Why Comparing Tax Rates Does Not Work
Lists of "low-tax countries" are useless for decision-making, because the burden depends on the type of income, where management sits, the owner's residence and how transactions are structured. Two companies with identical revenue in two jurisdictions can face a multiple-fold difference — often not in favour of the lower headline rate.
The Five Criteria We Compare
- Tax on your actual income stream. Not the headline rate, but a calculation for real transactions: services, goods, dividends, royalties, share sales.
- Banking acceptance. Likelihood and timeline of opening an account, currencies, and sensitivity to sanctions exposure.
- Substance requirements. Office, staff, where decisions are taken, and substance reporting.
- Annual cost. Incorporation is a small part; count licences, visas, insurance, bookkeeping, audit and renewals.
- Timelines and reversibility. How many weeks until a working account, and how expensive it is to correct the decision.
How the Options Look in Outline
UAE. Corporate tax of 9% above the threshold, 5% VAT, and free zone regimes that may allow 0% on qualifying income. High running cost, deep bank onboarding, strong access to the Gulf and Asia.
Georgia. Simple registration, 15% profit tax on distribution, small business status at 1% of turnover. The main constraint is banking and how counterparties perceive the jurisdiction.
Kazakhstan. 20% corporate tax, 12% VAT, plus the AIFC regime with exemptions for financial activities. Convenient for the EAEU and Central Asia; banking acceptance needs checking.
Türkiye. A higher corporate tax rate and VAT, but a large domestic market, affordable hiring, a manufacturing and logistics base, sector incentives including technology development zone regimes, and relatively predictable banking where activity is genuine.
The Common Mistake
A company is registered in a low-rate jurisdiction, and six months later the account is still not open, client payments do not clear, and management is in fact exercised in another country — which then claims the tax. Fixing this costs more than doing the calculation first.
Where to Start
Describe three things: where your clients are, where owners and managers live, and which currencies your payments use. That alone eliminates half the options. Then the burden is calculated and banking feasibility is tested. Rates, thresholds and regulator requirements change — verify them at the date of the decision.