Personal income tax rate: 0 per cent

In many ways, the Cook Islands are the South Pacific's answer to Caribbean tax havens, which aim to attract residents and corporations by levying no tax on them. Yet the nation of 15 small islands, located halfway between Hawaii and New Zealand in the Pacific Ocean, still has a tough go at luring business. In spite of its tax-free offerings, the Cook Islands' remote spot on the globe continues to hamper its economic growth, and limited infrastructure and a reliance on foreign aid mean tourism is still the main revenue source for the country.

* Video: Tax tips for the self-employed
* More on the Cook Islands' tax policies