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Some of the world’s best tax haven are said to be located in the Caribbean, on the European continent and on tiny islands in the Indian and Pacific Ocean. The label 'best tax haven' is given to those countries or territories which have zero taxation or very low taxation policies in place. Tax havens are known to provide confidentiality and privacy for clients which is embedded in the legislation of the respective tax havens of the world. Most of the best tax havens of the world have offshore financial sectors and provide offshore services to clients, mostly foreigners or non residents.
The best offshore havens have a no tax policy for international business companies and other types of offshore companies. Offshore companies are incorporated in many offshore tax havens including Dominica, Nevis, Anguilla, the BVI, Barbados, Panama, Cyprus, Seychelles, Singapore, the Cayman Islands and Hong Kong. Offshore companies incorporated in the above mentioned offshore tax havens and many other offshore tax havens will pay no local taxes on income which is earned abroad. The tax havens of the Caribbean have no capital gains tax, inheritance tax, estate tax, gift tax, withholding tax in place. Some of the best tax havens have low tax regimes in place and this includes jurisdictions such as tax haven Cyprus which charges companies at a tax rate of 10% on all their annual profits.
All companies must pay annual license fees to government. In some jurisdictions the annual license fee is based on the authorized share capital of the corporation while in others it is set up at a fixed rate. In best Caribbean tax havens such as Dominica and the Bahamas, a twenty (20) years tax exemption is guaranteed by the offshore companies’ legislation. The twenty year period begins from the day of incorporation.
The best offshore tax haven will have all the conditions in place that ensure the offshore clients receive absolute privacy in the jurisdictions. In many of the best offshore tax havens, when incorporating, the names and information concerning the owners of offshore companies is not filed as part of the public record. This means that this information cannot be acquired at the local Public Registry. Using nominee directors and shareholders to incorporate, provides even more privacy in a tax haven.
In the most of the best tax havens offshore business companies’ information remains private. Most tax havens do not require offshore business companies to prepare annual financial audits for inspection by government authorities. The offshore companies have no need to prepare annual tax reports. The offshore companies incorporated in best tax haven are encouraged to keep financial statements which they can keep any where desired.
The best tax havens go to great lengths to protect the offshore companies incorporated in their jurisdiction. In the legislation which regulates the incorporation of offshore companies in Anguilla, Nevis, Belize and Dominica agents or person who divulge information concerning International Business Companies are liable to pay fines and or serve a prison sentence.
The world’s best offshore banking and banking services can be found in the best tax havens. In the best tax havens, offshore banking can be achieved in a tax free environment. Offshore banking can be done by both individuals and corporations in some of the best tax havens available. This includes Cyprus, Luxembourg, Panama, Anguilla, Gibraltar, Dominica, Nevis, the Bahamas and Seychelles among others. Any interest earned by offshore bank accounts in the best tax havens has no taxed imposed. This guarantees the growth of capital invested in the offshore banks.
Offshore banking secrecy is synonymous with offshore tax havens. In fact it is banking secrecy which led to an increase in offshore banking clients in most offshore tax havens of the world. Banking secrecy laws simply provides protection for the information on offshore bank accounts. In the best tax havens where banking secrecy laws have been passed, the laws prohibit the disclosure of information in offshore bank accounts. Exceptions are made if a court order is handed down. Persons who divulge information of offshore bank accounts will have committed a criminal offense and are liable to serve a prison term and or pay monetary fines.
Without a doubt, an offshore tax haven provides clients with a safe place for asset protection. Many offshore clients choose to go offshore to protect their assets from prying hands and eyes. The best offshore tax havens, when utilized properly, can help investors and offshore clients reduce on their tax liabilities. When choosing an offshore tax haven it wise for offshore clients to choose a tax haven which will protect their privacy. In the best tax havens the governments work together with other authorities to ensure that the tax haven remains free from criminal activities such as money laundering.