Video: What is an offshore zone?
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40
Today, the concept of "offshore" is becoming more and more popular every day, its widespread use, of course, is of interest. If experts from the field of economics and jurisprudence are very familiar with it, then for an ordinary citizen the meaning of this word is not always clear.
So, according to the definition, an offshore is a kind of financial center that constantly attracts capital from abroad by providing special benefits and tax privileges to various companies. Offshore zones of the world are widely scattered geographically: Gibr altar, British Virgin Islands, Dominican Republic, Seychelles and even Russia. However, in our country, such an economic arena has a slightly different name, namely, the “Preferential Taxation Zone.”
Offshore zone. Concept
An offshore zone is a country or part of it where, subject to certain conditions, it is possible not to pay taxes. Also, you do not need to submit quarterly financial statements. An offshore zone, as a rule, is characterized by a number of privileges, among which are the following: a diverse tax regime, financial development,economic stability, etc. Experienced entrepreneurs always pay special attention to her choice, taking into account all of the above factors. To register each specific company, you should choose the most favorable conditions for cooperation.
Offshore zone. Classification
- Classic offshore zone (zero taxation). In this case, the company undertakes to pay a certain fee to the state every year, and it does not levy a tax and does not require accounting reports. This type includes the following zones: Cayman Islands, Nevis, Belize, Seychelles, Panama.
- States with a territorial sign of taxation. In this case, the income that was received in the course of transactions with sources located in this jurisdiction is subject to taxation. Thanks to this kind of system, it is possible to export goods, on the one hand, and inflow of investments, on the other. List of states: Costa Rica, Malaysia, Brazil, Morocco, UAE, Algeria.
- Countries that provide tax exemptions for certain activities. For example, when making a profit from real estate in the territory outside the offshore zone (Denmark, Lithuania, Hungary, Bulgaria, Poland, Switzerland, Slovakia).
- Territories where there is no need to pay taxes to the state to a group of certain legal and even quasi-legal entities (Cyprus).
- Low taxation. In this case, the state sets sufficiently low tax rates in order to develop the country witheconomic point of view and attracting foreign investment (Cyprus, Estonia, Switzerland, Montenegro, Ireland, Portugal).
Development
At the moment, the list of offshores is constantly updated, now their number is just over 50. Indeed, as practice shows, such territories are very popular, including among Russian entrepreneurs, hence the expediency of their occurrence.
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