Investor Glossary-tax havenInvestor Glossary-tax havenInvestor Glossary-tax havenInvestor Glossary-tax havenInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Haven

The HTML to link to this page
 

A tax haven is a territory where a person or corporation can pay no or a nominal amount of tax by simply being legally based in the tax haven, or having a subsidiary based in the tax haven.

The Organisation for Economic Co-operation and Development (i.e. OECD) lists four criteria to decide whether a jurisdiction is a tax haven:
- Nominal taxes charged, or no taxes at all, on entities based in the tax haven.
- Lack of transparency within the tax haven preventing consistent application of tax laws (e.g. non-disclosure of documentation and accounting records).
- Difficulty in exchanging information with tax authorities outside the tax haven due to laws or administrative practices.
- No requirements for substantial activity by a person, corporation or subsidiary to be based in the tax haven.

A tax haven is often portrayed as a tropical island, but some critics even consider places such as the state of Delaware to be a tax haven.



Rate this tax haven definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: required rate of return, ex-dividend, Zero Cost Collar, debt service coverage, quality assurance, class C shares, LIBOR, command economy, stock market close, per diem, VIX, reverse mortgage, 401a, current ratio, implied volatility, labor relations, stock split, deferred tax, APR, cancelled check, 1035 exchange, phantom income, deferred revenue, liquidity ratio, minority interest, in escrow, real GDP, irrevocable trust, average price per share, covered put, inflation, open position, 1031 exchange, Key Rate Duration, margin rate, EBITDA, risk management, retained earnings, 144a, wholly-owned subsidiary, FTSE, dividends payable, limit order, ex-dividend date, balance sheet, FICO score, annual return, option premium, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use