Tax-free countries for business
Small island countries often offer zero or low-cost fees for doing business to attract investment. It is beneficial because the money earned stays in circulation and benefits the company. Offshore states also get their benefits. Tax-free countries for businesses make money through registration fees, the issuance and renewal of licenses, and some other government fees.
Opening a company in the Bahamas saves on corporate tax. Non-residents may not have to pay for:
- wealth, dividends,
- interest on shares,
- capital gains,
- personal income.
The government earns by taking property tax, import and export duties, stamp and license fees, and VAT. There are also Social Security contributions - employers pay 5.9%, employees pay 3.9%, and the self-employed pay 8.8%.
Registering a company in Bermuda also helps to avoid corporate tax. Organizations that non-residents own are exempt from currency control. In addition, there is no charge for:
- capital gains;
- withholding tax;
- non-resident trusts.
Bermuda earns land tax, takes a percentage of wages, fees for licensing, and stamp duties. Customs duties are high, so goods are expensive here.
British Virgin Islands
Opening a business in the British Virgin Islands allows you to avoid paying for:
- capital gains;
- value added;
- offshore accounts.
Nominally there is income tax there, but it has zero rate. There are also no currency controls, which greatly simplifies transactions and encourages trade and investment.
The state charges for land, real estate, wages, and earns stamp duties on licenses. Import duties are low and are used more to combat local traders from the nearby U.S. Virgin Islands.
Opening a company in the Cayman Islands is advantageous because the country does not charge corporate tax. There is no income tax, capital gain tax, withholding property, and wages taxes. You don't have to pay dividends, interest that was earned outside the Cayman Islands.
Caymans earn on fees related to tourism, imports, financial transactions, and work permits. Offshore businesses pay an annual licensing fee, the amount of which is affected by the amount of registered capital.
Business in Vanuatu can be profitable. It is because the country does not impose corporate taxes on foreign and local companies. Instead, the company must pay VAT - 12.5%, but exceptions exist. For example, an international organization is exempt from VAT if it does not operate in the local market.
Also Vanuatu has none of the following:
- Tax on property (other than rental income);
- Capital gains tax;
- Income tax;
- Tax on wealth, inheritance;
- Withholding tax.
A business must pay a fee on behalf of its employees to the National Reserve Fund. This fee must be at most 6% of their salary. The business must also pay stamp duty at a flat rate of 2%, one of the region's lowest. Duty for essential goods is between 5 and 15%
How to open a business offshore
Contact IT-OFFSHORE managers to open a company in a country with favorable tax rates for businesses.