In what represents a significant shift in U.S. corporate tax policy, the Trump administration has cleared the way for American companies to avoid paying taxes in U.S. tax havens while instead routing profits through offshore jurisdictions including Malta and Cyprus.
According to a report by the New York Times published on May 29, 2026, the policy change effectively allows U.S. corporations to structure their operations so that taxable income is redirected away from the United States and toward countries that serve as traditional tax havens. This marks a notable reversal in intent regarding offshore tax avoidance, which has been a campaign issue in recent years.
The decision carries particular significance for Southeast Asia, where several jurisdictions serve as important offshore financial centers. Malaysia, in particular, has positioned itself as a leading financial hub in the ASEAN region, with well-developed Islamic finance, wealth management, and fund administration capabilities. The country has actively courted international financial institutions and family offices in recent years as part of its broader economic strategy.
While Malta and Cyprus are explicitly named in the NYT report, the broader implications extend across multiple Southeast Asian financial centers. The region has seen growing demand for private banking and fund administration services, with firms in Singapore, Malaysia, and the Philippines expanding operations to capture cross-border wealth management flows. Any policy shift that encourages corporate tax avoidance through offshore structures could amplify these trends.
The move is expected to face scrutiny from international tax bodies and may draw further regulatory responses from other governments. The OECD’s global minimum tax framework, which aims to prevent a “race to the bottom” in corporate taxation, could face additional pressure as more U.S. companies exploit these new pathways.
For ASEAN regulators and financial compliance officers, the development signals a more permissive U.S. stance on offshore tax structures — a policy environment that could influence how regional financial centers position themselves in the global tax architecture. The timing is critical: with crypto regulation, cross-border payment frameworks, and anti-money laundering standards evolving rapidly across Southeast Asia, the region’s financial hubs will need to navigate a complex and shifting international compliance landscape.
The story underscores how U.S. tax policy decisions continue to reverberate through Southeast Asian financial markets and regulatory frameworks — even when the immediate geographic focus is on European tax havens.
Read the full story: “Trump Clears Way for Companies to Avoid Taxes in Havens Including Malta and Cyprus” — The New York Times