Why are so-called tax havens almost all small islands?

This is our 7 12 meeting in Lao Zhang's backyard.

First of all, to become a tax haven, there are two prerequisites:

1) is small and backward, with no resources, technology or even beautiful scenery, which makes it very difficult to develop the economy;

2) Have unique policy "privilege".

X wave, Teng x, x degree, x fox …

These local Internet companies are registered in the same place: Cayman Islands.

Just like there are more people writing about Andorra, Iceland on WeChat than Andorra, Iceland.

Similarly, multinational companies registered in the Cayman Islands have already exceeded the population of the Cayman Islands.

The difference is that one is X and the other is tax avoidance.

Take the most famous Cayman Islands as an example.

This archipelago in the Caribbean is a British crown colony. 1963 is out of Jamaica's jurisdiction. The area is only over 200 square kilometers and the population is only 60,000.

Limited by the natural and human environment, it is impossible for the Cayman Islands to develop its traditional economy.

1978, the Cayman Islands received a royal decree, which stipulated that the Cayman Islands would be exempted from taxation forever. The government will not levy any direct taxes, and the company's profits, capital gains and personal income will not be taxed.

It is easier to set up a company, just fill in the registration information, and there is no need to have an office or employees actually working here.

Moreover, in order to increase its competitiveness in offshore financial centers, the Cayman Islands has also imitated Swiss banks and set up strict confidentiality measures, which is equivalent to clearly suggesting what it can bring to enterprises.

Since then, the Cayman Islands has developed financial services and become a "tax haven".

1999, X Wave tried to go public overseas, but according to 1993, the Ministry of Information Industry of China prohibited foreign businessmen from entering information services and telecom value-added services, and could only provide technical services, so it was impossible for X Wave to go public overseas.

Therefore, X-wave Company divested its restricted business; Reorganize the rest and set up a new holding company in Cayman Islands as the main body of listing.

In this way, X Wave complies with the laws of China and the United States at the same time, forming a model of "registered in Cayman, operated in China and listed in the United States", and successfully listed on NASDAQ in 2000.

Since then, major companies have followed suit and landed on Nasdaq.

Today, the Cayman Islands is the fourth largest financial center in the world, with 1.3 million companies and 1.2 million related personnel, including more than 700 banks, more than 800 insurance companies and nearly 10,000 hedge fund institutions.

The actual resident population is 60,000, and the per capita GDP is 85,477 US dollars, nearly 600,000 RMB, far exceeding the minimum standards of developed countries.

It's all on these three small islands.

Actually, there are many brothers and sisters in the famous Cayman Islands.

Virgin Islands, Bermuda, Nauru, Seychelles …

Of course, Dublin, the capital of Ireland, is known as the "Silicon Valley of Europe", where many Internet giants such as Apple, Facebook, Twitter, ebay, Amazon, Microsoft and Google are gathered.

In order to avoid the tax burden of the United States, Apple set up a subsidiary in Ireland and transferred all intellectual property rights to Ireland. When this incident was revealed in 20 17, the offshore cash of up to $252 billion made Apple stumble in the lawsuit of the European Commission.

In the past ten years, Ireland has attracted many such multinational companies by holding high the banner of low tax rate, expanded the scale and employment of local enterprises, and became one of the fastest developing countries in Europe with the inflow of giant capital.

As a big brother, the Cayman Islands is even more exaggerated. Registered hedge funds have reached 2.3 trillion US dollars, and the accumulated asset management scale of cryptofunds has reached 20 billion US dollars.

Because of high security and low cost, these areas have become "tax havens" for enterprises all over the world. Every year, multinational companies in various countries reduce government tax revenue by at least $500-600 billion through these tax havens.

No concept? This money is higher than the GDP of Sweden, Poland and Belgium.

At the meeting of G20 finance ministers and central bank governors in early July, 20021,an announcement was issued, announcing that all the participants unanimously agreed to promote global tax reform, and the international tax framework reached a historic agreement, formally forming a two-pillar plan, which has been supported by 132 countries and jurisdictions.

The so-called double columns,

One is to redistribute part of the taxation rights of large multinational enterprises from the place of registration to the place of business and profit of the enterprise;

Second, establish the lowest corporate tax rate in the world and completely end the bottomless involution of various "tax havens".

At present, the basic standard is 15%, but for G7 countries, the minimum tax rate of 15% is still far below the national average.

According to the data of tax fund, the tax rate of G7 countries in 2020 is much higher than 15%.

However, in a short time, the dividends of these "tax havens" will still exist. This is not a problem of one country, but a problem of a large number of countries around the world.