Best Known Global Tax Haven Countries – Know about it
There is a global practice of shifting the business to the tax haven country to reduce the tax cost. People often look to the gulf to reduce the impact of taxation as the most popular destination. Though the transfer pricing mechanisms and changes in international taxation are trying to regulate the taxation of profit in their country, moving to tax heaven is still the most popular tool of tax saving.
The biggest and most profitable multinational corporations in the world often move to the jurisdictions where the tax bills are minimized. It is often a preferred tactic among technology companies whose product, oftentimes used by hundreds of millions of people in America or Europe and can be licensed from anywhere in this world.
As of now, there appears to be 15 jurisdictions with no corporate tax as under:
- United Arab Emirates
- Anguilla
- The Bahamas, Bahrain
- The British Virgin Islands
- The Cayman Islands
- Guernsey
- Isle of Man
- Jersey
- Saint Barthelemy
- Caicos
- Bermuda
- Vanuatu
- Wallis and
- Futuna Islands.
- Turks
There are few of the countries which though not tax heaven but still preferred due to its lower tax rates. This includes Ireland, Cyprus, and Qatar, are among those with the lowest corporate tax rates just above zero. One may note that with corporate tax rates around 12.5%, countries like Ireland and Cyprus have effectively instituted lower brackets with the explicit purpose of attracting companies to domicile there.
The most powerful economy – the US has a corporate tax rate by comparison at 21% whereas the UK’s is at 19%,. The tax rate is expected to be enhanced to 25% in coming years. India now has a corporate tax rate from 22% to 30% depending upon various criteria and options.
Comments from the Global Taxation practitioner about the tax rates in their countries are invited.
