The Places around The World Where The Money Is Hidden
Have you always wondered how some rich people manage to stay rich (forever)? Well, we are going to tell you – they are avoiding the taxes. These are the countries where most of them hide their money.
Panama is considered to be a tax haven in America. Drug money from Latin America and other ‘dirty money’ from many places have been going there for ages. There are over 350,000 secretive International Business Companies registered in Panama. It is also active in forming tax-evading foundations and trusts. There are no taxes for offshore companies (enterprises that conduct business outside Panama). Panama also covers boat and shipping registration for such companies.
This ‘tax haven’ ensures everyone’s financial privacy with strict confidential laws and regulations regarding documentation of offshore corporations, trusts, and foundations.
What is Las Vegas for America, that is Macao for Asia. Still, it produces five times more revenue than Las Vegas. It is the world’s largest casino market and also the second special administrative region of China, after Hong Kong. Macao has political autonomy with separate executive, legislative, and judicial power despite belonging to China. It also has its own stable currency called the Macanese Pataca (MOP).
Offshore companies in Macau are required to have business activities, which is not the case with Panama. The first 600,000 MOP (about $75,098.57) which any company earns there is tax exempt. The income earned after the exempt threshold is taxed at a top rate 12%. So, what is the trick here that attracts world’s billionaires’ to bring their money to Macao? Well, offshore companies can be fully tax exempt if they do not work in MOP currency, and that is only the first condition. The second condition is that they do not target Macanese people, and the third condition is not to focus on other Macanese companies.
Have you heard of the Caribbean tax havens? Well, this is it – one of the world renowned tax havens! The Cayman Islands offer no corporate tax and any form of a company established in The Cayman Islands can retain assets without paying tax at all. Another interesting fact about the Cayman Islands is that they make the assets owners’ privacy as the top priority.
The report given by Tax Justice Network said that the Cayman Islands is now the world’s sixth biggest banking center. Three years ago, it had $1.4 trillion worth of banking assets. Additionally, the country has a $2.1 trillion net asset. Most of this originates from Europe and the United States. Some of the companies having subsidiaries in the Cayman Islands are Pepsi, Pfizer, and Marriott.
Hong Kong is the first special administrative region of China. It has its own autonomy, but it is still protected by China. This generally ensures its stability and attracts money from investors oversea. Hong Kong is one of the world’s fastest growing tax havens. Two years ago, its individual wealth was over $100 million per capita. It also welcomes $2.1 trillion from fund management industry and over $350 billion from private banking asset.
The income earned by companies that conduct business in Hong Kong are tax-levied. Tax regulation is based on the territories. The tax rate is fixed at 17.5% and the income gained outside Hong Kong is tax exempt. Additionally, companies’ interests, dividends, and capital gains are not subjected to any form of taxation.
THE UNITED ARAB EMIRATES
Dubai, the most populous city in the United Arab Emirates, is the offshore financial center of the Arabian world. Apart from being the home to the most luxurious real estate in the United Arab Emirates, it is also the tax sanctuary.
The offshore bank accounts in Dubai are tax-free. All the information stored is confidential and will only be given out in the case of criminal investigations. No-exchange controls make it easy for individuals or companies to transfer funds in and out of Dubai.
Well, we all know about Switzerland and its stability of banking sector. In fact, it is probably the best in the world.
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