Pacific Rim countries, such as China and Hong Kong, have favorable international tax rates. Norway and Finland are two examples of countries with unfavorable international income tax rates. These Scandinavian nations have some of the highest tax rates in the world.
No Tax Havens for U.S. Taxpayers
This does not to mean that international countries are tax havens for U.S. taxpayers. There is a recent movement that is exposing and fining taxpayers that have engaged in hiding taxable income in other countries. The fact that a country may have a favorable income tax rate does not mean anything to the IRS, with regards to taxes due on earnings that were made in the U.S.
Conducting a True Analysis of Tax Rates
A true analysis of favorable or unfavorable income tax rates needs to take into account the types of services that the citizenry receives. A country with high tax rates should provide a balanced picture and should provide social services like defensive forces, healthcare, social security or other types of retirement pensions. Taking these factors into consideration changes the view of what country’s tax rates may be more favorable.