As far as I can tell, countries/territories (like the Cayman Islands) levy absolutely no taxes on corporations thereby gaining nothing from the corporations being registered there. Meanwhile corporations save billions not paying taxes in the countries they actually do business in. Seems like a bit of a one-way relationship. So what do the tax havens gain from allowing these companies to register there?
In: Economics
It’s work for lawyers and bankers in the country.
And it’s money in their banks.
And many “tax havens” actually charge a very small tax. 5% of billions is still a lot of money. It’s better for the country than a high percentage of a tiny amount of money. And it’s better for the company than paying a “normal” 20%+ tax.
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