Taxation policies of Major Countries
[TOC] * Part of Tax Series Tax Planning 101
Taxation policies of Major Countries favor Foreign HQs - Review, Keys
Ireland major Tax Haven for HQs
UK - London is a major Tax Haven for non-residents
- 20% Corporate tax rate is LOW
Gateway to major tax havens esp Caribbean - after colonial empire brokeup UK wealth concentrated there
Foundations and trusts are typical tax haven vehicles used by foreigners to offer a protective tax-free or tax-reduced wrapper around assets.
Friendly to non-residents - no taxes on foreign investments?
- England has been particularly popular with non-resident billionaires who benefit from a lack of income taxes or capital gains taxes on investments held outside of the country.
Germany - friendly banking system
- Only 5% tax on dividends and capital gains. These classes of income are considered nondeductible operating expenditures according to German accounting standards.
Non-resident friendly banking system - but bit less than Switzerland
- freed from the burden of taxes on interest in Germany.
- Ensures privacy of account holders.
Foreign income is largely exempt from domestic taxation
- foreign dividends are exempt from taxation
- foreign income earned in foreign branches