Why don’t foreigners pay exit tax?

[Starmix]

This depends on the country they are leaving and their residency status. Some countries, like the USA, impose an exit tax on certain long-term residents (Green Card holders) who abandon their residency, treating it as a sale of their worldwide assets. This tax applies if they meet specific criteria, such as having a high average annual net income tax or a net worth of $2 million or more.

However, many countries do not have exit taxes for individuals simply leaving the country. The rationale is that the complexities of implementing and managing an exit tax may not justify the potential revenue gained, especially if the number of wealthy individuals leaving is not significant.

Some countries also have agreements, like tax treaties, that can prevent double taxation or provide exemptions. These treaties can allow individuals to avoid exit taxes by claiming non-residency status under the treaty’s provisions, provided they meet the specific conditions.

Moreover, it is essential to consider the specific tax laws of the century being departed and any relevant intentional agreements. In my country, there is an exit tax that people have to pay once they exit the country.

 

[Augusta]

Foreigners typically don't pay exit tax in Nigeria because they're subject to different tax rules . Usually, capital gains tax or withholding tax applies when they sell assets or repatriate funds, but specifics depend on tax treaties and local laws .

 

[Starmix]

In my country, Filipinos pay exit tax even when they tour other countries. I experienced it myself. When I traveled to New Zealand and other countries, I was required to pay the exit tax and boarding tax.