Some countries and regions (such as the British Virgin Islands (BVI), Samoa, Cayman, Seychelles, Bahamas, etc.) have particularly simple tax system, in order to attract different investors from all over the world to set up offshore companies. These companies basically do not entitle to any tax liability except annual license fee. The revenues and profits received are usually exempt from tax or at a very low rates (eg 1%), and estate duty is exempted from some countries. Tax and revenue can be easily and properly arranged as some offshore countries have policies for tax reduction or tax-free, which the cost can be greatly reduced. Also, offshore companies have great degree of confidentiality regarding to shareholders' or directors' information, shareholding percentage, and revenue and profit status, etc.