Offshore Tax Havens
For individuals and trusts, tax havens can offer substantial advantages depending on the ultimate residence of the individual or trustee and the activity being carried out. Passive holding companies and trusts may, in particular, enjoy exemption from capital gains tax and estate taxes in the country where assets are situated. They are often used as a means to safeguard assets for long-term family use, for will planning, or to distance beneficial ownership from an individual for asset protection purposes.
Tax havens can have a useful role in multinational corporate tax planning if they have a tax treaty network; otherwise they are of limited value so far as flows of dividends, interest and royalties are concerned which emanate from countries that impose withholding taxes. Tax havens without treaty networks can nevertheless offer the possibility of lessening the highest rates of tax in some other areas of activity. Very often an offshore company - whether trading, investment or holding - is owned by shareholders or a parent company in a high taxed jurisdiction, or if it is controlled in such a jurisdiction, the tax advantages are reduced or eliminated - but this is not a universal truth!
Further Information
Contact Us
For more information on offshore tax havens, please email email@healyconsultants.com or telephone us at (+65) 6735 0120.
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