CRS - AEOI - FACTA exchange informations to Malta

Osleak

Active Member
in the event that one Person is Resident in Malta as NON-DOM, what is the best offshore jurisdiction for company and bank account to hide the directorship and the owned of the company to Malta?

it would be great if the offshre jurisdiction assure also good asset safety and obviously must be not shared automatic informations by CRS AEOI FACTA etc...

the company could be used to invoice services to grow the liabilities of the EU trading companies.... have you some advice?

i read some options Belize, Panama, Seychelles, Nevis, Saint Vincent and other places aswell, there are some offshore solutions in EUROPE with the feature described above?
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
what is the best offshore jurisdiction for company and bank account to hide the directorship and the owned of the company to Malta?
Hide for what purpose?

it would be great if the offshre jurisdiction assure also good asset safety and obviously must be not shared automatic informations by CRS AEOI FACTA etc...
You really think there might be such a place that meets all those criteria?

the company could be used to invoice services to grow the liabilities of the EU trading companies.... have you some advice?
Are you trying to get around EU BEPS legislation? Explain more please.

i read some options Belize, Panama, Seychelles, Nevis, Saint Vincent and other places aswell, there are some offshore solutions in EUROPE with the feature described above?
None of those have or do any in EU.
 

Osleak

Active Member
“Hide for what purpose?”

Mainly i need it for asset protection bank account in my case



“You really think there might be such a place that meets all those criteria?”

I don’t know i’m asking


“Are you trying to get around EU BEPS legislation? Explain more please.”

No actually with my trading company i’m ok for taxation, it’s not necessary

I just need to know if i open offshore company and bank account without nominee Malta will get informations always about this or there are country that will not sharing anything?[/QUOTE]
 

Marc Jacob

New member
In addition to that, what do you want to invoice ? and where do you want to invoice ? - If you can't answer to the first question and want to invoice west companies for the 2nd one, i strongly advise you to visit a qualified consultant.
 

Osleak

Active Member
Btw thanks Martin for your answer, but i’ve one question for NON dom residence scheme there are problems if i’m director of company abroad? Because a lot of people here are director of offshore companies! The important is to don’t make business in Malta with company offshore and not have office and worker in malta
 

Osleak

Active Member
In addition to that, what do you want to invoice ? and where do you want to invoice ? - If you can't answer to the first question and want to invoice west companies for the 2nd one, i strongly advise you to visit a qualified consultant.
yes this is what i’m look For qualifies consultant are here some one?
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
Mainly i need it for asset protection bank account in my case
Rule number one with asset protection - security via obscurity does not work.

I don’t know i’m asking
There are none that meet all the criteria you are looking for.

I just need to know if i open offshore company and bank account without nominee Malta will get informations always about this or there are country that will not sharing anything?
It does not matter if Malta gets the information. As a non-dom in Malta you will still need to pay a minimum of 5000 euros if you earn more than 35,000 a year outside Malta that was not remitted to Malta - Page 1 question 4 of tax form. So just declare all be careful of CFC rules and move on.

but i’ve one question for NON dom residence scheme there are problems if i’m director of company abroad?
Yes.....CFC rules apply unless you get advance ruling from taxman which is highly recommended. A lot has changed in 2019 in Malta that accountants may not be up to speed with.
 

Osleak

Active Member
Rule number one with asset protection - security via obscurity does not work.



There are none that meet all the criteria you are looking for.



It does not matter if Malta gets the information. As a non-dom in Malta you will still need to pay a minimum of 5000 euros if you earn more than 35,000 a year outside Malta that was not remitted to Malta - Page 1 question 4 of tax form. So just declare all be careful of CFC rules and move on.



Yes.....CFC rules apply unless you get advance ruling from taxman which is highly recommended. A lot has changed in 2019 in Malta that accountants may not be up to speed with.
Yes i’ve heard about flat tax 5k for non dom thant earn more than 35k annually arising abroad, my question is if i’m director of ltd uk company resident in Malta as non dom, without payslip (it shouldn’t be obligatory) so earning less than 35k, malta will get this info from uk? And malta could ask for tax the uk ltd in Malta also if i don’t make business from ltd uk to malta, i’ve no office of the uk ltd in malta and I don’t make nothing unless invoices by pc?
 

Osleak

Active Member
I’ve read the malta CFC rules and i found this:

The CFC rule shall not apply in relation to an entity or permanent establishment:
  1. with accounting profits of no more than seven hundred and fifty thousand euro (€750,000), and non-trading income of no more than seventy-five thousand euro (€75,000);
It means that foreign company controlled by director resident in Malta with porfits less than 750k is not taxable in Malta?
 

Sols

Entrepreneur
From what I've seen spending a lot of time in Malta, most people use BVI, UAE, and some Curaçao (mostly for igaming-related people, all using the same lawfirm). Nominees are also common to avoid public disclosure.

Malta has a fantastic tax system if legitimately structured. Don't waste your time with Malta if you want to hide your income from the tax man. He doesn't want much anyway in Malta.
 

Osleak

Active Member
From what I've seen spending a lot of time in Malta, most people use BVI, UAE, and some Curaçao (mostly for igaming-related people, all using the same lawfirm). Nominees are also common to avoid public disclosure.

Malta has a fantastic tax system if legitimately structured. Don't waste your time with Malta if you want to hide your income from the tax man. He doesn't want much anyway in Malta.
Thanks for your advice!

Yes i’m resident In Malta as non dom.

When you wrote mostly of people use BVI and UAE you mean to hold the Maltese trading ltd to get 6/7 refund?

In my case my accountant choose dormant UK Ltd it could be a problem for CFC rule?

What lawfirm you are talking about there are a lot here in Malta
 

Sols

Entrepreneur
When you wrote mostly of people use BVI and UAE you mean to hold the Maltese trading ltd to get 6/7 refund?
Correct.

In my case my accountant choose dormant UK Ltd it could be a problem for CFC rule?
UK is still very popular but of course not very private. Most people I know who use UK companies do not treat the UK company as dormant. There is no corporate tax on the tax rebate and no tax on dividends being paid out, so I haven't seen any reason to lie and call it a dormant company.

I can't comment on the CFC rule specifically. It's better if you discuss that with a lawyer who looks at the entire picture and all the details that may affect a CFC ruling.

What lawfirm you are talking about there are a lot here in Malta
I was referring to Curaçao there. It's HBM Group, which is also called E-Management in Malta.
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
I can't comment on the CFC rule specifically. It's better if you discuss that with a lawyer who looks at the entire picture and all the details that may affect a CFC ruling.
Best advice here. Get a legit Malta tax advisor or advance tax ruling from taxman.

In my case my accountant choose dormant UK Ltd it could be a problem for CFC rule?
lol..Malta has anti-abuse rules where the Commissioner for Revenue can disregard for tax purposes any artificial or fictitious scheme that reduces the amount of tax payable and can nullify any scheme and assess you for full tax owed. So if you feel confident standing in front of the Commissioner with a dummy UK holding company that is dormant with no bank account and dividends paid into your personal account cause your accountant said its ok then good luck.

I can see that conversation with Commissioner - "And Sir where is the company managed from? And you are the director and your resident in Malta? And the company has no operational office in UK? And the companies current status is dormant? Can we see the UK companies accountants Sir? Never mind we will do a DTA request to UK to establish its place of PE of the dormant UK holding company"....lol:p

No seriously every Malta accountant tells non-dom clients to do it the way you describe. They even told me when I lived there to do it that way but use an Ireland company. I never asked why Ireland but I think it was because they get higher commission than a UK company. However I refused the setup as although I was told its totally legit and new people who did it that way it just didn't sit well with me.
 

Osleak

Active Member
Best advice here. Get a legit Malta tax advisor or advance tax ruling from taxman.



lol..Malta has anti-abuse rules where the Commissioner for Revenue can disregard for tax purposes any artificial or fictitious scheme that reduces the amount of tax payable and can nullify any scheme and assess you for full tax owed. So if you feel confident standing in front of the Commissioner with a dummy UK holding company that is dormant with no bank account and dividends paid into your personal account cause your accountant said its ok then good luck.

I can see that conversation with Commissioner - "And Sir where is the company managed from? And you are the director and your resident in Malta? And the company has no operational office in UK? And the companies current status is dormant? Can we see the UK companies accountants Sir? Never mind we will do a DTA request to UK to establish its place of PE of the dormant UK holding company"....lol:p

No seriously every Malta accountant tells non-dom clients to do it the way you describe. They even told me when I lived there to do it that way but use an Ireland company. I never asked why Ireland but I think it was because they get higher commission than a UK company. However I refused the setup as although I was told its totally legit and new people who did it that way it just didn't sit well with me.
I’m in Malta from 2 years and half, i’ve just checked from company house the ltd holdig and it’s active status, but without bank, i’m the director of it.

For the tax statement 2017 my accountant have requested the 6/7 tax refund to be sent to the malta ltd trading company directly, i’ve paid taxes and get the refund in 10 days about... this on November 2018 about.... i think that if it was not legal for the commission they would not approve the refund ... it’s no correct?
 

Osleak

Active Member
Just to share what say the law about CFC in Malta (controlled foreign company):

ATAD 1 december 2018

CFC rules
An entity will be considered as a CFC where it is subject to more than 50% control by a parent company that is tax resident in Malta and its associated enterprises and the tax paid on its profit is less than half the tax that would have been paid had the income been subject to tax in Malta. Through the application of the CFC rules, the parent entity will be taxable on the CFC’s profits, even if the CFC does not distribute profits to its shareholder.
However, this measure will not apply to:
(a) CFCs with accounting profits of not more than EUR750,000 and non-trading income of not more than EUR75,000; or
(b) CFCs whose accounting profits amounting to not more than 10% of its operating costs.
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
i think that if it was not legal for the commission they would not approve the refund ... it’s no correct?
Not legal in Malta....you need to live there longer. It is the wild west of the med where anything goes as there is simply not the resources on such a small island to look into anything properly...lol.
 

Osleak

Active Member
Not legal in Malta....you need to live there longer. It is the wild west of the med where anything goes as there is simply not the resources on such a small island to look into anything properly...lol.
Have you read the CFC rules of Malta of the last ATAD?

About refund 6/7 i’ll contact on Monday one of the best law firm in malta csb and i’ll ask them how must be the structure of ltd malta with holding... but 90% is like i’ve wrote above and as you heard from the accountants in Malta...
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
Have you read the CFC rules of Malta of the last ATAD?
Yes. Search my posts on forum where we discussed it last year. I get regular updates on all tax changes globally that interest me hence why I explained the new 5k minimum that came into Malta for 2019 ;).

About refund 6/7 i’ll contact on Monday one of the best law firm in malta csb and i’ll ask them how must be the structure of ltd malta with holding... but 90% is like i’ve wrote above and as you heard from the accountants in Malta...
I suppose written legal opinion would be welcome. We already know its legally used in Malta daily with no problems however. Personally it just does not sit well with me this artificial structure.
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
i’ve just checked from company house the ltd holdig and it’s active status, but without bank, i’m the director of it.
With EU Parent subsidiary directive there is no tax owed for dividends from Malta company to UK company but do you file accounts for it?
 
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