Top Tax Free Countries in the World
Tax is the basis of the economy of any country. Look at in India itself, income tax is attached to people’s earnings. Those who earn less have to pay less tax, and more earners. The highest rate of income tax in India is 39 percent. But do you know that there are some countries in the world where even one rupee does not have to pay tax? Yes, people in these countries can keep the entire part of their earnings with them. The question arises that how does the economy of these countries run? Let us tell you about those countries, where there is no problem of tax at all and their economy also remains strong.
UAE: Strength of oil and tourism
The name of the United Arab Emirates i.e. UAE comes first among the tax-free countries. There is neither income tax nor any other direct tax here. The government fulfills its needs with indirect taxes and other charges like VAT (Value Added Tax). The UAE economy rests on oil and tourism. Cities like Dubai and Abu Dhabi attract tourists from all over the world. The earnings from shopping malls, luxury hotels and tourism are so high that the government does not need to take tax from the public. This is the reason why people in UAE can keep their full earnings with them.
Bahrain: Another tax-free country of Gulf
Among the Gulf countries, Bahrain is also included in those countries where there is no such thing as Income Tax. The citizens here do not have to pay a single part of their earnings as tax. The government of Bahrain also depends on the earnings from oil and other resources. Apart from this, the strong banking and financial sector here also support the economy. This is the reason that the tax-free system in Bahrain has been going on for years.
Kuwait: The country shines with the strength of oil
Kuwait is also included in the list of tax-free countries. The economy of this Gulf country is completely dependent on oil. Kuwait is one of the largest oil exporting countries in the world. The government does not need to take income tax from its citizens due to huge oil earnings from oil. There is neither personal income tax nor any other direct tax here. The strength of oil has made Kuwait financially strong that the public has been kept free from tax burden.
Saudi Arabia: Support of indirect taxes
Saudi Arabia is also one of the countries where there is no direct tax system. People here do not have to pay a single money of their earnings as tax. However, the system of indirect taxes in Saudi Arabia is quite strong. The government earns so much from VAT and other charges that direct tax is not required. Saudi Arabia’s economy is also based on oil, and is counted among the most prosperous economies in the world.
The Bahmas: Tourist’s heaven, tax-free life
The Bahmas, situated in Western Hemisphor, is no less than a paradise for tourists. This country is a big hub of tourism due to beautiful beach and spectacular resorts. The special thing is that the citizens here do not have to pay income tax. The government fulfills its needs with tourism and other indirect taxes. This is the reason why people live tax-free life in The Bahmas.
Brunei: Treasury of oil and gas
The Islamic country in South East Asia is known for the reserves of Brunei oil and gas. Here too people do not have to pay any kind of income tax. Brunei’s economy rests on the export of oil and gas, which makes it financially strong. The government earns so much from oil that it does not need to take tax from the public.
Oman: Another gem of the Gulf
The Gulf country Oman is also included in the list of tax-free countries. There are also large reserves of oil and gas, which are the basis of economy. People in Oman are completely exempted from income tax. The government runs the country’s expenses from oil exports and earnings from other sources.
Qatar: Small country, big power
Qatar may be a small country, but the strength of its economy is not hidden from anyone. Qatar is dominated by oil and gas. The people here are very rich, and the most important thing is that they do not have to pay any income tax. Qatar’s government depends on the earnings from oil and gas, which fulfills all the needs of the country.
Monaco and Nuru: Tax-free small countries
Monaco, a small country in Europe, is also tax-free. Here the government does not recover income tax from its citizens. Monaco’s economy rests on tourism, real estate and financial sector. On the other hand, the world’s smallest island nation Nauruu is also tax-free. The economy here depends on phosphate mining and other sources.
Why are these countries tax-free?
The biggest reason for the tax-free policy of these countries is the strength of their natural resources. Especially in the Gulf countries, there are so many oil and gas reserves that the government does not need tax. Apart from this, tourism and indirect taxes also get a lot of money to these countries. This is the reason that these countries keep their people free from tax burden and their economy also remains strong.