> I do not think taxation should get singled out as a deciding factor where to setup a business, but could be considered in the round with all the other operational costs.
Simple math. Say, if your venture succeeds, you net a lump sum of, say, $300K - $500K? Plus, in the advanced stages, you'll be paying yourself around $80K - $100K p.a., which falls in the high tax bracket everywhere. The difference between high taxes and low taxes may make a difference between you being able to buy a new home for cash or not.
If you're planning to spend a few years to have fun and immerse in a different culture and believe your venture is likely to fail, sure. If you are there to make money, think again.
Of course, it's not the primary consideration. The primary consideration should be whether there is a market for your products and services.
> Low taxes might seem good, but if the key services are non-existent or corrupt, then your costs of operation will be significantly higher than in a place that has high(er) taxes, but civil society is run efficiently.
That's not necessarily how things work. I live in Singapore now, where the income tax is in single digits and the foreign sources of income are not even taxed, so if you're not an American, you can have your passive income tax-free. The key services are anything but non-existent or corrupt.