Some jurisdictions levy no taxes at all.
By forming a corporation in such a jurisdiction, we become liable to pay that jurisdiction the taxes levied against that corporation on profits earned by the corporation. Many individuals also move a large portion of their existing assets to a tax haven jurisdiction. It is essential to do things the right way. There are qualified offshore advisors which can provide excellent and legally correct financial planning for those thinking of moving offshore. They can also enjoy a greater degree of protection from monetary predators.