Tax Education Series - Episode 4

-

Tax Haven: What you should know


By Richard Okunola

What is Tax Haven?

A tax haven is any country or jurisdiction that offers minimal tax liability to foreign individuals and businesses. In most cases, tax havens do not require businesses to operate out of their country or the individuals to reside in their country to receive tax benefits.

How do you know a Country is a tax haven?

According to a report from the Organisation for Economic Cooperation and Development (OECD), some of the most common criteria are:

a. Nil or nominal tax on relevant income

b. Lack of effective exchange information

c. Lack of transparency

What benefit do you stand to gain from tax haven?

There is a tax saving benefit which in tax haven countries may range from zero to low single digits compared to high taxes in their country of citizenship or domicile. E.g, if you are paying 30 Income tax in Nigeria, you may be paying nil or 2% in a tax haven country if you have a company there.

How do these countries generate revenue?

The goal is to increase business occupants, so by attracting foreign businesses, even if they are only charged a nominal tax rate, the country may earn substantially more in tax revenues than it would otherwise. Also, the country may benefit from corporate investments in business operations that offer jobs to the country’s residents.

Some of the tax havens in the world are: Bermuda, Netherlands, Luxembourg, Singapore, The Channels Island, Switzerland, Ireland etc.

If you love this content, kindly hit the LIKE button 😘

#Tax #TaxInsight #TaxEducation #TaxSeries

Comments

Post a Comment

Popular posts from this blog

Olaleye Appointed as Chairman of Ogun State Internal Revenue Service

-
Image
Congratulations to the new Chairman of Ogun State Internal Revenue Service - Olugbenga Anthony Olaleye. - By Richard Okunola A brief about his career Mr. Olaleye's qualifications are quite interesting amongst which include UNICAL (B.Sc) 1984, ICAN (FCA) 1997, CITN (ACTI), Mini MBA (USA), Alumni (LBS), John Maxwell Team (Certificate Coach) and so on.... He is an alumnus of 3 of the Big 4 International firms - #Deloitte, #PwC and Arthur Andersen (now #KPMG in Nigeria); and also with other reputable organisation like #Guinness. With over 34 years of practice exposure in Accounting, Audit, Tax Practice, Management Consulting, Corporate Finance, Receiverships & Liquidations, Project Evaluation, Risk Management, Internal Audit, Controls & Compliance, Strategic Planning and People Development, he's got an incredible portfolio of experience. Following these lineup of qualifications, plus the recent developments and enabling business environment in Ogun State, I'm convinced
Read more

About Us

-
Image
Small businesses in Nigeria wish to be tax compliant, but only a few of them have an understanding of the tax requirements. Due to their very small nature, they often find it very difficult to employ an accountant. Several others who try to fulfill their civil responsibility, often get caught up by the tax authorities and are sometimes exposed to additional tax liabilities and fines. Hubwright Tax Academy will be here to help you. This platform is designed to provide useful tips and insights that can help small businesses assess themselves and equip them as much as possible with all the tax knowledge they should possess in order to comply with the tax requirements from relevant tax authorities. - Richard Okunola, AAT, ACA
Read more

Tax Education Series - Episode 2

-
Image
Classification of Taxes: Direct vs Indirect Tax Written by Richard Okunola Did you know that practically everyone pays tax? Both the young and old.... Tax remains a major source of income to the government, so tax is imposed on almost all the products that we consume (excluding essential goods - explained in the last paragraph) and services that we render. Therefore, we may not be aware, but we all pay taxes directly or indirectly. Generally, taxes can be classified in various ways, depending on the perspective through which the taxes are being received or paid. However,  let's focus on the perspective of Tax Subject. There are two classes of tax: a. Direct Tax:   This is a tax levied on the income or profits of the person who pays it, rather than on goods or services. This is termed direct tax because the taxpayer suffers the tax alone and may not be able to transfer the tax burden to others.  Example of direct taxes are Personal Income Tax (PIT), Companies Income Tax (CIT), Capit
Read more