5 Asian Tax Havens That Attract Investors From All Over

Strictly speaking, there aren’t Asian countries that are tax havens. That being said, many Asian countries have structured their regulatory and infrastructural framework attuned to the needs of the business. Many policies have come up in these countries, which offer, inter alia, concessionary tax treatments, residential permits with longer validity, and even citizenship upon investment. The idea behind these relaxations is to ease the establishment and operation of businesses beneficial to the country’s domestic economy.

The Caribbean region harbors tax havens mostly. And while these Asian countries do not have an exact regime in place, they are still preferable options for investment in one of the fastest-growing regions in the world. In this article, we shall talk about five such Asian countries investors should consider for potential investments.

1. Hong KongAn economic superstar in the region, Hong Kong has a reputation for holding and maintaining. It brims with exceptional economic activity and is among the most developed cities in the world. Over here, a business-friendly tax regime has been put into operation.
   The regime comprises no capital gains, no estate tax, no dividend tax, no sales tax, no tax on interest, or no inheritance tax. So far as real estate is concerned, any property owned will be subject to a flat 15 percent tax on the net assessable value of the property in the assessment year. Hong Kong also has Double Taxation Avoidance Treaties with several countries. You can avail of these benefits the best as a permanent resident, which can only happen upon seven years of continuous residence and payment of taxes.
2. PhilippinesThe Philippines has become a major economic power in Southeast Asia. It is new to the group of industrialized nations and has been showing progress in its manufacturing and service sectors. To streamline foreign investors’ investment experience, it has developed a territorial tax system. It maintains no capital gains tax on gains from foreign investments.
   However, a 6 percent tax is imposed on profits from stocks in domestic companies or domestic sales of real estate property. While the country maintains corporate income taxes, it does not have estate or sales taxes. It may be complicated for an individual to start a company here as the country only allows multinational corporations to establish holding companies.
3. MalaysiaAnother entry from the southeast region of the continent. Malaysia has always attracted foreigners’ attention for its tourist appeal and investment opportunities. It is a country blessed with a strong service sector and bounties of natural resources. So far as its taxation system is concerned, it maintains a territorial taxation system.
   While there is no capital gains tax, there is one exception. You must pay the tax if you sell a real estate property in the country. Aside from this, there is no wealth tax, no gift tax, and no inheritance tax. Unlike the Philippines, it does maintain a sales tax framework.
4. SingaporeOf course, one cannot do without Singapore on the list. Singapore is a city-state with a tremendously investment-friendly regime in place. It ranks among the world’s most advanced nations. Its governmental policies aligned with business necessities make it an instant hit among foreign investors. It comes with a territorial tax system and taxes only domestically sourced income.
   The country engages in no foreign exchange controls. Investors do not have to pay up dividends or capital gains tax. Inheritance won’t come at a steep price as no inheritance tax is in place. Moreover, Singapore has agreements with several countries, as a result of which double taxation can be avoided.
5. ThailandFinally, on our list is Thailand. The rapid growth of Thailand in the past few decades has been nothing short of amazement. All thanks to its investment-friendly policies, businesses are thriving in the country. Like most countries on the list, Thailand also maintains a territorial tax system. There is no wealth tax, but there may be conditions when you may end up paying capital gains tax.
   Inheritance, property, and gift tax are within the framework, but they are comparatively low. While the country does have foreign exchange regulations, they are quite relaxed. The country also has several Double Taxation Avoidance Treaties with various countries, including the United States.

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