A tax haven is a country or region that offers low or no tax rates, making it an attractive place for individuals and businesses to minimize their tax liabilities. These jurisdictions often have strict privacy laws, which can help conceal the identities of account holders. Common features of tax havens include favorable tax laws, minimal reporting requirements, and a stable political environment. Many multinational corporations and wealthy individuals use tax havens to shift profits and reduce their overall tax burden. This practice can lead to significant tax revenue losses for governments in higher-tax countries, prompting discussions about tax reform and international cooperation to address tax avoidance strategies.