To create a procedure and a certain system, a certain number of lists appeared in the world, which include different countries. It can be both white and black lists created by influential world organizations or lists compiled, each country individually. The purpose of these lists is to control the movement of capital from the country to the mill, in accordance with numerous standards of tax transparency, and in order to combat money laundering and financing terrorism.

Often the main participants in the offshore lists are classic offshore jurisdictions, such as Belize, Panama, Nevis, Bvo, Seychelles, and so on. All these countries are attractive to international business, as well as to protect assets in the Offshore. In order to somehow influence the outflow of capital, governments from the leading countries of the world who experience, problems with liquidity and capital in general, manipulate their capabilities to make or cross out certain offshore jurisdictions from their lists. For example, Ukraine, which did not make Panama to the list of offshore jurisdictions after Panama signed agreements with the United States.

But let's look more detailed who leads lists and what they happen. There are several global organizations that include a large number of participants' countries, and decisions made by these organizations are automatically accepted in all countries by participants in a particular organization. We are talking about two main organizations:

OECD is an organization of economic cooperation and development. The participants of the organization are 30 states.

FATF - an international organization to combat the financing of terrorism and laundering of criminal capital. More than 30 states take part in FATF activities (here Russia includes).

These organizations have not only white lists, these are countries that meet all tax transparency standards, and are struggling with money laundering and financing terrorism, but also black. Blacklists, these are lists of offshore zones that lead unacceptable tax competition, and also do not comply with international transparency standards.

OECD In his blacklist included the following jurisdictions: Andorra, Monaco, Liechtenstein and Marshall Islands. And Fatf introduced Myanmar, Nigeria and Nauru.

But in addition to OECD and FATF, each country has the right to draw up its own black lists.

Lists of offshore zones of Russia

Russia has as many as two lists of countries, about cooperation with whom it is necessary to think. The fact is that already 2002 in Russia appeared its official "black list" in which offshore jurisdictions did not meet the standard of tax competition. This "black list" is actually divided into two. The first list includes all countries with which there is no agreement on the avoidance of double taxation, and the second list contains countries with which it is not recommended to cooperate. These jurisdictions include:

	Maldives
Bahamas	Marshall Islands
Bermuda	Monaco, Isle of Man
British Virgin Islands	Nauru, Niue Island
guernsey Island	San Marino.
Gibraltar	Seychelles
	Saint Vincent
jersey Island	Saint Lucia
Dominica, Cayman	Terks and Caicos
Canary Islands
Liechtenstein

Data jurisdiction, also appears in Appendix 1 to the instructions of the Bank of Russia dated August 7, 2003 No. 1317-y "On the procedure for establishing by authorized banks of correspondent relations with non-resident banks registered in States and in the territories providing preferential tax regime and (or) Do not envisage the disclosure and provision of information during financial operations (offshore zones). This list suggests that Russian banks cooperate with offshore financial institutions in compliance with the instructions of the Central Bank of the Russian Federation. On this basis there is an additional list that classifies offshore jurisdictions into 3 categories that determine the level of interaction between Russian and foreign credit institutions.

1st group - the most respected offshore zones	2nd group - traditional offshore jurisdictions	3rd group - the least respectable countries
Norman Islands Isle Of Man Singapore Ireland Switzerland Montenegro and others	British Virgin Islands Seychelles Saint Vincent American states Delaware and Wyoming	Marshall Islands Liechtenstein

In addition, Russia has a general list in which all offshore jurisdictions fall. You can in a table below in more detail with this list below.

Lists of offshore zones from OECD

OECD also has several lists, which includes many jurisdictions of the whole world. The first list includes jurisdictions that have introduced most of the global standards on tax cooperation:

Australia American Virgin Islands Argentina Barbados Great Britain Germany Ireland Iceland Mauritius

Netherlands New Zealand Norway United Arab Emirates Isle Of Man Portugal the Russian Federation The Slovak Republic United States of America Finland Czech Republic South Africa Republic

The second list includes countries that have accepted international tax relations standards, but not fully fulfill them. These are zones with reduced taxation:

Antigua and Barbuda Bahamas British Virgin Islands Gibraltar Dominica Cayman islands

Liechtenstein Marshall Islands Montserrat Netherlands Antilles Saint Kitts and Nevis Saint Lucia Saint Vincent and Grenadines San Maryan Cook Islands Islands Turks and Caicos

And there is also a list with other zones: Austria, Belgium, Brunei, Guatemala, Luxembourg, Singapore, Chile, Switzerland. And countries that did not agree to take world-wide adopted norms of tax relations: Costa Rica, Malaysia (Labuan), Philippines, and Uruguay.

However, in spite of the existence of extended lists of international organizations, as already described above on the example of Russia, each country has their own lists. If we talk about European countries, then these lists are mostly obsolete and not expanded. For example, such an offshore zone like Nevis is not included in the offshore lists of Spain and France. And there are such European countries that opposite do not "black lists", but white. This list exists in Estonia. In fact, the country pointed to countries that are most attractive for cooperation, and not opposite.

In practice, if you plan to establish an offshore company and start your business at the international level, then you definitely need to contact the specialists of an offshore business from our Offshore Pro GROUP. Our specialists will provide you with professional advice on the registration of an offshore company, as well as advise you on such aspects as the existence of contracts for the avoidance of double taxation, territorial taxation, and so on. Contact us by email [Email Protected] .

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Big business, as you know, requires paying large taxes. And everyone here is trying to somehow circumvent the requirements provided for by the legislation. Someone disrupts the law, and someone is looking for quite legal paths. One options for the legitimate non-payment of taxes or reduce their amount to a minimum is the offshore.

The concept of offshore

There are certain territories, and even whole countries that for their development are not averse to attract capital of major foreign business companies practically free. In return, they offer either full exemption from taxes, or very attractive benefits.

A company registered in the territory usually does not lead to its activities here, and exercises abroad.

The offshore zone is a kind of taxis and financial control the territory on which is registered, receives a legal status and is formally operating an overseas enterprise. At the same time, it is not freed from paying taxes in the country where actually leads its own business.

Offshore jurisdiction

Offshore jurisdiction is a country providing companies registered on its territory a legal opportunity not to pay taxes or pay them for certain benefits, as well as not report on their activities and financial condition.

At most, such jurisdictions are small island states located worldwide, the main source of filling the budget of which are state dresses from the registration of offshore companies and its annual extension.

What is an offshore company and what is its essence

Such companies are usually used to organize a trading business. Her essence we will look at the simple example of the standard purchase and sale process. If you organize imports by a conventional scheme, the input price for the imported goods will be directly dependent on the real procurement. It is natural to add various customs fees, income tax, etc.

The offshore zone avoids unnecessary costs, if you skip the goods through a company registered on its territory, specifying any convenient cost in the documents (in our case it is better understated). This will significantly reduce the amount of customs collection and income tax.

Companies are used as holding structures as well as enterprises for investment funds and accumulation of various financial resources. However, the most popular option remains familiar trade activities associated with import-export operations.

Advantages of Offshore

The main advantages of offshore companies include:

• lack of mandatory tax payments;
• the presence of certain benefits during registration;
• the highest level of confidentiality on the form of activities, the structure of the company, owners and shareholders;
• the lack of the need to submit information to state authorities on their activities and profits.

In the nineties, the benefits of free economic zones were widely used in all branches of business. Today, in connection with the tightening of control over the activities of companies, there is no longer no, but an offshore business continues to flourish. Still, because it is the most profitable and fast way to bring money abroad.

Any such company has several bank accounts with the reference of the founders, shareholders and members of their families. If necessary, all money can be unnoticed abroad within a few hours.

But this actually gives life to offshores. It's all about the lack of a single tax system in different states. So it turns out that one country loses millions of dollars due to the high tax rates, and the other due to this lives and flourishes.

How legally it is

Our legislation does not prohibit the establishment of companies abroad or become their shareholders. It is also allowed to fully participate in civil legal relations with foreign companies, provided that the legislation of the Russian Federation will not be violated.

In other words, if everything happens within the framework of Russian laws - it means everything is legally. In fact, an offshore zone or company is just a tool for gaining benefits that can be used both within the law and out of them.

Today, the international community is trying to show more close attention to the corners of the "Tax Paradise", taking appropriate measures against some jurisdictions refusing to cooperate transparently.

Features of registration

The registration procedure of the company in most free jurisdictions is quite simple, and does not even require the presence of its founders. It is enough to send your representatives (signed). They will have to contact the relevant public service with a statement of registration, as well as appoint the Director-General.

In addition, there are also special bureaus that independently establish companies without having nothing to do with its true owners.

Ready offshore business, which exists only on paper, can be bought at a price of 10 thousand US dollars.

Offshore zones of the world and their types

But let's figure it out what states are considered offshore zones. To date, there are about 50 jurisdictions in the world. All of them are divided into:

• classical offshore (with zero taxation);
• low tax zones;
• offshore with a territorial method of taxation;
• offshore, where individual activities are exempt from taxes;
• zones, where the activities of individual legal entities are exempt from taxes.

Classic option

A classical offshore zone is a territory where the company pays an annual duty, and no taxes are charged from its activity. In addition, it is not subject to audit. The list of offshore zones of the classic type includes:

Free zones with territorial taxation

Offshore economic zones with territorial taxation provide companies with the possibility of paying tax only from profits obtained from sources located on the territory of their jurisdiction. This makes it possible to attract additional investments and significantly simplifies the export process. These zones include:

• Algeria;
• Brazil;
• Bolivia;
• Hong Kong;
• Guatemala;
• Kuwait;
• Costa Rica;
• Malaysia;
• Monaco;
• Morocco;
• Nicaragua;
• Singapore;
• Paraguay;
• Uruguay, etc.

Offshore Low Taxation Areas

Taxation in offshore zones of this type is reduced to a minimum in order to stimulate the development of its own economy and attracting foreign investments. These jurisdictions include:

Jurisdiction with taxation of certain types of activities

In these areas, not all are exempt from taxes, but only some companies dealing with a certain type of business. These include:

• Anguilla;
• Bulgaria;
• Hungary;
• Denmark;
• Lithuania;
• Latvia;
• Norway;
• Slovakia;
• Poland;
• Switzerland, etc.

Offshore zones, where some legal entities are released from taxation

These jurisdictions are selectively, at their discretion may be released from taxes only separately taken legal entities. Such jurisdiction, for example, is the most famous offshore zone - Cyprus. It is here that many companies from Russia are registered and operate.

In accordance with the order of the Ministry of Finance of the Russian Federation dated November 13, 2007 No. 108 N, the list of offshore zones for Russian companies providing preferential payment of taxes includes the following territories and states:

• Andorra;
• Antigua;
• Antilles;
• Barbuda;
• Bahamas;
• Bahrain;
• HIS;
• Brunei;
• Vanuatu;
• Virgin Islands;
• Gibraltar;
• Dominica;
• Cyprus;
• Liberia;
• Liechtenstein;
• Malta;
• Marshall Islands;
• Monaco;
• Nauru;
• Nevis;
• NIUE;
• Norman Islands;
• Cook Islands;
• Palau;
• Panama;
• Samoa;
• San Marino;
• Saint Vincent;
• Grenadines;
• Saint-Kitts;
• Saint Lucia;

The black list of offshore zones of the Ministry of Finance (offshore, offshore zones) is so called a list of states and territories providing a preferential tax regime of taxation and (or) not providing for disclosure and providing information during financial operations (offshore zones) approved by the Order of the Ministry of Finance of the Russian Federation of 13.11. 2007 N 108n (see).

The word offshore happened from the English Offshore - "outside the shore", as the main offices are located on small island states.

The so-called black list of offshore zones was approved by the Order of the Ministry of Finance of the Russian Federation dated November 13, 2007 N 108n and entered into force on January 1, 2008. Interaction with companies registered in the States listed in the list in some cases entails unfavorable tax consequences for Russian taxpayers:

So, russian organization receiving dividendsIn some cases, it has the ability to apply 0% (clause 3 of article 284 of the Tax Code). But this rule does not apply if dividends are derived from the organization registered in the state from the Black List of the Ministry of Finance.

Benefits provided for PP. 11 p. 1 Art. 251 NK RF Upon receipt of the property, the Russian organization does not apply free if the transfer property is a foreign organization and the constant location of the transmitting organization included in the Black List of the Ministry of Finance of the Russian Federation.

Transactions with companies registered in the state from the Black List of the Ministry of Finance are recognized (see), which entails the right to control the prices of transactions from the tax authorities and the obligation of the taxpayer to declare such transactions (in case of exceeding the transaction amount established by the Tax Code per year) - PP . 3 p. 1 and paragraph 7 of Art. 105.14 of the Tax Code of Russia.

It should be noted that the Ministry of Finance regularly contributes to the specified list, excluding the "corrected" states or adding new offshore zones.

From January 1, 2018, a special administrative district of Hong Kong (Xiangan) is excluded (No. 16, order of the Ministry of Finance of Russia from 02.11.2017 N 175n)

From January 1, 2015, the Republic of Malta was excluded from this list (No. 23, the order of the Ministry of Finance of Russia from 02.10.2014 N 111n);

From January 1, 2013, the Republic of Cyprus (No. 15, the Order of the Ministry of Finance of Russia dated 21.08.2012 N 115n is excluded;

From March 17, 2009, the Republic of Seychelles (No. 42, Order of the Ministry of Finance of the Russian Federation of 02.02.2009 N 10N) has been added to the list.

The value of the black list of offshore

In the NK RF, the black list of offshore is mentioned in the following standards:

Controlled transactions

In transactions with companies from the states specified in the black list of offshore, a lower threshold has been established to recognize transactions controlled - 60 million rubles (paragraphs 3 of paragraph 1 of Art. 105.14, paragraph 7 of Art. 105.14 of the Tax Code of the Russian Federation). Moreover, the interdependence of individuals is not required to recognize such transactions (it is enough to achieve established clause 7 of article. 105.14 of the Tax Code of the Russian Federation of the summary threshold of 60 million rubles per calendar year) (see).

Dividends

The dividend rate of 0% does not apply if the dividend party is located in the state included in the Black List of the Ministry of Finance (PP. 1 of paragraph 3 of Art. 284 of the Tax Code of the Russian Federation).

Privacy with gratuitous property

Benefits provided for PP. 11 p. 1 Art. 251 of the Tax Code of the Russian Federation upon receipt of the property, the Russian organization does not apply for free if the transmission property organization is a foreign organization and the constant location of the transmitting organization included in the Black List of the Ministry of Finance of the Russian Federation.

Controlled foreign companies

If a Russian person owns directly or indirectly by the company from the Black List of the Ministry of Finance, then such a person, in most cases, is recognized as a controlled person, and a company from a foreign state. So the profit of the controlled foreign company is exempt from taxation if its constant location is the state (territory), with which there is an international treaty of the Russian Federation on taxation issues, with the exception of States (territories) that do not exchange information for the purposes of taxation with the Russian Federation, and the effective rate Taxation of income (profits) for this foreign organization, determined by the results of the period, for which, in accordance with the personal law of such an organization, financial reporting for the fiscal year is drawn up at least 75 percent of the weighted average tax rate on the income tax (PP. 3 p. 7, Art. 25.13 of the Tax Code of the Russian Federation). For companies from the countries of the Black List of Offshore Minfin, these requirements are usually not performed.

Other Black Offshore Lists

In addition to the black list of offshore, the Ministry of Finance of the Russian Federation, approved by the Order of the Ministry of Finance of the Russian Federation of November 13, 2007 No. 108n there are other similar lists compiled for other purposes.

Thus, the Federal Tax Service of Russia constitutes a list of states (territories) that does not provide information sharing for tax purposes with the Russian Federation (). Drawing up such a list provided for PP. 3 p. 7 tbsp. 25.13 of the Tax Code of the Russian Federation and, above all, applies to the purposes of determining controlling persons and.

Indication of the Bank of Russia dated 07.08.2003 N 1317-y "on the procedure for establishing by authorized banks of correspondent relations with non-resident banks registered in the States and territories providing preferential tax regime and (or) not providing for disclosure and providing information during financial transactions ( Offshore zones) "Determines the list of offshore and divides them into three categories. Depending on the category of offshore, the value of the reserve is set. The maximum reserve is established for the third category offshore.

Today, the inhabitants of our country are heard of the phrase "offshore zone". But many of him simply do not understand. And it is not surprising. After all, people who are not in any way related to business, economy or jurisprudence with the concept of "offshore zone" did not encounter. Let's try to figure out that "it is."

The offshore zone is a country or part of it, the government of which provides products to non-residents preferential conditions for entrepreneurial activities. Under non-resident companies, organizations, enterprises, companies, firms, owners of whose owners are foreign citizens. For example: the owner of the company is the representative of Russia, but the company operates in Cyprus. In other words, the company is registered in Cyprus and pays taxes from Cyprus, and not Russia. This is called an offshore zone.

The company's registration in such zones has one, but a very significant advantage: a decrease in tax rates. In some countries, you can register the company and not even pay the tax for it. In other words, the offshore zone provides its "participants" reduced taxation.

Based on this, it can be noted that the offshore zone in the economy is presented in the form of a financial center, which with amazing ease attracts foreign capital due to the provision of tax breaks.

The offshore zone is a zone of economic space aimed at registering and conducting commercial activities. Today, offshore zones are called countries or world states that provide such a privilege to foreign enterprises and companies.

As previously noted, the business in offshore zones is not just profitable, but very profitable. Low tax rates allow you to charge maximum profits. But it is worth noting that international companies operating in the offshore zone are forced to comply with all laws, as they are under the jurisdiction of another country that is included in the offshore zone.

Do not confuse the concept of offshore and offshore zone. These are different concepts in the economy. Under the first in the economy it is understood by the company operating in the offshore zone. And the second concept in the economy denotes the country where the company operates - offshore.

Registration in such an "economic" zone provides the following advantages:

1. All cash companies and assets do not fall under world currency control and currency regulation.
2. Low taxation level.
3. All assets of the company in this country are "safe."
4. The possibility of storing funds and assets in the largest and stable banks of the world. Note that this advantage is very weighty. Since major global banks are more protected from bankruptcy.
5. All information regarding the owners of the company, assets and shareholders is maintained in secret.
6. Companies are provided freedom to accounting.
7. Companies have the full right to hold any financial operations with other participants of the offshore zone.
8. Confidentiality of transactions held.

Features

Offshore zones have become popular and in demand due to their peculiarities.

List of features of offshore zones:

• Simplified and accelerated procedure for registering organizations. When registering, you will need to pay a certain contribution. In each country, the amount of "contribution" is insignificant.
• Payment of income tax and profits tax is carried out on low rates.

Advantages of offshore zones

But if for enterprises and companies, participation in such a zone is only profitable, then many people have a question, and what is the interest of the country that provides international companies such privileges. The answer is simple. Due to the reduced taxation, many international organizations seek to register a company in this zone. The income from registration is quite large, so the country only wins, improving the influx of foreign investment its internal economy. The secretarial bureau is being created for regulation and offshore management. And these are additional jobs.

Therefore, the offshore zone partially solves the problem with unemployment.

List of offshore zones

If you look at the map of the world, then it is possible to be very surprised at how geographically "scattered" countries with offshore zones. They are present at each mainland. Currently, these countries are more than 50. Annually offshore zones are expanding, complemented by new jurisdictions (in the economy, the country of offshore space is called jurisdiction).

In 2016, the most "low-level" global jurisdictions (offshore zone countries) were:

1. Scotland.
2. Great Britain.
3. Cyprus.
4. Isle Of Man.

The title of world classical jurisdictions in 2016 deserved countries such as:

1. Seychelles.
2. Mauritius.
3. Dominica.
4. Saint Kitts.
5. Nevis.
6. Anguilla.
7. British Virgin Islands.

Registration of international companies in these countries can help fully avoid taxes. Moreover, in these countries of the world it is quite legal. Classic world jurisdictions are used for various business areas. This zone can be freely engaged in both trade and consulting.

The list of offshore zones in Europe consists of:

1. Latvia.
2. Holland.
3. Switzerland.
4. Slovakia.
5. Poland.
6. UK.
7. Czech Republic.
8. Estonia.

But in Europe there are their registration rules. For example, in Estonia, world companies engaged in developing IT technologies welcome. Holland and Switzerland are more aimed at the registration of holding structures. For business in the field of tourism, agriculture, trade more profitable are the conditions provided by the Czech Republic, Slovakia and Bulgaria.

Asian are one of the largest jurisdictions. The people are called "Asian Tigers". List of Asian global jurisdictions:

1. China.
2. Singapore.

These jurisdictions are suitable for organizations that are engaged in developing and different research.

On the opening of the company in Hong Kong in this video:

List of other jurisdictions:

1. United States of America.
2. South Africa Republic.
3. Canada.
4. Islands of New Zealand.

Classification

According to the global classification, offshore zones are divided into two types:

1. In the first species, foreign companies are exempt from paying all taxes with the organization's or company's profits. In exchange for the "liberation" of the organization annually undertake to pay a fixed value.
2. In the second type, the zone provides preferential conditions for organizations. This type is called the financial center in the economy. Reducing the tax rate allows you to more successfully conduct business.

Based on this classification, it can be noted that offshore countries are divided into those who fully exempt the organization from taxes and those who only reduce tax rates.

It is worth noting that by registering the country in the offshore zones of the second type, the company will have to pay such types of taxes as:

• Inheritance tax.
• Capital gain tax.
• Corporate.
• Income.
• Tax for sale.

Choosing an offshore country, it is worth carefully learning the local legislation in the field of registration and conduct of commercial activities.

Many economists claim to register the business best in Beilize, Panama, St. Kitse or in the Seychelles or British Virgin Islands. These are countries where taxes are completely lacking. By registering the organization in these states, it will not be necessary to provide accounting reports. These states are recognized as global jurisdictions. These are the most famous, demanded republics. By registering in these states the company, in the future they will not have to worry about confidentiality. The huge advantage of these jurisdictions is a complete lack of monitoring from local government.

The most respectable global jurisdictions recognized: Scotland, Maine, United Kingdom and Hong Kong. These countries will require financial reporting. But in return, they provide very significant tax breaks in return. It should be borne in mind that local monitoring of organizations is maintained, so foreign organizations will always be "supervised" by local authorities.

According to experts, it is desirable to register their business in Estonia, Portugal, Montenegro or. These jurisdictions provide very acceptable tax rates.

In absentia, the third type of jurisdictions is also distinguished in this classification, which does not require paying taxes only from some activities. There are in mind the transactions that are carried out between the participants of the offshore zone in a certain jurisdiction. These countries of the world are the United Arab Emirates, Algeria, the Brazilian Republic, Morocco.
Black lists

As previously noted, the choice of jurisdiction should be approached very carefully and thoroughly. It is desirable to consult a tax expert before choosing a state.

In Russia, there is a notion of the "black list of jurisdictions". This list includes countries of the world, which, according to government, are not able to provide low tax rates and do not correspond to the rank of "offshore zone" on economic requirements. According to this list, it is extremely undesirable to register the company in:

• Bahrain.
• Kaikos.
• Anguily.
• Barbuda.
• Barbados.
• Aruba.
• Antigua.
• Grenada.
• Montserrat.
• Puerto Rico.
• Nevis.
• Liberia.
• Nauru.
• Samoa.
• Maldives.

According to the "black" list, it is also worth the registration on such islands as:

• Seychelles.
• Marshal.
• Alderney.
• Jersey.
• Virgin.
• Caymans.
• Netherlands.
• Virgin in the United States of America.