which countries of the world do not impose income tax

Which countries of the world do not impose income tax?

Government impose income tax on people in almost every country of the world.Corpus of the income taxi used to provide basic facilities  like road, water, electricity,school and many more to the residents of the country. But u would be surprised to know that there are some countries like United Arab Emirates (UAE)  Kuwait and Oman which do not impose  income tax on the citizens.

This articles is explaining some other countries of the world which do not impose income tax. Lets us know the countries one by one.

1. Saudi Arabia

This country is the world's largest crude oil exporter. The main source of income of this country is the export of crude oil and gas per capita GDP of this country is $55262 per annum in terms of ppp. This country do not impose income tax however it charges; capital gain tax, social security payment. Immigrants, who ow business here,have pay tax at the rate of 20%.

2. Kuwait

it is the country of the middle east per capital GDP of this country is $69,669 per annum in terms of PPP but still some of this country need not to pay income tax. However, people have to deposit a substantial amount for social security. A major part of the country's income i.e 80%  comes from oil and other products made from it.

3. United Arab Emirates (UAE)

In terms of oil reserves, UAE  is the sixth largest country in the world. the economy of this country is based on the exports of oils, gas and tourism. per capita GDP in the United Arab Emirates is $68,245/ annum based on PPP but still income tax is not imposed on the people of the country.

4.Bahrain

In Bahrain, the GDP per capita is $51,845 based on PPP per annum but people are not taxed. Bahrainian citizens have to pay up to 7% of their income as social security. Immigrants have to pay 1% of their income for social security and every employer has to pay 12% social insurance tax for his employees. In addition to this people need to pay tax on the house rent, stamp duty and transfer of real estate.

5.Oman

The economy of Oman is also based on the export of oil and gas. Per capita GDP in this country is $45,464 based on PPP per year but no income tax is charged on the Omanian citizens. However , this citizen of the country have to contribute substantially in the social security scheme.

6. Qatar

Qatar is situated on the bank of the Persian Gulf;  is famous for it elegance and excellent architecture. the gross domestic Product per capita of Qatar is $1,24,927 billion per year based on ppp. the main source of income of the government is from oil and gas export. this country is counted among the richest countries of the world but still income tax is not imposed here.

However , an individual exercise any kind of commercial activities for profit motive is required to pay gain tax (10%of a company's total income). Rental income is taxed at the fix rate of 10% annum

7 Monaco

Monaco is located in Europe.Monaco is the second smallest country in the world. it is total population around 40000 . The density of Millionaires living in this country is very much but still there is no income tax charged on the income of the peoples.though the rental properties are tax here at 1% of the annual rent plus other applicable charges. There is a 33.3% tax on profits if real estate is sold.

8 Cayman Island

Cayman Island is an autonomous British overseas region in the western caribbean Sea. it's population is approximately 60,765. It is not necessary for people to give anything for social security here; It is depends on the will of individual. However, an import duty  Maximum limit 25% is imposed on importer. Every Employer has to run a pension scheme for his employees; it include those employees also who are working from at least 9 months continuously.

the Cayman Island is the most notorious tax haven is very popular among the large MNCs and rich Americans because there is no corporate or income tax on money earned outside  of its territory, this includes interest and dividends earned on investments.

9 Bermuda

The Bermuda reminds us the secret of the "Bermuda  Triangle" Bermuda under British rule and it is the British Overseas  Territory. It attracts people from around the world to spend their holidays Which make it the one of the most expensive  tourist place in the world.

The people of this island need not to pay income tax but they have to pay custom duty at the rate of 25% Apart from this, Social security tax and property tax also charged on the people.

10 Bahamas

Bahamas is a very famous tourist place i the world. The Bahamas consists of more than 700 Islands, Cays, and islets in the Atlantic ocean. The size of its economy is around 9 billion doller. The gross Domestic product per capita in Bahamas was last recorded at 25,079 us doller in 2017.

People of this island nation are not required to pay income tax but they have to  pay stamp duty, Import duty, national insurance and property tax.

These countries earn a huge profit from the export of crude oil and gas that may the reason they need not to impose income tax on their citizens.