Offshore Investment
Offshore investment means investing your money in foreign countries. People of developed countries like U.S.A, U.K., Canada make offshore investment to grow their money because in these countries they have to pay heavy taxes. Countries which offer offshore investment charge less tax and minimum legal formalities so that a large amount of people invest in their country.
Advantages:
Tax Reduction: Offshore countries charge less tax on foreign investors so that a large number of foreigners invest in their country. Many small countries which have limited population and limited resources attract foreign investors to strengthen their economic growth. These countries offer tax incentives to foreign investors. Offshore investors form a corporation in that country which keeps a record of their investment. This corporation saves them from heavy tax. This corporation is not involved in any local activity so the government of that country does not impose any heavy tax on it.
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Submitted by admin on Fri, 2006-11-24 05:20.