Anguilla Offshore Company Formation | IBC Corp

A tax haven is a jurisdiction like the Cayman Islands, Anguilla or British Virgin Islands that offers low or zero corporate tax rates, strict privacy rules, and favorable tax laws. These features attract multinational corporations seeking to reduce their global tax liability and manage profit shifting in a legal and structured way.

No, using a tax haven is not automatically tax evasion. While illegal tax evasion involves deliberately hiding income or assets, many businesses operate in tax havens legally to benefit from lower corporate tax rates and efficient tax structures. Proper compliance with international tax laws is essential.

Tax havens allow multinational corporations to lower their effective corporate tax rate by routing profits through jurisdictions with more favorable tax treatment. This is typically done through legal means such as profit shifting and the use of offshore subsidiaries.

The Cayman Islands and British Virgin Islands are preferred for their zero income tax, legal stability, and lack of public registers. These tax havens are widely used for asset protection and to manage tax liability without triggering complex reporting requirements found in higher-tax jurisdictions.