IEyeNews

iLocal News Archives

Top tax havens around the world [Cayman Islands 3rd]

tax-havens-final-map-9a01From Value Walk

We decided to find the lowest places in the world for havens from personal top income taxes. We analyzed personal top income tax rates along with gross domestic product per capita(GDP) to come up with the following map. Countries that appear larger on the map have a lower personal income tax rate. For example, Saudi Arabia appears larger on the map due to the 0% tax rate in the country. We also colored the countries by GDP per capita. The darker the color of the country, the higher the GDP per capita.

Top Tax Havens Around the World

Bermuda – Personal Income Tax Rate 0% – GDP per capita of $91,479.
Qatar – Personal Income Tax Rate 0% – GDP per capita of $60,796.
The Cayman Islands – Personal Income Tax Rate 0% – GDP per capita of $54,827.
Kuwait – Personal Income Tax Rate 0% – GDP per capita of $30,147.
United Arab Emirates – Personal Income Tax Rate 0% – GDP per capita of $25,773.
Brunei – Personal Income Tax Rate 0% – GDP per capita of $25,140.
Bahamas – Personal Income Tax Rate 0% – GDP per capita of $20,690.
Bahrain – Personal Income Tax Rate 0% – GDP per capita of $18,128.
Saudi Arabia – Personal Income Tax Rate 0% – GDP per capita of $17,820.
Oman – Personal Income Tax Rate 0% – GDP per capita of $12,472.

As can be seen from the map, Bermuda has the most extreme combination of tax rate and GDP per capita in the world. The country has a low tax rate of 0% and a high GDP per capita of $91,479. Bermuda is one of the richest countries in the world, but comes with a very high cost of living. Further, the government still does charge other types of taxes. Employers pay a 14% payroll tax that the employees may be asked to contribute towards. Employees must pay a weekly amount towards a type of social security insurance. Custom taxes are also very high, and can be anywhere from 22.5% up to 35%.

Qatar falls in second with a 0% tax rate and a high GDP per capita of $60,796. Qatar has the world’s largest natural gas reserves. Although the country has no personal income tax, oil and gas businesses have a tax rate of 35%. Business that are owned by foreigners and are not in the oil and gas sector are taxed at a flat rate of 10%. The government is able to generate significant revenue from business taxes that enables it to avoid other types of taxation.

The Cayman Islands is in third with a tax rate of 0% and a GDP per capita of $54,827. The Cayman Islands has become a major offshore financial center due to the low personal income, corporate and capital gains taxes. The country also has no mandatory social security contributions. Still, companies are required to provide pensions for its employees.

Top Tax Havens – Havens in the Middle East

As can be seen from the map, there are a number of countries in the Middle East with low tax rates and fairly high GDPs. These countries often have significant oil resources which are taxed by the government. We previously mentioned Qatar. Kuwait also has a tax rate of 0% with a GDP of $30,147. Bahrain has a tax rate of 0% with a GDP of $18,128. Finally, Saudi Arabia has a tax rate of 0% and a GDP of $17,820.

Top 10 Tax Havens – Other Countries with Low Income Tax Rates

Outside of the Middle East, Hong Kong has a low tax rate of 16.5% and a GDP of $34,222. Brunei has a tax rate of 0% with a GDP of $25,140. Russia has a tax rate of 13%, although with a low GDP of $6,844. In South America, Bolivia has a tax rate of 13% with a very low GDP of $1,372.

For more on this story go to: http://www.valuewalk.com/2016/02/top-tax-havens/

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *