Countries With The Lowest Income Taxes

Thursday, Aug 27, 2020, 11:28 am

By:Tony Williams

1.Australia

Some countries falter during harsh economic times, but not Australia. The country has prospered better through the recent recession, than some of the other more well-off countries. Australia levies a 31.5% marginal tax rate on its workers. Many attribute the country's encouragement of investments and entrepreneurship to its strong economic strength.

2.Canada

Even though Canada brought Justin Bieber into our lives; all is forgiven when you look at their tax rates. The USA has seemed to rub off on Canada, as the country enforces a marginal tax rate of just 31.2% on its labor force. And even with a moderately low tax rate, Canada still offers a national health care program.

3.Maldives

If you go swimming in the Indian Ocean, make sure you stop by Maldives. The island nation is the smallest Asian country and the lowest country on the planet - at only 2.4 meters above sea level. Everything about the country is small; including its taxes. The country's total tax rate is 9.3 percent.

4.Switzerland

If you're unemployed or you just don't' want to pay high taxes, then Switzerland is the next place you should move to. At just 20 percent,Switzerlandhas one of the lowest marginal tax rates on the working class. On top of that, the unemployment rates in the country are extremely low. As of 2009, unemployment stood at less than 3 percent.

5.Namibia

The African country Namibia is one of the less densely populated countries on the planet. The country sustains its income through the mining industry.The country's total tax burden is 9.8 percent, which breaks down to 4 percent profit tax, 1 percent labor tax and 4.8 percent in other taxes.

6.United States

The USA's economy might be in a state of chaos, but it still has one of the world's largest with over $14 trillion GDP. The USA's total tax loadis about26.9%. Though employees might disagree, US workershave the highest income per hour in a free market economic system. In addition to having low income taxes, the US also offers great programs for senior citizens, some of which include social security, Medicare and Medicaid. Unlike a lot of foreign countries, the US does not have any national sales tax.

7.Turkey

If it's not Thanksgiving time, you don't hear the word 'Turkey' too often. Turkey, the region, is a contiguous transcontinental country. Turkey levies reasonable income taxes on both individuals and corporations. With a tax to GDP ratio of 23.5 percent, Turkey is the second-lowest taxed country behind. It is also the world's 16th largest economy.

8.The United Arab Emirates

The United Arab Emirate might be made up of seven principalities - Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras al-Khaimah, and Umm al-Quwain - but its income taxes are still rather low. Total tax rate is 14.1 percent, which come from labor tax solely. The UAE has one of the highest per capita income in the world.

9.Macedonia

Macedonia is located in the southeastern portion of Europe. The region's open economy was brought about by significant reforms that have were introduced after itsIndependence in 1991. Macedonia's total tax rate is 9.7 percent, with companies being charged 6.3 percent for its profits and 3.4 percent for other taxes.

10.Mexico

Mexico is the lowest taxed country, according to the OECD report, at 21.1 percent based on the latest available estimates.From an overall tax stance, KPMG ranked Mexico as the best place to do business. Mexico's low cost of living has attracted more U.S. emigrants and retirees than any other country. The country also offers low property taxes and quality medical care for very reasonable.  

11.Vanuatu

Chances are you've seen Vanuatu on a map and didn't even realize it. Vanuatuis an island country located in the South Pacific Ocean. The country's economy thrives on tourism, cattle-raising, agriculture, tourism, and off-shore financial services. The total tax load is 8.4 percent, which is divided into two sections - 4.5 percent labor tax and 3.9 percent in other taxes.

12.Timor Leste

Timor Leste, a country in Southeast Asia, was once a part of Indonesia before it gained its independence in 2002. The country relies heavily on subsistence farming. Entrepreneurs might want to take a trip to Timor Leste, as the regiononly charges 0.2 percent in other taxes to companies conducting business in the country.

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