Hello, Leo. Ready to compare taxation, retirement, and social rights for long-term immigrants in Brunei and Israel?
Good morning, Mira. I’ve had my coffee; let's begin.
Let's start with Brunei. Many assume it’s a tax-free haven due to its oil wealth.
Exactly! I envisioned a life of tax-free luxury.
While there's no personal income tax, corporate income tax does exist. Retirement and social benefits, however, are primarily for citizens and permanent residents through the Employees Trust Fund (TAP) and Supplemental Contributory Pension Fund (SCP).
So, immigrants are largely responsible for their own retirement planning?
Mostly. Some employers offer private pension plans, and the lower cost of living can help with savings. Brunei’s social welfare system, including healthcare and education, is primarily for its citizens; access for immigrants depends on their visa status.
Brunei: low taxes, but limited social safety net for immigrants. Now, Israel?
Israel has a progressive income tax system applying to residents and those earning income within the country, ranging from 10% to 50%.
Ouch! What about immigrants?
They are generally taxed the same, though there are exemptions and benefits for new immigrants. Israel has a national insurance system, "Bituah Leumi," providing benefits including old-age pensions. Immigrants contributing to the system are generally entitled to these benefits.
So, higher taxes but a more comprehensive social safety net?
Precisely. Israel also offers universal healthcare through HMOs and robust worker protections.
Israel: high taxes, but a strong social safety net. A stark contrast to Brunei.
Indeed. Thorough research and professional advice are crucial for long-term immigrants in both countries.
Absolutely. Remember to plan your move carefully.
Thank you, Leo.
You're welcome, Mira.