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Vanuatu is the salvation of entrepreneurs who dream of former offshore territories. For many businessmen, this tiny state, lost in the ocean, has already become the personification of a tax haven.
About the country
The Republic of Vanuatu is a Pacific state located northeast of Australia. To the north, Vanuatu is bordered by the territorial waters of the Solomon Islands, to the east by the waters of the Republic of Fiji, to the west by the economic zone of Australia, and to the south it is in contact with the territorial waters of New Caledonia. The state lies on 83 islands of the New Hybrids archipelago and is part of Melanesia. The total land area of Vanuatu is 12,190 sq. km. The population according to estimates from 2016 is 277,554 people.
The largest city of the Republic - Port Vila - is the capital of the country, as well as its political, educational, industrial, commercial and financial center.
The history of Vanuatu dates back to 1606, then found in the Pacific Ocean, hitherto unfamiliar to mankind, the island was dubbed by Spanish sailors as the “Unknown Southern Land”, it was the island of Espiritu Santo. Three centuries later, in 1906, the islands of what is now Vanuatu came under the control of France and Britain. The status of the condominium was retained by the state until 1980, when the territory became the sovereign unitary democratic republic of Vanuatu, which means "this land forever." At the same time, the country became a member of the UN.
Economy
Vanuatu's economic growth can be characterized as uneven. The historical focus on agriculture remains in the country to this day and replenishes the state treasury by 25%, and also accounts for 75% of total exports. The main export products are vegetable raw materials: copra, timber, cocoa, palm oil, meat industry products account for a smaller share of exports. Export is regularly carried out to India, Japan, Thailand. Goods of the industrial and food segments, as well as machinery and fuel are constantly imported into the country. As a rule, Japan, Australia, Singapore serve as import suppliers.
Despite the impressive amounts of income brought to the country's budget by the agrarian industry, recently this area has been undergoing negative changes due to dependence on external factors - pests and natural disasters significantly reduce crop volumes, and, consequently, the country's income. Such a circumstance turns the eyes of the Vanuatu authorities, seeking to make up for the losses, in the direction of creating a favorable investment climate. Even during the Anglo-French rule, clauses adapted for foreign structures operating under reduced taxation began to be introduced into the legislation of Vanuatu. According to experts' forecasts, a country that has not yet signed a single agreement on the exchange of tax information, which means that it guarantees business the highest degree of data confidentiality, has every chance to attract not only Asian entrepreneurs (as it was originally planned), but also the whole world. This isolation can lead to bias from countries with a strict tax regime, but so far, the benefits offered to foreign entrepreneurs far outweigh any possible consequences.
Looking at the tax rates in Vanuatu, you can understand why this jurisdiction is gaining popularity among entrepreneurs at a breakneck pace:
- Income tax - 0%;
- Corporation tax-0%;
- Capital export tax-0%;
- Inheritance tax-0%;
- Tax on profits received in the course of exchange activities - 0%;
- VAT-0%;
- Tax under agreements on avoidance of double taxation - 0%;
- Only the sales tax will break this chain, in Vanuatu its size is 12.5%.
The above conditions apply to all companies without exception, regardless of whether it is foreign or local. Requirements for the currency in which funds must be stored and moved are not put forward by law.
An attractive feature of Vanuatu's corporate climate is the style of doing business, which largely echoes European norms. A company in the Republic of Vanuatu is extremely easy to set up and manage, although the former may be slightly more expensive than in similar jurisdictions, but the difference in the price of registering a company can be written off as “a fee for absolute and inviolable confidentiality.”