Marked as spam
Posted by Arindam Nag (MONEY FORUMS: 1, Answers: 2)
Asked on November 26, 2015 2:01 pm
I've researched this EXTENSIVELY. There are tons of countries which are good for incorporating a business or becoming a tax resident: Curacuo, Hong Kong (limited company), Estonia, Kuwait, Belize, BVI, Seychelles, Anguilla, UAE, ?Isle of Man, Guernsey, Jersey, Bahamas, Bermuda, Cayman Islands...
But if you're a US citizen and you want to do everything on the "up and up", forget about incorporating abroad to save money on taxes. The US is one of the very few countries in the world to require you to report on global income.
If you're incorporating abroad for some other reason, fine. But don't do it to save on taxes. Incorporation costs are typically cheaper in the US than elsewhere and your tax reporting will certainly be easier.
"offshore accounts" etc. used to be a thing but the IRS has really clamped down on tax loopholes. Again, I've researched this for months and talked extensively with 2 tax consultants who specialize in expat taxes.
In addition to the nice beaches, the caymen islands has a 0% corporate tax rate (they have licensing fees instead). Several companies (especially hedge funds interested in tax harvesting and the Mob) will set up Shell corporations and direct their profits throught their Caymen Island shells instead of their US parent company. Depending on how it's set up, this can be a legal structure.
Also, having read plenty of Grisham novels, I would be remiss if I didn't mention that Caymen Government officials may make it very easy to hide assets from prying eyes.
Even in today's NYT crossword - the answer to the clue involving the "Cayman Islands" was "TAX HAVEN."
Good question! Not sure, but maybe there are special tax benefits there?