Since the middle of the last century, offshore zones have helped companies avoid taxes, and in some cases, reporting and auditing. Over the years, quite a few zones have appeared; some are more convenient, others less, some look dubious and are used mainly for laundering black cash, while others are reliable and respectable. You can choose the best offshore zones by ratings. In the Russian Federation, the most reliable rating of offshore companies is RBC, and abroad - the Tax Justice Network. Having analyzed both, we have compiled a rating of offshore companies, including the 5 most reliable ones in the list.
5. USA, Delaware
The Delaware offshore zone is extremely popular among American companies - no less than half of their total number in the United States is registered here. The State's Limited Liabilities Companies Act allows state-registered companies to pay less taxes while maintaining anonymity. The second big plus of Delaware is that a company located in it may not be registered with the US tax authorities and, therefore, can avoid both reporting and paying taxes.
4. Hong Kong
One of the largest financial centers in the world is attractive to companies primarily for its territorial taxation system. Companies here are not divided into resident and non-resident, and taxes depend only on whether the income is received from a source in Hong Kong or whether the activity was carried out to generate this income in Hong Kong. If the answer to both of these questions is negative, the company is not taxable. In addition, registration of offshore companies will require a minimum of time and effort, and confidentiality is protected by law (however, information about the beneficiaries will be available).
3. Luxembourg
Although Luxembourg is not a full-fledged offshore zone, large tax benefits are provided for foreign companies not planning to do business in the country. Thus, the tax rate can be reduced to almost zero. The strengths of the Luxembourg offshore zone are complete confidentiality and opacity for third parties, as well as the absence of currency control and an agreement on the absence of double taxation. All of this is extremely popular with businessmen from all over the world, and many investment funds and more than two hundred banks are located in Luxembourg. When registering a company, at least two shareholders and three directors are required.
2. Cayman Islands
But this is a real offshore - all foreign companies that are not engaged in any activity on the islands themselves do not have to pay any taxes. In addition, these islands located in the Caribbean Sea have many valuable features, such as opacity (supported by law), lack of foreign exchange controls, and high political and economic stability. And the process of registering companies on the islands takes no more than a day. The offshore zone of the Cayman Islands is highly valued by world capital - about one hundred thousand companies from all over the world, 500 banks, 800 insurance companies and five thousand mutual funds are registered here.But this offshore paradise also has its flaw: there is no agreement with other countries on the absence of double taxation.
1. Switzerland
It is believed that this small European country has created the most favorable conditions for business, although in the strict sense of the word, Switzerland can hardly be called an offshore. By default, the company is considered to pay dividend tax, cantonal and federal taxes on capital, and income tax. And under certain conditions, in some cantons, the amount of taxes can be reduced to almost zero, and the investment tax may not be taxed at all. The second significant advantage of Switzerland is strict confidentiality. Third, Switzerland has entered into agreements with many countries around the world so that clients can avoid double taxation. Finally, Switzerland has a solid reputation. The only drawback is that reporting will still have to be kept. But this little flaw is unlikely to hinder Switzerland's reputation as the most reliable offshore company.