Tax is a compulsory financial charge imposed on an individual or taxpayer by a governmental organization to fund government spending and other public expenditures. In failure, in anyways it is punishable by law. There are two types of tax direct tax and indirect taxes. Direct taxes are income tax, wealth tax, corporate tax, and indirect taxes are value-added tax, service tax, sales tax, etc. It is known that taxes are the government’s revenue, but in some countries, taxes levied are very minimal or even not collecting taxes from an individual. In those countries, natural resources like oil and gas are the main revenue. Here is the list of countries where citizens do not need to pay taxes.
1. Bahrain
Bahrain is an oil-rich country where no personal and corporate income tax is collected from an individual. But a person employed by an individual or a legal entity, or an enterprise in Bahrain needs to contribute 6-9 percent of income to the Social Insurance Organisation. Also, there are exceptions in corporate taxes, like 46% percent is collected on net profits for the business related to oil and gas.
2. Brunei
There is no income tax levied on individuals in Brunei, and there is no sales tax or value-added tax on companies. But every citizen needs to contribute 5% of their salary to a state management provident fund.
3. Bermuda
Bermuda is a tax haven country. There is no personal and corporate income tax in Bermuda. Bermuda is also considered the more expensive country to live in in the western world. Financial services companies are the main source of income.