cryptohunter
Active member
- PPF Points
- 2,578
There are a variety of common tax planning strategies used by businesses in offshore jurisdictions to reduce their tax liability, some of which include:
- Transfer pricing: Adjusting the prices of goods or services between related entities in different countries in order to minimize the tax liability in higher-tax jurisdictions.
- Holding company structures: Establishing holding companies in low-tax jurisdictions to hold the ownership of intellectual property, investments, and other assets, which can reduce the tax liability in the countries where the assets are located.
- Offshore trusts: Setting up offshore trusts in low-tax jurisdictions to hold assets and income, which can provide tax savings and increased financial privacy and confidentiality.
- Offshore corporations: Establishing offshore corporations in low-tax jurisdictions to carry out business activities and hold assets, which can reduce the tax liability in the countries where the assets are located.
- Interest deductions: Maximizing interest deductions on cross-border loans between related entities, which can reduce the taxable profits in higher-tax jurisdictions.
