Vanuatu Offshore Companies
The Vanuatu International Companies Act is very similar to other international business company (IBC) laws around the world. It was written in 1992 and came into force the same year.
There are a number of features which make Vanuatu an attractive place to form an offshore company. Vanuatu has zero corporate tax, both for international and domestic/resident companies. Companies are also exempt from capital and exchange controls. Accounts must be kept but don’t need to be filed, and there are no auditing requirements.
Vanuatu companies are an interesting option for those seeking a high level of privacy and ease of use.
Offshore Banking in Vanuatu
Bank secrecy has long been a target of international groups opposed to offshore tax havens. The argument goes that if governments don’t know who owns the account, they can’t effectively tax it.
Despite the fact that services such as numbered bank accounts are long gone, groups such as the Tax Justice Network continue their efforts to eliminate privacy around the world. As European nations such as Liechtenstein roll back their banking confidentiality programs, the most confidential offshore banking countries now include Vanuatu – rated as amongst the top tier in the world, (based on the amount of secrecy offered and not taking into consideration the significance of the jurisdiction).
This island chain is well-known to many of the world’s monied elite as an offshore banking jurisdiction since its 1971 offshore legislation came into effect.
While it’s still a tiny player in the offshore market, Vanuatu offers one of the highest degrees of confidentiality. The Government does not routinely collect financial information from its Citizens.
This, together with the absence of personal and corporate income taxes, estate and capital gains taxes, no exchange controls, and no reporting requirements renders Vanuatu a highly attractive banking centre.