Cayman Islands (Photo/Xinhua)

The Cayman Islands, the British Virgin Islands and the island of Bermuda are all well-known around the world as a result of their reputation as tax havens.

A tax haven is a state, country or territory where certain taxes are levied at a low rate or not at all in order to attract foreign capital flow, encourage the national or regional economy, and allow foreign individuals or enterprises to invest and to undertake economic, trading and service activities in the areas.

Tax-free for decades, the Cayman Islands in the western Caribbean Sea, with only 60,000 residents, boast more than 100,000 registered companies. The islands have been assessed as the fifth world financial center.

In addition to the the Cayman Islands, the Principality of Liechtenstein, the British Virgin Islands, The Bahamas, the Seychelles, Saint Kitts and Nevis, the Channel Islands and Bermuda are all regarded as tax havens. These islands are not only famous for being tax free but also for their freedom of capital flow, convenience of registration, lower levels of supervision and high levels of information confidentiality.

The British Virgin Islands enjoy the lowest registration requirements and loosest supervision. Jersey attracts numerous European financial organizations for its loose legal systems. Bermuda is considered one of the best choices for insurance and reinsurance business. Half of top 35 insurance companies are located on Bermuda.

International anti-avoidance action is becoming increasingly powerful. Member countries reached a consensus on international anti-avoidance at the latest G20 summit. Let's wait and see what becomes of these tax havens in the future.

The article is edited and translated from《链接：那些你知道与不知道的“避税天堂”》, source: Xihuanet, author: Hou Xuejing, He Yuxin