Tax Glossary Definition
Corporation shopping refers to the practice of businesses or individuals choosing to incorporate or register their company in a jurisdiction that offers favourable laws, especially relating to taxation, regulation, and legal protection, even if their main business operations are conducted elsewhere.The goal is often to reduce tax liability, lower compliance costs, or benefit from business-friendly rules
Incorporating in tax havens like Cayman Islands, Bermuda, Dubai, etc.
Setting up subsidiaries or shell entities in states/countries with lower corporate tax than the place of business.
Registering intellectual property in jurisdictions with favourable royalty taxation.
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