The practice of setting up a shell company to reduce the tax burden usually involves taking advantage of differences in international tax treaties and tax systems. This strategy is more common in some countries or regions because they offer low tax rates or favorable tax systems. The following are some places that are considered favorable for setting up a shell company: 1. **Cayman Islands**: No direct taxes such as corporate income tax, capital gains tax or personal income tax. 2. **British Virgin Islands**: No corporate or personal income tax, and relatively simple to manage and set up a company. 3. **Bermuda**: No corporate income tax and value-added tax, but there are some local taxes and fees. 4. **Cyprus**: Low corporate income tax rate and an extensive network of tax treaties. 5. **Luxembourg**: Flexible corporate structure and favorable tax policies. 6. **Singapore**: Relatively low tax rates and effective tax relief policies. 7. **Malta**: Provides a favorable tax system for foreign companies, especially on dividend tax and specific profits. 8. **Ireland**: Known for its low corporate income tax rate and tax incentives for technology companies. 9. **Hong Kong**: Low tax rates, no capital gains tax and withholding tax. However, with the global concern about tax avoidance, more and more countries and regions have begun to strengthen tax transparency and legal supervision. Therefore, the use of shell companies for tax avoidance requires careful consideration of legal compliance. At the same time, international organizations such as the Organization for Economic Cooperation and Development (OECD) are also promoting measures including CRS (Common Reporting Standard) to combat opaque and illegal tax avoidance. In the face of the ever-changing international tax environment, it is recommended to consult a professional tax advisor before making a decision.