How do countries that don’t charge income tax eg Monaco, Cayman Islands pay for things that tax pays for in other countries eg roads, bridges, military, government buildings, etc

Question

How do countries that don’t charge income tax eg Monaco, Cayman Islands pay for things that tax pays for in other countries eg roads, bridges, military, government buildings, etc

In: 5

Answer 1

Because they still collect money other ways.

Monaco, for instance, has a zero percent *income tax*, but has a 20% sales tax, a 1% rental tax, and has low business profit taxes, etc.

The Cayman Islands has no taxes whatsoever, but collects money via fees. Tourism fees, work permit fees, financial transaction fees, and they collect massive duties, with a 0-42% duty fee schedule for all items imported into the country (most imported items are charged duties in the 20% range). Offshore corporations are tax sheltered, but pay an annual licensing fee directly to the government.