Offshore Company for Forex Signal Provider

[FullDISK]

You need charge VAT to all EU customers, unless these are companies with VAT Number, in theses cases you need ask for the VAT number and valid it via vies website VIES
You do not charge VAT to all customers outside of EU, in theses cases theses customers are exempt from VAT.

When you buy in EU, you are free of VAT when you provide your number VAT to the sellers.
When you buy from outside of the EU, you are free of VAT.

 

[negon]

Second that.. Usually you don't need to charge VAT before you exceed the EUR 20.000 threshold but if the company is registered for VAT you have to charge right away.

 

[ForexSignals]

You need charge VAT to all EU customers, unless these are companies with VAT Number, in theses cases you need ask for the VAT number and valid it via vies website VIES
You do not charge VAT to all customers outside of EU, in theses cases theses customers are exempt from VAT.

When you buy in EU, you are free of VAT when you provide your number VAT to the sellers.
When you buy from outside of the EU, you are free of VAT.

Thanks for your input.

Second that.. Usually you don't need to charge VAT before you exceed the EUR 20.000 threshold but if the company is registered for VAT you have to charge right away.

There is no threshold for digital goods you have to charge VAT for EU customers even if your company is located outside the EU.

"In a nutshell:

• The new rules apply to “automated digital services” – that’s anything downloadable or used online, unless it’s custom-made.
• From 1 Jan 2015, as a seller, you have to pay VAT in any EU buyer’s country, at that country’s VAT rate, even if you aren’t in the EU.
• There is no threshold: even if you sell one item for 99c, the law still applies.
• To prove where the buyer is, you need two non-contradictory pieces of information, which you need to store for 10 years.
• MOSS (Mini-One-Stop-Shop) is a system set up in each EU country, to collect the VAT and distribute it for you, so you don’t have to VAT-register in each country. Overseas users can sign up with VOES, the equivalent for non-EU-residents."

Source: Key Facts About The January 2015 EU Digital VAT Rules – EUVAT Action

Also found this about the changes in regard to the EU VAT tax system: It's happening: the EU has announced #VATMOSS reforms - WebDevLaw

 

[negon]

Okay, it's different for digital goods Anyway, I don't believe that anyone will come after you if you not comply to the rules

 

[ForexSignals]

Hi,

Question:
1. Is it true that an offshore IBC doesn't have the fiscal residence in the jurisdiction of incorporation?
2. If that is the case, the fiscal residence become the place from where the control of the company take place?

Thanks

 

[JohnLocke]

2. If that is the case, the fiscal residence become the place from where the control of the company take place?

Typically it is so if you ask any Tax office in Europe!

 

[adoffshore]

1. Is it true that an offshore IBC doesn't have the fiscal residence in the jurisdiction of incorporation?

That's what my tax office told me, they give a s**t about where I have incorporated the company and where I have my nominees. They want hard proof that my company is managed there which I'm unable to provide! So they taxed me personally for all income

 

[ForexSignals]

That's what my tax office told me, they give a s**t about where I have incorporated the company and where I have my nominees. They want hard proof that my company is managed there which I'm unable to provide! So they taxed me personally for all income

Sorry to hear about it. This is my concern as well.
How about an LLP or an LP offshore entity (possibly with nominees) that has the fiscal residency in the zero tax jurisdiction, would that help?

 

[Nomad]

@ForexSignals , You mean Scotland LP + personal residence in UAE

 

[ForexSignals]

@ForexSignals , You mean Scotland LP + personal residence in UAE

No, I mean the company fiscal residency not my personal fiscal residency. I'm asking in general what choices do we have.

I have my personal fiscal residency in an EU country and as far as I know if the management and the control of the company is made from within my home country than I guess they demand to pay profit tax here. But, I'm looking for a legal way - if there is any - to own an offshore company that is taxed only in the jurisdiction of incorporation. I already have to pay 5% dividend tax to the gov if I get dividends from offshore companies which I'm comfortable paying it

 

[FullDISK]

You only will pay the tax under your divideds in your residence Country. (if no business in UK)

Eg:
- UK LLP or Scott LP (No trade or incoming in UK) 0% tax
- Your Country is Germany (eg.) you will pay the tax in Germany under Germany Laws.
- If you use offshore nominees in Belize for example, the Tax will be 0%.

 

[Nomad]

@ForexSignals, You need to live in a country with territorial taxation and prove to local tax office that you don't have any local business or local office.

As long as you live in a country which tax worldwide income, you will end up paying local tax rates (So called place of effective management issue). Else you might need to prove that business is not managed in your country of residence. i.e, business meetings at country of incorporation and 2/3 of directors resident in country of Incorporation ( You will need actual directors, not nominees)

@FullDISK, UK LLP or Belize IBC, corporate tax may be 0% in country of Incorporation. But you will be liable for tax in your country of personal residence ( specially when there is only 1 director/share holder)

 

[SoFast]

That's information what I was looking for, thanks

 

[FullDISK]

@FullDISK, UK LLP or Belize IBC, corporate tax may be 0% in country of Incorporation. But you will be liable for tax in your country of personal residence ( specially when there is only 1 director/share holder)

Of course yes, but that tax is not a "Corporate Tax" but yes "IRS"

 

[adoffshore]

As a US citizen living in the USA you are pretty much limited to almost no option. As an EU citizen you may look into darks if you want to anonymize your business setup or you let a Trustee setup and operate your offshore entities. I have tried that with a setup since I needed something "legit" costs was aprox 8,000 euro which was too much long term for me.

 

[ForexSignals]

As a US citizen living in the USA you are pretty much limited to almost no option. As an EU citizen you may look into darks if you want to anonymize your business setup or you let a Trustee setup and operate your offshore entities. I have tried that with a setup since I needed something "legit" costs was aprox 8,000 euro which was too much long term for me.

Do you think a Trustee it is feasible taking in consideration the domain of activity of my company.

 

[adoffshore]

what do you mean by domain of activity? for me it wasn't.

 

[ForexSignals]

what do you mean by domain of activity? for me it wasn't.

I mean the type of business you're going to do through your company. I'm going to provide a service so I wasn't sure if this is feasible.

 

[ForexSignals]

Quick Update,

So far I've been in discussion with different offshore consulting firms but I'm still having a hard time deciding which one to trust.

Basically one of them suggested me Vanuatu, at first I wasn't even sure what that means but later I've learned it's some "obscure" jurisdiction. So, it's a no go for me with this one.

Second one suggested me to use Giblartar, but he suggested to establish a Trust instead of the basic offshore corp. But it's a little bit expensive, the total registration fees are about GBP 5770 (so aprox $7200). This is over my budget but this guys seems knowledgeable.

Third one suggested me to go for Malta which have 5% corp tax which I'm fine with it. I either can go for Malta or if not maybe in the end I'll stay with Cyprus.

I'll keep you posted.

 

[JohnLocke]

What's the cost for a company in Malta that suit your needs? It sounds to me to be the best solution if you are sure it works the way you want in regards to taxes I mean.