|
|
The term Tax Haven is generally used to refer to a jurisdiction: where there are no relevant taxes; where taxes are levied only on internal taxable events, but not at all, or at low tax rates, on profits from foreign sources; or where special tax privileges are granted to certain types of taxable persons or events. Such special tax privileges may be accorded by the domestic internal tax system or may derive from a combination of domestic and treaty provisions. (Where tax benefits are part of an economic development program the term tax incentives is usually used). Simply stated, a tax haven is any country whose laws, regulations, traditions, and, in some cases, treaty arrangements make it possible for one to reduce his overall burden. Tax havens of the world can be broadly classified into six separate categories: no-tax havens (e.g., Anguilla, Bahamas, Bermuda, Cayman Islands, Nevis, Turks and Caicos, St. Vincent and Vanuatu); countries taxing only local income (e.g., Costa Rica, Liberia, Panama, Gibraltar and Hong Kong); low-tax havens with treaty benefits (e.g., the Netherlands, the Netherlands Antilles, British Virgin Islands, Luxembourg and Singapore); countries offering special privileges (e.g., the Channel Islands and the Isle of Man); tax havens for individuals (e.g., Andorra, Sark, Campione d’Italia and Monaco; tax havens for International Business Companies (e.g., Antigua, Barbados, Grenada, Jamaica and Montserrat).
|
