🌍 TERRITORIAL TAX SYSTEMS
40 countries where foreign-source income is exempt from taxation
🌐 ALL TERRITORIAL SYSTEMS (40)
In territorial tax systems, only domestic-source income is taxed. Foreign-source income — including remote work for foreign clients — is typically exempt.
| Country | PIT | CIT | VAT | CGT | Regime |
|---|---|---|---|---|---|
| 🇦🇪 United Arab Emirates | 0.0% | 9.0% | 5.0% | 0.0% | |
| 🇸🇦 Saudi Arabia | 0.0% | 20.0% | 15.0% | 0.0% | |
| 🇶🇦 Qatar | 0.0% | 10.0% | 0.0% | 0.0% | |
| 🇰🇵 North Korea | 0.0% | 25.0% | 0.0% | 0.0% | |
| 🇴🇲 Oman | 0.0% | 15.0% | 5.0% | 0.0% | |
| 🇧🇳 Brunei | 0.0% | 18.5% | 0.0% | 0.0% | |
| 🇸🇴 Somalia | 0.0% | 10.0% | 5.0% | -- | |
| 🇬🇹 Guatemala | 7.0% | 25.0% | 12.0% | 10.0% | |
| 🇵🇾 Paraguay | 10.0% | 10.0% | 10.0% | 8.0% | |
| 🇫🇲 Micronesia | 10.0% | 21.0% | 5.0% | -- | |
| 🇹🇱 East Timor | 10.0% | 10.0% | -- | -- | |
| 🇲🇴 Macau | 12.0% | 12.0% | 0.0% | 0.0% | |
| 🇵🇼 Palau | 12.0% | 4.0% | 10.0% | -- | |
| 🇲🇭 Marshall Islands | 12.0% | 3.0% | -- | -- | |
| 🇧🇴 Bolivia | 13.0% | 25.0% | 13.0% | -- | |
| 🇮🇶 Iraq | 15.0% | 15.0% | 0.0% | 0.0% | |
| 🇸🇨 Seychelles | 15.0% | 25.0% | 15.0% | 0.0% | |
| 🇸🇹 São Tomé and Príncipe | 15.0% | 25.0% | 15.0% | -- | |
| 🇵🇸 Palestine | 15.0% | 15.0% | 16.0% | 0.0% | |
| 🇭🇰 Hong Kong | 17.0% | 16.5% | 0.0% | 0.0% | |
| 🇸🇸 South Sudan | 20.0% | 25.0% | 18.0% | -- | |
| 🇬🇬 Guernsey | 20.0% | 0.0% | -- | 0.0% | |
| 🇬🇪 Georgia | 20.0% | 15.0% | 18.0% | 20.0% | 🏷️ |
| 🇱🇾 Libya | 20.0% | 20.0% | 0.0% | -- | |
| 🇾🇪 Yemen | 20.0% | 20.0% | 5.0% | 0.0% | |
| 🇸🇾 Syria | 22.0% | 15.0% | 0.0% | 0.0% | |
| 🇸🇬 Singapore | 24.0% | 17.0% | 9.0% | 0.0% | |
| 🇱🇧 Lebanon | 25.0% | 17.0% | 11.0% | 10.0% | |
| 🇭🇳 Honduras | 25.0% | 25.0% | 15.0% | 10.0% | |
| 🇧🇿 Belize | 25.0% | 25.0% | 12.5% | -- | |
| 🇵🇦 Panama | 25.0% | 25.0% | 7.0% | 10.0% | |
| 🇨🇷 Costa Rica | 25.0% | 30.0% | 13.0% | 15.0% | |
| 🇬🇩 Grenada | 28.0% | 28.0% | 15.0% | -- | |
| 🇬🇮 Gibraltar | 28.0% | 15.0% | -- | 0.0% | |
| 🇩🇯 Djibouti | 30.0% | 25.0% | 10.0% | -- | |
| 🇲🇾 Malaysia | 30.0% | 24.0% | 8.0% | 10.0% | |
| 🇳🇮 Nicaragua | 30.0% | 30.0% | 15.0% | 10.0% | |
| 🇺🇾 Uruguay | 36.0% | 25.0% | 22.0% | 12.0% | 🏷️ |
| 🇵🇫 French Polynesia | 40.0% | 25.0% | 16.0% | -- | |
| 🇳🇨 New Caledonia | 40.0% | 30.0% | 11.0% | -- |
🔗 RELATED
Zero Income Tax
💰 Zero Tax Countries →
Low Rate (1-15%)
📊 Low Rate Countries →
No Capital Gains
📈 No CGT Countries →
Overview
💎 Low-Tax Overview →
Exit Tax
🚪 Exit Tax Countries →
Non-Dom Regimes
🏷️ Non-Dom Regimes →
CFC Rules
🏢 CFC Rules Countries →
Crypto Tax
₿ Crypto Tax Countries →
⚠️ 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.