May 31, 2023

Strictly speaking, Asian countries are not considered tax havens, but many have designed their regulations and infrastructure to accommodate business needs. These countries offer tax incentives, longer residential permits, and even citizenship through investment, aiming to facilitate the establishment and operation of businesses that benefit the domestic economy. While the Caribbean region is known for tax havens, several Asian countries are attractive options for investment due to their favorable business environments. Here, we highlight five Asian countries that investors should consider.

  1. Hong Kong: As an economic powerhouse, Hong Kong boasts a business-friendly tax regime with no capital gains, estate, dividend, sales, interest, or inheritance tax. Real estate is subject to a flat 15 percent tax. Permanent residency and tax payment are required to enjoy these benefits fully.
  2. Philippines: Emerging as a major economic player in Southeast Asia, the Philippines has a territorial tax system and exempts capital gains from foreign investments. However, a 6 percent tax applies to profits from domestic stocks or real estate sales. Starting a company as an individual can be complex, as only multinational corporations can establish holding companies.
  3. Malaysia: Known for its tourism appeal and investment opportunities, Malaysia operates under a territorial tax system. It does not levy capital gains, wealth, gift, or inheritance taxes, except for real estate sales. Sales tax is in place, unlike in the Philippines.
  4. Singapore: Renowned for its investment-friendly policies, Singapore ranks among the world’s most advanced nations. It adopts a territorial tax system, taxing only domestically sourced income. Singapore imposes no dividends, capital gains, or inheritance tax. It has agreements with various countries to avoid double taxation.
  5. Thailand: Thailand’s remarkable growth and business-friendly policies have made it a thriving destination for investment. With a territorial tax system, Thailand does not have a wealth tax but may levy capital gains tax under certain conditions. Inheritance, property, and gift taxes exist but are relatively low. Foreign exchange regulations are relaxed, and Double Taxation Avoidance Treaties are in place with multiple countries, including the United States.

Source: CEO World Magazine
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