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How to make offshore money tax-compliant?

You can simply file all the income from the Seychelles company locally in your country and pay the tax. Depending on how aggressive your tax auth. are they will require audited accounts for the Seychelles company in an effort to avoid any hidden money to stay there on "hidden" accounts. You may also consider to incorporate your Seychelles company as an branch in your local country, that's possible and you will if successfully done, avoid any complications with the local tax auth.
 
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Are these two options legal?


1. Keep all the money, in Seychelles. This way I don't have to pay taxes in my country and won't get into trouble.


2. Open a different company in my country (lets call it company x) and work for "my" Seychelles company. I would get paid an amount of money (not all) from Seychelles > to company x and pay taxes on that small amount. The rest of the money would stay in Seychelles.


Another question: why would I want to file all the income locally? Where is there the advantage? Wouldn't the tax be the same as if I would have registered the company locally?
 
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Hi Manager,


My first suggestion would be to have a confidential discussion with a tax advisor in your own country! Secondly, consider the following two questions:


1) Does your offshore business conduct business onshore?


2) Have you clearly defined your relationship with the offshore business? i.e. can it be interpreted that you personally generate revenue from this offshore enterprise.


A key benefit of speaking with a tax advisor is that they can be held accountable for erroneous tax advice. So ensure that your advice is written. You might be exposing yourself to some serious tax liabilities by just guessing and any guidance that you receive in this forum cannot indemnify you in the event that your are non-tax compliant.
 
Thanks guys. The suggestions really help me. I am still in the process in finding a competent tax advisor who I can have a confidential discussion with. However I am affraid that they don't really know how offshore companies works that's why I also need your opinions.


1. No my offshore business does not conduct business onshore


2. I don't know. I do have nominee director.


Is there any other advice you can give me?


Q1: All I want is to spend the money (or some of it) onshore legally. I guess I have to pay taxes onshore then.


Q2: "incorporate your Seychelles company as an branch in your local country" - What benefits would that bring me?
 
Hi Manager,


In response to your first question if the offshore company makes purchases onshore, this does not necessarily create tax obligations for you personally! This is the reason that I suggested speaking with a registered tax advisor that is familiar with your domicile tax laws. Your offshore strategy should be to create as much of a legal separation between you and the company. For example, as a shareholder, should the company pay dividends on your shares, then this most likely will be taxable personal revenue if your country has a global taxation on its citizens such as in the case of all US citizens. Dare I suggest that if you conduct transactions on behalf of the offshore company onshore; this might be considered differently. doublethumbsup


I believe that Admin was speaking from the perspective of creating a "zero" tax liability solution. My understanding of his comments would be to form a Seychelles company and operate it onshore. However, this would effectively negate any transparency/ confidentiality in the solution and in my opinion would make the exercise of forming a company offshore a counterproductive one.


People incorporate offshore for two main reasons, namely tax management/ minimization and confidentiality. It appears that you are searching for both in a tax compliant manner, which is achievable!
 
I set up a Seychelles holding company that owned a Cyprus company, transferring the money inbetween the two companie was not taxed and no one ver asked any questions :) The income from the Cyprus company I transfered to the Seychelles company from where I transfered to another country for finally to withdraw the money with my anonymous debt card doublethumbsup Any questions, don't ask me here but send a PM:da:
 
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manager said:
thanks pontiac. Unfortunately I cannot PM anybody. I'd like to talk to you :)
Please use this thread to report any problem.. /forum/f24/if-you-cant-make-pm-private-message-please-read-17854/#post30910 so we may have a chance to look into it ;)
 
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pontiacG8 said:
I set up a Seychelles holding company that owned a Cyprus company, transferring the money inbetween the two companie was not taxed and no one ver asked any questions :) The income from the Cyprus company I transfered to the Seychelles company from where I transfered to another country for finally to withdraw the money with my anonymous debt card doublethumbsup Any questions, don't ask me here but send a PM:da:
money in money out isn't it quickest way for troubles with banks which can accuse you in money laundering??? Depends though how much money you are transferring such way and within what time frames....
 
jaystefan said:
money in money out isn't it quickest way for troubles with banks which can accuse you in money laundering??? Depends though how much money you are transferring such way and within what time frames....
I think you can speak of money laundering when there is money which was not taxed already or which has an unknown source. Your company is registered and you "pay some tax" every year so why would they accuse you of money laundering? They can ask you for documents, but that's ok. This is why you register an offshore company in the first place.
 
Hey manager,


Were you successful? I tend to agree with Coala's suggestion. It is a simple way of declaring personal income. I would go a step further and suggest the use of nominee services to create a distinct separation in mind and management.