What is the rationale behind an offer of low or zero tax rates for investors?
Low (or zero) tax rates are economic stimuli that fuel multi-national companies, that are continually seeking significant tax advantages. This holds especially true for financial organizations. Many countries are not financially sound enough to set up their own successful businesses and rely on other, more affluent countries to establish branch locations in their area. This serves to stimulate the economy of the less fortunate nation while employing local citizens. In most cases, the restrictions regarding cash flow are non-existent, which maximizes profits and aids in managing the circulation of the money that the financially stronger nation has to offer.
