The Cayman Islands offshore company
The Cayman Islands are not only a physical attraction, but it is also very alluring for taxation purposes. Many entrepreneurs choose to establish their companies in the Cayman Islands because it is known as a tax haven. The Cayman Islands have zero corporate tax which makes it an ideal place for multinational companies to base their entities in order to avoid strenuous tax on income.
Cayman Islands taxation
There are many taxes from which the Cayman Islands are exempt which makes it the perfect place for offshore investors to start their companies. Investors choose to establish offshore subsidiaries in the Cayman Islands in order to direct all sales through here instead of the parent company in another country. The shell corporation thus earns the profits and is subject to tax laws in the Cayman Islands, rather than tax laws in the country where the main company is situated.
This is very beneficial, mainly because tax laws are so lenient in this nation. There is no corporate tax, income tax, tax on interests or dividends, or taxes earned with investments. Offshore corporations pay an annual licensing fee to the government of the Cayman Islands instead of paying taxes. This amount is based on the amount of authorised share capital the company has.
Privacy laws are extremely important in the Cayman Islands and anonymity is paramount. The Cayman Islands make it easy for entrepreneurs and business owners to keep their affairs away from prying eyes and their assets or identities as secure as possible.
For more information on the taxation and company formation in the Cayman Islands, contact us today and let an expert agent assist you with whatever queries you may have.