A more thorough explanation:

A tax haven is a place, usually a country, that has very low or no taxes on the profits made from business transactions or by people who live there.

For example, a company might set up a subsidiary in a tax haven country to avoid paying high taxes in their home country. This allows them to keep more of their profits. Another example is a wealthy individual who moves to a tax haven country to avoid paying high taxes on their income and assets.

What makes a place a tax haven is not just the low tax rate, but also the way it interacts with other tax systems. This allows people and companies to move their money to a low-tax environment, even if they have little connection to that place.

Overall, tax havens can be seen as a way for people and companies to legally avoid paying high taxes in their home country, which can have a significant impact on the global economy.