Vanuatu has zero corporate tax, it also has no income tax, no capital gains tax, no estate tax, no wealth tax, no withholding tax, no gift tax and no other personal income taxes. Aside from a locally applied 12.5% VAT, there are almost no taxes at all.
With such a taxation regime in place for international companies and offshore companies incorporated in the jurisdiction, Vanuatu can rightly be considered as a “Tax Haven” – and one of the most attractive in the World from many perspectives.
Vanuatu companies will operate tax free in Vanuatu as long as their earnings are accumulated outside of the country. Vanuatu registered offshore companies and international companies are prohibited by law from undertaking business in Vanuatu either directly, or on behalf of residents of Vanuatu. In summary,
Vanuatu is a pure tax haven for the simple fact that the offshore jurisdiction has no income or corporate taxes for both residents and foreigners.
International companies and offshore, or exempt companies are simple to incorporate in Vanuatu. Company legislation allows for the formation of flexible business company structures. Offshore companies legislation in Vanuatu makes it possible for only one director and one shareholder to incorporate a company in Vanuatu. Directors can be a corporate body or a natural person.
Vanuatu provides excellent offshore banking and banking services to private individuals and corporations. Vanuatu offshore banking centre is very active with numerous banks having received licenses to provide offshore banking services. Vanuatu has a number of international bank branches and agents providing services to the public. As a ‘tax haven’, Vanuatu offshore bank accounts pay no taxes on interest earned.
Vanuatu is a beautiful remote, tax-free tropical paradise. It is known not only for its great location and climate, but also as a great place for owning and operating a business.