Countries with zero taxation in 2022
When choosing a country with zero taxation in 2022 for business, one should find out if it is on the EU blacklist. It will be difficult for an international company to do business if it faces numerous refusals and problems with transactions. Therefore, the best way out is to open a company in a country with low taxes. Optimal options are Singapore, UAE, Guernsey, and Isle of Man.
Singapore boasts an advanced and fast-growing economy, so it is considered one of the best jurisdictions for business. It is especially interesting to foreign companies, as it gives a lot of tax benefits to non-residents:
- If you open a company in Singapore that operates out of the jurisdiction, you can pay no income tax;
- A company that operates in Singapore pays 17% income tax. But it does not have to pay if the money came from abroad to bank accounts in other jurisdictions, not Singapore;
- Jurisdiction has signed free trade agreements and double tax treaties with many countries around the world.
Singapore has one of the strongest banking systems in the world, so its banks are considered safe. An offshore company can safely open an account if it provides all the documents and shows the business plan, along with the purpose of the enterprise.
An offshore company in the UAE can be registered in two free economic zones - Jebel Ali and Ras Al Khaimah (RAK). Registration of a firm in the UAE is possible even if it will be fully owned by a foreigner. Working outside the country allow not paying income taxes and enjoying other benefits.
Also offshore companies enjoy 100% exemption from tax on import and export. VAT, capital gains or withholding tax also do not apply to them. Taxes are levied only on oil and gas producers and banks. Another plus is that the country has signed a double taxation treaty with more than 80 countries around the world.
The island, located 20 km from France in the English Channel, is heavily dependent on its attractiveness to foreign businesses, so it gives different benefits. Registering a company in Guernsey exempts it from paying taxes on the following:
- capital gains;
- sales tax;
- value added;
The corporate rate is 0%, with a few exceptions. Businesses that deal with finance pay 10%, and those dealing with real estate or gas pay 20%.
Isle of Man
To open a firm in the Isle of Man means working with one of the most attractive jurisdictions in the world. The island has a huge number of tax incentives:
- Corporate rate - 0% if the annual income of the company is less than £50,000, if higher - 10%;
- A company that operates in the banking sector pays 10% income tax;
- There is no capital gains tax or stamp duty;
- The maximum tax on an individual is £125,000 per person, which has stimulated the influx of the rich to the island. This also explains the high prices for real estate;
- The Isle of Man cooperates closely with Britain, which it is also a part of, but has a different system of taxation. Between them signed a treaty on avoidance of double taxation, which allows you to save a lot.
Where is better to register a business in terms of taxes
If you want to open a company in a low-tax country in 2022, contact the IT-OFFSHORE experts.