Tax Havens of the World

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Tax Havens of the World provide an exhaustive list of countries that are classified as tax havens because of their friendly tax regimes.

By friendly tax regime, it is usually meant that a jurisdiction has tax rates that are either nonexistent in certain circumstances (such as with offshore entities, like Seychelles companies,), minimal or low in comparison to another jurisdiction.

This phenomenon thus far has been inevitable, whether the imposition of low tax rates by a tax haven of the world is planned and intended to fulfill specific objectives or whether a tax haven of the world is not as reliant on taxes as another.

Tax Haven Countries

Tax havens of the world are not only countries. They include states or provinces within countries that are under their own jurisdiction. Examples of such tax havens of the world are Delaware and Oregon which are tax havens in the United States. Other examples exist in Switzerland where certain cantons provide companies with more attractive tax rates and incentives.

The subject of tax havens of the world is of great concern due to the impact tax havens have exerted on economies globally. It is a widely acknowledged fact that business is tax sensitive and as a result tends to shift to countries or regions where it is possible to operate more profitably because of low tax rates, fiscal incentives and friendly investment policies.

Tax havens of the world are thus critical in mobilizing capital from one region or country to the other, and play a significant role in spreading wealth. The ability of a tax haven of the world to tap into global resources depends greatly on its political, legal and social stability, as well as infrastructural and ICT advancement.

Apart from their impact, tax havens of the world provide channels for protecting assets and effectively reducing taxation costs that can be considerable when calculated on an international scale. In light of globalization, free trade and technological advancement, it is easier to access foreign markets and expand sales. Corporations are no longer subject to remaining in their domestic markets and are free to invest in any country of tax haven of the world that they wish to.

Emerging Tax Havens of the World

Emerging markets in Asia and Latin American have become some of the most appealing tax havens of the world not solely because of low or zero tax rates, but as a result of large markets, cheaper access to raw material and large pools of skilled professionals.

Tax havens of the world like Hong Kong have a flat tax rate that is very competitive when considered for both international and domestic business. Under this regime as an emerging tax haven of the world, Hong Kong allows domestic businesses to trade offshore and venture into alternative markets without being marginalized by any special fiscal regime for foreign companies. Tax and investment benefits in this tax haven of the world are across the board.

Tax Havens Of the World - Tax Treatments

While many tax havens of the world stay true to zero tax treatment for offshore companies, Guernsey and Jersey went on to introduce a 0/10 tax regime in 2008 and 2009 respectively, in order to adhere to the EU Code of Conduct on Taxation. Gibraltar had also made a commitment to fully phase out all tax exempt companies by 2010, and after much deliberation decided on a 10% flat, low corporate tax rate across the board to have been made effective on January 1, 2011. In the meantime, Barbados tax rates for IBC's are the following: 2.5% on IBC's with profits of US$ 5million, 2% on IBC's with profits of up to US$ 10million, 1.5% for IBC's with profits up to US$ 15 million and 1% on IBC's with profits over US$ 15million.

This said, tax havens of the world and the fiscal regimes they offer continue to evolve but hardly without significant economic loss. The role of tax havens in the world financial system has caused for a thorough body of regulatory codes, standards and ethical practices to be implemented at different levels. One would find for instance that regulatory measures taken in the EU have a quicker, more direct impact on tax havens of the world in that region and on the dependencies and overseas territories of EU nations.

Tax havens of the world, however, are thoroughly regulated to comply with international rules for combating financial terrorism, money laundering and the cyber crimes that arise from the rampant use of the internet. Safety mechanisms are required to be implemented for identifying clients in tax havens.

Services provided in tax havens of the world often emerge out of demand and financial change. Innovation and necessity are therefore crucial elements in every tax haven. But, these elements go nowhere without the legislator's consent to enact laws for new innovative offshore entities.

Tax havens of the world are often willing to pass laws that introduce offshore entities that are successful and already exist elsewhere to diversify the offshore services sector. There are many benefits to be derived from being a competitive offshore tax haven of the world, one of which is the emergence of professionals in numerous fields due to growing and more complex financial demands of corporations and individuals that expand their services across the globe.

Tax Haven Countries - Corporate Services

The most common services of tax havens of the world comprise corporate services that facilitate asset protection, international trade, securities investments, estate management and administration, offshore banking and tax planning. Tax havens of the world also make it possible to employ tax planning and estate management strategies by way of offshore trusts, offshore foundations, international business companies, offshore funds and offshore limited liability companies. These are central to tax havens of the world and their purpose.

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