Kuwait’s economy relies on petroleum, and it is home to 6 percent of the world’s total oil reserves. 90 percent of the government income of Kuwait is coming from the oil industry. It makes the people of Kuwait lead a tax-free life. It does not levy corporate income tax on companies fully owned by Kuwait or Gulf Cooperation Council countries.
9. The Bahamas
The source of income or economy of the Bahamas relies on tourism and offshore banking. It is the richest country in the West Indies. It is a tax haven country that does not collect income tax, corporate tax, capital gains tax, or wealth tax. The 3.9 % of the salary of the individual is contributed to social insurance benefits.
10. Cayman Islands
The Cayman Islands’ economy highly depends on financial services and tourism, which accounts for 50-60 % of GDP. It is not levying any personal income and corporate income tax. There are no sales taxes or value-added taxes levied.
11. United Arab Emirates
The economy of the United Arab Emirates mostly depends on oil sales to other countries. There is no personal income tax levied on the individual in the United Arab Emirates. It levies a corporate tax on oil companies and foreign banks.
Tax is the main source of income for the government to do development activities. Tax relaxation will be there in many countries that have another source of income from natural resources. If the government faces any economic problem, then there is a chance for implementing tax to solve nations’ financial problems.