8 Countries with Zero Income Tax


Bangalore: Paying taxes from your hard earned income is like a burden for you. The word 'tax' also scares you even in your dreams. What will you feel if one day the government announces that from now on you shall not be required to pay income tax? It may sound very unreal but for some countries it is true. There are eight countries in the world where the citizens pay zero income taxes, as reported by CNBC based on KPMG’s 2011 survey of 96 countries.

United Arab Emirates

The United Arab Emirates is a country with the world's highest per-capita incomes i.e $48,000 but it does not charge personal income taxes to its citizen. It is the third highest exporter of crude oil so it largely depends on the taxes paid by the oil companies which amount to 55 percent in corporate tax. As a citizen you will be asked to contribute 5 percent of your total earning for social security and your employer shall pay 12.5 percent of your base salary for your pensions and social security.