,” the report reveals. In Qatar, for example, oil and gas
businesses get taxed at a 35% rate.
Culled from MarketWatch
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