A tax haven is a systematic approach to impose some tax conditions on the taxpayers or other jurisdiction. For some countries, people never pay the income tax and inheritance tax on time. Many offshore and financial institutions enable the foreigner to create multiple accounts without any hassle.
With the multiple bank accounts, they can misuse the tax policies easily. Interestingly, some immigrants hide their income, assets and the valuable documents in order to reduce or avoid the income tax. The secrecy jurisdiction is known as tax haven, which is a secret element for handle, all the tax issues. The financial secrecy index ranks the tax haven based on the tax rate, size, and secrecy of the country. Bank secrecy is known as bank privacy, which prevents banks providing account information to the foreign clients. In fact, it is a legal jurisdiction that should be followed by offshore banks all across the world. Bank secrecy is essential in many countries includes Luxembourg, Lebanon, Switzerland and so on.
Let us see the list of top ten countries with the biggest tax haven in the world.
At number 10, we have Bahrain in the list of country with the biggest tax heaven. Bahrain is a beautiful island, which is located near the Persian Gulf’s Western shores. Bahrain is a part of Saudi Arabia, which is one of the most traditional oil exporters. But they don’t impose the personal tax on every individual. However, people need to pay the per capita tax and social security taxes. Multiple financial institutions are providing offshore banking service on the island.Therefore, it has less financial secrecy index. Based on the estimated tax value, Bahrain has 660.3 tax rate. Moreover, the secrecy score of Bahrain is 78.
It is extremely easy to open the offshore bank accounts in Germany. But, so many people have started opening multiple accounts with the same beneficiary name, which in turn increase the tax rates. The government has passed many strict rules and regulations regarding the fiscal policies. By implementing the strict policies, the government trying to reduce and control the problem. Nevertheless, there is no such Improvement in the recent days. As per the recent survey, Germany stands 9th in the list of countries with the biggest tax heaven. Based on the Financial Secrecy Index value, Germany got the score of 57 points..
At the number 8 on the list, we have Japan, which is a beautiful country with the number of Intelligent people. Japan is the hub of knowledge and innovation. Japanese works day and dawn for their daily needs. There are plenty of the offshore banks out there, which does not support the deposits amount received by the clients. Hence there is no proper tax policy regarding interest rate and its standard.
However, some of the banking centers in Tokyo could be able to manage, control and monitor the financial aspects in those banks and financial institutions.
7. New Jersey
With the Financial Secrecy Index value of 750.1, New Jersey stands the seventh place in the list of countries with the biggest tax heaven. New Jersey is a part of the United States, which is one of the wealthiest countries today. New Jersey is the center of luxurious offshore banks that hold multiple accounts of foreign clients and multi-millionaire. As per the tax report, New Jersey holds the tax index value of 750.1 with a secrecy score of 78. When it comes to sales tax, New Jersey holds 6.785% tax rate, which was lesser than its previous year by 7%. Also, it is estimated that this sales tax level will be reduced to 6.625% by 2018.
At the number 8, we have Singapore on this list. Singapore is a beautiful island that houses plenty of offshore banks and financial institutions. In comparison to other countries, they get bank accounts easily and quickly. In fact, anyone can quickly open the bank accounts without any hassle. Creating a new bank account is almost easy for most of the cases. This is the reason why Singapore stands eight in the list with the secrecy score of 71. And, Singapore has the secrecy Index value of 1.118 as per the Tax Justice Network.
When it comes to tax evasion, Nevada and Wyoming plays a vital role in that country. Surprisingly, there is no personal income tax, capital gains, gift tax, capital gains, inheritance tax and much more. The absence of the personal tax makes it stand in fifth place amongst the countries with the biggest tax haven. Additionally, there are no franchise taxes, inheritance taxes, estate taxes, corporate tax, unitary taxes, gift taxes, inventory taxes and inheritance taxes.
China is a republic country with strict rules and regulations. There are two Administrative regions including Hong Kong, which is situated near the South coast and is bordered by Pearl River Delta and the South China Sea. Hongkong is surrounded by Pearl River Delta and the South China Sea. For most cities in Hong Kong, people don’t want to deposit a significant amount in offshore banks. Moreover, they don’t like to pay the taxes on time. Be it a sales tax, capital gains, payroll taxes, Chinese do not pay on time. Interestingly, they are the kind of people who never worry about the personal tax.
With the Financial Secrecy Index value of 1,621.2, Luxembourg stands the third place in the country with the biggest tax haven. Meanwhile, Luxembourg is a country which fells under the curse of high divorce rates. Luxembourg is a part of the European nation, which is perfect in all the aspects of basic things such as military, economy, and politics. However, people would like to enjoy the things without paying tax. The capital city of Luxembourg is the largest place. Nonetheless, it got a secrecy score of 68. And, this rate has been increased till today.
2. Cayman Islands
The Cayman Island is one of the most beautiful islands in the world. It is located in the western part of the Caribbean sea, which is surrounded by three beautiful islands includes, Cayman Brac, Little Cayman, and Grand Cayman. These three islands are located next to the Jamaica and Cuba. In the Cayman city, people never pay for the personal tax and capital gains. Also, they ignore the corporate taxes, payroll taxes, inheritance tax, and estate tax. They would love enjoying the life without paying the personal taxes. This is why they have been in the second place on the list of countries with the biggest tax haven.
Switzerland is one of the most beautiful countries with admiring ice land and pleasant climate. It is one of the best vacation destinations. No one denies Switzerland for vocational packages. But, it stands the first place in this list.
It will be not easier to get the income tax from every individual across the world. However, when the government passes strict rules, there will be some drastic changes.