Discussion on lawful methods to reduce corporate income tax or make it 0 possibly without changing residence

[NwWork]

Most countries tax system seems to give tax exemption for non resident companies that bring in an income into their country. In this method we will not rely on Director's tax relief allowance or personal tax benefit methods but only discuss regarding corporate structures/methods excluding direct involment of Director. Only point Director would be involved financially is on Divdends payouts.

A=home country company
B=offshore company

So what if a Director makes 2 companies one in their home country(A) and another in a country where it allows online company formation with no filling requirements((B).
And then both A&B companies setup related banks and online payment methods/gateways.
And then B will ask clients in home country to pay to this new payment method
And A will ask non home country clients to pay it.

So then both A & B would only be generating foreign income respective to the countries they are setup in.

Which should then result in 0 tax. But note that you cannot avoid/reduce dividend tax especially if your home country has one. If country in which B is setup has no dividend tax then it would be more beneficial.

This method needs further clarification from experts here with regards to lawfulness.

Also suggestions needed for which country would be suitable for B.

What are requirements for B?
No yearly filling needed at all
Online company formation possible
Online Bank account formation possible
Online Payment gateways like Stripe/Paypal etc possible
Able to determine and control when to payout dividends and how much
Possibly no or low dividend tax for non resident companies formed in country of B
Possibly no or low corporate tax for non resident companies formed in country of B(optional if this method is actually lawful and works without glitches)

Also considering ownership what strucutre would be cheapest, safest and most beneficial?
Already preset for most would be A owned by Director so we would not consider changing this structure to avoid paperwork.

Possible ways;
A owns B as only shareholder?
Director owns A & B seperately as only shareholder in both?
Setup of a trust?

Hope for your ideas and thoughts on above

 

[Sols]

Most countries tax system seems to give tax exemption for non resident companies that bring in an income into their country.

Do you have some examples?

In this method we will not rely on Director's tax relief allowance or personal tax benefit methods but only discuss regarding corporate structures/methods excluding direct involment of Director. Only point Director would be involved financially is on Divdends payouts.

A=home country company
B=offshore company

So what if a Director makes 2 companies one in their home country(A) and another in a country where it allows online company formation with no filling requirements((B).
And then both A&B companies setup related banks and online payment methods/gateways.
And then B will ask clients in home country to pay to this new payment method
And A will ask non home country clients to pay it.

So then both A & B would only be generating foreign income respective to the countries they are setup in.

Which should then result in 0 tax. But note that you cannot avoid/reduce dividend tax especially if your home country has one. If country in which B is setup has no dividend tax then it would be more beneficial.

Pointless. Won't work.

Company in B is tax resident where the directors are based.

Unless your plan is to go to jail for committing the world's most obvious tax evasion.

This method needs further clarification from experts here with regards to lawfulness.

Completely legal, but not with any of the tax savings you propose.

No yearly filling needed at all

Why would this be a requirement at all?

Hope for your ideas and thoughts on above

Adapt to reality. Don't live in a place whose tax laws aren't convenient for you.

 

[JohnnyDoe]

Adapt to reality. Don't live in a place whose tax laws aren't convenient for you.

or live in a place where tax breaks/deductions are interesting (however, be prepared to pay top $ to your tax lawyers).
You can also consider free trade zones.

 

[NwWork]

Do you have some examples?


Pointless. Won't work.

Company in B is tax resident where the directors are based.

Unless your plan is to go to jail for committing the world's most obvious tax evasion.


Completely legal, but not with any of the tax savings you propose.


Why would this be a requirement at all?


Adapt to reality. Don't live in a place whose tax laws aren't convenient for you.

Is there no structure/method as per above which is would be deemed lawful as per tax laws.
I geuss the main flaw is as you mentioned B becoming a tax resident of A due to Director being based in A. So I think there is some corporate ownership structuring including trusts which makes this legal and compliant?

 

[Marzio]

So I think there is some corporate ownership structuring including trusts which makes this legal and compliant?

You already received some wise suggestions about either adapting to reality or move your tax residency, why are you still looking for creative and expensive ways to commit tax evasion?

It's really simple: if you don't like the taxation of your country then leave.

If you can't leave then pay taxes in your home country.

 

[Sols]

Is there no structure/method as per above which is would be deemed lawful as per tax laws.

None that yield any tax savings.

I geuss the main flaw is as you mentioned B becoming a tax resident of A due to Director being based in A. So I think there is some corporate ownership structuring including trusts which makes this legal and compliant?

None that would hold up if questioned.