Territorial tax systems
40 countries where foreign-source income is exempt from taxation
In territorial tax systems, only domestic-source income is taxed. Foreign-source income — including remote work for foreign clients — is typically exempt.
All territorial systems (40)
| Country | PIT | CIT | VAT | CGT | Div WHT | Terr. exempt | Regime |
|---|---|---|---|---|---|---|---|
 AE
United Arab Emirates
|
0.0% | 9.0% | 5.0% | 0.0% | 0.0% | Yes | — |
 SA
Saudi Arabia
|
0.0% | 20.0% | 15.0% | 0.0% | 5.0% | Yes | — |
 QA
Qatar
|
0.0% | 10.0% | 0.0% | 0.0% | 0.0% | Yes | — |
 KP
North Korea
|
0.0% | 25.0% | 0.0% | 0.0% | — | Yes | — |
 OM
Oman
|
0.0% | 15.0% | 5.0% | 0.0% | 0.0% | Yes | — |
 BN
Brunei
|
0.0% | 18.5% | 0.0% | 0.0% | 0.0% | Yes | — |
 SO
Somalia
|
0.0% | 10.0% | 5.0% | — | — | Yes | — |
 GT
Guatemala
|
7.0% | 25.0% | 12.0% | 10.0% | 5.0% | Yes | — |
 PY
Paraguay
|
10.0% | 10.0% | 10.0% | 8.0% | 15.0% | Yes | — |
 FM
Micronesia
|
10.0% | 21.0% | 5.0% | — | — | Yes | — |
 TL
East Timor
|
10.0% | 10.0% | — | — | — | Yes | — |
 MO
Macau
|
12.0% | 12.0% | 0.0% | 0.0% | 0.0% | Yes | — |
 PW
Palau
|
12.0% | 4.0% | 10.0% | — | — | Yes | — |
 MH
Marshall Islands
|
12.0% | 3.0% | — | — | — | Yes | — |
 BO
Bolivia
|
13.0% | 25.0% | 13.0% | — | 12.5% | Yes | — |
 IQ
Iraq
|
15.0% | 15.0% | 0.0% | 0.0% | — | Yes | — |
 SC
Seychelles
|
15.0% | 25.0% | 15.0% | 0.0% | 0.0% | Yes | — |
 ST
São Tomé and Príncipe
|
15.0% | 25.0% | 15.0% | — | — | Yes | — |
 PS
Palestine
|
15.0% | 15.0% | 16.0% | 0.0% | — | Yes | — |
 HK
Hong Kong
|
17.0% | 16.5% | 0.0% | 0.0% | 0.0% | Yes | — |
 SS
South Sudan
|
20.0% | 25.0% | 18.0% | — | — | Yes | — |
 GG
Guernsey
|
20.0% | 0.0% | — | 0.0% | — | No | — |
 GE
Georgia
|
20.0% | 15.0% | 18.0% | 20.0% | 5.0% | Yes | Nomad |
 LY
Libya
|
20.0% | 20.0% | 0.0% | — | — | Yes | — |
 YE
Yemen
|
20.0% | 20.0% | 5.0% | 0.0% | — | Yes | — |
 SY
Syria
|
22.0% | 15.0% | 0.0% | 0.0% | — | Yes | — |
 SG
Singapore
|
24.0% | 17.0% | 9.0% | 0.0% | 0.0% | Yes | — |
 LB
Lebanon
|
25.0% | 17.0% | 11.0% | 10.0% | — | Yes | — |
 HN
Honduras
|
25.0% | 25.0% | 15.0% | 10.0% | 10.0% | Yes | — |
 BZ
Belize
|
25.0% | 25.0% | 12.5% | — | 15.0% | Yes | — |
 PA
Panama
|
25.0% | 25.0% | 7.0% | 10.0% | 10.0% | Yes | — |
 CR
Costa Rica
|
25.0% | 30.0% | 13.0% | 15.0% | 15.0% | Yes | — |
 GD
Grenada
|
28.0% | 28.0% | 15.0% | — | 15.0% | Yes | — |
 GI
Gibraltar
|
28.0% | 15.0% | — | 0.0% | — | Yes | — |
 DJ
Djibouti
|
30.0% | 25.0% | 10.0% | — | — | Yes | — |
 MY
Malaysia
|
30.0% | 24.0% | 8.0% | 10.0% | 0.0% | Yes | — |
 NI
Nicaragua
|
30.0% | 30.0% | 15.0% | 10.0% | 15.0% | Yes | — |
 UY
Uruguay
|
36.0% | 25.0% | 22.0% | 12.0% | 7.0% | Yes | Non-dom |
 PF
French Polynesia
|
40.0% | 25.0% | 16.0% | — | — | Yes | — |
 NC
New Caledonia
|
40.0% | 30.0% | 11.0% | — | — | Yes | — |
-
AE
United Arab Emirates
- PIT
- 0.0%
- CIT
- 9.0%
- VAT
- 5.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
SA
Saudi Arabia
- PIT
- 0.0%
- CIT
- 20.0%
- VAT
- 15.0%
- CGT
- 0.0%
- Div WHT
- 5.0%
- Terr. exempt
- Yes
-
QA
Qatar
- PIT
- 0.0%
- CIT
- 10.0%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
KP
North Korea
- PIT
- 0.0%
- CIT
- 25.0%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
OM
Oman
- PIT
- 0.0%
- CIT
- 15.0%
- VAT
- 5.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
BN
Brunei
- PIT
- 0.0%
- CIT
- 18.5%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
SO
Somalia
- PIT
- 0.0%
- CIT
- 10.0%
- VAT
- 5.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
GT
Guatemala
- PIT
- 7.0%
- CIT
- 25.0%
- VAT
- 12.0%
- CGT
- 10.0%
- Div WHT
- 5.0%
- Terr. exempt
- Yes
-
PY
Paraguay
- PIT
- 10.0%
- CIT
- 10.0%
- VAT
- 10.0%
- CGT
- 8.0%
- Div WHT
- 15.0%
- Terr. exempt
- Yes
-
FM
Micronesia
- PIT
- 10.0%
- CIT
- 21.0%
- VAT
- 5.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
TL
East Timor
- PIT
- 10.0%
- CIT
- 10.0%
- VAT
- —
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
MO
Macau
- PIT
- 12.0%
- CIT
- 12.0%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
PW
Palau
- PIT
- 12.0%
- CIT
- 4.0%
- VAT
- 10.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
MH
Marshall Islands
- PIT
- 12.0%
- CIT
- 3.0%
- VAT
- —
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
BO
Bolivia
- PIT
- 13.0%
- CIT
- 25.0%
- VAT
- 13.0%
- CGT
- —
- Div WHT
- 12.5%
- Terr. exempt
- Yes
-
IQ
Iraq
- PIT
- 15.0%
- CIT
- 15.0%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
SC
Seychelles
- PIT
- 15.0%
- CIT
- 25.0%
- VAT
- 15.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
ST
São Tomé and Príncipe
- PIT
- 15.0%
- CIT
- 25.0%
- VAT
- 15.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
PS
Palestine
- PIT
- 15.0%
- CIT
- 15.0%
- VAT
- 16.0%
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
HK
Hong Kong
- PIT
- 17.0%
- CIT
- 16.5%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
SS
South Sudan
- PIT
- 20.0%
- CIT
- 25.0%
- VAT
- 18.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
GG
Guernsey
- PIT
- 20.0%
- CIT
- 0.0%
- VAT
- —
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- No
-
GE
Georgia
- PIT
- 20.0%
- CIT
- 15.0%
- VAT
- 18.0%
- CGT
- 20.0%
- Div WHT
- 5.0%
- Terr. exempt
- Yes
-
LY
Libya
- PIT
- 20.0%
- CIT
- 20.0%
- VAT
- 0.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
YE
Yemen
- PIT
- 20.0%
- CIT
- 20.0%
- VAT
- 5.0%
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
SY
Syria
- PIT
- 22.0%
- CIT
- 15.0%
- VAT
- 0.0%
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
SG
Singapore
- PIT
- 24.0%
- CIT
- 17.0%
- VAT
- 9.0%
- CGT
- 0.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
LB
Lebanon
- PIT
- 25.0%
- CIT
- 17.0%
- VAT
- 11.0%
- CGT
- 10.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
HN
Honduras
- PIT
- 25.0%
- CIT
- 25.0%
- VAT
- 15.0%
- CGT
- 10.0%
- Div WHT
- 10.0%
- Terr. exempt
- Yes
-
BZ
Belize
- PIT
- 25.0%
- CIT
- 25.0%
- VAT
- 12.5%
- CGT
- —
- Div WHT
- 15.0%
- Terr. exempt
- Yes
-
PA
Panama
- PIT
- 25.0%
- CIT
- 25.0%
- VAT
- 7.0%
- CGT
- 10.0%
- Div WHT
- 10.0%
- Terr. exempt
- Yes
-
CR
Costa Rica
- PIT
- 25.0%
- CIT
- 30.0%
- VAT
- 13.0%
- CGT
- 15.0%
- Div WHT
- 15.0%
- Terr. exempt
- Yes
-
GD
Grenada
- PIT
- 28.0%
- CIT
- 28.0%
- VAT
- 15.0%
- CGT
- —
- Div WHT
- 15.0%
- Terr. exempt
- Yes
-
GI
Gibraltar
- PIT
- 28.0%
- CIT
- 15.0%
- VAT
- —
- CGT
- 0.0%
- Div WHT
- —
- Terr. exempt
- Yes
-
DJ
Djibouti
- PIT
- 30.0%
- CIT
- 25.0%
- VAT
- 10.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
MY
Malaysia
- PIT
- 30.0%
- CIT
- 24.0%
- VAT
- 8.0%
- CGT
- 10.0%
- Div WHT
- 0.0%
- Terr. exempt
- Yes
-
NI
Nicaragua
- PIT
- 30.0%
- CIT
- 30.0%
- VAT
- 15.0%
- CGT
- 10.0%
- Div WHT
- 15.0%
- Terr. exempt
- Yes
-
UY
Uruguay
- PIT
- 36.0%
- CIT
- 25.0%
- VAT
- 22.0%
- CGT
- 12.0%
- Div WHT
- 7.0%
- Terr. exempt
- Yes
-
PF
French Polynesia
- PIT
- 40.0%
- CIT
- 25.0%
- VAT
- 16.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
-
NC
New Caledonia
- PIT
- 40.0%
- CIT
- 30.0%
- VAT
- 11.0%
- CGT
- —
- Div WHT
- —
- Terr. exempt
- Yes
Related
Disclaimer. Territorial tax rules vary significantly. Some countries only exempt certain types of foreign income, have minimum stay requirements, or require active claims. The definition of “foreign source” differs by jurisdiction. Always consult a qualified tax professional.