A skiving cutter for use in cutting an internal spur gear having a cutter body adapted to be mounted on a spindle extending from a cutter head. Cutting blades are formed thereon at a position offset from the intersection of the axis of the cutter and the axis of a work piece to be cut. Further, the contacting point between each cutting blade of the cutter and each gear tooth formed on the work piece is located within a contacting or acting region therebetween. Thus, the design value of the blade profile of the cutter may be selected to be near the lower limit of the contacting or acting region.