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If not, what countries do/don't? How do they compensate?

2007-11-26 10:04:05 · 2 answers · asked by Super Jay 1 in Business & Finance Taxes Other - Taxes

2 answers

many second and third world countries do not have income taxes ... or, at least, their income taxes do not apply to the vast majority of their people.

how can you ask someone who is illiterate and innumerate to keep records and figure out how much income tax to pay?

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such countries frequently collect consumption taxes, utility taxes, and customs fees to provide for their national budget. A few have enough mineral wealth that severance taxes provide enough funds.

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However, the rules for first world citizens who wish to move such a country in order to dodge the income tax in their own country are fairly strict. Americans, for example, have to pay income taxes in America anyway for the first three years after any such move, AND may not be physically present in the US for more than 30 days in each of those three years.

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There are a few countries with different arrangements under a bilateral treaty.

2007-11-26 10:13:14 · answer #1 · answered by Spock (rhp) 7 · 0 0

No country can ever exist without its tax. taxation is the lifeblood of the state. Without its tax, it cannot function, thus, cannot also serve its people.

2007-11-26 23:07:36 · answer #2 · answered by KRISTOFF 2 · 0 0

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