2020's Best Low-Tax Countries in Asia

2020 has brought a number of shakeups to the global stage. The coronavirus pandemic has completely changed the face of banking for people everywhere. Domestic economies and financial systems are shaky at best, leaving many to wonder what to do next. It’s quite common for people to turn to offshore investments when they want to diversify their wealth management strategy, and now is no exception. 2020 has brought changes for the offshore banking world, too, though.

The offshore banking world has turned its eyes to Asia, which offers plentiful fast growing countries with offshore potential. Asia had a long running offshore jurisdiction in Hong Kong, but that jurisdiction saw major changes this year with new security legislation yielding privacy issues there. Now, an exodus of investors are leaving the area to find new jurisdictions.

So, now we can see that there are people everywhere looking at Asian offshore jurisdictions in an attempt to protect their assets, and one of the biggest, most reputable jurisdictions is all of a sudden off the table. Now what?

The good news is that there are other Asian offshore jurisdictions, but the key is finding a safe economy in which to invest. Another key component to finding the right Asian offshore jurisdiction rests in finding a low-tax area. In this article, we are going to outline five low-tax countries in Asia in 2020.

1. Malaysia

When discussing low-tax, safe offshore jurisdictions in Asia, we can’t miss Malaysia. This country offers a strong economy and legal system that can be trusted. A non-citizen investment visa is available, which lends to new opportunities in investments. Malaysia boasts a 3% tax rate for corporations or a fixed sum of $6500. This brings a world of benefits to corporations looking for offshore perks. If you’re looking for a low-tax, trusted Asian jurisdiction, definitely take a look at Malaysia.

2. Vietnam

Vietnam is catching attention as a safe and low-tax Asian offshore jurisdiction. Particularly, tech companies stand to benefit from low software development costs offered by IT pros here, and labor costs are more affordable overall than other Asian countries. Vietnam offers a stable economy and beneficial geography that yields better weather conditions than other parts of Asia. With a stable economy that’s quickly growing and an attractive 20% individual tax rate, Vietnam holds promise as an Asian offshore jurisdiction.

3. Singapore

Singapore has long been on the radars of those interested in wealth management strategies. It offers access to global markets, a stable legal framework and economy, and attractive tax rates that come in at a flat 17% for corporations. As a financial hub, Singapore is one of the finest, thanks to its excellent banking system. Offshore banking has only grown in Singapore in recent years, and it is widely considered one of the most preferred offshore wealth centers ahead of Hong Kong and even Switzerland. In terms of stable, safe, and tax-beneficial offshore hubs in Asia, you can’t go wrong with Singapore.

4. The Philippines

The Philippines has not always been considered a tax haven, but it does boast a 15% individual tax rate and a tax range that maxes out at 35%. The country’s economy is growing, with an annual GDP growth rate of around 6.7%. The Philippines isn’t just attracting attention as an offshore hub for banking; it’s also being used as a business processing outsourcing sector. Many companies are outsourcing various projects to professionals based in the Philippines because it’s simply more economical and the Philippines has a large volume of English speakers.

5. Thailand

Thailand offers a number of benefits for anyone seeking an offshore jurisdiction, including a standard 20% tax rate and a safe, stable economy. For companies setting up shop, benefits can include holding assets, access to grants and capital, a great legal framework that works with businesses, and much more. Whether you’re looking for an offshore hub for an individual or corporation, Thailand offers one of the safest, most tax-beneficial options you’ll find across Asia.

Takeaway

In today’s quickly changing environment, it’s important to always remain prudent in your business decisions. Regulation and laws are frequently changing. Tax rates can change, too.

Ahead of choosing an offshore jurisdiction, take time to learn about existing and upcoming legislation. For instance, investors who were wary of the new security law in Hong Kong were quick to pull out of the area.

Last, but not least, always find a jurisdiction that truly serves your needs best. Not all jurisdictions are made equal, and while all of the countries on this list offer benefits, not all of these jurisdictions might be the best fit for your needs.

If you want to learn more on how to choose the right offshore jurisdictions for your assets, consult with us.