Low-tax jurisdictions

The first group includes the state bodies and administrative territories with exclusively simplified procedures for incorporation of legal entities and significantly reduced or lacking profit tax- “tax shelters” or “typical” offshore jurisdictions.

Into group of tax-free jurisdictions enters
  • Jurisdictions in Central America – Belize, Panama
  • Caribbean jurisdictions – The Bahamas, British Virgin Islands, Dominica, Nevis, Turks and Caicos Islands
  • Pacific Ocean Jurisdictions – Western Samoa, Marshall Islands, Niue, Seychelles
  • Asia jurisdictions – Labuan (Malaysia)
  • Indian Ocean jurisdictions – Mauritius
Peculiarities of the “tax shelters” include the following
  • Profit tax at the “tax shelters” is either zero or not exceeding 1-2%, or is substituted by annual levies in the amount from 150 to 1000 USD per annum, depending on the state, not depending on independent on the profit
  • The “tax shelters” apply no restrictions on currency export. Companies may freely open deposits in any currency win any foreign bank
  • The “tax shelters” apply incorporation procedures simplified to maximum extent: the minimum amount of equity capital is traditionally not applicable
  • High degree of confidentiality. Company owners are not subjects to disclosure. Registers are not publicly available
  • It is not necessary to prepare and submit the annual financial report
  • Operating a company in “tax shelters” is much cheaper than in the areas with moderate taxation and in large industrial countries