HEAD TO DUBAI FOR LOW TAX RATES
November 20, 2007
Workers seeking out the lowest tax rates in the world should head to Dubai, Russia or Hong Kong, according to a survey by Mercer, a business consultancy.
- Residents in the United Arab Emirates (UAE) receive the highest net income at 95 per cent of their gross salary.
- Expatriates in Russia and Hong Kong pay 13 per cent and 14.2 percent in tax respectively.
- Overall, Asian countries, including Taiwan, Singapore, South Korea and China, top the survey of most attractive tax destinations.
- The United Kingdom ranks 14th out of 32 in the world for workers alongside Australia and the United States, based on an average salary of £44,366 (about U.S. $91,000).
- European countries including France, Italy and Germany, are in the bottom third, ranking 22nd, 28th and 29th respectively.
- Workers in Belgium fare the worst, giving away more than half their income in tax, closely followed by those in Denmark and Hungary.
Overall, according to the survey's authors, married people with children almost universally pay the least tax, followed by married people with no children. Single workers foot the biggest tax bills across the world. The only countries where it does not necessarily pay to be married are Brazil, India and Turkey, where singles and couples pay roughly the same amount of tax.
Source: Rebecca O'Connor, "Head to Dubai for the lowest tax rates in the world," London Times, November 19, 2007.
Browse more articles on Tax and Spending Issues