https://en.wikipedia.org/wiki/Ireland_as_a_tax_haven
Ireland has been labelled a tax haven or corporate tax haven in multiple reports, an allegation which the state rejects.[a][2] Ireland's base erosion and profit shifting (BEPS) tools give some foreign corporates § Effective tax rates of 0% to 2.5% on global profits re-routed to Ireland via their tax treaty network.[c][d] Ireland's aggregate § Effective tax rates for foreign corporates is 2.2–4.5%. Ireland's BEPS tools are the world's largest BEPS flows, exceed the entire Caribbean system, and artificially inflate the US–EU trade deficit.[4][5] Ireland's tax-free QIAIF & L–QIAIF regimes, and Section 110 SPVs, enable foreign investors to avoid Irish taxes on Irish assets, and can be combined with Irish BEPS tools to create confidential routes out of the Irish corporate tax system.[e] As these structures are OECD–whitelisted, Ireland's laws and regulations allow the use of data protection and data privacy provisions, and opt-outs from filing of public accounts, to obscure their effects. There is arguable evidence that Ireland acts as a § Captured state, fostering tax strategies.[7][8]
Ireland is on all academic "tax haven lists", including the § Leaders in tax haven research, and tax NGOs. Ireland does not meet the 1998 OECD definition of a tax haven,[9] but no OECD member, including Switzerland, ever met this definition; only Trinidad & Tobago met it in 2017.[10] Similarly, no EU–28 country is amongst the 64 listed in the 2017 EU tax haven blacklist and greylist.[11] In September 2016, Brazil became the first G20 country to "blacklist" Ireland as a tax haven.[12]
Ireland's situation is attributed to § Political compromises arising from the historical U.S. "worldwide" corporate tax system, which has made U.S. multinationals the largest users of tax havens, and BEPS tools, in the world.[f] The U.S. Tax Cuts and Jobs Act of 2017 ("TCJA"), and move to a hybrid "territorial" tax system,[g] removed the need for some of these compromises. In 2018, IP–heavy S&P500 multinationals guided similar post-TCJA effective tax rates, whether they are legally based in the U.S. A reliance on U.S. corporates (80% of Irish corporation tax, 25% of Irish labour, 25 of top 50 Irish firms, and 57% of Irish value-add), is a concern in Ireland.[j]
Ireland's weakness in attracting corporates from "territorial" tax systems (Table 1),[k] was apparent in its 2017–18 failure to attract financial services jobs due to Brexit.[l] Ireland's diversification into full tax haven tools[m] (e.g. QIAIF, L–QIAIF, and ICAV), has seen tax-law firms, and offshore magic circle firms, set up Irish offices to handle Brexit–driven tax restructuring. These tools made Ireland the world's 3rd largest Shadow Banking OFC,[26] and 5th largest Conduit OFC.[27][28]
https://www.investopedia.com/ask/answers/100115/why-luxembourg-considered-tax-haven.asp
Luxembourg has been the tax haven of choice of many corporations and mega-rich individuals around the world since the 1970s. It has thrived as a tax haven due to its political and economic stability and huge tax incentives, encouraging foreign companies to move there.
The country's small state government has provided offshore bank holders with top-notch confidentiality and asset protection for years. Luxembourg's tax system allows hundreds of U.S. corporations to store massive chunks of their business outside their home countries, which cuts billions from tax bills.
Favorable Tax Laws
Luxembourg draws the largest corporations from around the world that are seeking asylum from large corporate taxation, specifically in countries such as the United States where the corporate tax rate of 35% was once the third-highest in the world. In comparison, Luxembourg has a corporate tax rate of 21%. Although, as of 2018, that's now the maximum U.S. corporate tax rate as well, Luxembourg offers other tax advantages.
For example, Luxembourg charges foreign corporations an extremely low tax rate to send money into and out of the country. Corporations that funnel profits through Luxembourg are charged around 1%. This is a huge incentive for large corporations that have the opportunity to save billions in corporate tax bills by moving cash to Luxembourg at such low rates.
https://www.icij.org/investigations...ries-labeled-tax-havens-in-parliament-report/[/h][/h]
