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“With capital mobile and economies increasingly interlinked, money will continue to move to places where costs, including taxes, are low”.
The Economist. February 24, 2007
There is no one offshore strategy to suit all occasions; needs of each individual or corporation vary to suit respective background, objectives and circumstances.
Tax related advantages invariably rank high as main motivation to pursue offshore e-commerce objectives lawfully; financial incentives can be rewarding. IT-related factors help to mobilize any onshore business offshore.
Key economic factors worth considering:
- Absence of currency controls or disclosures
- Tax-free zones
- Low to zero tax base
- Latitude to minimize tax liability
- Low operating overheads
- Business-friendly laws and regulations
- Offshore banking and investment management
- Asset protection
- Confidentiality and secrecy
- Stable socio-economic and political climate
- Access to sophisticated telecommunications
- High-speed Internet and online operations
- Locally trained qualified personnel
- Favorable demographics and economic environment
- Ease of travel
- Offshore Internet service providers
- Offshore server locations
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