The United Arab Emirates has one of the world's highest per-capita incomes, $48,200, and has no personal income or capital gains taxes.
Instead of generating revenue from income tax, the country, which is the third-biggest exporter of crude globally, is dependent on taxes from oil companies that pay up to 55 percent in corporate taxes. Foreign banks pay about 20 percent. Oil revenue, for example, accounted for 80 percent of consolidated government income in 2010, while income from various taxes, fees and customs duties made up less than 12 percent, according to government statistics.
While expatriate employees don’t pay for social security in the Arab country, UAE citizens must make monthly contributions of 5 percent of their total earnings for social security. Employers of citizens also have to make monthly contributions of 12.5 percent of the worker’s base salary for social security and pensions. Other indirect taxes include housing fees, road tolls and municipal taxes. The UAE charges a 50 percent tax on alcohol, and if a person has a liquor license and buys alcohol to drink at home, an additional 30 percent tax is charged.
Pictured: Madinat Jumeirah, Dubai, UAE.
