"Offshore" is
a term that defines the organizational and legal
status of a business entity. As a rule this status
relates to the requirement that any business activity
should be conducted outside the country of registration.
In this case the entity is exempted from all or
most of taxes in the country of registration.
The following
are all important motivations for using offshore
jurisdictions: minimization of tax, protection
and enhancement of assets, risk management, cost
reduction, confidentiality, avoidance of bureaucracy
and excessive regulation.
Today
offshore centers are an accepted financial fact
of life, seen as legitimate vehicles through which
investors can take advantage of the off-shore
option. Private investors, multinational companies,
small businesses or high net worth individuals
can take advantage of offshore investment as an
important part of tax planning.
|
