19/04/2023
Having heard of Offshore Companies?
Offshore companies are companies incorporated in certain offshore territories which companies can enjoy certain preferential tax rates.
1. Republic of Seychelles
The Republic of Seychelles is located in the Indian Ocean and is one of the most well-known offshore jurisdictions. The offshore company in Seychelles is still a 0% company corporate tax rate.
2. Belize
Belize is a country on the northeastern coast of Central America. Recently Belize has amended the company act, all the offshore companies are subjected to 1.75% of corporate income tax based on the revenue of the company. Further to that, every offshore company in Belize is required to apply for the TIN. However, if the company does not have any local source of income and local operation, tax exemption can be applied on an annual basis.
3. Cayman Islands
Being one of the most well-known jurisdictions in the offshore industry, the Cayman Islands is always having a good reputation compared to others. Furthermore, there are only a few jurisdictions offshore that can be used to list in stock market exchanges such as NASDAQ. Hence, the Cayman Islands is usually incorporated as a holding company.
4. Labuan
Malaysia Labuan is not a typical offshore, more like a "mid-shore". it is subject to 3% corporate income tax for the approved business activities. and maintain the required economic substance. However, it is still sharing the similarity with offshore which is the director and shareholder information is non-disclosed. Moreover, Labuan is having a better reputation than other offshore jurisdictions, making it easier for bank accounts opening, in Malaysia or overseas.
