IOFCs
naturally generate significant amounts of
professional work in support of the
offshore companies and trusts that are set
up. While some of this is performed by nationals
of the IOFCs (creation of employment is
evidently one of the reasons for a country
to become an IOFC), much necessarily falls
into the lap of expert foreign professionals,
and IOFCs usually make it reasonably easy
for such people to work.
Apart from
'offshore' professional activity as such,
IOFCs are also an attractive location for
professional firms offering their services
internationally. Engineering and management
consultancies are examples.
Whether connected
with tax or not, professionals in IOFCs
have many advantages. Of course they can
usually take advantage of low local tax
rates, which are often further reduced for
employees of offshore entities or offshore
partnerships; and there are often further
concessions which add up to a highly favourable
tax regime. Their services provided in high-tax
jurisdictions will of course be deductible
expenses locally, while there are usually
no withholding taxes on such payments.
The choice
of an IOFC for a professional services
company or partnership is highly dependent
on the location of their customers, and
their own existing residence. Therefore
no short-list of possible IOFCs is offered.
Click on Jurisdictions
for full descriptions of some of the most
interesting IOFCs.
