Tag Archives: tax havens

ILN Today Post

To be continued? There’s still demand for setting up companies abroad

While efforts to hunt down offshore companies may appear to be yielding results, there’s been no slackening of demand for setting up companies abroad. However, tax avoidance and tax evasion, as the primary motives for doing so, are giving way to other objectives.

Automatic information exchange, restrictions on bank secrecy, tightening of anti-money laundering rules and strict KYC rules… These are just some of the measures being deployed by developed countries around the world to stop hot money being hidden away in tax havens. Meanwhile, in developed countries income tax rates have fallen. In Hungary, for example, earnings can be withdrawn from companies with single-digit corporate tax and only 15% personal income tax. But has this removed the need for businesses to transfer their income streams and activities to foreign companies? Not in the least.

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