US Tax Reform: Boost to Hawaii in Japanese Charm Offensive
Hawaii’s appeal to prospective captive owners in Japan is expected to be enhanced by the reduction in the United States’ corporation tax.
President Donald Trump’s extensive tax reform included the headline slash in corporation tax from 35% to 21% and Matthew Takamine, chief operating officer of Beecher Carlson’s captive practice, said the new rate should further encourage Japanese corporations to consider domiciling in Hawaii.
The jurisdiction is already home to 25 Japanese captives and in 2017 approximately one third of new formations came from Japan.
“Given the reduction in tax rates, which are just above the Japanese tax haven threshold, I believe we will see a significant increase in Japanese companies forming captives in the US,” Takamine, also chair of the Hawaii Captive Insurance Council for 2017, told Captive Review.
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