The first is to maintain policy stability. This is a prerequisite for an international tax haven.
Policy stability must be guaranteed by political stability, tax policy and institutional stability. In recent years, Panama and Gibraltar's ability to attract foreign investment has been greatly weakened due to political instability.
Second, the tax burden is low. This is the most important condition for an international tax haven.
The lower the tax burden, the more attractive it is to investors. For example, there is almost no turnover tax in Hong Kong and the tax burden in Macao is very low, so these places have become a paradise for investors. 1963, Monaco succumbed to the demands of the French government and gave up the tax strategy with low tax burden. Therefore, it can't attract investors who have a strong interest in it overnight.
Third, the supporting facilities are relatively complete.
For building an attractive tax haven, a good geographical location, convenient and fast traffic conditions, quiet and superior natural environment, modern and efficient telecommunications facilities, loose foreign exchange management means and convenient financing channels are extremely important.
The fourth is the improvement of supporting policies.
Supporting policies mainly mean that international tax havens have signed international tax agreements with major developed countries. Because multinational companies and other multinational investors engage in business activities in tax havens or regions, they should not only consider the relatively low tax burden, but also consider the legalization of preferential treatment, that is, the preferential tax treatment enjoyed in tax havens can be recognized by the investor's country. Therefore, if a tax haven country or region has signed a tax preference, dividend or interest reduction and exemption with the host country. It is equivalent to another concession on the basis of reducing the local tax burden for multinational investors, thus enhancing the attractiveness to investors.
Fifth, strict confidentiality measures.
As an international tax haven, besides preferential tax policies and high transparency, it also needs to provide confidential services. In general, the reason why multinational investors register in international tax havens is because the tax burden in the country of residence is relatively high and the management measures are relatively strict. Most countries often tax the income of operators from all over the world, so if tax havens can't provide confidential services, investors will lose the meaning of operating in tax havens. In fact, at present, the business and banking of most tax havens in the world have a perfect and strict secrecy system, and some tax havens even specify secrecy measures in the form of legislation to keep the business activities of multinational investors and the property of tax havens confidential.