One of the main reasons for opening a company in a country is the taxation system, however, apart from a flexible taxation, those who open companies in other states can also benefit from various incentives. In the last few years, more and more governments have understood the importance of offering incentives to those starting businesses in their countries and have begun implementing solutions which offer various advantages to the economy, as well as to the investors.
Opening a company in Germany, for example, can imply obtaining various tax subsidies for certain activities, however, the variety of incentives offered in other countries is also important.
Below, we will take a look at the most popular tax incentives for businesses offered by countries around the world.
Grants for specific investments
Research and development (R&D) is one of the fields in which many new companies invest which is why many governments have adapted their tax incentive schemes in order to include these activities on the list of industries which can benefit from grants offered for various undertakings. Those who set up innovative companies under the form of limited liability companies in Switzerland can obtain grants for investments in specific equipment, real estate purchases for developing plants and even for the registration of patents.
Tax deductions are offered in most countries in the world
Most of the countries, no matter if small or large, offer tax deductions. Some of these deductions are offered upon the payment of the corporate tax or for creating businesses in certain industries or for registering startup companies. Singapore is one of the best examples when it comes to tax deductions for startup companies. Setting up a limited liability company in Singapore which will qualify as a startup can imply corporate tax deductions for a few years.
Tax incentives obtained under double tax treaties
Starting a business in a country with many double tax treaties can imply various tax benefits, among which no withholding tax on dividend and interest payments, or tax exemptions for certain qualifying incomes. This is the case of foreign companies setting up subsidiaries through limited liability companies in Hong Kong. These can benefit from substantial tax incentives not only here, but in most countries in the world.
From exemptions to industry-related incentives, there are many tax benefits business owners can access. The list of tax incentives for businesses in countries all over the world is quite extensive and when deciding to open business, each country should be carefully verified in order to find the one to match the investors’ needs.