Ho to do tax planning if you dont have to pay tax in your offshore countr ?

[bogart]

Is there anyone that can explain why I have to do TAX planning if I don't have to pay tax in the country where I have my offshore company ?


I read some post here where it clearly says you don't have to pay tax.

 

[clemens]

Because in some cases you will need to pay tax, for instant if your company is in Cyprus and you are selling to some other company in the same country, you will need to pay tax. Also don't forget that you will need to pay tax in the country you are resident.


Now you already have 2 reasons for why!

 

[Zordani]

You still have to pay taxes, only taxes are smaller in Cyprus, that's all. Do your research before setting an off-shore up, it might be easier to remain in your country.

 

[gwenpinay]

the logic of tax planning


Offshore companies and accounts are the result of tax planning. You want to pay the least taxes, ergo, you look for ways to reduce your taxes. That is where offshore companies and accounts come into play. Perhaps this is clearer if you remember that you don't only get taxed by one taxing authority. You are subject to taxes in all places whose tax laws say you are subject to their taxing authority. I hope this helps.

 

[Stabilo]

Tax rates

Because in some cases you will need to pay tax, for instant if your company is in Cyprus and you are selling to some other company in the same country, you will need to pay tax. Also don't forget that you will need to pay tax in the country you are resident.
Now you already have 2 reasons for why!

So if I register a Cyprus IBC and remain in the UK would I have to pay Cypriot tax (up to 10%) and UK Corporation tax (up to 30%)?


Can someone please advise how I would set up an existing or new business (technically operating in the UK) and just pay up to 10% Cypriot tax.


Regards


Paul

 

[SysOp]

As you describe it above yes you will have to pay tax, but the way I did it, then I don’t have to pay tax.


Since I used a nominee director and shareholder which both are foreigners and that makes my company to have the status of an IBC ( International business company)


It depends on the country where you live in if it is of any benefit that you enter into the company as a Director, since for instant (you are from the UK) if you live in the UK the authorities will quickly get


informed that you are a Director of this company, so you should not do that.


Hope it helps for clarification else reply.