UAE confirmed as most tax-friendly country in the world
The report reviewed 48 countries and was compiled by the the advisory firm Global Citizen Solutions.
A new report has found that the UAE is the most tax-favourable jurisdiction in the world.
The comprehensive index surveyed 48 countries and was produced by Global Citizen Solutions (GCS).
Global Citizen Solutions are an international residency and citizenship planning advisory firm.
UAE takes top tax spot
The report, which ranked the UAE as No.1, was entitled ‘Tax Optimisation for Global Citizens’ and was compiled by the GCS’s Global Intelligence Unit.
The survey evaluated each jurisdiction using 11 key indicators that was then broken into three different pillars.
Tax burden, tax structure and investment migration, weighted at 42.5 per cent, 42.5 per cent and 15 per cent, respectively.
The UAE topped the overall ranking on the back of its zero personal income tax rate, 5 per cent VAT or consumption tax, and no charge on departing residents.
In other similar reports that have been conducted by global think-tanks, the UAE has ranked very high in terms of healthcare services, safety, security and overall quality of life.
Hong Kong, Paraguay, Bahamas and Antigua and Barbuda all featured in the top five.
The only two European countries named in the top ten were Malta and Cyprus.
The main factors that secured their place in the top ten was the fact both have adopted preferential tax regimes rather than low headline rates.
What emerged as the study’s central finding was that a jurisdiction’s tax rate and the structure of its tax system are largely independent of each other.
Interestingly, Uruguay, which charges 36 per cent – a rate that is much closer to many in Western Europe than the Caribbean – recorded the strongest Tax Structure score in the entire sample, placing 12th overall on that strength alone.
The report also determined that the US carries the heaviest tax burden.
The US separately imposes the most demanding exit terms of any jurisdiction reviewed.
Credits & Disclaimer: This article are credited to the Associated Press, it's authors and editors. Likewise, the images are for illustration purposes only and credited all to their respective owners. The accuracy of the article is subject from the information grabbed from the sources at the time of posting this article.
