List of offshore zone countries. Blacklists of offshore zones in Russia List of offshore zone countries

Recently, citizens of our country are increasingly faced with such a definition as offshore zone countries. But what does it represent, what role does it perform? This remains unclear to most in business.

Therefore, it is necessary to pay more attention to the disclosure of this topic and show what is actually hidden under this terminology.

As a rule, such benefits are used by companies that are not residents of the country or, simply put, by foreign companies.

All tax payments paid by companies are sent to the state budget through the structural divisions of the Ministry of Finance of the offshore country.

Companies owned by Russia often transfer all their assets abroad, so our country does not receive huge financial injections, which is very bad for the country's economy.

Registration in such a zone has a number of advantages:

the company's funds are not subject to global economic control;
the level of taxation is significantly lower;
the company’s funds are protected and cannot be seized by a court decision of the country in which the violation was recorded;
major world banks are located in offshore zones, and, therefore, storing funds is safer;
information about the company and its management is not subject to disclosure;
it is allowed to conduct any currency transactions among other participants in the offshore zone, even those that are prohibited by law in many countries of the world;
information about ongoing transactions remains uncontrolled and is not subject to public disclosure.

The offshore zone is presented as a huge financial center where global companies gather, which means huge capital is directed to support the country’s economy, giving it huge advantages over others.

Doing business in such a country is not only a profitable activity, but also economically justified. The maximum profit earned by companies often exceeds several times the profit of the largest companies registered in our country.

The concepts of offshore and offshore zone have nothing in common, as they are completely different in nature. An offshore refers to a specific company, and an offshore zone can be limited to an entire state.

Features of the offshore zone

Offshore zones have gained the greatest popularity due to their unique features:

The procedure for registering companies is simplified and does not require lengthy consideration by control authorities and a division of the Ministry of Finance.
Profit and turnover taxes are required to be paid to the Federal Tax Service at significantly reduced rates.

In addition, it should be understood that, like any other country, an offshore zone is a full-fledged operating state, so in some cases an entrance fee may be charged for the registration procedure. The amount in each zone is different.

A completely logical question arises: what is the benefit for the state itself in allowing the creation of offshore companies? Are any companies really registered with the permission of the Ministry of Finance?

The fact is that, thanks to the existence of reduced tax rates, almost all the largest companies in the world are flocking to these offshore zones, which means the influx of funds into the country is carried out at an incredible speed.

The state benefits due to the number of companies that come to its territory; moreover, they carry out their activities in the territories of other states, which means they do not damage the economy and do not take away jobs from the indigenous population.

List of offshore zones

Turning to the world map, you can be horrified at how naturally offshore countries are located. Each continent includes several states that provide similar conditions for the development and registration of commercial companies, while today there is a list of offshore companies from 50 states.

Some of the most beneficial in terms of reduced taxation include:

Scotland;
Great Britain;
Cyprus;
Isle Of Man.

By registering in these states, commercial companies can legally avoid paying taxes and penalties from the Federal Tax Service, and therefore develop their business model to the maximum, successfully competing with Russian companies.

The distribution of offshore zones across continents allows you to choose the one that is closest to the company’s business and is not subject to the supervision of the Ministry of Finance. For example, considering Europe, we can highlight the following countries:

Latvia;
Holland;
Switzerland;
Slovakia;
Poland;
Great Britain and others.

In most cases, they register large holding companies, as well as those that are successful in the field of IT technology, tourism and agriculture. It is believed that these countries have the best and most effective taxation models for the development of these areas of business.

But if we consider the Asian part, the list of offshore zones is least developed in China and Singapore. These countries allow research companies in the field of high-tech processes to develop most effectively.

Classification of offshore zones

It is customary to divide the list of offshore zones into 2 types:

The conditions created for foreign companies completely exclude the payment of taxes on profits. However, in order to be able to refer to the country’s offshore companies, the company is required to pay an annual fee, the amount of which can vary in both directions.
An area providing preferential conditions for companies. This type creates a kind of financial center in the economic model of the state, and the opportunity to conduct business at a reduced interest rate attracts hundreds of companies to the offshore zone every year.

Before choosing an offshore zone for registering a company, you should study the current legislation of the country, as well as analyze the countries where the company is allowed to conduct business.

Most analysts are inclined to believe that registering companies on the islands, where taxes are completely absent, is the best option.

In addition, you will not have to worry about the safety of confidential information, since it is offshore zones that are most prepared at the legislative level for the protection of information about trade secrets.

And often, when approached by the judicial authorities of our country, such states refuse to provide information about the persons who own the company. Offshore zones do not have their own army, because they understand their purpose and no country would want to start a military conflict with such a zone where the money of its citizens can be stored.

Estonia, Switzerland, Portugal and Cyprus are ideal for conducting honest business. These countries, taking advantage of their jurisdiction, offer low tax rates and deductions that allow companies to successfully develop without causing financial difficulties and legal problems.

Conclusion

As previously noted, you should always be careful when choosing an offshore zone, and unpreparedness for the current legislation of the country in which you plan to register a company will lead to complex economic problems.

Consult with financial experts, clarify all the details in advance so as not to find yourself in an unpleasant situation.

A correctly chosen offshore zone will allow you to increase the company’s capital quickly, efficiently and reliably preserve personal information about the owner and shareholders, and protect you from attacks by the Ministry of Finance of the Russian Federation and the Federal Tax Service.

Evgeny Smirnov

Bsadsensedinamick

# Business nuances

The most popular offshore companies in 2019–2020

The most reliable offshore zones include the Cayman Islands, Hong Kong, Singapore, Taiwan, Guernsey, Cyprus, the Isle of Man, and Panama.

Article navigation

Expanded interpretation
What is a classic offshore
Special economic zones
Offshore jurisdictions of the world
Are there offshore companies in Russia?
conclusions

Economic terminology rapidly follows economic practice, which sometimes leads to different interpretations of some concepts. More recently, offshore was understood as a territory within which it is convenient to hide illegally acquired capital.

Now it turns out that these are not only poor island states with exotic names that have created a “tax paradise”, but also quite ordinary European countries or parts thereof. Moreover, there is an opinion that Russia also has its own offshore companies.

Is this true, or has the term simply become more widely interpreted? What is called offshore today? How many are there on the planet? These and other questions are covered in the article.

Expanded interpretation

The idea of avoiding taxation by registering a business entity in a territory with a milder fiscal climate is quite old. It has been used by traders and industrialists since ancient times, and formally the term “offshore” was introduced into circulation in the 50s by American newspapers.

What is a classic offshore

The concept of offshore was finally formed after the collapse of the largest country in the world - the British Empire (which should not be confused with England and the United Kingdom). Until 1947, the sun never set over the territory of the kingdom. Many colonies, having achieved independence, did not begin to live richer: the lack of managerial personnel affected them, and there were other reasons.

After some time, the idea arose that it was possible to replenish poor state budgets by registering enterprises on the territory, simultaneously freeing them from taxes and the intrusive attention of national fiscal authorities. Such an attractive tax and legal climate immediately attracted many entrepreneurs, both law-abiding and not so law-abiding.

Since then, an opinion has formed that, in the classical sense, offshore zones are islands in the equatorial belt of the planet, where they do not ask where businessmen got their money. And where they are located physically, these entrepreneurs, is also not of interest to local authorities. All that was required was to comply with local legislation, and it was very liberal.

Definition: offshore is a country or part of it, within which special preferential conditions are offered to registered enterprises with foreign capital.

Special conditions were initially understood as four characteristics:

The best tax system for business, that is, in fact, its absence. A businessman only needs to pay the registration fee.
Fast and extremely simple preparation of legal documents for a business.
Simplified reporting or absence of mandatory reporting requirements.
Guaranteed secrecy about the founders, their partners and transactions carried out by their banks.

Despite the obvious harm that offshore companies bring to national budgets, all developed countries have come to terms with their presence on the world economic map. It is possible that there were no formal reasons to put pressure on the young independent “banana republics”. However, history knows more than one example when very strict measures (even interventions) were applied to militarily weak states for less serious reasons.

Be that as it may, classic offshore companies have been operating successfully for several decades. The schemes for working with them are simple to the point of primitiveness. A common method of selling goods to an offshore company with minimal profit is to pay a reduced tax in the exporting country. Then the same product is sold at the market price, and no tax is paid at all, because the intermediary company is registered offshore. Moreover, both “partners” belong to the same owner. But no one knows about this, because the offshore company keeps the identity of the beneficiary secret.

Businessmen and corrupt officials argued only about which island states were the most popular among them and for what reasons. However, this situation could not persist indefinitely.

Special economic zones

Nowadays, opening an enterprise in a classic offshore has become unofficially considered a sign of dishonesty. Of course, this fact itself could theoretically be hidden, but only until the first issued invoice or concluded agreement - payment and other details are indicated on these documents. If the company's registered address is the Virgin Islands or Bermuda, this in itself is alarming.

At the same time, so-called free (or special) economic zones began to develop, which in some respects correspond to the concept of offshore, but not to the fullest extent. Their differences are that, firstly, taxes are paid there, although relatively low, and secondly, the identity of the beneficiary can be found out.

In other words, of the four criteria for a territory to belong to offshore, only two remain: simplified registration and preferential taxation.

In addition, a special economic zone can only be a part of a state - it usually does not occupy its entire territory.

The Hong Kong SEZ can serve as a clear illustration. When Hong Kong came under Chinese jurisdiction, many analysts assumed that the PRC authorities would apply the country's general legislative norms to it. This did not happen for several reasons, in particular because there was an agreement on this topic with the UK. Hong Kong has a special economic zone that promotes high business activity. In the classical sense, this is not an offshore, but this unusual city is often called one.

Special zones began to appear in different countries, including the most economically powerful ones. The main goal pursued by states when creating them is to stimulate the development of territories or sectors of the national economy, as well as to attract investment, internal and external. This factor also indicates a difference with a classic offshore.

The terminology has changed. Now, in fact, an SEZ is called an offshore. A hybrid concept of offshore zones has also emerged and their division based on the privileges that an entrepreneur receives by registering an enterprise there:

Low tax zones. Typically, companies (they are also often called offshore companies, although this is not entirely correct) are required to pay a registration fee and a single annual contribution at a fiscal rate of 0%.
Conditional offshore. In their territories, you can register an international company, but you cannot carry out direct commercial activities.
It is also useful to understand the reason for the interest of states opening zones on their territory with special conditions for doing business. By providing benefits, they lose part of budget revenues, but in return they require compliance with certain conditions.
Business transparency. The entrepreneur is obliged to keep accounting records and at the same time he cannot be guaranteed to remain incognito. If the state of which he is a resident sends a request to the offshore, it will receive a response about the identity of the beneficiary and other data of interest to law enforcement and tax authorities.

The enterprise must provide employment to the local population within established boundaries, for example, hire a secretary, accountant or lawyer - according to the capabilities and scale of the business.

These conditions (especially the first of them) significantly reduce the attractiveness of non-classical offshore companies in the eyes of those who want to conduct business secretly. However, such procedures also have a big advantage: it increases trust in the company. After all, the desire to reduce the tax burden in itself is natural. If the entrepreneur is not doing anything illegal, then why shouldn’t he take advantage of this opportunity?

Every year, a list of the most reliable countries and a list of the best offshore companies operating in them are compiled. More on this later.

Offshore jurisdictions of the world

Every entrepreneur is looking for the best offshore in the world based on their goals.

Switzerland can be considered as such very conditionally, but certain signs are present. These are very low fiscal rates in some cantons, agreements with many countries to avoid double taxation and the highest possible confidentiality of business information. However, if there are compelling reasons to suspect illegal activity, it will still be provided. Maintaining financial statements is mandatory. A company registered in Switzerland is unlikely to be suspected of being used for money laundering.

Other European states have created similar types of offshore companies on their territory: the Netherlands, Ireland, Luxembourg, Liechtenstein, Denmark, Malta, Estonia, etc. The UK is leaving the EU, but this country also has preferential zones. Procedures differ in different states: tax rates range from 1 to 12%. At the same time, the authorities attract businessmen not only with them, but also with the general comfortable conditions created for entrepreneurial activity.

The Cayman Islands are considered a classic “terry” offshore. Foreign companies do not pay taxes here, and the opacity of business is protected at the legislative level. The company is registered a maximum of 24 hours in advance. The result is 100 thousand business entities, five hundred banks, 8 hundred insurance companies and 5,000 mutual investment funds. The problems of a small country have been solved, at least in terms of employment of the population - anyone can find a job if they want.

The Marshall Islands, Seychelles and the South American country of Belize use roughly similar laws. An offshore registered here allows you to develop a business, in particular banking. Belize law prohibits the disclosure of trade secrets, including those about beneficiaries.

The “Panama scandals” recently brought fame to a country previously known more thanks to the famous canal dug between two oceans. The state has not concluded an international agreement on combating financial fraud with the FATF and OECD organizations. It is difficult to judge how much this fact contributes to the popularity of Panama in world rankings, but there are obviously enough people willing to register their company there.

Cypriot banks suffered greatly during the massive crisis. Since the beginning of 2013, the Greek part of the island has been excluded by the Central Bank of Russia from the list of offshore zones. The remaining privileges include a reduced income tax rate and a simplified notification procedure. The debate over whether Cyprus is an offshore zone or not has been put to rest.

Andorra can also hardly be classified as offshore today. The main advantage of this country is the right granted to foreign businessmen to own local enterprises outright. Taxes are attractive, but the rates are not zero: on profit 10%, VAT - 4%.

A relatively respectable offshore company was created on Curacao, an island in the Caribbean Sea. Profits are taxed at only 2%. Mandatory annual audits and reporting have been established.

The British Isles have different jurisdictions: Maine, Guernsey, Jersey, which are formally considered independent states belonging to the Commonwealth. The zones adopted for them are oriented according to specialization. For example, in Guernsey it is profitable to engage in electronic gambling business, in Maine it is convenient to register shipping companies, and Jersey is optimal for providing financial services.

England, Northern Ireland, Wales and Scotland have their own special economic zones- parts of the United Kingdom. English offshore companies for LLP (Limited Liability Company - an approximate analogue of our LLC) are considered one of the most respectable; they combine legal transparency and tax flexibility.

As is probably already clear, offshore zones these days refer to territories that provide benefits to foreign businesses. In the US, these include Puerto Rico and the US Virgin Islands (states that America fully controls), as well as the states of Delaware and Wyoming. American tax rules are very complex, but there are objective advantages in offshore tax havens.

Malaysia uses the island of Labuan as a special territory. It can also be considered an offshore very roughly - we are talking only about a favorable tax climate and a ban on disclosing the identities of business participants.

The reasons why Singapore is sometimes called offshore is mainly due to the territorial principle of taxation. If a citizen of this country received income outside its borders and did not deposit it into his bank account, then he does not pay taxes.

There are benefits and there are many of them. At the same time, Singapore has signed agreements on the automatic provision of information on beneficiaries with many countries, including Russia. Reporting and accounting are required. Singapore is not an offshore, it is simply a country in which it is profitable to do business.

The United Arab Emirates stands on its own, being a state with a federal structure and general government. There are no taxes on individuals as such in the UAE, which gives some grounds to equate this country to an offshore. Numerous benefits also support this opinion.

The Emirates has zones with special economic conditions: Dubai and Ras al Khaimah. The main advantages of registering a business here are political stability, developed infrastructure and an efficient banking sector. The movement of capital is practically unrestricted.

There are also disadvantages. Very high cost of the registration procedure, difficulties in registering ownership of real estate and strict licensing. There are also complaints about some other bureaucratic problems in the UAE. Reviews are generally positive, but local practices are not always clear to Europeans.

In the classical sense, the Emirates cannot be considered an offshore. It is impossible to launder or hide money in the country.

Preferential tax zones have also been created in post-Soviet countries. Against the background of the constant struggle against investment leakage, in the Russian Federation, Belarus and other former republics of the USSR, legislative acts are being adopted to prevent the outflow of capital to uncontrolled territories. As for the SEZs that were opened by Kazakhstan, Armenia, Azerbaijan and some other countries, they do not meet most of the characteristics of an offshore.

The purpose of special economic zones is the development of individual regions and industries. For example, a target industrial, tourism or IT offshore is created. Georgia has followed this path, simultaneously exempting foreign companies from taxes (including on property) and allowing them to change their activity profile within the limits of the law.

Are there offshore companies in Russia?

In the original understanding of the term, there are no offshore companies in Russia. The country has special administrative regions (SARs). The rules established therein provide benefits for enterprises registered on their territory.

According to Russian legislation, local authorities are given the right to set their own taxes and fees. If a legal entity does not conduct economic activities within the boundaries of the administrative unit that created the internal “offshore zone”, it is exempt from the fiscal burden. In 2020, the list of “offshores” in Russia contains 25 items, divided according to their focus.

In addition to the SAR, based on the Decree of March 14, 2004 in the Republic of Kalmykia for some categories of entrepreneurs the income tax rate was reduced to 5%.

The desire to develop the Far East and attract foreign capital to this region is expressed in the adoption by the State Duma and approval by the Federation Council of a bill on the creation of special administrative districts on Russky Island and Kaliningrad, positioned primarily for foreign investors.

Other internal territories of the Russian Federation provide tax benefits on approximately the same legal basis. However, even today, many entrepreneurs prefer to work with foreign special economic zones (especially if it is an IT offshore), registering their companies there, located, for example, in Yekaterinburg.

In Russian SARs, businessmen who have registered their enterprises on their territory are provided, in addition to a reduced income tax rate, with additional benefits:

Reduced transport fees.
Exemption from taxes on land resources and property (for a period of up to 10 years), if it was acquired for economic and production activities.
The right to use accelerated depreciation of fixed assets.
Reduced insurance premium rates (until 2019).

conclusions

Registration of an enterprise in a classic offshore leads in our time to a certain “toxicity” of business and a decrease in the level of trust.

The most popular are economic zones (free, special, special administrative regions, etc.). They differ from offshore companies in their limited anonymity capabilities, but in terms of reducing the tax burden they are similar to them.

Offshore zone- this is a separate part of the territory of a state or the entire state, in which special tax, registration, licensing and legal regimes are established for non-resident companies to conduct their activities. Moreover, in most cases, the main condition for staying offshore is the conduct of activities by a non-resident outside the given offshore territory.

Please pay attention! The cost data given is approximate. More accurate data must be clarified with registrar companies or registration legal services of a particular offshore company.

Table. List of offshore zones 2019:

Numbering	Offshore state	Approximate cost of registration, in dollars	From the second year, in dollars
1	Austria	13000	5300
2	Anguilla	2200	1500
3	Angola	15000	9500
4	Andorra	13100	6800
5	Antigua	2950	1680
6	Afghanistan	—	—
7	Bahamas	2600	1520
8	Bangladesh	3390	1990
9	Barbados	1050	900
10	Bahrain	7875	4500
11	Belize	1790	1250
12	Belgium	21325	6272
13	Benin	10250	—
14	Bulgaria	2900	2500
15	Bolivia	13900	7450
16	Bosnia and Herzegovina	11900	6780
17	Virgin Islands	1990	1390
18	Brunei Darussalam	22500	15000
19	Burkina Faso	15300	8430
20	Burundi	12450	7550
21	Butane	—	—
22	Vanuatu	4690	2950
23	Great Britain	2000	970
24	Hungary	4900	3458
25	Gabon	1200	880
26	Guyana	—	—
27	Haiti	—	—
28	Gambia	—	—
29	Ghana	—	—
30	Guatemala	—	—
31	Guinea	—	—
32	Guinea-Bissau	—	—
33	Germany	8650	2300
34	Guernsey	11670	6690
35	Gibraltar	3380	1830
36	Honduras	—	—
37	Hong Kong	2490	1570
38	Grenada	—	—
39	Greenland	—	—
40	Greece	7998	3990
41	Guam	—	—
42	Denmark	17120	6180
43	DRC	—	—
44	Jersey	3740	6460
45	Djibouti	—	—
46	Dominica	2100	1280
47	Dominican Republic	—	—
48	Zambia	1200	990
49	Zimbabwe	900	775
50	Yemen	—	—
51	India	7060	1480
52	Jordan	1690	1540
53	Iraq	800	670
54	Ireland	5640	2880
55	Iceland	5900	1950
56	Spain	7755	4675
57	Italy	8755	1260
58	Cape Verde	—	—
59	Cayman Islands	6200	5250
60	Cambodia	—	—
61	Cameroon	1500	1380
62	Campione d'Italia	15160	0
63	Canada (British Columbia)	2990	2470
64	Canada (New Brunswick)	2950	2495
65	Canada (Ontario)	3450	1980
66	Kenya	1300	1050
67	Cyprus	2760	1250
68	Kiribati	—	—
69	Colombia	1600	1250
70	Comoros	900	780
71	Costa Rica	4480	975
72	Ivory Coast	1400	950
73	Curacao	3000	2350
74	Lao PDR	—	—
75	Latvia	3430	2270
76	Lesotho	—	—
77	Liberia	1420	890
78	Liechtenstein	14060	7080
79	Luxembourg	14250	11340
80	Mauritius	9990	3485
81	Mauritania	15400	5350
82	Madagascar	9340	5780
83	Madeira	12270	3150
84	Macau	16470	5190
85	Malawi	—	—
86	Malaysia: Labuan Island	—	—
87	Maldives	—	—
88	Malta	6300	4210
89	Marshall Islands	2200	1160
90	Micronesia	—	—
91	Mozambique	800	510
92	Monaco	7880	3890
93	Montserrat	—	—
94	Myanmar	—	—
95	Nauru	—	—
96	Nevis	2300	1420
97	Nepal	—	—
98	Niger	—	—
99	Nigeria	—	—
100	Netherlands	15240	5010
101	Nicaragua	—	—
102	Niue	1870	1400
103	New Zealand	7980	1310
104	Norfolk	5995	4895
105	UAE (Ajman)	4890	3190
106	UAE (Dubai)	15980	10980
107	UAE (Ras Al Khaimah)	6190	3740
108	Oman	—	—
109	Cook Islands	—	—
110	Pakistan	—	—
111	Palau	—	—
112	Palestine	—	—
113	Panama	2700	1160
114	Panama	1370	—
115	Papua New Guinea	—	—
116	Paraguay	—	—
117	Peru	—	—
118	Portugal	17130	10660
119	Puerto Rico	—	—
120	Republic of the Congo	—	—
121	Rwanda	—	—
122	Samoa	940	780
123	San Marino	610	540
124	Sao Tome and Principe	—	—
125	Swaziland	—	—
126	Seychelles	1390	950
127	Senegal	—	—
128	Saint Martin	—	—
129	Saint Vincent and the Grenadines	1400	1110
130	Saint Lucia	2390	1580
131	Singapore	3820	2145
132	Slovakia	6710	2180
133	Solomon Islands	—	—
134	Somalia	—	—
135	Sudan	—	—
136	Suriname	—	—
137	USA (Delaware)	2100	1480
138	USA (New York)	2100	1520
139	USA (Oregon)	2100	1380
140	Sierra Leone	—	—
141	Taiwan	8100	5280
142	Taiwan (China)	—	—
143	Thailand	8730	3840
144	Tanzania, United Republic	—	—
145	Turks and Caicos	2480	1900
146	Timor-Leste	—	—
147	Togo	—	—
148	Tonga	—	—
149	Trinidad and Tobago	—	—
150	Tuvalu	—	—
151	Tunisia	—	—
152	Türkiye	6920	1995
153	Uruguay	6800	4700
154	Faroe Islands	—	—
155	Fiji	—	—
156	Finland	11962	5700
157	CAR	—	—
158	Chad	27100	12550
159	Czech	7680	4150
160	Switzerland	17010	7080
161	Sweden	24340	8300
162	Scotland	2350	990
163	Ecuador	—	—
164	Equator. Guinea	—	—
165	El Salvador	—	—
166	Eritrea	—	—
167	Estonia	6140	2500
168	Ethiopia	1100	1040
169	South Sudan	600	550
170	Jamaica	11585	6485

We also note that from February 19, the order of the Federal Tax Service (dated December 4, 2018) No. ММВ-7-17/786, in accordance with which the black list of offshore zones that do not exchange tax information with Russia, was updated. Now this list includes only 100 countries and 7 offshore territories.

What are the benefits?

Such offshore countries and territorial spaces within states provide foreign entrepreneurs and investors with special conditions for conducting business activities. These advantages and conditions are most often enshrined in legislation:

simplified and time-shortened registration of a legal entity;
simple tax and accounting system;
complete absence of audits;
reduced tax rates;
a special security system to protect persons engaged in credit, fraudulent and competitive activities;
universal legislative standards that allow you to build a business to solve different problems;
a reliable system for protecting personal data of owners of registered companies;
wider accessibility to other financial markets and financial instruments;
and others.

However, it is worth noting that such zones are not completely safe from the point of view of disclosing confidential information. An example of this is the data leak from Mossack Fonseca as a result of Panamagate, which occurred in April 2016. This company has been providing support and registration of legal entities in the Panama offshore for a long time. From the data stolen and published by the hacker group, it became known that among its clients there were many citizens of Ukraine and Russia.

List of offshore zones in the world List of offshore zones in the world website website

Most people interested in business issues are familiar with the term “offshore”. Jurisdictions differ significantly from each other, and there are several lists of low-tax zones depending on their grouping. Such lists are compiled for different purposes - in the interests of “scientific” classification, as well as for:

countering the withdrawal of capital and assets to jurisdictions that do not cooperate with global communities in the field of tax regulation;
delimiting the risks and consequences of working in a certain jurisdiction - this is, in particular, relevant for the banking sector;
improving international activities to combat criminal proceeds - the OECD, FATF and other organizations compile “black lists” of countries where money is laundered from the illegal trade in arms, drugs, or profits from offshore companies are used to finance terrorism.

You should not assume that the list of offshore zones in the world is a list of “untouchable” countries in which respectable entrepreneurs cannot work. It includes states with a high reputation that are quite suitable for business. Creating a company offshore does not in itself make an entrepreneur a fraudster, since the criteria for inclusion in the list are formed differently. The lists include jurisdictions where:

there are special tax conditions: not necessarily for all companies or completely “zero” - in Hong Kong, for example, the rate is fixed, in Ireland (a respectable European country) it is high, but there are opportunities to reduce it;
the confidentiality of the owners, beneficiaries or managers of the business is maintained - it must be said that the trend in recent years has been a decrease in anonymity;
the requirements for accounting and/or reporting have been simplified - as in the previous case, more and more offshore companies, under pressure from the international community, are tightening them;
it is possible to optimize export-import payments and so on.

Russian list of offshore companies

The Central Bank of Russia created a list of jurisdictions back in 2003 and approved it with an instruction, in the appendix to which was a list of zones classified as offshore in the Russian Federation. It included 40 countries and territories (such as the US state of Delaware), but was expanded in 2016. The changes are related to the adoption in the country of acts designed to reduce the withdrawal of capital abroad. Together with the Federal Tax Service, the Central Bank has formed a list of 111 states and 22 territories, which should help determine whether firms registered there must pay taxes in the Russian Federation. The list is also needed for:

regulation of the processes of opening accounts in foreign banks by Russian businesses and individuals - requirements for operations depend on the group to which the jurisdiction falls;
establishment by banks of the necessary correspondent agreements with non-resident credit institutions;
optimization of currency control and so on.

There is another list created for tax purposes and approved by the Ministry of Finance. The Central Bank groups offshore companies into three categories:

First: it includes countries whose rules correspond to world standards of financial control - these are Ireland and the British Isles (Guernsey, Maine, Jersey), Malta, Hong Kong; Switzerland and Singapore also belong to them.
Second: classic offshore jurisdictions and territories - from Belize, Monaco and the BVI to Delaware, Gibraltar and Bahrain.
Third: states that are not “actively” cooperating with international organizations - the Marshall Islands, Liechtenstein, Andorra, Nauru, Liberia, and so on.

Depending on the group, the Central Bank regulates the procedures for opening correspondent accounts (without restrictions on own funds or with a partner having at least 100 million euros) and creating reserves. For the first group, when transferring money, a “buffer” is not needed; for the second and third, they amount to 25 and 50% of the transaction amount, respectively.

Features of the world lists of offshore companies

In world practice, a clear classification has now emerged, according to which lists of offshore companies are formed according to the following criteria:

Exemption from taxes for companies registered in the jurisdiction - classic zones without exchange controls and with nominal services include, for example, Belize and Panama; zero rates apply in the Seychelles and Marshall Islands.
With preferential taxation with open information about the management of the company: low rates are in Ireland, Portugal, Estonia, Gibraltar, and the list of offshores differentiated by territorial basis or type of activity includes Latvia, Switzerland, Singapore, Costa Rica.
With conditions typical for low-tax jurisdictions: The UK or Cyprus cannot be called offshore, but you can work there effectively thanks to reduced duties, a simplified registration procedure and other preferences.

They also compile lists of offshore companies depending on the degree of loyalty to resident companies. The list of classic zones includes states that respect the confidentiality of beneficiaries, with simplified accounting requirements - Mauritius with a completely closed registry, the Bahamas, Liechtenstein. Prestigious and reliable jurisdictions include countries that disclose information about transactions, founders and beneficiaries of businesses - Cyprus, Luxembourg, Hong Kong and many others.

Given the tightening of international tax regulations and competition in global markets, jurisdictions are constantly changing requirements for companies, and in turn, “black” and “white” lists are constantly updated.

To understand the criteria and use jurisdictions profitably and legally, you will need professional support. Employees of the Prifinance company will tell you about the list of global offshore companies and the requirements for them and advise on all aspects of work in convenient jurisdictions.