Countries with the best tax legislation

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Published last month

20,000 global citizens were asked about what countries they thought had the most favorable tax jurisdictions. This is what they answered.

Panama

Panama
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In Panama, only Panamanian-source income is taxed whether for individuals or companies. Indeed, anything owned outside of Panama is not subject to tax. Individuals earning less than 11,000 Panamanian Balboa, which is around 11,000 American Dollars will not pay any tax on their income. Residents earning between PAB 11,001 and 50,000 will be subject to a 15% tax rate and anyone earning above PAB 50,000 will be taxed 25% of their income.

Luxembourg

Luxembourg
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Luxembourg taxes corporate non-residents only on the money made in Luxembourg while its corporate residents are taxes on income earned worldwide. The tax on business’ income range from 15% to 33% depending on the business income. As for individuals, income tax ranges from 8% to 42% and non-residents could may or may not be taxed on money earned outside of Luxembourg depending on other factors.

Switzerland

Switzerland
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In Switzerland, there are federal, cantonal and municipal taxes. Residents and non-residents need to pay federal taxes on their income. The maximum overall tax rate is 11.5% in Switzerland depending on how much one earns. Combined municipal and cantonal taxes can be up to 35% also depending on individual income.

Qatar

Doha
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There is no income tax in Qatar. Regarding corporate income, foreign businesses based in Qatar will have their income taxed at a flat rate of 10%, although certain exemptions can be applicable.

United Arab Emirates

Abu Dhabi
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Employees enjoy tax free salaries in the UAE, although there is a 5% value added tax on a few retail products and an excise tax in the UAE on certain goods such as tobacco, alcohol or fast food. Regarding corporate tax, subject to certain conditions, some business have to pay tax on their income. For example, oil companies and foreign banks.