According to a comparative report by lovemoney examining tax systems and public services across 25 countries, the United Arab Emirates maintains a low-tax environment featuring no personal income tax and generally zero taxation on personal capital gains or inheritances. Residents are subject to municipal and property fees, while value-added tax (VAT) is set at 5%.
The report stated that public services and infrastructure in the UAE are funded through oil and gas revenues, state investment income, corporate taxes, and administrative fees. While Emirati nationals receive state benefits, foreign residents generally pay out-of-pocket for schooling and must rely on private health insurance for medical treatment.
In China, overall tax collection is lower than in Western nations, though individuals face personal income tax rates ranging from 3% to 45%, lovemoney reported. Value-added tax in China ranges from 6% to 13%, capital gains are generally taxed at 20% with certain exemptions, inheritance is untaxed, and workers pay mandatory social security contributions.
The publication noted that China funds extensive public infrastructure, tuition-free elementary and middle-school education, and basic health insurance that covers 95% of its population.
Sources
- lovemoney.com · 2026-10-23
