News Americas, NEW YORK, NY, Mon. Sept. 6, 2021: The Caribbean region continues to offer political and social stability making it extremely beneficial for business. Besides stability, the region also offers a highly skilled workforce, excellent infrastructure and telecommunications, infrastructure, and tax benefits. In the US, business culture, stability, and below world average tax rates make it favorable for doing business.
Tax Implications For Business In The US
In the US, corporations are taxed differently than business structures like partnerships and LLCs. Corporations are a separate entity from their owners, and it deducts business expenses before paying tax on its profit. Thanks to the Tax Cuts and Jobs Act, since 2018, corporations in the US pay a flat tax of 21%. Enterprises can keep profits in the company for future expansion without being taxed again. This measure pushed the US business tax rate below the world average of 23.79%.
Companies in the US also pay corporate state taxes. These range between aero and 11.5%, depending on the state, resulting in an average combined tax rate of 25.8%.
Caribbean Tax Rates
To reduce their reliance on foreign countries, many Caribbean countries decided to maintain their economies by becoming tax havens or offering very low tax rates. Besides their low or non-existent tax liabilities, some of these countries also implement financial privacy laws, making them complete tax-havens.
The Cayman Islands, Panama, Bermuda, the...
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