Countries with territorial taxation?

Which English speaking countries, apart from Hong Kong and Singapore, tax residents only on the income that they derive in that country?



I gather this is called "territorial taxation".

I believe you are confused, Britain does not have universal/global taxation (and, unless I am mistaken, neither does Australia). In fact, most countries in the world (including most English speaking ones) operate a system of territorial taxation – the most notable exceptions (i.e., countries with universal taxation) are the United States and the PRC.

My question is: which other countries follow the territorial system as used by HK and Singapore?

2020: I don't think that is exactly correct either - I believe it depends on a number of factors, including whether the money is ever sent to the UK, residency/ordinary residency status, etc. Some or all of these might vary with nationality as well, so it can be complicated - best to consult a tax specialist.

Again, in general most countries have adopted a territorial taxation system. However, there are always various specifics and subtleties, so best to check with a specialist for the country in question.

Beachball - I don't think you are right. To my knowledge, most countries have adopted a system of taxation of worldwide income.


If I would live / reside in a EU state, I would be taxed for my entire income, including income derived from foreign countries, regardless of whether the money is kept in the foreign jurisdiciton or not. If I choose not to declare such income, it might be that the EU tax authorities will never know about it. But it is tax evasion and if they find out you will be criminally liable for it.


On the other hand, if you do not reside in EU, you will not be taxed there / you will only be taxed for income derived in the EU.


If you only live in the EU for some parts of the year you can argue that you should only be taxed in the EU for such parts (I think - but I am not sure - that in this case you will only be taxed on income derived from EU).


(PS: Please note that the EU does not tax your income, but the individual member states - but I am pretty certain that the EU member states have adopted similar tax principles)


US apparently went a step further, as explained by Beachball above.


Hong Kong and Singapore are actually quite exceptional with their territorial taxation.


But to finally answer the original question, I would imagine that other "off-shore" jursidiction would adopt a similar model (if they charge taxes at all). Larger countries would be too "greedy" ;-). Unfortunately, I do not have a list of territorial tax systems.