Governments levy taxes to fund vital public services and to build and maintain infrastructure. In the U.S., taxes support programs like Social Security and Medicare. For tax years 2023 and 2024, the top marginal tax rate for the highest-earning Americans is 37%.
Revenue Sources
Income taxes are imposed by governments on earnings by individuals and businesses. The United States tax system is progressive, meaning those who earn more will owe more in taxes. Although many nations rely on income taxes to generate revenue, some levy an alternative payment source such as:
- Value-added taxes (VATs)
- Real property taxes
- Casino taxes
- Import duties
- Stamp duties
- License fees
Tax-Free Locations
Bahrain
While oil and natural gas are most of the country’s budget revenues, Bahrain also has a prominent hospitality and retail sector. The country does not levy personal income tax but requires citizens to contribute to Social Insurance and unemployment programs.3 The corporate income tax levied on oil companies is 46% as of 2024.4
Foreign workers who receive a work visa from a local employer are eligible for a residence permit.5 There’s also a dependents residency permit for those married to a Bahraini citizen, though this will have to be requested by their employer.
