Tax Havens

Although residents are liable to tax on taxable income accruing in or derived from Fiji or elsewhere, non-residents are only taxed on their Fijian income.

The Commonwealth of Dominica is a major international financial centre involved in offshore banking, payment processing companies, and general corporate activities.

Since 1949 Djibouti has been operating a free-port - ‘Djibouti Free-zone’. Apart from other incentives, foreign companies domiciled in the free-port can receive a five to ten-year tax exemption.

From 1968 to 1989 Czechoslovakia was occupied by the Soviets. In 1989 the communist regime collapsed and a market economy was reintroduced.

There are 19 different reasons to use a tax haven, some legal, and some illegal.

A Luxembourg Holding Company is a resident company in the tax haven of Luxembourg which operates subsidiaries.

Most offshore jurisdictions have sophisticated trust laws which allow the settlor to select lengthy, fixed, perpetuity periods, or to avoid perpetuity altogether (like Jersey).

The Luxembourg special limited partnership (SLP) is a highly tax efficient investment vehicle that offers a high degree of contractual flexibility and cost efficiency.

Hong Kong, the British Virgin Islands, and Panama have the largest numbers of registered International Business Companies (IBCs).

Multinational businesses often finance their Australian business investments with large amounts of overseas debt instead of equity as it is more tax effective.