cryptohunter
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Common offshore tax structures used by companies include:
- International Business Companies (IBCs): IBCs are companies incorporated in offshore tax jurisdictions and are commonly used for tax planning purposes.
- Holding companies: Holding companies are used to hold and manage assets, such as stocks, bonds, and real estate, in a tax-efficient manner.
- Trusts: Offshore trusts can be used to manage and protect assets and minimize tax liability.
- Tax haven subsidiaries: Companies can incorporate subsidiaries in offshore tax havens to take advantage of lower tax rates and favorable tax laws.
- Special Purpose Vehicles (SPVs): SPVs are offshore companies set up for a specific purpose, such as financing or asset holding, and are often used in complex financial transactions.
- Double Taxation Treaties (DTTs): DTTs are agreements between countries to avoid double taxation of the same income. Companies can use DTTs to minimize their tax liability by directing income to a country with a more favorable tax treaty.