The benefits of international tax planning

The benefits of international tax planning are many:

With correct advice an Offshore company or a tax exempt company can afford many significant and legal tax savings throughout the world, provide you and your company with a competitive advantage, afford confidentiality/security and perhaps even save on future inheritance taxes.

Like their domestic cousins offshore/tax exempt companies are totally separate legal entities to any individual that may own them. This very simple fact allows an offshore company despite the fact that its owner(s) may live thousands of miles away to be subject to the laws and taxes of the place where it has been registered and/or managed in the case of non-resident companies. Therefore, if the jurisdiction of your choice has no corporate taxes then your company will have no tax obligations although obviously your personal tax position might be different.

The motivations for individuals and corporations to utilize offshore planning include the desire to:

  • Reduce tax
  • Protect assets
  • Manage risk
  • Maintain privacy
  • Avoid bureaucracy
  • Reduce costs
  • Enhance assets.

Going Offshore: Reasons

More broadly, the reasons for going offshore and utilizing offshore companies for tax planning and offshore business include:

  • Free remittance of profits and capital
  • Access to top-rated debt history jurisdictions
  • Access to tax treaties
  • Security of property rights
  • Accessing low cost areas
  • Banking privacy
  • Availability of offshore experts
  • Access to foreign insurance and reinsurance
  • Enhanced privacy
  • Customs and duty exemptions
  • Exchange convertibility
  • Government cooperation
  • Fair treatment
  • Territorial taxation on foreign income
  • Fewer restrictions
  • Sanctity of contracts
  • Foreign investment inducements
  • Tested legal systems
  • Higher yields and returns
  • The availability of sophisticated banking facilities
  • Reduced taxation
  • The search for political stability

Offshore Companies Applications

The principal uses of offshore companies are:

  • Trading
  • Investment
  • Holding
  • Financing
  • Professional services or consultancy
  • Patent, royalty and copyright holding
  • Ship management and yacht owning
  • Personal and corporate tax planning

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