The practice of tax collection is there to keep the economy of a country stable and to provide the basic infrastructure needed by the people living there. Not only businesses but also individuals have to pay income tax according to the income they earn. But there are countries that do not collect taxes from individuals.
One of the most popular island countries for tourists is the Bahamas. A large number of tourists from all over the world flock here every year. Therefore, the tourism industry and maritime economy play an important role in sustaining the country’s economy. It is one of the richest countries in the world due to its high revenue. Therefore, the government of The Bahamas does not tax its resident citizens individually by assessing their income. They don’t have to pay any tax on the money they save in any way. There are a few methods of taxation including stamp duty.
Countries like UAE, Brunei, Kuwait, Oman and Qatar have rich oil and gas reserves. They also have a strong economic structure as they export crude oil to many countries of the world. So they do not charge personal income tax on income earned by residents of their country.
The Maldives, Monaco, Nauru and Somalia also offer tax exemptions for their citizens. Maldives relies on tourism. Fishing also plays an important role. They strengthen the economy. Monaco is known as the richest country. Hence no capital tax is levied on the residents.
Cayman Islands, Dominica, Bermuda, Bahrain, Saint Kitts and Nevis, Vanuatu, Western Sahara, Wallis and Buduna, British Virgin Islands, Norfolk Island, Turks and Caicos Islands also do not impose personal income tax.