What countries do not have to pay income tax?

Answer 1

Communist ones, as they basically do so by controlling what you do and what you recieve....essentially after tax.

And of course, countries without any effective government to enforce the tax laws they probably have...or enforce any other control. Bring your own police force to protect yourself!

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The question is about "income taxes" which have never paid for local organizations. Therefore, police have never been paid for by income taxes. They are paid for by your state and municipal taxes.

The U.S. National Bureau of Economic Research has suggested that roughly 15% of countries in the world are tax havens, that these countries tend to be small and affluent, and that better governed and regulated countries are more likely to become tax havens, and are more likely to be successful if they become tax havens.

So, in many instances you will find yourself in a low crime area if you are in a country that does not tax its citizen's labor. No need for your own police force.

Here is a list of many countries that have low or no personal income taxes and are considered to be tax havens:

http:/en.wikipedia.org/wiki/Tax_haven#Examples

To be sure, many police forces do receive a great deal of support from both Federal and State funds that are derived from income taxes (the lage amounts dolled out to even the most local of police forces under the Homeland Securityprograms is a fine example)...although my answer originally was intended to include military..or more clearly, the need for your own militia lacking publically supported ones.

I dispute the comment that many, if any country, does not tax it's citizens labor one way or another, or at least attempt to. Taxes, whether by the (not so) noble men on their peasents ("his highness will have 3 goats, 5 chickens and your first born son for his fields...") is as old as time.

The comment on tax havens is totally off base. Tax Haven countries...the Cayman Islands for example...are a tax haven for other countries citizens...like the US (and especially it's corporations). They are NOT tax havens for their residents. They do in fact have taxes on their own people and businesses.

Basic inescapable fact of life: If a government doesn't tax income, (like several US states don't), it must use other forms of taxes and fee's (VAT (commonly in other countries), sales/use. property, etc.) at a proportionally higher level or extent to fund whatever it does provide for it's citizens. Again, in something like communism, or some mid-eastern states where the Sheik and family determine all things, it is simply factored into what they allow you to make. In outlaw places (like western Africa where tax cannot be collected more than isn't) the local warlords/pirates make that decision for you.