What is an offshore zone?

Today, the concept of "offshore" becomes every dayincreasingly popular, its widespread use is certainly of interest. If experts from the sphere of economics and law are familiar with him very closely, then for an ordinary citizen the meaning of this word is not always clear.

So, by definition, offshore representsis a certain financial center that constantly attracts capital from abroad through the provision of special benefits and tax privileges for various companies. Offshore zones of the world are strongly scattered geographically: Gibraltar, the British Virgin Islands, the Dominican Republic, the Seychelles, and even Russia. However, in our country, such an economic arena has a slightly different name, namely “The zone of preferential taxation”.

Offshore zone. Concept

An offshore zone is a country or part of it, whereobservance of certain conditions there is an opportunity not to extinguish taxes. Also, you do not need to quarterly submit an accounting report. Offshore zone, as a rule, is characterized by a number of privileges, among which are the following: diverse tax regime, financial development, economic stability, etc. Experienced entrepreneurs are always with particular attention to her choice, given all the above factors. For registration of each particular company should choose the most favorable conditions for cooperation.

Offshore zone. Classification

• Classic offshore zone (zerotaxation). In this case, the company undertakes to pay a certain fee to the state annually, but it does not charge taxes and does not require accounting reports. This type includes the following areas: Cayman Islands, Nevis, Belize, Seychelles, Panama.
• States with a territorial signtaxation. In this case, the profit that was received during transactions with sources located in this jurisdiction is subject to taxation. Thanks to this kind of system, there is the possibility of exporting goods, on the one hand, and the inflow of investments, on the other. List of states: Costa Rica, Malaysia, Brazil, Morocco, United Arab Emirates, Algeria.
• Countries where exemption is providedtaxes on certain activities. For example, when making a profit from real estate in the territory outside the offshore zone (Denmark, Lithuania, Hungary, Bulgaria, Poland, Switzerland, Slovakia).
• Territories where there is no need to pay taxes to the state for a group of certain legal and even quasi-legal entities (Cyprus).
• Low taxation.In this case, the state establishes sufficiently low tax rates in order to develop the country from an economic point of view and attract foreign investment (Cyprus, Estonia, Switzerland, Montenegro, Ireland, Portugal).

Development

Currently, the list of offshore companies is constantlyit is replenished, now their number is just over 50. Indeed, as practice shows, such territories are very popular, including among Russian entrepreneurs, hence the expediency of their occurrence.