Hello All
First time post here. Hope I'm following all the rules
A few weeks ago I started thinking about creating an offshore company to service my customers outside of Belgium, the country where I live, so I started to gather information about the topic.
It seems to me that one complication is the existence of CFC (Controlled Foreign Company) regulations, which allow the government of country A to tax the profits of a company in country B, if that company is "controlled" by tax residents of country A. These regulations probably create the need to use nominee directors and shareholders.
It also seems that I am extremely lucky since Belgium, where I live, is one of the few countries that does not have CFC regulations. (I read this in a paper by Deloitte called CFC Regimes Essentials)
Now I am wondering, does that mean I can just set-up a company abroad and have it pay taxes abroad without any need to hide the fact that I own it from the Belgian authorities, or is it not that simple?
(Note that I would only use this company to conduct business abroad, with foreign clients.)
If the answer to the above question is yes, why is this? Have they simply not thought about it (unlikely) or are they avoiding this type of regulation on purpose?
And last question: what is the likelihood that such regulations would be created in the (near) future?
Best regards
Hans
First time post here. Hope I'm following all the rules
A few weeks ago I started thinking about creating an offshore company to service my customers outside of Belgium, the country where I live, so I started to gather information about the topic.
It seems to me that one complication is the existence of CFC (Controlled Foreign Company) regulations, which allow the government of country A to tax the profits of a company in country B, if that company is "controlled" by tax residents of country A. These regulations probably create the need to use nominee directors and shareholders.
It also seems that I am extremely lucky since Belgium, where I live, is one of the few countries that does not have CFC regulations. (I read this in a paper by Deloitte called CFC Regimes Essentials)
Now I am wondering, does that mean I can just set-up a company abroad and have it pay taxes abroad without any need to hide the fact that I own it from the Belgian authorities, or is it not that simple?
(Note that I would only use this company to conduct business abroad, with foreign clients.)
If the answer to the above question is yes, why is this? Have they simply not thought about it (unlikely) or are they avoiding this type of regulation on purpose?
And last question: what is the likelihood that such regulations would be created in the (near) future?
Best regards
Hans
