Tax Havens

In the 1990s Guam enacted a package of financial services development legislation to become a financial tax haven. Unfortunately, the IRS has now issued a notice that challenges the use of Guam trusts to shelter income from U.S. taxes.

he GBC2 Offshore Company (International Business Companies) have 0% tax on foreign income and are exempt from withholding taxes.

French Polynesian has no income taxes on individuals, no wealth taxes, and no inheritance taxes. New businesses are tax-exempt for their first 12 months of operation.

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.

Doing business through a tax haven has the potential to enhance or damage a company’s corporate reputation.

Political risk is the risk faced by investors and corporations that political decisions, events, or conditions will significantly affect the profitability of a business.

When choosing a tax haven, its location, proximity and accessibility can be a deal breaker.