Tax havens are the countries where there is both a lower level of tax burden on taxpayers and also a higher degree of privacy of business people.
Profits of foreign companies (offshore companies) are taxed only negligibly, dividends of these companies are not subject to tax. Companies with leadership outside the country are generally exempt from income tax and have other tax advantages. Offshore society must comply with certain conditions: the company's activities must be limited to business activities outside the country, the holders of shares must be foreigners, and the company can not obtain finance from domestic sources. The aim is to attract foreign capital and make the country become major financial and business center.