20008. Telephone: (202) 588-7800.

Type of Legal Entities: Exempted Company; Ordinary Non-Resident; Ordinary

Resident; Limited Duration Company; Limited Liability Company

(LLC); Guarantee Company. Bearer shares are permitted in exempt

companies only. Many types of companies can be formed for special

purposes; a variety of partnerships and trusts. Class A and Class B bank

licenses are obtainable.

Unique Characteristics: Popular offshore banking center; f lag of convenience;

investment funds; securities and insurance companies. Home of

the Cayman Island Stock Exchange.

Taxation: A no-tax haven.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. There is a TIEA and an

MLAT.

Useful Web Site: www.gov.ky

Channel Islands—Guernsey

Affiliation: The Channel Islands are a Crown dependency of the United Kingdom.

Location: A group of islands located 40 miles north of France and 110 miles

south of Britain in the English Channel.

Capital and Largest City: St. Peter Port (Guernsey).

Government: Independent jurisdiction with their own constitution. They

were once a part of the Dutchy of Normandy.

Legal System: They maintain their own legal system based on Norman law,

but local legislation is directly influenced by English common law.

Official Language: English.

Stability: Stable.

Currency: Guernsey pound.

International Time: Ground Zero—GMT.

Country Code: 44 1534.

Embassy: British Embassy, 3100 Massachusetts Avenue, NW, Washington, DC

20008. Telephone: (202) 588-7800.

Type of Legal Entities: Exempt Company; International Business Company

(IBC); cell companies. All companies have limited liability. No bearer

shares are allowed. Shareholder identities have to be disclosed to the Financial

Services Commission. Must apply for IBC status.

Unique Characteristics: Popular for banking, trusts, investment funds, and

insurance companies. Home of the Channel Island Stock Exchange.

Taxation: Exempt companies pay a f lat nominal annual tax to be exempt

from income tax. International Business Companies pay between 0.50

percent and 2 percent tax on international profits; and 30 percent on

local-source income.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. There is a TIEA and an

MLAT.

Useful Web Sites: www.gov.gg

Channel Islands—Jersey

Affiliation: The Channel Islands are a Crown dependency of the United

Kingdom.

Location: A group of islands located 40 miles north of France and 110 miles

south of Britain in the English Channel.

Capital and Largest City: St. Helier ( Jersey).

Government: Independent jurisdiction with their own constitution. They

were once a part of the Dutchy of Normandy.

Legal System: They maintain their own legal system based on Norman law,

but local legislation is directly influenced by English common law.

Official Language: English.

Stability: Stable.

Currency: Jersey pound.

International Time: Ground Zero—GMT.

Country Code: 44 1539.

Embassy: British Embassy, 3100 Massachusetts Avenue, NW, Washington, DC

20008. Telephone: (202) 588-7800.

Type of Legal Entities: Exempt Private Company limited by shares. International

Business Company (IBC). Private and public companies

are recognized.

Unique Characteristics: Popular for fixed interest and discretionary trusts.

Not appropriate for clients who require maximum privacy. Not the most

cost-effective offshore jurisdiction.

Taxation: Exempt companies pay a f lat nominal annual tax to become exempt

from income tax. International companies can negotiate an income tax

rate between 0 and 30 percent. There is a minimum 2 percent income

tax on foreign-source income and 30 percent on local-source income.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. There is a TIEA and an MLAT.

Useful Web Site: www.gov.je

Cook Islands

Affiliation: New Zealand.

Location: This group of 15 islands is strung across the South Pacific between

Samoa to the west and French Polynesia to the east.

Capital and Largest City: Avarua (Rarotonga).

Government: Self-governing New Zealand territory under their own constitution.

Legal System: English common law.

Official Language: English. Also speak Maori.

Stability: Stable.

Currency: New Zealand dollar.

International Time: −10.5 hrs. GMT.

Country Code: 682.

Embassy: Embassy of New Zealand, 37 Observatory Circle, NW, Washington,

DC 20008. Telephone: (202) 328-4800.

Type of Legal Entities: International Business Company (IBC). Optional limited

by shares or guarantee and no liability and unlimited liability. Modern

and innovative trust legislation. Class A and Class B bank licensing.

Unique Characteristics: Special penal code for bank confidentiality. Excellent

jurisdiction for establishing an asset protection trust, like Nevis and

Belize. A very favorable tax haven with good legal and financial support.

Taxation: A no-tax haven.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. No TIEA. No MLAT.

Useful Web Sites: www.cook-islands.gov.ck

Cyprus

Affiliations: European Union; Commonwealth of Nations; North Atlantic

Treaty Organization; United Nations.

Location: In the eastern Mediterranean Sea off the coast of Turkey near the

western coast of Syria.

Capital and Largest City: Lefkosia (Nicosia).

Government: Republic.

Legal System: Predominantly based on English common law.

Official Language: Greek, Turkish. Also speak English.

Stability: There is ongoing hostility between the Turkish Cypriots and the

Greek Cypriots. The United Nations has established a UN-occupied

cease-fire zone while negotiations continue. At stake are recent European

Union economic benefits, which are an incentive to both sides, to

resolve differences.

Currency: Cyprus pound.

International Time: +2 hrs. GMT.

Country Code: 357.

Embassy: Embassy of the Republic of Cyprus, 2211 R Street, NW, Washington,

DC 20008. Telephone: (202) 462-5772.

Type of Legal Entities: Offshore Limited Company. Application must be

made to the Central Bank along with references on shareholders.

Unique Characteristics: Flag of convenience. All types of business activities

are based in Cyprus.

Taxation: The offshore company pays 10 percent tax on net profits. With proper

tax planning and an understanding of the available tax treaties, Cyprus is

a favorable low-tax jurisdiction within the European Union (EU).

Exchange Controls: Nonresident-owned companies are exempt from exchange

controls.

Treaties with the United States: There is an income tax treaty. No TIEA. No MLAT.

Useful Web Sites: www.cyprus.gov.cy

Affiliations: Arab League; Organization of Petroleum Exporting Countries;United Nations.

Location: Eastern portion of the Arabian peninsula, strategically located between

the Persian Gulf and the Gulf of Oman. Nearby countries are Saudi Arabia, Oman, and Qatar.

Capital and Largest City: Abu Dhabi (Capital); Dubai (largest).

Government: Federation formed by seven emirates known collectively as Trucial States.

Legal System: Federal court system introduced in 1971, except Dubai and Ra’s al Khaymah, which are not fully integrated into the federal court system. All emirates have secular courts to adjudicate criminal, civil, and commercial matters.

Official Language: Arabic. Also speak Persian, Hindi, Urdu. Fluent English spoken in Dubai’s business world.

Stability: Stable.

Currency: U.A.E. dirham.

International Time: +4 hrs. GMT.

Country Code: 971.

Embassy: Embassy of the United Arab Emirates, 3522 International Court,

NW, Washington, DC 20008. Telephone: (202) 243-2400.

Type of Legal Entities: There are seven types of business establishments, including

private and public companies, joint venture companies, and

various partnerships.

Taxation: No corporate income tax on profits; exempt for 15 years. No withholding taxes.

Exchange Controls: None in Dubai.

Unique Characteristics: Dubai is quickly becoming the “Hong Kong of the

Middle East.” The Dubai International Financial Center and several

other free trade zones are the hub of the offshore trade. Encourages

e-commerce through the Dubai Internet City formerly known as Dubai

Technology, Electronic Commerce, and Media Free Zone. The ruling

family are known worldwide as owners and breeders of fine Thoroughbred

racehorses. They actively support the sport with an outstanding

program of important international races within their own country.

Treaties with the United States: No MLAT.

Gibraltar

Affiliations: Overseas Territory of the United Kingdom; European Union.

Location: At the tip of the Iberian peninsula in the southernmost part of Spain at the Strait of Gibraltar. This is the narrowest point between Europe and Africa at the west end of the Mediterranean Sea.

Capital and Largest City: Gibraltar.

Government: Self -governing under its own constitution. Spain has attempted to gain sovereignty away from Britain for years without success.

Legal System: English common law.

Official Language: English. Also speak French and Spanish.

Stability: Stable.

Currency: Gibraltar pound.

International Time: +1 hr. GMT.

Country Code: 350.

Embassy: British Embassy, 3100 Massachusetts Avenue, NW, Washington, DC 20008. Telephone: (202) 588-7800.

Type of Legal Entities: Exempt company; a nonresident company; a Gibraltar 1992 company; a hybrid company. Partnerships, trusts, and foundations can also be established.

Unique Characteristics: Flag of convenience. Known for banking, insurance companies, fund management, holding companies, and trusts. An exempt company pays no taxes of any kind for 25 years.

Taxation: Qualifying exempt companies pay between 0 and 35 percent annual corporate income tax.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. No TIEA. There is an MLAT.

Useful Web Site: www.gibraltar.gov.gi

Grenada

Affiliations: Commonwealth of Nations; United Nations.

Location: In the Windward Islands of the Caribbean.

Capital and Largest City: St. George’s.

Government: Constitutional monarchy with Westminster-style Parliament.

Legal System: English common law.

Official Language: English, Also speak French patois.

Stability: Stable.

Currency: East Caribbean dollar.

International Time: −4 hrs. GMT.

Country Code: 809.

Embassy: Embassy of Grenada, 1701 New Hampshire Avenue, NW, Washington, DC 20009. Telephone: (202) 265-2561.

Type of Legal Entities: International Business Company (IBC). Offshore bank licenses.

Unique Characteristics: A no-tax haven. IBCs are exempt from taxation for 25 years. Dozens of bank licenses have been revoked over the recent years because of illegal activity.

Taxation: No tax on offshore business.

Exchange Controls: None.

Treaties with the United States: No income tax treaty. There is a TIEA and an MLAT.

Hong Kong, China

Affiliation: Special Administration Region of China.

Location: South of mainland China on the South China Sea.

Capital and Largest City: Victoria.

Government: This western-style financial center operates within the communist state of China under a policy of “one country, two systems” to preserve its economic independence in compliance with its former lease agreement with Britain which expired on July 1, 1997. This status-quo position is to remain effective for 50 years past the expiration of the lease. That remains to be seen; the Chinese have been relatively laissezfaire to date, but that could change.

Legal System: English common law.

Official Language: Chinese and English.

Stability: Stable.

Currency: Hong Kong dollar.

International Time: +8 hrs. GMT.

Country Code: 852.

Embassy: Embassy of the People’s Republic of China, 2300 Connecticut Avenue, NW, Washington, DC 20008. Telephone: (202) 328-2500.

Type of Legal Entities: Private Company Limited by Shares; partnerships and trusts.

Unique Characteristics: A T-7 tax haven. Flag of convenience. Popular for holding, insurance, and trading companies and investment funds. Major international banking center and shipping port. Strict bank secrecy laws. Home of the Hong Kong Stock Exchange. Possible expatriate haven under their Business Investment Visa. Member of the Financial Action Task Force (FATF).

Taxation: A low-tax haven. Maximum profit tax rate is 17 percent. Foreignsource profits are not taxed. On local business there are profits, salary, and property taxes. No withholding, capital gains net worth, or valueadded tax (VAT).

Exchange Controls: None.

Treaties with the United States: No income tax treaty. No TIEA. There is an MLAT.

Useful Web Site: www.gov.hk

Isle of Man

Affiliations: United Kingdom; Special EU status.

Location: Between Ireland and England in the Irish Sea.

Capital and Largest City: Douglas.

Government: Self -governed British Crown sovereign dependency.

Legal System: English common law.

Official Language: English.

Stability: Stable.

Currency: Isle of Man pound.

International Time: Ground Zero—GMT.

Country Code: 44 1624.

Embassy: British Embassy, 3100 Massachusetts Avenue, NW, Washington, DC 20008. Telephone: (202) 588-7800.

Type of Legal Entities: Limited Liability Company (LLC). Private and public companies are recognized.

Unique Characteristics: Known for their investment funds, offshore banking, Manx trusts, hybrid companies, and insurance companies. E-commerce center. Good jurisdiction for doing business within the European Union. Pressure from the EU and OECD on “harmful tax competition” and information disclosure on company accounts.

Taxation: An international company can be taxed on all or part of its income up to 35 percent. An exempt company is free of taxation on foreignsource income. Nonresidents pay no tax on a nonresident company. No capital gains, wealth, property, death, or capital transfer taxes.

Exchange Controls: None.

Treaties with the United States: There is an income tax treaty, a TIEA, and an MLAT.

Useful Web Site: www.gov.im

Affiliations: Commonwealth of Nations; United Nations; Association of Southeast Asian Nations.

Location: Malaysia.

Capital and Largest City: Kuala Lumpur.

Government: Constitutional monarchy.

Legal System: Based on English common law.

Official Language: Bahasa Melayu. Also speak English, Chinese, and Tamil.

Stability: Stable.

Currency: Malaysian Ringgit (RM).

International Time: +8 hrs. GMT.

Country Code: 60.

Embassy: Embassy of Malaysia, 3516 International court NW, Washington, DC 20008. Telephone: (202) 572-9700.

Type of Legal Entities: Offshore and foreign offshore companies.

Unique Characteristics: No bank secrecy. Confidentiality clauses are incorporated into various Acts. Encourages offshore e-commerce business.

Taxation: No foreign-source income tax on a resident company.

Exchange Controls: No exchange controls for offshore companies and their foreign business.

Treaties with the United States: No income tax treaty. No TIEA. No MLAT.

Liechtenstein

Affiliation: United Nations.

Location: This postage stamp sized enclave is situated in Western Europe and bordered by Switzerland to the west and Austria to the east.

Capital and Largest City: Vaduz.

Government: Hereditary constitutional monarchy.

Legal System: The prince of the state and the legislature pass law. Civil and criminal procedures have an Austrian influence, contract and property law a Swiss orientation, and commercial law a German base.

Official Language: German.

Stability: Stable.

Currency: Swiss Franc.

International Time: +1 hr. GMT.

Country Code: 41 75.

Embassy: No embassy in the United States.

Affiliations: North Atlantic Treaty Organization; European Union; United Nations.