Post by Bozur on Jan 1, 2008 17:03:33 GMT -5
A tax haven is a place where certain taxes are levied at a low rate or not at all. Individuals and/or firms can find it attractive to move themselves to areas with lower tax rates. This creates a situation of tax competition among governments. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.
Different definitions of tax havens exist. The Economist has tentatively adopted the description by Colin Powell (former Economic Adviser to Jersey): "What ... identifies an area as a tax haven is the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance." The Economist points out that this definition would still exclude a number of jurisdictions traditionally thought of as tax havens.[1] Similarly, others have suggested that any country which modifies its tax laws to attract foreign capital could be considered a tax haven,[2].
link (for more data)
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Some Global Tax Haven localities
* The Bahamas levies neither personal income nor capital gains tax, nor are there inheritance taxes.
* Bermuda does not levy income tax on foreign earnings, and allows foreign companies to incorporate there under an "exempt" status. Exempt companies may not hold real estate in Bermuda or trade there, nor may they be involved in banking, insurance, assurance, reinsurance, fund management or similar business, such as investment advice, without a license. The island also maintains a stable, clean reputation in the business world. At present, there are no benefits for individuals. In fact, for a non-Bermudian to own a house on the island, they would have to pay a minimum of $15,000 a year in land tax alone.
* Dubai and much of the UAE for individuals, Jebel Ali Free Zone for companies
* Hong Kong's tax rates are low (17%) that it can be considered a tax haven.[23]
* Ireland did not tax the foreign income of authors and artists until 2006. Corporation tax is only 10% or 12.5%. Income not remitted to Ireland by Irish residents not-domiciled in either Ireland or the UK can escape taxation Ireland.
* Russia - 13% income tax
* Switzerland is a tax haven for foreigners who become resident after negotiating the amount of their income subject to taxation with the canton in which they intend to live. Typically taxable income is assumed to be five times the accommodation rental paid. Vaud is the most popular canton for this scheme. For businesses, the canton of Zug is popular, with over 6000 holding companies.
* The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income so long as it is not remitted to the UK.
* Some states within the United States, particularly Delaware, offer incentives for businesses to locate there. Many banks and other financial companies are domiciled in the state of Delaware even though Delaware is one of the smallest states in the USA.
Some Balkan Tax Haven localities
* Bosnia and Herzegovina - Republika Srpska entity of Bosnia and Herzegovina levies 10 % profit tax
* Cyprus: this jurisdiction has grown recently in popularity and anticipates further future growth. As a jurisdiction Cyprus is in a position to exploit its unusual position as an offshore jurisdiction which is within the EU.
* (FYRO)Macedonia - corporate taxes 10 % since 2008 (now 12 %), income taxes 10 % since 2008 (now 12 %), tax on reinvestment profit 0 %
Different definitions of tax havens exist. The Economist has tentatively adopted the description by Colin Powell (former Economic Adviser to Jersey): "What ... identifies an area as a tax haven is the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance." The Economist points out that this definition would still exclude a number of jurisdictions traditionally thought of as tax havens.[1] Similarly, others have suggested that any country which modifies its tax laws to attract foreign capital could be considered a tax haven,[2].
link (for more data)
--------
Some Global Tax Haven localities
* The Bahamas levies neither personal income nor capital gains tax, nor are there inheritance taxes.
* Bermuda does not levy income tax on foreign earnings, and allows foreign companies to incorporate there under an "exempt" status. Exempt companies may not hold real estate in Bermuda or trade there, nor may they be involved in banking, insurance, assurance, reinsurance, fund management or similar business, such as investment advice, without a license. The island also maintains a stable, clean reputation in the business world. At present, there are no benefits for individuals. In fact, for a non-Bermudian to own a house on the island, they would have to pay a minimum of $15,000 a year in land tax alone.
* Dubai and much of the UAE for individuals, Jebel Ali Free Zone for companies
* Hong Kong's tax rates are low (17%) that it can be considered a tax haven.[23]
* Ireland did not tax the foreign income of authors and artists until 2006. Corporation tax is only 10% or 12.5%. Income not remitted to Ireland by Irish residents not-domiciled in either Ireland or the UK can escape taxation Ireland.
* Russia - 13% income tax
* Switzerland is a tax haven for foreigners who become resident after negotiating the amount of their income subject to taxation with the canton in which they intend to live. Typically taxable income is assumed to be five times the accommodation rental paid. Vaud is the most popular canton for this scheme. For businesses, the canton of Zug is popular, with over 6000 holding companies.
* The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income so long as it is not remitted to the UK.
* Some states within the United States, particularly Delaware, offer incentives for businesses to locate there. Many banks and other financial companies are domiciled in the state of Delaware even though Delaware is one of the smallest states in the USA.
Some Balkan Tax Haven localities
* Bosnia and Herzegovina - Republika Srpska entity of Bosnia and Herzegovina levies 10 % profit tax
* Cyprus: this jurisdiction has grown recently in popularity and anticipates further future growth. As a jurisdiction Cyprus is in a position to exploit its unusual position as an offshore jurisdiction which is within the EU.
* (FYRO)Macedonia - corporate taxes 10 % since 2008 (now 12 %), income taxes 10 % since 2008 (now 12 %), tax on reinvestment profit 0 %