Tax Free Countries: Many people pay tax in India. Everyone has to pay tax when they come under the purview of income tax. But there are some countries in the world where no matter how much you earn, you do not have to pay even a single rupee in tax. This means that the entire income of the people here is saved.
Tax Free Countries: The main source of income of any country is tax. If we talk only about India, here income tax is imposed according to the income of the people. That is, people who earn less have to pay less tax. The highest rate of income tax in the country is 39 percent. In many countries of the world, the rate of tax is less than India while in many countries it is higher. There are some countries in the world where tax is not levied. In such a situation, the question arises that how would the economy of these countries run?
The countries where tax is not levied include most of the Gulf countries. Apart from this, European and African countries are also included in this list. The special thing is that income tax is levied in big and powerful countries like America, France, Britain, Germany and China, then why is this exemption given in these countries. Let us tell you the special reason behind this
UAE
If we look at the countries with direct tax free economy in the world, then the name of the United Arab Emirates (UAE) comes first in it. No tax of any kind is taken from the public in the country. Instead, the government relies on indirect taxes such as VAT (Value Added Tax) and other charges. UAE Economy is very strong due to oil and tourism. For this reason, people in UAE have been given relief from income tax.
Bahrain
Citizens do not have to pay any kind of tax in the Gulf country Bahrain as well. Here also there is no need to pay any kind of tax on income. In Bahrain, tax is not taken from the public by the government.
Kuwait
Kuwait is also included in the list of tax free countries. There is no personal income tax here either. The country’s economy is completely dependent on oil. Most of the oil is exported from here. Due to which the government does not need to take direct tax.
Saudi Arabia
Saudi Arabia has also kept its people completely free from the hassle of tax. Direct tax has been abolished in the country. Meaning that people in this country do not have to spend even a single part of their earnings as tax. However, the indirect tax system is also strong in this country. The money received from this gives a boost to the economy. It is also counted among the prosperous economies.
The Bahamas
The country of The Bahamas, which is called a paradise for tourists, falls in the Western Hemisphere. The special thing about this country is that the citizens living here do not have to pay income tax.
Brunei
The Islamic country of Brunei, which has oil reserves, is located in South East Asia. People here do not have to pay any kind of income tax. Similarly, people do not have to pay income tax in another Gulf country Oman. Actually, Oman also has large reserves of oil and gas.
Qatar
Like Oman, Bahrain and Kuwait, Qatar is also in a similar situation. Qatar is also very strong in its oil sector. This country is certainly small but the people living here are very rich. Income tax is not collected here either.
Monaco-Nauru
In this European country also, the government does not collect income tax from the people. Income tax is not collected from the people even in the world’s smallest island nation, Nauru.
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