Main tax havens for companies – TheStreet

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To attract business, countries offer tax breaks to large corporations. If multinationals establish their headquarters or subsidiaries in countries with the most attractive tax systems and secrecy-friendly laws, they can hardly pay taxes on billions in income.

According to Institute of Taxation and Economic Policy, in 2020:

the Tax Justice Network, an independent UK-based international network that focuses on research, analysis and advocacy in the area of ​​international tax and financial regulation, tracks the countries that play the biggest role in corporate tax avoidance at the World level. Their index ranks countries based on their “complicity in the global corporate tax haven,” according to the Tax Justice Network.

Each country’s tax system is rated according to the extent to which it allows corporate tax avoidance. Each country’s corporate tax haven score is then combined with the extent of corporate activity in the country to determine the share of global corporate activity at risk of tax avoidance by the country.

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A global minimum tax

An international agreement aimed at guaranteeing large companies the payment of a minimum tax rate of 15% and making it more difficult for them to avoid tax has been signed by 141 countries and jurisdictionsaccording to the Organization for Economic Co-operation and Development.

Early holdouts, including Ireland, Hungary and Cyprus, and later Kenya, Nigeria, Pakistan and Sri Lanka, all joined the deal.

These countries and jurisdictions have agreed to implement 15 gestures combating tax evasion, improving the consistency of international tax rules, ensuring a more transparent tax environment and addressing the tax challenges linked to the digitization of the economyaccording to the OECD.

The agreement calls on countries to enact it in 2022 so that it can enter into force by 2023.

This list is taken from the Tax Justice Network’s 2021 index of top corporate tax havens.

2 Cayman Islands grand cay Yevgen Belich: Shutterstock
3 bed Bermuda
4 rotterdam netherlands sh
5 swiss alfalfa sh
6 Luxembourg rooms
7 Hong Kong 2s
8 jersey channel islands sh
9 Singapore sh
10 UAE Dubai Ivan Svyatkovsky: Shutterstock
11dublin ireland sh
12 bahamas nassau sh
12 london eye Ale ArgentieriShutterstockcom
14 cyprus sh
13 port louis mauritius sh
25 brussels belgium sh
17 The Guernsey Channel is UK sh
11 france paris seine UlyssePixel: Shutterstock.
14 tower shanghai china sh
20 isle of man sh
Malta ZGPhotography: Shutterstock
9 Alicante Spain By Iakov Filimonov SH
munich germany sh
27 hungary budapest sh
2 World manhattan nyc new york sh
15 stockholm sweden sh
turin italy sh
8 Panama Peek Creative Collective: Shutterstock
29 Curacao sh
30 gibraltar sh
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